A logistics chain is all about efficiency, speed and reliability, but logistics service providers are increasingly being asked to do more than just storage and transport. Value Added Logistics (VAL) cleverly responds to this by allowing companies to add extra services to the logistics process - close to the customer, faster and more flexible. In this article, we dive into the meaning of VAL, give recognisable real-life examples and explain how it relates to value added services.
What is value added logistics?
Value Added Logistics - often abbreviated to VAL - refers to all the extra services a logistics service provider offers on top of standard storage and distribution. These include activities such as packaging, labelling, assembly or quality control. These services literally add 'value' to the product or process, without having to take place outside the logistics chain.
For many companies, VAL is a smart way to operate closer to the customer while reducing costs and lead time. Instead of first sending products to an external party for packaging or bundling promotions, for example, this can now be done directly in the warehouse or distribution centre. This makes the process more flexible and scalable - especially in sectors such as e-commerce, retail and high tech.
Value added logistics allows logistics operations to be seamlessly linked to commercial objectives. It not only increases customer satisfaction, but also strengthens the position of logistics service providers within the chain.
5 examples of value added logistics
Value Added Logistics is not an abstract concept - it is applied daily in warehouses and distribution centres all over the world. Its strength lies precisely in its practical applicability. Here are some common examples:
- Repackaging and repackaging: For example, during seasonal promotions where products are offered in special promotional packaging. This can be done directly in the warehouse, without the intervention of a separate production department.
- Labelling and stickering: Think about adding barcodes, price stickers or customised shipping labels for specific countries or customers. This saves time in the further chain and prevents errors.
- Assembling products (kitting): For example, bundling individual parts into a ready-to-use set. Often used in the electronics or automotive industry.
- Quality control or testing: A quick visual inspection or functionality test before a product goes to the end customer can prevent many returns.
- Return processing (reverse logistics): Processing and checking returns, possibly combined with refurbishing or repackaging for reuse.
These services not only make logistics processes faster and more efficient, but also enable companies to serve their customers in a more flexible and customer-oriented way. Especially in times when expectations are high and delivery times are short, this can be a decisive advantage.
Value added logistics vs. value added services (VAS)
The terms value added logistics (VAL) and value added services (VAS) are often used interchangeably. Yet there is a subtle but important difference between the two - especially relevant for managers and decision-makers who want to optimise logistics processes.
Value added logistics refers specifically to additional services that take place within the logistics process. Think labelling, packaging, assembly or return processing - all activities that are integrated in the warehouse or distribution centre. The aim: to make logistics more efficient, flexible and customer-oriented.
Value added services, on the other hand, is a broader term. They also include commercial or administrative services that are not necessarily linked to logistics operations. Think of customer service, after-sales, data analysis or managing inventory levels for the customer. So VAS can also take place outside the warehouse.
In practice, the line between VAL and VAS is sometimes blurred. For example, a service like inventory management can fall under both, depending on how and where it is performed. The important thing is to always look at the added value for both the customer and the chain when deploying these services.
For logistics service providers: by offering a good mix of VAL and VAS, you position yourself not just as a transport partner, but as a fully-fledged link in your customer's success.
The added value of VAL for logistics service providers
For logistics service providers, value added logistics offers an opportunity to distinguish themselves in an increasingly competitive market. It is no longer just about storage capacity or transport efficiency - it is about providing complete, customer-oriented solutions that contribute directly to the client's business objectives.
By offering VAL services, you increase the added value of your services on several levels:
- Customer focus: By packing, labelling or assembling products customer-specifically, you can quickly respond to unique customer wishes or changing market demand. This strengthens customer relations and increases customer satisfaction.
- Efficiency: VAL activities take place close to the distribution process. As a result, fewer links are added, leading to shorter lead times and lower error margins.
- Flexibility: In a market where speed and customisation are becoming increasingly important, VAL helps you respond quickly. Think of promotional campaigns, seasonal peaks or last-minute adjustments.
- Competitiveness: By offering VAL as an integrated service, you position your company as a strategic partner rather than as an executor. This often results in longer-term customer relationships and higher margins.
For logistics professionals - from warehouse managers to supply chain managers - using value added logistics is not a luxury, but a strategic move to increase operational efficiency, increase customer value and maintain a sustainable position in the chain in an increasingly demanding market.
