INDUSTRY VIEW
OFFERING VALUE- ADDED SERVICES SHOULD BE INTEGRAL WITH ANY DISTRIBUTION MODEL
SALEM MACHAKA , VP GLOBAL PROFESSIONAL SERVICES , INFOR
An ERP solution is critical for delivering value-added services and to manage supply chain disruption , competition , and labour shortages , which make providing services challenging explains Salem Machaka at Infor .
The Middle East and African freight and logistics market is predicted to record a compound annual growth rate of about 6 % between 2023 and 2028 , according to a report from Mordor Intelligence . To tap growth opportunities in the region , distributors should consider value-added services , VAS among their
A best-in-class industry-specific enterprise resource planning solution is critical for efficiently delivering value-added services strategies . Infor ’ s Salem Machaka explains more .
Offering valueadded services should be integral to any distribution company ’ s business model . Value-added services go beyond the immediate delivery of goods and provide additional customer benefits . These services can range from providing technical support to offering customised packaging solutions .
By offering value-added services , distribution companies can increase customer satisfaction , build loyalty , and make customer relationships sticky . This can lead to increased sales and profits over time .
A company can stand out from competition by providing greater range of services and this can be beneficial for smaller companies competing with larger companies on price .
One of the essential benefits of offering value-added services is that it helps to differentiate a company from its competitors . With manufacturers deploying disintermediation strategies , the emergence and growth of large e-commerce platforms , and larger competitors , competition is fierce .
A company can stand out from the competition by providing a greater range of additional services . This can be especially beneficial for smaller companies needing more resources to compete with larger companies on price .
Examples of value-added services include :
Vendor managed inventory
VMI is a service that is mutually beneficial to the customer and the distributor . With VMI , inventory is housed at the customer ’ s location but is managed by the distributor . This can take several different forms , from bins to vending machines .
With commonly used items like gloves , safety knives , replacement blades , and eye and ear protection , vending machines can be kept on
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