Steve Palagyi, Principal at PwC's Advisory Services: First, small- and medium-sized companies have begun to increase the amount of value-added services contracted to logistics firms as a means of improving customer service and cost. For example, a consumer electronics company consolidated all of the packaging activities that occurred at its various contract manufacturers into a single third-party logistics provider. This provided an opportunity to apply strategic sourcing to the accessories and packaging materials, including product media, while also creating greater brand consistency. The net effect was lower product cost, better product availability, and a stronger market presence.
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