A Small Factory Inside the Warehouse, Run on Spreadsheets
Assembling holiday gift sets, bundling buy-one-get-one packs, applying Korean-language labels to imported goods, inserting free samples: these jobs happen in distribution centers every day. Work that adds value to products inside the warehouse is called Value-Added Services (VAS), and combining several items into a single set is called kitting. Yet at many sites, this is the one area still managed outside the WMS, on spreadsheets and whiteboards.
The reason is simple. Most WMS platforms are built around receiving, storage, and shipping, and often lack the concept of inventory transformation: "consume A and B to produce C." The result is a familiar set of problems:
Designing the Set and Component Master
Set BOMs and Version Control
Everything starts with the set BOM: the components and their quantities. A "Hair Care Gift Set," for example, might be defined as 1 shampoo, 1 conditioner, 1 body wash, and 1 gift box. Packaging materials such as boxes, cushioning, and labels belong in the BOM too, so consumables can be tracked.
Because set contents change every season, version control is essential. Even if the autumn set v1 and the spring set v2 share a set code, each work order must lock in the BOM version in effect when it was issued. Otherwise, historical records get distorted.
Make-to-Stock vs. Assemble-to-Order Sets
The two approaches change inventory at different points, so the master data should flag which approach each set uses.
Work Orders and Inventory Transformation
Issue, Pick, Receive
A VAS work order moves inventory in three steps:
Partial Completion, Defects, and Leftover Materials
Real jobs rarely finish exactly as planned. Suppose a work order calls for 1,000 sets, 820 are completed, and 15 conditioners are rejected for cracked bottles:
Without this in the system, the work area slowly fills with stock that belongs nowhere.
Dekitting
Unsold sets at season's end get broken down again. Dekitting is the reverse of kitting: it deducts set inventory and restores components according to the BOM version. Operators should be able to mark whether packaging such as boxes is reusable, or inventory will be overstated.
Labor Costs and Client Billing
For a 3PL, VAS is a revenue stream in its own right. Set a standard time and rate for each task type:
| Task type | Standard time | Example rate |
|---------|--------|---------|
| 3-item set assembly | 45 sec/set | KRW 300/set |
| Korean label application | 6 sec/unit | KRW 40/unit |
| Free sample insertion | 4 sec/unit | KRW 30/unit |
Assembling 1,000 sets takes 750 minutes (12.5 hours) at standard time, for KRW 300,000 in labor charges. Billing should be based on completed output, not the ordered quantity. In the example above, that is 820 sets × KRW 300 = KRW 246,000. When output is recorded per work order, it flows straight into the month-end client invoice. Comparing actual time against standard time also gives you a solid basis for renegotiating rates.
Rollout Order and the POLYGLOTSOFT Approach
Trying to digitize every VAS activity at once usually stalls under the weight of master-data cleanup. A more realistic path is to start with high-frequency, simple set jobs, stabilize the work order, inventory transformation, and output tracking flow, and then extend to labeling, sample insertion, and dekitting.
If your existing WMS exposes location transfer and inventory adjustment APIs, extending it is usually enough. If BOM versioning or client-specific rate structures are hard to fit into the current design, a separate VAS module that exchanges only inventory transactions with the WMS is easier to maintain.
POLYGLOTSOFT draws on its WMS implementation and enhancement work to design set BOMs, VAS work orders, and client billing integration around how your floor actually runs. If you want to move spreadsheet-driven VAS work into a proper system, get in touch. We will assess your current operation and help you decide between extending your WMS and building a dedicated module.