The Importance of Value Added Services in Plant Logistics

Denise List

At a Glance

Value Added Services expand traditional plant logistics to include critical value-added services. Whether it’s Pre-assembly, Picking, or Returns management—these services integrate additional processes directly into logistics and reduce the burden on production. The result: higher quality, faster processes, and greater flexibility.

Companies can respond individually to customer requirements, shorten lead times, and strengthen their competitiveness in the long term. A real-world example demonstrates how precisely coordinated processes—from Pre-assembly to Just-in-Sequence delivery—ensure smooth production workflows.

First published: November 28, 2023

Factory logistics plays a crucial role in the manufacturing industry. Efficient warehousing and materials management are essential for ensuring that production processes run smoothly. Value Added Services are a key factor that delivers significant added value in factory logistics.

What Are Value Added Services?

Value Added Services (VAS) are services designed to meet specific customer needs and integrated into the logistics process. These services go beyond mere transportation, handling, or Warehousing and range from on-demand fulfillment, inventory management, and order picking, through Kitting and delivery, to Returns management and complex pre-assembly and final assembly steps.

Companies such as MÜLLER | DIE LILA LOGISTIK offer the following Value Added Services, among others:

(Pre- and final) assembly
Development of sequence containers
Bead stringing
Filling and mixing
Assembly planning
Suppliers and Quality Management
Kitting and Set Assembly
Returns management

The Importance of Value Added Services in Plant Logistics:

Quality Improvement: VAS make it possible to integrate quality controls and inspections directly into logistics processes. This helps identify defective products early on and minimize scrap.
Meeting Customer Requirements: Many customers demand customized products or specially configured orders. VAS make it possible to meet these requirements and increase customer satisfaction.
Time Savings: By integrating Value Added Services, production processes can be accelerated because materials and products are already prepared and assembled. This shortens production times and enables faster time-to-market.
Cost efficiency: Although VAS may incur additional costs in the short term, cost savings can be expected in the long run by optimizing production processes and reducing logistics processes such as transportation.
Competitive advantage: Companies that integrate VAS into their plant logistics can set themselves apart from the competition by offering additional value and flexibility.

Value Added Services: An Example from MÜLLER | DIE LILA LOGISTIK

For a renowned automotive manufacturer in the region, MÜLLER | DIE LILA LOGISTIK provides Value Added Services that include the Pre-assembly of various engine components as well as fine-tuning order picking for the production process at the customer’s plant.

Following the Pre-assembly of engine components, picking for the production process takes place. We pick customized baskets for our customer containing the necessary components and parts for the production program at the customer’s plant. Our pickers follow a predetermined route along which the shopping cart is pulled. The picking cart is equipped with state-of-the-art technology and ensures the highest quality through “pick-by-light” systems and detailed worker guidance. Once the baskets are filled, they are delivered to our customer’s production line via shuttle transport using the Just-in-Sequence method.

This is a sensitive and crucial step in automotive production that requires perfectly coordinated processes and a high level of expertise, in addition to meeting the latest design and quality requirements.

We already offer our customers integrated plant logistics solutions today—benefit from our expertise tomorrow!

Are you interested in learning how you can optimize your Supply Chains in your plant logistics with these concepts? We’d be happy to advise you!

Über den Autor

Denise List

Head of Content & Communications

At MÜLLER | DIE LILA LOGISTIK, Denise is responsible for content and communications. She translates complex Supply Chain and logistics topics into clear, understandable content and makes the value added by logistics tangible for customers.