Value-Added Services of Logistics Outsourcing

Due to stiff competition for differentiation in the logistics industry, the service providers are now offering their clients some additional services, besides the regular logistic service offerings. The addition covers a whole gamut of specialized and customized processes, which are available to the customers. Some of the value addition functions are discussed below.


Cross-docking means elimination of storage time in the logistics process. The material that arrives at the warehouse hub from various vendors is break-bulk, assorted, consolidated and repacked to dispatch to the customers. The storage time is less than 48 hours.

Customs Clearance

This involves the responsibility of complete documentation and customs clearance for imports and exports of goods.

Reverse Logistics

Reverse logistics covers the re-transportation (to the manufacturer) and documentation of rejected or damaged goods at the customer end. It involves repacking, consolidation excise and sales tax clearance, and re-crediting per requirements of the customers.


The manufacturers want service providers to prepare a kit consisting of the manufactured and bought out items which will go directly to the point of sale or use. This is required at the time of joint product offerings by two companies at the time of promotional campaign or to avoid the extra multiple transportation cost.

Special Packing

This includes seaworthy packing for sea transportation, shrinkage packaging or packing in variet­ies for specific customer groups or markets.

Logistics Audits

To conduct regular audits or audits-on-demand by the customer to identify problems, bottlenecks, or deficiencies in the logistic supply chain and suggest logistic solutions.

Source: Sople V.V (2013), Logistics Management, Pearson Education India; Third edition.

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