The Rise of Value-Added Services

Logistics is no longer just about transport, writes Emma Verkaik, CEO of the BCMPA – British Association for Contract Manufacturing, Packing, Fulfilment & Logistics.

The role of logistics within the wider supply chain has evolved dramatically in recent years. Once viewed primarily as the movement and storage of goods, today’s logistics landscape is increasingly defined by its value-added services (VAS) – from co-packing and kitting to quality control, retail-ready displays, and sustainable packaging solutions.

This shift is not just incremental. It represents a structural change in how supply chains are built and managed and reflects the pressures brands face to meet rising consumer expectations, respond to fast-changing retail environments, and deliver on sustainability goals. Across the BCMPA membership, value-added logistics is no longer a secondary service, it’s the core of modern supply chain strategy.

Flexibility is the New Standard

Today’s supply chains must be built for agility. Lead times are shorter, demand more volatile, and customisation increasingly expected. Whether it’s assembling promotional displays for seasonal campaigns, reformatting packaging to meet retailer requirements, or adapting fulfilment to support both B2B and D2C channels, logistics providers are being asked to do more, and faster. BCMPA member Charles Kendall Freight highlights this trend: “Logistics are no longer isolated from other business functions; it’s becoming embedded in the entire contract manufacturing lifecycle – from raw material sourcing to final-mile delivery,” says Andy Gilpin. This sentiment reflects a broader trend across the industry, where logistics partners are taking on a more consultative, problem-solving role.

And this adaptability extends beyond co-packing. Kinaxia Logistics recounts a project where they helped a major client transition from plastic to cardboard packaging with a child-proof locking mechanism requiring highly precise dimensions. The company’s engineering team designed custom jigs lined with Teflon to achieve the exact specifications, showing how technical expertise supports evolving product needs.

Quality Control and Enhancing Customer Experience

Increasingly, logistics providers are being entrusted with product quality assurance to maintain brand reputation and retail standards. Third party logistics provider and BCMPA member, Kammac shared a recent example: “A company supplying soft furnishing products for a major retailer needed support with quality control due to issues like loose threads and contamination. We took on the project and within a four-week timeframe were QCing 45,000 single items,” says Peter Edwards, Kammac’s Marketing Business Partner. This illustrates how value-added logistics is extending into product inspection and rework, ensuring items meet customer and retailer expectations before they reach stores.

Charles Kendall Freight also reinforces this point through its tailored fulfilment solutions: “We successfully picked and dispatched on average 8,000 B2C orders monthly, hitting the agreed 98.5% KPI of picked and delivered within 48 hours of order receipt,” says Site Manager, Andy Gilpin. Its approach includes managing up to 20 different items per box, carefully arranged to maintain brand integrity, showcasing the precision and attention to detail demanded by modern logistics.

Sustainability Driving Operational Evolution

Sustainability is now a core driver of logistics strategies. Kammac stresses the growing importance of environmental credentials: “Sustainability has become a big one for us with consumer expectations for greener products and more sustainable supply chains. We’ve seen this within business tenders requiring ISO 14001 (Environmental Management System) Certification,” says Peter Edwards.

GXO echoes this commitment: “Through an intensive review of materials in the supply chain, GXO was able to enhance the recyclability of Virgin Media O2’s packaging and reduced single-use plastic by over 97%,” adds Nila Patel-Cooper, Business Development Manager. Its approach includes eliminating adhesives from labels and adopting water-based application methods, reflecting the broad range of innovations helping brands meet their ESG targets.

Integration and End-to-End Supply Chain Solutions

Logistics is increasingly integrated into broader contract manufacturing and packing operations, with providers expected to deliver seamless end-to-end solutions. Warren Hill, Business Development Manager at Kinaxia explains: “Clients now expect contract manufacturers and packers to offer integrated solutions that include inbound logistics, warehousing, inventory management and outbound distribution all under one roof.” Its established contract packing operation combined with a national logistics network supports this integrated approach. Similarly, Kammac points to the value of global partnerships: “We see partnerships continuing to grow, and for us that means providing end-to-end solutions through our global network as part of the Elanders Group,” says Edwards.

Towards Strategic Collaboration and Innovation

The examples from BCMPA members collectively indicate a shift from transactional logistics services to strategic collaboration. Flexibility, sustainability, quality control, and integration are no longer optional but fundamental to meeting the complex demands of today’s supply chains.

GXO’s response to evolving market dynamics, including downsizing inventory and favouring shared-user environments, is an example of how providers are adapting to stay agile, efficient, and competitive. Brands are looking for supply chain partners who can adapt quickly, whether that means scaling capacity for seasonal peaks, supporting D2C fulfilment, or integrating sustainability into every step of the operation. “It’s no longer just about speed or cost; it’s about being agile, insightful, and aligned with the brand’s goals,” says Nila Patel-Cooper.

At the BCMPA, we’re seeing consistent growth in demand for value-added logistics across many sectors including food and drink, beauty, personal care, pet care, and homewares. As supply chains become more complex, our members are doing more than simply moving goods; they’re providing flexible, end-to-end solutions that help brands respond to challenges, meet evolving expectations, and deliver outsourced value at every stage.

Logistics Powering Growth in Britain’s Booming Pet Industry

Britain’s deep affection for animals is powering remarkable growth in the pet services industry, with businesses expanding their reach and influence. Kammac, a prominent UK logistics and supply chain provider, is leveraging this trend by securing new contracts that enhance cross-promotional opportunities, efficiency, and service delivery for clients in the pet sector.

One notable partnership is with Perky Tails, a UK-based manufacturer of dog toys and accessories. In May this year, Perky Tails selected Kammac as their storage and fulfilment provider, enabling them to scale their operations and improve customer service. David Primrose, Director at Perky Tails, praised the collaboration, stating, “Since partnering with Kammac just over two months ago, our operations have been nothing short of fantastic… communication, responsiveness, and advanced technology solutions have been instrumental in supporting our integration with new marketplaces. They have truly added value to our operations, and I look forward to further strengthening our relationship.”

Logistics powering growth in pet industry

Kammac’s Wavertree 170 site plays a pivotal role in their expansion, serving as a hub for storing, distributing, and fulfilling a wide range of pet products. Additionally, their headquarters in Skelmersdale has become a crucial location for new clients, providing a combined transportation hub and warehouse to meet all storage and distribution needs.

This growth aligns with the booming pet industry in the UK, currently valued at around £182 billion. With 57% of UK households owning a pet and major retailers like Amazon reporting significant increases in pet food sales, the demand for efficient logistics solutions in the pet sector is on the rise. Ged Carabini, Chief Executive Officer at Kammac, emphasized, “With years of experience in the pet industry, we really understand what pet brands need. From storing pet foods to getting them to store and handling e-commerce orders, we cover all of it for our clients.” He further added, “As the demand for logistics in the pet sector keeps growing, we’re committed to providing tailored supply chain solutions. Our team is dedicated to offering exceptional service and creative solutions to meet the changing needs of our clients in this exciting market.”

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Certifications Enhance Trade and Compliance

Third-party logistics (3PL) provider Kammac has been awarded both the Authorised Economic Operator (AEO) and the Fulfilment House Due Diligence Scheme (FHDDS) certifications, underscoring the company’s commitment to secure, efficient, and compliant supply chain services.

The AEO certification, endorsed by the World Customs Organisation (WCO), aims to improve international supply chain security and trade efficiency. Recognised in over 70 countries, certification holders work together to reduce customs restrictions and enhance cross-border trade operations.

As an AEO certified company, Kammac now benefits from prioritised customs procedures, enabling faster and more efficient import and export processes, including filings, inspections, and clearances.

“Achieving AEO status following HM Revenue and Custom’s (HMRC) rigorous six-month approval process marks a significant milestone for us,” said Leanne Lidell (pictured), Director of Compliance at Kammac. “The certification ensures simplified customs clearances and priority handling, meaning we can offer our customers more streamlined and reliable logistics services.”

In response to the needs of a long-standing global beverage client, Kammac initially attained AEO certification for its Wavertree site. Since then, all 15 sites have been included, further enhancing collaboration with global customers who require AEO status. The company joins its sister companies within the Elanders Group in 2023 who also are AEO certified, providing a powerful network to existing and new clients.

“With our global footprint, our AEO certification facilitates seamless collaboration with fellow members, strengthening the service we can offer to clients,” said Lidell. “This certification bolsters logistics, particularly vital for UK-bound goods amidst the post-Brexit landscape.”

Alongside AEO, Kammac’s commitment to ensuring compliance across its operations has been further underscored with certification gained under the Fulfilment House Due Diligence Scheme (FHDDS). This not only demonstrates Kammac’s adherence to stringent UK regulations but also signifies its capability to legally store goods for non-EU sellers, thus expanding its market reach and enhancing business opportunities.

Ged Carabini, CEO at Kammac, is delighted with the potential these certifications provide. “Achieving both AEO status and the FHDDS scheme gives our clients the confidence that Kammac delivers the highest quality service,” he said. “These certifications not only show our commitment to compliance but also signify our ongoing investment in supporting global supply chains for our clients, further strengthening Kammac’s role within the Elanders Group.”

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3PL Sees Bright Future After Acquisition

Kammac Ltd has been acquired by the Elanders group, a Swedish stock market listed business which offers global supply chain management solutions. Elanders operates in 20+ countries around the world and employs more than 7000 people.

Paul Kamel, the owner and founder of Kammac Ltd agreed to sell the business after a sales process that attracted interest from several parties. Kamel felt that Elanders group was the best fit to allow Kammac and its people to continue growing and maintain the success that had already been achieved by the company during his 35+ years at the helm.

Elanders’ acquisition of Kammac Ltd is in line with their strategy to constantly develop its offering and broaden its customer base. As a result of the acquisition, the UK will become Elanders’ fourth largest market.

Kammac has developed a unique 3PL concept which has grown, evolved and improved continuously over several years, and now that Kammac is part of the Elanders group, the services that Kammac offers will support expected further growth.

One of Kammac’s competitive edges, cited by Elanders, is that the start-up time for new customers is only one to two weeks. Kammac is also well positioned to support businesses across a number of sectors. Several of its warehouses offer services such as bonded warehouses and temperature-controlled environments. Kammac also has a license to handle medical products such as pharmaceuticals and their components.

Acquisition

On a day-to-day basis it is very much business as usual for Kammac Ltd, albeit under new ownership. There will likely be some structural changes within Senior Management positions over the next few weeks to ensure continuity and to align with authority level delegation from Elanders. The next stage of Kammac’s growth journey is expected to be an exciting one with new ideas, new opportunities and new initiatives to come which will allow the business to flourish as it transitions to being part of the Elanders group.

Ged Carabini, Chief Operations Officer of Kammac, comments on the deal: “It has been an absolute pleasure and such a learning curve over the last 6 years working with Paul and Sue Kamel, Craig and Laura Olson. I would like to extend my thanks to them and take this opportunity to wish them all the very best moving forward. I am very proud of the growth journey that we have made and the unique platform that we at Kammac have created in recent years. With the global footprint that Elanders has, we will be able to grow further in the UK by being able to offer Elanders’ current customers our solution. I also see great opportunities to develop the current Kammac offering by using Elanders’ proprietary platform for omnichannel solutions. I am also convinced that our unique business model will be able to create new business opportunities for Elanders in other markets.”

‘Pop-up’ Fulfilment Service Launch Delivers

UK logistics specialist Kammac is taking the pain out of e-fulfilment with a new pop-up service, helping start-up businesses to outsource their operation within days. Backed by dedicated centres and experienced personnel, the solution gives companies the flexibility to scale up rapidly without committing to long-term overheads or compromising on customer experience.

The success of any new online venture depends on fulfilling customer orders in a way that is quick, responsive and reliable – but as business grows, so does the infrastructure challenges. For rapidly growing start-up ventures, the quality of service provided can be at risk when it comes to outsourcing logistics and fulfilment.

“We know that a brand’s reputation depends on its customer service, and this can be damaged if the right processes aren’t in place. By dedicating pop-up spaces to start-ups, online retailers and entrepreneurs can benefit from Kammac’s in-house experience and trained staff, to reduce risk, maintain quality and get a professional ecommerce operation up and running fast,” explained Alec Hunt, Kammac’s Head of Ecommerce and Value Added Operations.

Kammac has already established two e-fulfilment centres at its sites in Knowsley, near Liverpool, and Burton-upon-Trent. Each space is pre-set to suit the range of e-fulfilment requirements, meaning that the service can be up and running within days.

The company is aiming to expand to a further six sites, allowing Kammac to fulfil up to 100,000 orders per day for customers. These sites will be based around the UK, giving customers more flexibility in their fulfilment options and enabling strategic locations close to their centre of operations.

Crucially, Kammac has designed the centres using a modular approach offering scalability and rapid layout changes as required. With the capability in each centre to process more than 10,000 units per day, this means Kammac can scale operations in line with its customers’ growth.

With no minimum order quantity (MOQ) or contract term, start-ups have the flexibility they need, with the pop-up centres operating on a ‘pay as you go’ model, an attractive option for young businesses.

In addition to the scalability and flexibility of the space, Kammac’s experienced team will provide total support for the online brand owner – even helping with forecasts and stock planning – allowing them to focus on building their business.

“The agility and support of the pop-up ecommerce solution is key to our offering. A customer might need only a fraction of the space to start with and grow from there. Equally, there might come a time when order volumes decline and they need to scale down,” explained Hunt.

“Similarly, most smaller businesses do not have detailed logistics knowledge or dedicated personnel. We provide this for them, and our experienced team will help guide them through the process, to ensure everything is both commercially efficient and effective in terms of giving their customers the best ecommerce experience. Whatever the circumstances, we will be there to solve and fulfil their ecommerce needs, ensuring their brand is safe in our hands. As well as continuing to expand this service, we’re also recruiting more experts to join our growing ecommerce team,” Hunt concludes.

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