Value-added services (VAS) are services that supplement traditional logistics. They are usually jobs that the customer would have to do themselves. The term "value-added services" refers to far more than just post-production labor. They cover services at all stages of the value generating process. Pre-assembly is a common logistical value-added service: We partially assemble goods that arrive at our warehouse before sending them to the manufacturer.
The increase in value may not necessarily apply to the product directly. It can also improve the logistical process. Although functional testing and surface cleaning are value-added services, they do not necessarily raise the worth of the items. Picking, packing, labeling, returns management, and shelf service are examples of typical value-added services.
These value-added services have an impact on the supply chain rather than the items we deal with. They improve the supply chain since we provide services that would otherwise have to be performed by a third party (or the customer itself). It is a value-added service when we repack items because they are supplied in large batches from far locations and will be sold in smaller batches at the destination. It does not increase the value of the items itself, but the manufacturer profits from a more efficient supply chain.
