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ICT in Value-Added Logistics

The document discusses value-added logistics services which go beyond basic transportation and storage to include additional tasks that enhance the supply chain, and how information and communication technology enhances value-added logistics through predictive analytics, automation, real-time tracking and tracing, and personalized services.

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Stephen Azeh
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37 views2 pages

ICT in Value-Added Logistics

The document discusses value-added logistics services which go beyond basic transportation and storage to include additional tasks that enhance the supply chain, and how information and communication technology enhances value-added logistics through predictive analytics, automation, real-time tracking and tracing, and personalized services.

Uploaded by

Stephen Azeh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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VALUE ADDED LOGISTICS

Let’s delve into the concept of value-added services (VAS) in the context of
logistics, particularly focusing on how Information and Communication
Technology (ICT) enhances these services.

1. What Are Value-Added Services (VAS) in Logistics?


o Value-added services go beyond basic logistics functions like
transportation and storage. They encompass additional tasks that
enhance the overall supply chain.
o These services are typically tasks that customers would otherwise need
to perform themselves.
o VAS extends along the entire value creation chain, not just post-
production work.
o Examples of VAS include pre-assembly (where goods are partially
assembled before forwarding to manufacturers), functional testing,
surface cleaning, and more1.
2. How ICT Enhances Value-Added Logistics:
o Predictive Analytics: Advancements in technology, such as Artificial
Intelligence (AI) and Machine Learning, enable logistics providers to
predict demand, optimize routes, and allocate resources efficiently.
o Automation: ICT automates routine tasks, reducing manual effort and
minimizing errors. For instance, automated labeling, sorting, and
inventory management streamline processes.
o Real-Time Tracking and Tracing: Web-based consignment tracking
allows customers to monitor their shipments in real time. This
transparency builds trust and improves efficiency.
o Personalized Services: ICT enables logistics companies to tailor
services to individual customer needs. Whether it’s customized
packaging, delivery preferences, or order visibility, ICT plays a crucial
role2.
3. Why VAS Matters:
o Cost Reduction: By outsourcing value-added tasks, companies can
focus on their core competencies while benefiting from specialized
logistics expertise.
o Efficiency: VAS streamlines processes, reduces lead times, and ensures
smoother supply chain operations.
o Customer Relationships: Offering value-added services strengthens
relationships with customers. Services like money collection on behalf of
sellers enhance convenience and trust3.
In summary, ICT-driven value-added logistics services enhance efficiency, reduce
costs, and provide personalized solutions for businesses across the supply chain. As
technology continues to evolve, these services will play an increasingly vital role in
modern logistics4.

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