Why Outsourcing Value-Added Services (VAS) Can Transform Your Supply Chain

In today’s fast-paced business environment, companies are constantly looking for ways to optimize their supply chains while maintaining efficiency and cost-effectiveness. One of the smartest strategies businesses can adopt is outsourcing labor-intensive Value-Added Services (VAS) to a trusted 3PL warehousing and logistics provider.

At Logicare, we specialize in providing a range of VAS, including Packing, Kitting, Sticker Pasting, Labelling, Assembly, and reworking—tailored to meet your unique requirements. Our efficiency and credibility have earned the trust of big brands, and here’s why outsourcing these services can be a game-changer for your business.

 

1. Cost Savings & Attractive Rates

Managing an in-house team for packaging, labeling, and assembly can be costly. It requires investment in labor, training, equipment, and storage space. By outsourcing to a specialized 3PL provider, you eliminate these overhead costs and gain access to attractive rates without compromising on quality.

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Supply Chain 4.0 – The Next-Generation Digital Supply Chain

Evolution of Supply Chain Management

The field of supply chain management has always been a complex orchestration of various components, all working together to efficiently deliver products to the end customer. Historically, the primary objective of supply chain management was aligning the supply of goods and services with consumer demand. The approach was straightforward: procure raw materials, guide them through value-added stages, and ultimately deliver the finished products to customers.

Those days are long gone, as supply chains have evolved beyond national borders in recent decades, forming an intricate global web. Thanks to decreasing trade barriers and increased global integration, supply chains have gained the ability to deliver a wide array of products to consumers across the globe.

However, recent times have exposed the fragility of these expansive supply chains. Events like the far-reaching impacts of the Covid-19 pandemic, geopolitical tensions, and conflicts such as the war in Ukraine and war in Gaza have profoundly shaken the very foundations of supply chains. Furthermore, the looming threat of climate change and other global societal challenges have added another layer of complexity, creating an unprecedented challenge for companies. We can all recall the bottlenecks, widespread shortages, and even the sight of unfinished vehicles parked due to semiconductor shortages.

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Logistics Outsourcing: A Path to Business Transformation

Introduction

Companies face various challenges in today's rapidly evolving business landscape, from fluctuating demand to global disruptions. Many businesses are turning to logistics outsourcing to navigate these complexities and maintain profitability. This article explores the strategic aspects of outsourcing logistics, helping you determine if it's the right choice for your organization, how to select the right partner, and how to unlock the true value beyond cost reduction.

Why Do Companies Outsource?

Outsourcing was once merely a cost-cutting strategy for peripheral functions like IT and payroll. However, in the '90s, a transformation occurred as companies recognized the potential to outsource more strategic functions such as manufacturing, logistics, and product design. Outsourcing evolved into a critical management tool, allowing companies to focus on their core competencies.

Strategic outsourcing can help companies gain a competitive edge, reposition themselves in the marketplace, and even reshape industry dynamics. By leveraging the expertise of outsourcing partners, businesses can free up resources to focus on higher-value activities.

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Technologically driven Logicare set to lead the way in resilient supply chain solutions

The economic turmoil that occurred due to the outbreak of COVID-19, and its after-effects have exposed many vulnerabilities in supply chains and raised doubts about resilience. Business leaders have started to use this crisis to take a fresh look at their supply chain networks and logistics partners, take steps to understand their vulnerabilities, and then take actions to improve resilience. Similar to most industries, the Logistics industry too currently confronting an immense change, which creates both risks and opportunities. Although the core needs of most customers have changed very little, customer expectations are increasing significantly. Therefore, businesses have to move their goods faster, more flexibly, and with more transparency at a lower cost. As a result, the logistics companies under severe pressure to deliver better service at a lower price.

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Our experts will consult with you

We do not only provide customized storage solutions that aligns with your business, but also provide a range of other warehousing services, which includes fulfilment, returns management, packaging, specialty wrapping, transportation, logistic support, customized logistic process, supply chain management, distribution, inventory control, door-to-door transport, pick and pack operations, cross dock distribution, labelling, temperature controlled storage solutions, food grade facilities, and so on.

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