Definition & Categorization of Value-Added Services Using a Platform Approach in a Logistics Company

Businesses are increasingly outsourcing activities to third-party logistics (3PL) companies to focus on their core business. These activities include logistics services such as transportation, warehousing, distribution, and various value-added services (VAS), which are activities that go beyond simply transporting or storing goods. VAS are client-specific and can cover a broad range of activities. These services can be the primary differentiator from other 3PL companies, along with a source of higher profits. 3PL companies must continuously streamline VAS to ensure the services are profitable. However, it is challenging to assess profitability of services without a clear definition of VAS in 3PL companies. This study develops a modeling method for defining and categorizing VAS based on theory from product architectures. The design science research methodology is used to design, develop, and evaluate the modeling method. The modeling method is applied to a logistics company providing 3PL warehousing services to define and categorize VAS. Finally, the results are discussed along with suggestions for further studies.