Blog Details

The 7 Rs of Logistics & Supply Chain Management
  • 19 Feb 2022

The 7 Rs of Logistics & Supply Chain Management

Logistics management is the control of products and services from the point of production to the end of consumption. It entails efficient planning, design, execution, control, and monitoring of supply chain activity. Logistics management was considered a necessary evil for a very long time. In other words, logistical activities were required for a manufacturing or retail company to remain in business, but they were not considered “strategic.” Today, however, we understand the importance of operations and supply chain management to any business that operates across several industries. One of the essential principles in logistics management is the seven rights, or seven Rs, which managers must strictly memorize to gain a foundational understanding of logistics. In supply chain management, there is a concept of 7Rs, so here in this blog, we will unpack the same term.

7 Rights or 7Rs are vital in backing international logistics and supply chains. Every ecommerce business wants to excel in its domain and needs the work to be done with the most reasonable use of the resources. Operations and supply chain management corresponds to managing the services and products from the production point to the end user. It consists of designing, planning, managing, implementing, and tracking the activities associated with the supply chain. Before describing 7R briefly, the R written above denotes, Right Product, Right condition, Right quantity, Right Place, Right customer, Right price, and Right time.

What Is Logistics?

Logistics is the part of supply chain management that plans, implements, and controls the efficient, adequate flow and storage of goods, services, and related information from the origin to the end of consumption to meet customers’ requirements. 

Many elements play vital roles within a logistical structure; for example, prices and volumes are reviewed to ensure they fulfill what is required. Quality assurance deals with the precision of what is being acquired, and shipping and handling regulate and control the time it takes to move the items from the shipping point to the delivery point.

Logistics play a crucial role in ensuring high productivity levels since it can reduce the time it takes to get what is demanded in the hands of those manufacturing or delivering the products to the customers.

What Are the 7Rs?

Right Product: While selecting/manufacturing/designing a product, organizations must look at the possible issues during transportation. They have to take care of the packaging’s unique requirement; for instance, it could arise from the bulk or weight of the product, its fragility or shape, and the aerial distance of the transportation. If a certain level of standardization is considered and the product is appropriately designed, it will facilitate logistics. It further makes warehousing, packaging, transportation, and product handling easier. The best approach is to pick the most demanding product to guarantee profits. Having a good knowledge of the product can efficiently manage resources and time.

Right Customer: The critical element of supply chain operations is the customer. Finding the proper customer and spreading knowledge of our goods and services are crucial. However, finding the right target customer would be one of the tremendous tasks. Managers need to be familiar with their target market. If the products or services were sold in the right target market, the organization will generate more leads & attract potential clients.

Right Price: Pricing is crucial for every organization as it decides whether it will incur profit or loss. The supply chain manager must research the current market trend and fix competitive charges for the services and goods. They should have a fair price to monitor the expense and income of the organization. An ideal system for updating and storing the correct prices ensures success and growth in operations and supply chain management.

Right Quantity: Sending the appropriate quantity of goods is one of the most appropriate logistics works. Supply chain managers must find the proper quantity of deliverables and work with the manufacturing and delivery teams to deliver an adequate quantity of goods to clients. We will ultimately lose some opportunities to make money if we cannot match the demand for our products. Additionally, the price will rise if we stock excessive products in our warehouse. Therefore, the output must be balanced to meet demand without high inventory costs.

Right Condition: The safe delivery of the suggested product is the ideal condition in logistics. The products’ quality should be preserved until the end-user or the consumer uses them.

Right Time: Time is the most crucial factor determining the growth of your organization. If you have provided everything accurately, the entire process can fail if you cannot meet the right time. You must have products in stock at the right time to fulfill your customer’s demands at the right time.

Right Place: It is crucial to develop a robust system to track the location of customers and products. It gives the customer a deep insight into the product’s location.

We may use cookies or any other tracking technologies when you visit our website, including any other media form, mobile website, or mobile application related or connected to help customize the Site and improve your experience.
learn more