This article will discuss the 7 “R”s or rights that transformed logistics into the backbone of big and small businesses worldwide to be successful and reach new heights.
What are the 7 rights of logistics?
There are many definitions for 7 rights of logistics for moving goods in a synchronized way for meeting specific criteria like condition, correct place and timeliness. Since logistics take the business world by storm, only these 7 Rs govern their functions of the best 3PL service for the best customer experience. As per the Council of Logistics Management 1991, the 7 Rs is the process to effectively plan, implement, and control the forward and reverse flow of goods and their storage and related information from the origin to the consumption point to meet customer requirements. Put it is to get the right product in the correct quantity and condition at the right place and time to the right customer at the right price. The 7R’s play a critical role in the supply chain management for domestic and international logistics.
What is the role of the 7R’s in logistics?
Only because of the role that the 7R’s play in logistics for its market size to grow at a CAGR of 6.8 % CAGR to reach 15,806.75 from 9941.38 billion dollars from 2020 to 2030. The following roles that the 7Rs play in the best 3PL service are to provide the best logistical solutions backed by technological advancements.
1. Right product
Selecting the right product is the key to facilitating its delivery from the supplier to the customer. For businesses, it is essential to choose the right product to guarantee income. But for the logistics, it is vital to check the potential issues during its transportation. It includes the product’s weight, shape, fragility, size and dangerous nature to ensure the proper handling, packaging, warehousing, and transporting. It will be easy to transport the product effectively by reducing the number of journeys resulting in fewer emissions and being eco-friendly.
2. Right customer
Since the customer is God for any business, it is vital to choose the right customer after selecting the right product. Using the collected data and analyzing them would help get valuable insights to develop marketing strategies to find the right customer. Only then will the customer use the logistics service for a long time, leading to more customers.
3. Right quantity
After selecting the right product and customer, it is critical to choose the correct quantity as more or less will give a wrong perception to the customer. Also, choosing the correct quantity will reduce unnecessary transport and warehouse expenses.
4. Right condition
Any customer will not be happy if the delivered product is not in the proper condition as they need it. Hence, delivering the product properly from the start to the customer’s doorsteps is vital. Hence logistics should have the best distribution strategy to preserve the products’ quality to decrease the overhead and reverse logistics costs.
5. Right place
The right place of delivery is vital for the product to reach the correct location using a comprehensive position tracking distribution system.
6. Right time
Delivering the products at the right time is one of the significant factors for Amazon’s tremendous growth. Hence it is vital to have a real-time tracking system to deliver the goods correctly.
7. Right costs
Correct costs will not only enable them to survive and succeed by outsmarting the competitors and increasing the income stream for logistic companies.
The above facts will surely convince anyone to know the importance of the 7R’s for using 3PL service by many companies in the US and worldwide.