What occurred in the logistics service industry was a radical shift from single function to multifunctional outsource sing Integrated service providers (ISPs) began to market a range of logistics services that included all work necessary to accommodate customers ranging from order entry to product delivery. In many situations the foundation of transportation and warehouse services was augmented by the performance of a wide range of special services. These customized services are typically described as value-added services (VAS). For example. United Parcel Service (UPS) stocks Nike shoes and warm ups at its Louisville warehouse and processes orders hourly All related communication and financial administration are handled by a UPS ca center Thus. Nike has effectively outsourced basic logistics and related value-added service to UPS