Value Added Services
Concept whereby a service adds value to a product is called a value added service. In theory distribution adds value because it puts the product into the consumer’s hands.
11. After Sales Service (Reverse Logistics): a specialized segment of logistics focusing on the movement and management of products and resources after the sale and after delivery to the customer. Includes product returns for repair and/or credit.
12. Batch control: tracking the goods via digital easy-to-trace coding system. This control can be based on document counts, record counts, quantity totals, dollar totals, or hash (mixed data, such as customer AR numbers) totals.
13. Bundling/Unbundling: the assembly of a number of pre-packaged products to make up an integrated product offering.
14. Co-packing: packaging operation, often performed by the Logistics Service Provider in a dedicated zone of the warehouse, consisting of wrapping different products together (e.g., to bundle a sample of new product with an old product), or identical products (e.g., in the case of promotional offers).
15. eLogistics services or online logistics services: services that address inefficiencies in the transportation industry, usually involving goods ordered online that can be delivered to the consumer in a timely and efficient manner. The service might include any of the following: order entry, order management, shipment and vehicle tracking, communications and reporting).
16. Kitting: Light assembly of components or parts into defined units. Kitting reduces the need to maintain an inventory of pre-built completed products, but increases the time and labor consumed at shipment.
17. Labelling: the application of labels either to the product or to the packaging.
18. Line feeding: covers the delivery of assembled components to a production line.
19. Merchandising: selling the products; it can include the addition of price stickers or promotional items ready for retail display.
20. Outsourcing: a corporate decision to assign activities previously performed internally (e.g. transport/ warehousing or full-scale logistics service), to a third party, for example, a Logistics Service Provider. Initially, the shippers (manufacturing or commercial companies) outsourced transport, and then progressively did the same for more value-added logistics services.
21. Packing and Marking:The activities of packing products into suitable media for safe shipping and unitizing one or more items of an order, placing them into an appropriate container, and marking and labeling the container with customer shipping destination data, as well as other information that may be required.
22. Postponement packaging: the delay of packaging until the latest possible time.
23. Pre-assembling: the completion of a finished product from component parts or pre-programming of products.
24. Product assembly: a group of subassemblies and/or parts that are put together and that constitute a major subdivision for the final product. An assembly may be the end item or a component of a higher level assembly.
25. Repacking: Packing for a specific customer again. It can include repalletization.(Pallet: The platform which cartons are stacked on and then used for shipment or movement as group. Pallets may be made of wood or composite materials).
26. QA Control: The management function that attempts to ensure that the foods or services manufactured or purchased meet the product or service specifications; quality control ensures that product is received into and dispatched from the warehouse in a suitable condition, free from faults and defects.
27. Re-Working: modification of products to suit a local market.
28. Sequencing: Logistics term used in supply-chain solutions in connection with the sequencing (ie timed delivery) of components into a production line.
6. Give English equivalents for the words and phrases given below:
возврат товаров; емкость; заранее упакованный продукт; использованный товар; набор; наклеивание ярлыков; наклейка с ценой; окончательный продукт; поврежденный товар; поставка сборных компонентов; принятие заказа; ремонт; сбыт товаров; транзитное оборудование; упаковка и маркировка.
7. Complete the sentences using words and expressions given below:
together; dedicated; online; assembly; sale; container; outsourcing; delivery; packing; kitting; value; quality; labeling
A segment of logistics focusing on the movement and management of products and resources after the ……………1 and after …………………2 to the customer.
A packaging operation, often performed by the Logistics Service Provider in a ………………3 zone of the warehouse, consisting of wrapping different products……………….4.
If services add ……………….5 to a product they are called value added services.
The activities of ……………….6 products into suitable media for safe shipping and unitizing one or more items of an order, placing them into an appropriate……………..7, and marking and ……………..8it, are called packing and marking.
The company concept to assign logistics activities to a third party is …………………..9.
When the services meet the product or service specifications ………………..10 control is effective.
Light …………….….11 of components or parts into defined units is called ……………….12.
Logistic services which can be performed through the Internet are …………13 logistics.
8. Answer the questions:
1. What does line feeding mean?
2. What services does eLogistics include?
3. How are the assembled pre-packaged products called?
4. What is the name of the operation comprising of consolidation, pre-assembly and sequencing of material flows?
5. What does kitting mean?
6. Why is quality control necessary?
7. How are the services having increased or improved value called?
8. What’s the name of the logistics segment which focuses on the movement and management of products after the sale and after delivery to the customer?
9. How can be goods tracking via digital easy-to-trace coding system called?
10. What is the name of the following operation: transferring some logistics services from one company to another one?
9. Translate the sentences and names of Value-Added Services:
1. Передача компанией определенных видов работ, прежде выполняемых ею, другой компании.
2. Наклеивание ярлыков на продукты.
3. Сбор и обработка использованных или поврежденных товаров.
4. Уже произведенная сборка продукта.
5. Складываемые части, которые образуют окончательный продукт.
6. Добавление всех необходимых частей в один набор.
7. Прослеживание определенного набора продуктов через цифровую кодированную систему.
8. Проверка товара на предмет его сохранности, хорошего состояния, отсутствия дефектов.
9. Предварительная сборка и консолидация материальных потоков.
10. Своевременная поставка необходимых компонентов к линии производства.
11. Изменение товаров с целью соответствия их местному рынку.
10. Translate the text using words and phrases from the text “Value Added Services” and retell it:
Сегодня, для сохранения конкурентоспособности операторы складов вынуждены добавлять к традиционным экономическим и сервисным выгодам другие услуги с добавленной стоимостью. Сервис с добавленной стоимостью может ориентироваться главным образом на упаковку и/или на производство. Самой распространенной услугой с добавленной стоимостью является упаковка. Склады могут увеличивать добавленную стоимость продукции за счет совершенствования упаковки, приспособления ее к индивидуальным запросам потребителей. Склад в состоянии повысить стоимость, формируя пакет из единичных упаковок на паллете или в общей обертке, заменяющей паллет и т.д. Другим примером складской услуги с добавленной стоимостью является удаление на складе защитной упаковки перед транспортировкой продукции заказчикам в случае крупных поставок, поскольку у заказчиков порой возникают проблемы с утилизацией большого количества упаковочных материалов. Складской сервис с добавленной стоимостью может заключаться также в смене тары. Передача такого рода операций складам уменьшает потребность в запасах и сопутствующий риск, сокращает транспортные расходы и опасность повреждения продукции. Глобализация торговли ставит перед складскими хозяйствами более сложные задачи, но одновременно и сулит им дополнительные рыночные возможности. Чем длиннее маршруты транспортировки товаров, тем важнее роль складского сервиса с добавленной стоимостью.
11. Transform the sentences into the Passive Voice. Example: Someone is packing the goods. The goods are being packed (See Language Notes):
1. The managers have already performed a batch control.
2. They will complete the finished product from the component parts.
3. The company supplies the customers with reverse logistics.
4. The clients received the product from the warehouse in a suitable condition.
5. The employees have just finished the product assembly.
6. He is making a postponement packaging.
7. Our corporation is outsourcing some of its services outside.
8. Last week someone applied labels to both containers.
9. We have made a prominent marking on the box prepared for shipping.
10. Soon we will implement tracking and tracing system.
11. The company added consolidation to the usual range of its services.
12. Most companies supply the customers with eLogistics services.
13. They have been practicing the quality control system.
12. Retell the text “Value Added Services”.