REVIEW OF RELATED LITERATURE

Understanding value-added service offering by 3PL providers: VAS as a source of competitive

advantage for the provider and the customer

Arcelly Herrera

Jönköping University

Abstract

Outsourcing logistics operations to third-party logistics providers (3PL) is a growing trend for customer
companies in all stages of supply chains. Among the services offered by providers, value-added services
(VAS) play a special role for the provider as a differentiation opportunity and a source of higher margins,
and for the customer as a way to increase the efficiency of their logistics flow beyond what standard
solutions allow. The purpose of the study is to create an understanding of how a 3PL determines which
value-added services or service customizations can be profitable, and which customersupplier
relationships and service development strategies should be pursued, depending on the logistics scenario
at hand. The study was based on a theoretical framework including outsourcing and service offering
principles, 3PL and VAS categorization, and logistics relationships, innovation, and business strategies. It
followed a qualitative abductive research strategy. Online surveys were processed from 38 3PL
providers and 48 logistics user companies were conducted and semi-structured interviews with seven
3PL companies were held to gather information about the providers’ 3PL roles and VAS offerings
towards different customer categories. We have developed improved understanding of how the VAS
offering is linked to the customer relationship and its importance for the provider’s 3PL role evolution.
We also outline the VAS offering decision process and the factors involved. The study further illustrates
the strategic and operational importance of appropriate VAS offering for both the customer and the
provider and presents a framework for appreciating the relevant elements and their relationships. 3PL
companies can use these findings to strategically choose target areas for VAS offering to a customer,
depending on the logistics scenario of that customer.

(PDF) Understanding value-added service offering by 3PL providers: VAS as a source of competitive
advantage for the provider and the customer. Available from:
https://www.researchgate.net/publication/319044242_Understanding_value-
added_service_offering_by_3PL_providers_VAS_as_a_source_of_competitive_advantage_for_the_prov
ider_and_the_customer [accessed Oct 12 2018].
 Value Added Services Bring Flexibility to the Supply Chain

July 15, 2010 | By Steve Sensing

A new wave of demand for value-added services requires more capabilities of retail vendors and their
logistics providers.

Evolving consumer behaviors have dramatically impacted the way retailers deliver products. From
clothing, to cars, to computers, consumers have gotten used to getting the custom product they want,
when they want it. As consumer preferences have become more personalized and complex, retailers are
asking their suppliers and logistics providers to step up to the plate. This means more customized
orders, tighter delivery windows, and an increased focus on retail vendor compliance. Couple these
factors with an economic recovery on the horizon— suppliers to retail will have to be prepared to
deliver more products, with complex configurations, faster, and more often. As order to shelf cycles
tighten, suppliers are looking for their logistics providers to help them keep inventories low, and fulfill
orders at the last minute to better match consumer purchasing trends.

In order for suppliers and retailers to remain competitive in this changing environment, manufacturers
can no longer allow products to be fully configured in Asia (or anywhere deep in the supply chain). This
strategy creates the potential for lost sales and unwanted, aged inventory within the supply chain. A
growing new strategy in the hi-tech/electronics industry is to postpone the customer specific
configuration of the product as late in the supply chain as possible, increasingly at the third-party
logistics provider’s dock.

This trend is resulting in a new wave of Value Added Services that retail vendors and their logistics
providers must be capable of providing. Let’s use a hi-tech/electronics manufacturer as an example. The
lines are often blurred between outbound finished good shipments from a hi-tech/electronics
manufacturer and inbound orders for a retailer. This makes the work to ensure that the product is
configured accurately— exactly the way the end consumer expects it— even more challenging. Many
retailers have unique product configuration and shelf displays to differentiate them from their
competitors. Consumers have very specific ideas of how a product should look and be packaged before
they will make a purchase decision.

At Ryder, we offer several Value Added Services that solve this problem for suppliers. Ryder’s
customized systems enable warehouse operators to package finished goods inventory to match a
specific retail order, helping to eliminate or avoid costly vendor compliance charges, and increase retail
customer satisfaction. Ryder’s Value Added Services include kitting, bundling, and customization.
Kitting: Building advance “kits” to merge with Finished Goods improves speed to shelf. By pre-building
kits of components (for example, HDMI cables or specialized remotes) for a flat screen television via a
“drop in the box” process, retailers can deliver TVs to consumers with the latest technology and
customized peripherals.

Bundling: Ryder can create unique combinations of components and peripherals to meet end customer
demands at the shelf. For one electronics supplier, unique retail orders are delayed until the last minute
prior to shipping, to allow the hottest printer and monitor combination to be bundled with the hottest
laptop or PC.

Customization and Packaging: Ryder builds production runs of retailer specific configurations to meet
changing demands of the end consumer, especially for special promotions of slow moving products to
eliminate aging inventory. The customization and packaging process allows hi-tech and electronic
suppliers to adapt to a very dynamic customer demand flow and improve bottom line performance by
eliminating soon-to-be obsolete inventory.

Ryder’s world-class execution of these Value Added Services is built on the company’s Lean Guiding
Principles and a deeply ingrained lean culture. Lean warehouse operations are becoming increasingly
important as suppliers have little room for waste or error. To accurately fulfill more complex,
customized orders, the best logistics providers are integrating lean principles such as continuous
improvement, standardization, and quality into their operations that service retailers and retail
suppliers. Ryder’s commitment to lean warehouse practices and the use of new technologies such as
voice-to-pick, are helping to improve inventory accuracy, order fill rates, shipment accuracy, and vendor
compliance for our customers.

As retailers become more demanding, we’ll see more top manufacturers maturing from discrete service
outsourcing (Transportation Management, Distribution Management, and Dedicated Contract Carriage)
to highly integrated solutions that provide end-to-end Value Added Services and technology solutions
that create seamless handoffs and enhance customer satisfaction.

Logistics Service Providers ’ Environmental Management

Alliiance for Logistics Innovation through Collaboration

Journal of Cleaner Production (2014) 7(1) 1237-1259

Ananwa Joseph Chika

Abstract

Purpose: The purpose of this study is to examine the current state of sustainability efforts within the
field of supply chain management, more specifically supply chain logistics operations, and to identify
opportunities and provide recommendations for firms to follow sustainable operations. This study also
aims to stimulate further research within the area of sustainable logistics operations.
Design/methodology/approach: The reasons why it is important to implement sustainability into supply
chain operations is discussed. Based on a review of the extant literature, various areas within the
logistics function where sustainability can be implemented are then presented. Some short-term and
long-term recommendations for the successful implementation of sustainability in the logistics function
of supply chains are provided. Findings: There has been very little work done to understand the role and
importance of logistics in an organization's quest towards sustainability. For firms to implement a
sustainability strategy in their supply chain operations, the logistics function needs to play a prominent
role because of the magnitude of costs involved and the opportunity to identify and eliminate
inefficiencies and reduce the carbon footprint. Practical implications: Firms in their quest for sustainable
logistics operations must start early and start simple. A top management commitment is required for
such efforts to be successful. Also, firms need to be able to visualize and map out their supply chains and
benchmark their sustainability efforts with other firms in their industry. Social implications: Firms need
to follow sustainable practices in their overall operations and in their logistics operations in particular
because not only does it have financial and other intangible benefits, but it is also the right thing to do.
Firms have a great social responsibility especially with respect to use of non-renewable sources of
energy and materials and also with respect to how their products are used and handled once they reach
the end of their life cycles. Originality/value: This paper is the first of its kind which examines the state
of sustainability within the field of supply chain logistics operations and identifies areas and sets the
agenda for future research in this field. © Emerald Group Publishing Limited.

Logistics Service Providers ’ Environmental Management

Alliiance for Logistics Innovation through Collaboration in EuropAntero TAuthors F

et al. See more

Journal of Cleaner Production (2014) 7(1) 1237-1259

Ananwa Joseph Chika

Abstract

Purpose: The purpose of this study is to examine the current state of sustainability efforts within the
field of supply chain management, more specifically supply chain logistics operations, and to identify
opportunities and provide recommendations for firms to follow sustainable operations. This study also
aims to stimulate further research within the area of sustainable logistics operations.
Design/methodology/approach: The reasons why it is important to implement sustainability into supply
chain operations is discussed. Based on a review of the extant literature, various areas within the
logistics function where sustainability can be implemented are then presented. Some short-term and
long-term recommendations for the successful implementation of sustainability in the logistics function
of supply chains are provided. Findings: There has been very little work done to understand the role and
importance of logistics in an organization's quest towards sustainability. For firms to implement a
sustainability strategy in their supply chain operations, the logistics function needs to play a prominent
role because of the magnitude of costs involved and the opportunity to identify and eliminate
inefficiencies and reduce the carbon footprint. Practical implications: Firms in their quest for sustainable
logistics operations must start early and start simple. A top management commitment is required for
such efforts to be successful. Also, firms need to be able to visualize and map out their supply chains and
benchmark their sustainability efforts with other firms in their industry. Social implications: Firms need
to follow sustainable practices in their overall operations and in their logistics operations in particular
because not only does it have financial and other intangible benefits, but it is also the right thing to do.
Firms have a great social responsibility especially with respect to use of non-renewable sources of
energy and materials and also with respect to how their products are used and handled once they reach
the end of their life cycles. Originality/value: This paper is the first of its kind which examines the state
of sustainability within the field of supply chain logistics operations and identifies areas and sets the
agenda for future research in this field. © Emerald Group Publishing Limited.

Third-party purchase: An empirical study of third-party logistics providers in China

Shi YZhang AArthanari T

et al. See more

International Journal of Production Economics (2016) 171 189-200

Third-party purchase (3PP) is an emerging value-added service offered by third-party logistics (3PL)
providers. In this paper we first present a real-life 3PP service model to illustrate 3PP's innovative
aspect. We then develop a conceptual model grounded in multiple theories to probe the value
propositions of 3PP. We apply structural equation modeling to test the conceptual model based on the
survey data from 245 Chinese 3PL providers. We find that, from the perspective of 3PL providers,
uncertainty, order frequency, and transaction size, but not asset specificity, are significantly associated
with 3PP service, which in turn is significantly associated with value-to-client and benefit-to-3PL
provider. Existing studies have focused on investigating the basic services offered by 3PL providers using
transaction cost analysis. This study provides evidence that 3PP is a new value-added service that will
generate mutual benefits for both 3PL providers and users.

Humanitarian logistics: the role of logistics service providers

Vega DRoussat C

Edited by
International Journal of Physical Distribution & Logistics Management (2015) 45(4) 352-375

Purpose – In recent years, logistics service providers (LSPs) have become important players in the
humanitarian field, providing support for NGOs and governments when they respond to major disasters.
However, the academic literature on humanitarian logistics has not really explored the roles that LSPs
play in relief supply chains. The purpose of this paper is to investigate the role of LSPs in humanitarian
relief. Design/methodology/approach – The research uses a two-stage exploratory approach: first, it
systematically reviews the humanitarian logistics literature to see the extent to which LSPs are taken
into account. Then it analyses the web sites of leading LSPs to examine how they communicate about
their role in humanitarian relief. Findings – This research produces some surprising findings. While the
academic literature seems to neglect the roles of LSPs in humanitarian logistics, some major third-party
firms highlight their roles in relief networks. A number of research propositions are presented describing
emerging roles for LSPs in relief supply chains. Research limitations/implications – This paper focuses on
academic humanitarian logistics literature; a review of practitioner articles and the LSP literature might
also be relevant. The web site analysis is based on corporate communication which may contain bias.
Further research should add to this work with NGO/government perspectives and produce primary data
in order to demonstrate the external validity of the research propositions. Practical implications – The
research identifies different roles LSPs could play in humanitarian supply chains, suggesting
opportunities for new business lines. Originality/value – The main contributions of this paper are to
explore the roles LSPs could play in humanitarian logistics and to bring a new perspective to
humanitarian logistics research.

Electronic to Mobile (E2M): New Tool of the Bureau

by Krazelle Leofando on 21 October 2014

Transcript of Electronic to Mobile (E2M): New Tool of the Bureau

The Electronic Mobile (E2M) System is a part of multi-million modernization program of the Bureau of
Customs aims to further enhance its revenue collecting capacity through ensuring proper tariffs and
taxes are collected. The system also promises to cut the time needed for the release of cargo and other
imports from usual three-day long wait to as little as thirty minute.
Upon confirmation, the BOC system sends an SMS confirmation message to the consignee and a release
instruction is subsequently generated for transmission to the arrastre operator for the release of the
goods via cellphone.

E-Lodgment/E-Payment/E-ORLS

A joint effort between BOC and TMW in providing Web-enabled clearance process for the Air Express
Cargo clients.

The BOC has decided to tap mobile or m-commmerce to advance its current computer network system
without the corresponding increase in infrastructure and personnel.

BOC sends e-mail message to the brokers. Importers/brokers recieve SMS messages through the BOC
website concerning the status of their shipment and any information related to customs matter.

The study aimed to provide information about Electronic to Mobile (E2M) beneficial in the handling of
mails in the Bureau of Post. To determine the positive and negative effects of Electronic to Mobile (E2M)
in the enhancement of the supervision and control of handling of mails in the Bureau of post.

THE PRESENT COMPUTERIZATION PROGRAM OF THE BUREAU

OF CUSTOMS: FOCUS ON IMPORT AND

EXPORT TRANSACTIONS

Apolonia M. Alcedo1* and Victor M. Cajala2**

1Extension Head, College of Business, Asian Institute of Maritime Studies, Pasay City

2Research Head, College of Business, Asian Institute of Maritime Studies, Pasay City

*apolalcedo@yahoo.com

**vcajala@yahoo.com

Abstract: The study assessed the present computerization program of the Bureau of

Customs (BOC) with focus on the import and export transactions. Specifically, the

study seeks to determine the following: 1) the profile of the respondents; 2) the level

of achievement of the computerization program of BOC in the three major ports of

Metro Manila in terms of the perceived benefits; 3) the effectiveness of the

computerized import and export transactions of BOC in the three major ports of

Metro Manila; 4) the significant difference on the level of achievement of the

computerization program when respondents are grouped according to their profile; 5)

the frequency of occurrence of the perceived problems in the implementation of the

BOC computerization program; and 6) the proposed measures to effectively

implement the computerization program of the BOC. Descriptive-survey method was

employed in this study using a validated questionnaire to gather the data. Using

incidental sampling in choosing the respondents, the subjects of the study were

customs brokers/representatives, shipping agents/freight forwarders, and valueadded

service providers (VASP) from the Port of Manila, NAIA and MICP.

Percentage, weighted mean, and analysis of variance were used to derive the

respective figures of each problem. Findings revealed that majority of the

respondents are shipping agents/freight forwarders and customs

brokers/representatives; one third of them were 21-30 years old; more than half of

them were college graduates, some are college undergraduates and few are post

graduates and vocational graduates. Less than half of the respondents are licensed

customs brokers, and more than half of them used the three ports to transact. The

respondents were unanimous that the perceived benefits of the computerization

program of the BOC were achieved. However, the elimination of corruption was fairly

achieved. On the other hand, the respondents are unanimous in saying that the

computerization of BOC was effective. The import/export documentation, however,

was only judged fairly effective. The respondents never had a difficulty in the

computerized import and export process of BOC. Likewise, the respondents rarely

encounter the perceived problems of the computerized import and export process of

BOC. There is no significant difference on the level of achievement of the BOC

computerization program as to the respondents’ profile. However, there is a

significant difference on their views of the BOC computerization program when

respondents are grouped according to port use. The respondents have strongly

recommended the continuous linkages of BOC to various government agencies and

stakeholders, the standardization of customs procedures through accreditation, and

the tapping of most highly qualified internet service providers (ISPs) to avoid

interruptions in every transaction.

NTC prepares rules on value-added services

The National Telecommunications Commission (NTC) has prepared a draft set of rules governing value-
added services (VAS), identifying which services should be considered VAS and which should be
classified as regular telecommunications services.

The difference is that VAS rates deregulated while rates for other telco services are not and require prior
approval of the NTC.

In a previous circular, the NTC defined VAS as enhanced services beyond those ordinarily provided for by
local exchange and inter-exchange operators, and overseas carriers through circuit switched networks.

Enhanced services, meanwhile, was defined as services that improve upon the quality and/or
functionality of services ordinarily offered by local exchange and inter-exchange operators and overseas
carriers.

Services ordinarily provided for by local exchange and inter-exchange operators and overseas carriers
refer to voice services offered through circuit switched networks.

In its draft circular, the NTC identified as VAS the following: messaging services (including text messaging
or SMS), audio conferencing, audio and video conferencing, voice mail service, electronic mail service,
information service, gaming services except gambling, applications service (e.g. mobile banking,
electronic payments, point of sale service), content and program service (music, ring tones, logos, video
clips, etc.)
Also included are audiotext service, domain name hosting service, facsimile service, IP multicasting
service, virtual private network service, and PBX hosting service.

According to the NTC, this list of value added services may be revised, modified, expanded or shortened
by the commission after due public consultation.

The proposed new rules, however, do not apply to voice over IP (VoIP) service which is covered by
another circular.

Leased line service shall be classified as VAS. The NTC said public telecommunications entities offering
leased line service shall not discriminate against VAS providers, who shall be provided with the same
quality of service and at prices not higher than the prices offered to other subscribers/users.

The new rules likewise provide that no entity shall provide VAS without valid certificate of registration
from the NTC, which shall be valid for a maximum period of five years. To be issued a certificate, the
provider must, among other things, submit their facilities lease agreement with duly enfranchised and
certificated public telecommunications entity and a written undertaking that the applicant will not
discriminate other VAS providers in terms of rates and service quality for similar facilities leased to them
(for duly enfranchised and certificated public telecommunications entity).

Read more at https://www.philstar.com/business/2007/04/14/394406/ntc-prepares-rules-value-added-

services#VvAluO3djk8A0VAD.99