Value-Added Services (VAS) are performed
to meet customer demands. They can be activities performed on a product
before the product is delivered to the customer, or a provided service
that is performed at the customer site.
Activities
can be performed at all types of facilities
including manufacturing facilities and flow-through or distribution
centers. Some examples of VAS done at the vendor site are:
- A vendor applies a license plate number (LPN) label
on a carton based on the manufacturer's specification.
- A manufacturer applies price ticket or SKU labels
based on the requirements of a retailer.
- A
warehouse builds a pallet using customer requirements.
- A warehouse applies security tags on a class of
items before shipping to certain retailers.
- A
warehouse assembles components and builds a kit
before shipping.
Provided services are usually purchased
by the customer for an additional fee. Some examples of activities
that are offered as a provided service are:
- Installing
a customer's home theater system.
- Providing
maintenance to a furnace as part of a
service contract.
Installing software on
a new computer, and configuring
the computer to work on a home network.
Some
examples of how value added services are used
within the manufacturing, vendor, or shipping facilities are:
- VAS
for stocking — a facility performs the VAS operations for stocking
periodically on the basis of expected demand for a product. For example,
a warehouse ships pens, pencils and erasers separately. In addition,
that warehouse may also ship a student package, which consists of
2 pens, 2 pencils and an eraser.
- VAS for a customer — this
type of VAS operation is performed to meet specific customer requirements,
such as special ticketing or security tagging. The Sterling Selling and
Fulfillment Foundation allows
the customization of inventory for a buyer at a node and ensures allocation
to that customer. This scenario is referred to as made-to-customer,
or buyer compliance. The customer usually makes repeated purchases
of these specialized items. This type of VAS is performed in a warehouse
based on the demand forecast to reduce order cycle time.
- VAS for an order — this is
applicable when:
- A customer selects a customization
when ordering
an item, like monogam on a shirt. The Sterling Selling and
Fulfillment Foundation creates
a work order to perform these services in a warehouse and ensures
that inventory is allocated only to that order. This is also referred
to as made-to-order.
- A customer orders
a dynamic physical kit and selects
the required components for that item. The Sterling Selling and
Fulfillment Foundation creates
a work order to assemble the kit and ensures that the inventory of
the assembled unit is allocated only to that order. This is also referred
to as Built to Order, or made-to-order.
- Inbound shipments that require packaging. Parts
received that require packaging to a specified unit of measure.
- Breaking
kits or Dekitting — this is performed on kits in inventory that
are not required anymore. For example, inventory leftover from a seasonal
promotion may be dekitted and the components can be used in other
kits or sold individually.
- Unit of Measure (UOM) Conversions —
a warehouse may create a work order to convert inventory from one
UOM to another. For example, a warehouse may track inventory of screws
individually as well as in packs of 50. A work order is created to
convert single inventory units to packs of 50.
- Gift
Wrap Services — a ship node may offer gift wrap services on items
that are eligible for gift wrap. This flag is enabled for a node during
Participant Setup for Sourcing/Scheduling Node Attributes.