7R’s in Logistics
Defining Logistics
Logistics is defined as part of supply chain management that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from origin to the consumption point based on the consumer requirements.
Logistic or move consider to be the arms and wheels of the supply chain to take the business value proficiency on time in full to the required customers. In this journey there will be key elements which will enable the logistic to play this role effective and efficient, factors such as right product, right place, right customer, right condition, right condition, right time at right cost. This factor we called at 7R’s in the logistic operation.
1. Right Product
The company should investigate potential transportation-related issues when designing, manufacturing, or selecting a product. The product's weight, bulk, shape, or fragility, as well as its transportation distance, may necessitate special packaging requirements.
If they ensure a certain level of standardization in the product's measurements during design, properly designed products will significantly simplify packaging, warehousing, product handling, and transportation. Choosing a product that is in high demand and can guarantee profits is the best strategy. Effective resource and time management will be made easier with the right tools and knowledge.
2. Right Customer
The processes of the supply chain are based on customers. Finding the right customer and raising awareness of our products and services are the keys to getting there. The most difficult part of this would be figuring out who the intended customer is. Conducting market research would be the solution to finding the ideal client. Managers must be familiar with their target audience. The business can increase its lead generation and acquire long-term customers if its products are sold in the right market.
A market study would help us figure out who our intended audience is. Then, based on the budget, one would select the marketing strategies to use to ensure that our product is known to the right people and that they can access it.
3. Right Price
Pricing is important to businesses because it determines whether they have made a profit or lost money. The manager of the supply chain should study the trends in the market and set prices for the goods and services that are competitive. In order to keep track of the revenue and expenses of the business, they must have a suitable price value. Success in logistics management services is ensured by having an effective system for storing and updating the appropriate prices.
4. Right Quantity
In logistics, it's also important to send enough products. Managers of the supply chain are responsible for determining the appropriate quantity of deliverables and working in tandem with the manufacturing and delivery teams to ensure that customers receive the appropriate quantity of goods. We will ultimately lose some opportunity to make money if we do not meet product demand. Additionally, our warehousing costs and other associated costs will rise if we have an excess quantity. So, the creation should be in an equilibrium to cater the interest and should not make enormous stock expense.
5. Right Condition
In logistics, the ideal condition is the secure delivery of the proposed product. Products should be of the same high quality until they reach the customer or end user. The product's quality should be maintained while overhead costs are reduced through the distribution strategy. The supply team is responsible for ensuring that the goods are appropriately stored and delivered to customers in good condition.
6. Right Time
In logistics, time is a crucial factor. If the timing is off, the entire process can fail, even if everything else is done correctly. To meet demand, you need to have the products on the shelves or in stock at the right time. If demand is not met at the right time, it could be lost to competitors. If the products are delivered to the customers at the right time, both customer satisfaction and long-term relationships are possible. Managers are responsible for creating a tracking system and working with the delivery team to ensure that the items arrive before the deadline.
7. Right Place
Customers and providers alike will be able to track the precise location of the product, and have it delivered to the appropriate location if managers create a robust delivery system with location tracking.
Your product's demand may fluctuate based on demographics, geography, and other factors. Because some areas may have demand for the product while others may not care at all, extensive market research is necessary to determine the precise location that needs to be targeted. It is essential to deliver the appropriate product to the appropriate location. To ensure that the product reaches its intended destination, supply chain managers should make certain they have skilled and effective delivery staff. It is essential to select a distribution strategy that would meet demand without either over- or under-supplying the product at any given point after selecting the location.
Despite the scale of operation, it is vital companies need effective and efficient logistic operation in place to understand, delivery and fulfill the customer requirements on time in full.
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<h1>References</h1>
ATECH logistic and distribution. (2021, August ). 7RS &nbsp;&nbsp;OF LOGISTICS . Retrieved from ATECH logsitic and Distribution.
Diggi Packs . (n.d.). What are the 7Rs of &nbsp;&nbsp;Logistics . Retrieved from Diggi Packs .

7R Model in Logistics

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