Page 43 - Cross-Border Magazine Nr.3

~ Third Party Logistics ~

Competitive edge Value added services
In the past, most logistics companies provided a similar package Especially for sellers importing goods into a foreign country, value
of services to the majority of their customers. However, techno- added services performed by their logistics or 3PL partner later
logical advancement has brought a new set of rules to the game. in the supply chain can improve the efficiency of their fulfilment
Nowadays, it has become almost impossible to compete effec- process. For deliveries to physical stores, these activities might in-
tively based only on basic logistic services. Brands and retailers clude re-labelling, adding a price-tag or adding anti-theft tags. For
demand an increased service level to back up their omni-channel direct-to-customer deliveries, value added services might include
business approach, and at the same time wish to satisfy their return processes, personalisation, ironing and steaming.
e-commerce clients’ demands. According to a recent report by
Metapack (1), delivery offers “incredibly effective means to dif- The 3PL company Bleckmann, situated in the Netherlands, Bel-
ferentiate from other competitors in the e-commerce landscape, gium, UK and USA, are a good example of how far these extra
a tool for boosting conversion rates and a powerful mechanism services can go. They offer a wide range of value added services
for building customer loyalty.” for their fashion and lifestyle customers:
• Barcoding
Third-party logistic providers (3PL) in particular start to • Alarm Tagging
increasingly focus on offering value added services, including • Steaming
inventory management, door-to-door delivery, packaging and • Ironing
even personalisation of products and e-commerce services. • Minor Product Repair
• Personalisation
A marketing perspective • Returned Product Re-Processing
The moment of receiving the parcel is a crucial moment for the • High Value Storage
buyer, and likewise for the brand: The packaging, condition of • Forged Product Identification and extermination
the product and way the shipment is personalised have become
important ingredients of a successful brand strategy. Research (2) “There is an increased demand for personalisation,” explains Steven
shows that the wrapping and care the retailer takes to ensure the Rymenans, director for strategy and international development at
parcel arrives in good condition increases satisfaction with one Bleckmann. “As a 3PL provider, we are the last link between the
third of e-commerce buyers. It also shows that 36% would enjoy seller and the buyer. At our facilities, we make it possible to person-
additional samples or products added to their shipment. The way alise orders, including engraving jewellery, embroidering garments,
the product is presented ‘in the box’ is thus an important part of steaming and ironing fashion items, adding gift wraps or even per-
marketing and contributes directly to customer satisfaction and sonalised wraps.” For a New-York based jewellery seller, Bleckmann
retention. Kate Vitasek, author, business consultant and faculty works with a dedicated in-house team to engrave accessories with
member in the University of Tennessee’s Graduate and Execu- the individual messages transmitted by the customer.
tive Education program, cited in a recent study (3): “When
optimising marketing, the company does its best to sell as much According to Rymenans, personalisation at a later stage in the
of their product as possible, but they don’t aways take delivery fulfilment process is one of the latest trends in e-commerce
into consideration. If marketing and operations are not commu- logistics: “Our dedicated teams are trained at the headquarters of
nicating, it becomes very functionally siloed. You can potentially the brand we are working for. They know exactly how the brand
hurt your reputation if you can’t deliver.” Value added services wishes these extra services to be done.” For the brand, there are
are consequently a great way to make the delivery process match several advantages of these value additions, including a higher
with the overall brand experience a seller wants to achieve. value perception by the customer and a decrease in returns. ••

1. Metapack, 2015: Delivering Consumer Choice // 2. ComScore/ UPS, 2015: Pulse of the Online Shopper // 3. FedEx, 2017: Improving E-Commerce Fulfill-
ment Through Business Integration

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