When a logistics company receives goods, stores them in its facilities, and then forwards them, it is performing normal warehousing. When this process deviates or handling the products requires special actions, it is called value-added services. Efforts are always made to meet non-standard needs in the best possible way, as it benefits both parties.
HUB logistics provides its customers with a wide range of warehousing services, internal logistics, and wood packaging services. All these include additional services that complement the operations and make the company’s logistics more seamless and efficient.
What are typical logistics value-added services in warehousing? HUB’s Rami Heimolinna, Jere Kortemaa, and Anssi Tura share their perspectives on these services.
Account Manager Rami Heimolinna says that HUB logistics has various types of customers at the Vantaa logistics center, and value-added services are almost always part of the service packages offered to customers.
– Services become value-added services when there are deviations from the normal operations. They always require special solutions tailored to the customer.
No single way to operate
Jere Kortemaa is the manager at HUB’s wood packaging unit in Riihimäki and the unit in Hämeenlinna, where internal logistics services are provided in a factory environment.
In Hämeenlinna, additional services in warehousing include tasks like serial number checks on behalf of the customer.
– In Hämeenlinna we operate in our customer’s facilities and perform inventory checks on finished products as a service. The products are large, and we have suitable forklifts ready, so the division of responsibility is natural, Kortemaa explains.
– In the project warehouse, a part often arrives in a finished box. Before the project proceeds, at the customer’s request, the box is opened and checked to ensure the parts are correct.
Kortemaa says that with multiple projects and customers, work is done according to each project’s needs.
– There is no single way to operate; we do what is best at the time. For example, when shipping customers’ products overseas by sea, we repackage and re-bundle them. We also stamp the packages.
From finishing to further processing
Development Director Anssi Tura defines value-added services as tasks that, from HUB logistics’ perspective, are not directly in the logistics delivery chain. Simply receiving goods, shelving them, and forwarding them later is normal warehousing. When deviations occur and customers have different requirements or needs, efforts are always made to meet them.
– Perhaps classic examples are labeling and similar additional tasks. It’s very logical to do these before the packages are sent to stores, Tura says.
He gives the example of adding discount labels to a batch of products, which is much more convenient to do in one place.
– Another example is pre-installing equipment before it is sent to end customers. There is also a production perspective where something is further processed and customized according to the end customer’s needs. Often such tasks are done during the production phase, but in certain situations, it makes sense to do them as part of the logistics chain, Tura explains.
Value-added services often require new skills
More specialized services might require a dedicated space audited by the customer. According to Rami Heimolinna, requirements may include safety measures for the space.
– The tasks may also demand much more expertise than the role of a basic warehouse worker and, of course, new equipment. When we do pre-installations, we install software and customer-specified settings into devices. This ensures the device operates correctly when it reaches the customer’s customer, works as intended, uses specific applications, and connects to the right network. This is entirely different from the operation of the version that comes from the factory, Heimolinna says.
Similar work is also done in handling returned materials from customers, which includes resetting devices, i.e., clearing all settings and installations.
Overall, warehousing and logistics value-added services require diverse skills and often staff training. When a logistics partner and the customer invest in projects together, it often results in a long-term partnership that benefits both.
– We have noticed that when HUB can provide flexible and competitive services that customers need at any given time, it also leads to customer loyalty. Many can provide basic services, but adapting to new arrangements is a service that customers appreciate.
Internal logistics value-added services help focus on the right work
According to Jere Kortemaa, internal logistics value-added services include production runs or moving goods so that, for example, a critical component is delivered to the right place when needed. A production worker orders a part from the warehouse, and HUB delivers it to the right place at the right time.
Factory waste management is also part of internal logistics value-added services. When waste is generated in production, it is not efficient for production workers, like assemblers, to spend time dealing with it. Instead, it makes more sense for them to stay at their workstations doing their primary tasks. The logistics partner takes the waste and unnecessary packaging for sorting and brings back an empty waste bin.
– And since we also have strong expertise in packaging, we assist the customer in designing packages that are more efficient to load and transport. Thus, various design solutions are also part of our value-added services. Whatever the customer needs, we strive to handle and arrange it, Kortemaa promises.
The pricing of value-added services is always determined on a case-by-case basis, as projects vary widely, and so do their costs.
According to Rami Heimolinna, value-added services are almost always part of the service packages offered to customers.
Value-added services bring savings and clarity
According to Rami Heimolinna, choosing a centralized solution that includes related additional services often results in cost savings.
– Savings come, among other things, in freight costs because otherwise, the customer first pays for the transport to a place where the services are provided and, in the worst case, back again. And if services are spread across different providers, there is unnecessary trucking. When the equipment is in a nearby warehouse, it is efficient to perform related tasks close by.
Anssi Tura says HUB’s advantage is its location, as its name suggests, like a hub in the logistics network.
– It’s an efficient place to implement various additional services rather than sending the product elsewhere for processing and then back. Typically, we can prove that we can handle many things more cost-effectively than a third party.
Tura emphasizes the importance of expertise and the trust it generates.
– One example of this is cooperation where HUB initially packed the customer’s products. Now the process also includes quality control performed by HUB before packing. When we pack and ship the products, it makes sense for us to handle quality assurance as well. I think this is a great example and a testament to trust.
Learn more about our value-added services >>
