7 R's of Logistics

                            

Logistics is art and science of obtaining producing and distributing material and product in proper place and in proper quantity. Logistics nothing but movement of material in whole supply chain. It is part of supply chain management. Logistics management is an integral part of supply chain management that is used to meet customer demands through the planning, control and implementation of the effective movement and storage of related information, goods and services from origin to final destination. 7 R’s of logistics are as follows

 

1. Right Product

The basic constituent of supply activities are the products that are transported from the manufacturer end to the consumers end. Supply chain managers should know what kind of product needs to be manufactured, handled and transported. Manufacture the product which satisfy the customer demand with best quality. Main goal of any organisation or industry to satisfy customer, minimise or reduce cost and maximise profit. The best strategy is to choose a product that is in demand and that can guarantee profits. Having right knowledge and using the right product will facilitate in managing the time and resources. 

2. Right Place

The most important factor is that the right product should be deliver to the right place. The managers should ensure that they have efficient and experienced delivery staff so that the product is delivered to the right place without any delay. The managers can develop a robust delivery system with location tracking so that both the customers and the providers can track the exact location of the product and get it delivered to the right place.

3. Right Price

Pricing is essential for the businesses as it is the factor that decides whether it has incurred profit or loss. The manager should take survey of market or research market trends and set competitive prices for the goods and services. Furthermore, there should be a system that keeps a record of the prices and updates it regularly so that the products are sold at the right price. Right price to product is decides the products success as well as companies are in profit or in loss.

4. Right Customer

Customers are the core component of any business. Identifying right customer is must for success any business. The managers must have knowledge about their target market. If the products are sold in the right market then the company gains more leads and they get the right customers that can stay with them life-long.

5. Right Condition

Product should be store and deliver in right condition to maintain quality of product. It is the duty of the supply team to ensure that the goods are stored properly and delivered to the customers in the right condition.

6. Right Time

Time is a crucial factor in logistics and supply chain. Customers satisfaction and to maintain long-term relationship with customer are only possible if the products are delivered to the customers at the right time. It is the task of managers to develop a tracking system and coordinate with the delivery team to get the items delivered before the deadline.

6. Right Quantity

Delivering right quantity of products is also important in logistics. It is the task of the supply chain managers to find the right quantity of deliverable and to coordinate with the manufacturing and delivery team to get the right quantity of products delivered to the customers.

These are the seven R’s of logistics and supply chain management that ensure that the whole process of logistics is carried out effectively. These 7R’s helps to satisfy the customer demand by delivery product in right time by maximise profit and reduce cost.

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