7 Rights of Logistics (7R s): For learning Logistics Easily

When you are working in a supply chain it is extremely important to know about the 7 rights of Logistics. It is not only a theory of Logistics management but also the most effective things to be used in industry.

Right product
Right quality(condition)
Right quantity
Right time
Right price(cost)
Right customer
Right place

7 Rights of Logistics

Next, going to explain 7 rights or 7 R’s of logistics one by one.

1. Right product

We can explain the ” Right product” in 2 aspects. Both the customer or buyer side and the seller or company side.

Consider, as a company you selling products to customers

When the customer has ordered a product from your company through an online shopping or traditional purchasing process site shopping order requesting by call or another method of order request. It should be the same product that which customer has ordered. Do not use a substitute or alternate products for customer requirements. In case you have sent another product to a customer you lose your customer or the product will return. It is cost and time wasting to your company. It will create customer dissatisfaction with your company’s goods and services so if their feedback is bad while customers will not come back to you. It means you lose your money, and time as well as lose your valuable customers. For the survival of the industry, you need to take care of customer handling. If customers are happy your company will boost.

Consider, as a company or individual customer, you plan to purchase products from a supplier

If you are planning to purchase products from a seller. In the planning stage, you need to get better knowledge about the product that you are going to buy. Because you need to consider your requirements for the products. A particular product should fulfill your requirements and budget. After identifying your requirements and the particular product you need to think of packaging and transport requirements.

If you identify the “right product” you can request a suitable method of packaging and transportation mode. It can avoid the risk of damages and pilferages during transportation. And also it helps to avoid product returns. When you are selecting the “right product” to buy you can save time as well as money.

2. Right Quality/Right condition

Next, I’m going to explain, another element of “7 rights of logistics” called “Right quality“.Some are called as “Right condition“.Both Right quality and right condition have the same meaning. After the reading below clarification, you will realize.

this element also we can explain in 2 different aspects By considering the buyer side and the seller side.

Consider, as a company you selling products to customers

When considering a company or online shopping website, delivered products should be of the “right quality” that has customer ordered. Most customers think about the quality standard of the product other than the cost of the product. So they expect and demand high-quality products according to the worth of the money they have spent. Then you need to provide products with customers expecting quality. In case you are not able to send the product in the “right quality” you will lose your customer as well as your company reputation.

Condition is affected to all the products. But specially condition is a considerable factor in the perishable cargo sector. It means fresh vegetables, fruits, flowers, meat, etc. You need to fulfill customer requirements in the “right condition” which is the customer’s expected condition. When considering perishable goods if it is not delivered in the right condition the whole consignment is a waste and a loss of money. So the “right condition” is the most considerable factor in logistics. Not only perishable goods but also other products need to supply in the “right condition”.

Consider as a company or individual customer that you plan to purchase products from a supplier

As a customer, you need to be aware of your product’s condition or quality. After selecting the right product next important thing is identifying quality or condition requirements. If you order low-quality products than your required quality, it is an unnecessary cost and a waste of your money due to you can’t use them. Then you have to purchase another product or you need to return the delivered items. It will create unnecessary risks and problems for your company.

Some of the products are damaged during the transportation process and also under quality items and not in the “right condition“.Before you buy the products you as essential to inform and request the right conditions for your seller. For example, when you plan to buy perishable goods, your seller should follow the right packaging and transporting methods. Such as ventilating facilities or refrigerated facilities to keep products in the “right condition“.Before delivering goods you need to allocate the required facilities for warehousing for keeping products in the “right condition“.It also helps to keep your product in the “right quality or condition“.

3. Right Quantity

This element of & rights can be explained in two different aspects that are customer’s aspect and the seller’s aspect.

Quantity means is volume or amount of the product that has one order. It should not be less or more than the actual order. Quantity should match with customer’s order otherwise it is a burden to the customer. If an excess of the actual customer order quantity customer has to pay more money than he expected it will be a problem as well as it is unwanted things, the customer not having space to store additional things likewise so many problems occur for customers when issuing goods more than a requirement.

On the other hand, low quantity is also a big problem for a customer. He can’t supply others in the right quantity which is a threat to customer business as well as his reputation likewise, he couldn’t to his expectation of ordering goods.

As a buyer, you need to think of the “right quantity” of the order. Before sending a purchase order to the seller, you need to identify the right quantity of the products. Otherwise, you need to face many problems if you order more than the required quantity such as warehouse and storage facilities. If you are ordered less than the requirement you can’t do the work which you have already planned. So you need to order again the shortage of the products. It is wasting cost as well as time.

4. Right price

Also called the “right cost“. Pricing is a very important factor in a business. Because at the end of the day, every business need to earn profit at a low cost.

Price is the commercial value for a product or service paid by the customer to the seller. Most of the time “right price” depends on the other 6 rights of the logistics(right product, right quality, right quantity, right time, right customer, right place). When considering a business price covers the cost of the production and also includes the profit margin of the product.

As a buyer, you need to think about your requirement and budget. your order should be cost-effective. For selecting the right price for a product, you can do market research on the products. It means you can request quotations for more suppliers. Before buying a product at least you need to request 3 quotations from different companies. Then you can select the right supplier with concerning right price and the other 7 R’s of logistics. Some companies may offer special discounts as seasonal offers or consider the volume of goods to be purchased. You can get an advantage of the discounts. Then your product cost will decrease. It can say as the “right price” or “right cost” for you.

5. Right time

In logistics, concept time is the most considerable and most curial factor when delivering goods. When delivering an order other factors are right but the time is not at the right time, That consignment is a failure due to customer satisfaction, and also as a company, they do not cater products at the right time so it loses a competitive advantage in the field. As an example, we can discuss seasonal products like Christmas cards and decorations. Those items should be delivered to the market during the Christmas season. If you provide goods after Christmas you will not be able to sell your products. As well as you have introduced before the Christmas season you could reach an expected amount of customers. So it will be a loss. The better thing is to provide goods in time for the expected target season. Then you can earn profit.

When considering signal consignment or online order it should be delivered in a customer-requested time. Otherwise, customers feel unhappy. Due to he has to face many problems. If the order has been placed too early customers have to find a place for storage and the product is perishable which would be a big problem. When considering these things you have to deliver your order at the right time.

Right-time delivery is a challenge for a logistics company. You can avoid wrong-time delivery you can manage your delivery team and better coordinate with internal parties with a great plan. You can provide excellent service.

6. Right place

The place is also an essential considerable factor in logistics. When considering last mile operation right place delivery is a most considerable factor. By using a tracking system you can track places correctly and deliver the products.

When thinking about another product delivery into a market you must identify the correct market to supply goods. May your product demand vary with the geographical and demographical factors and other factors.

7. Right customer

when considering ordered products or services it should reach relevant customers. If you deliver to the wrong customer, the actual customer is dissatisfied so you will lose that customer while incurring unnecessary costs such as returning costs. And also when supplying products to the right customer supply chain process of the product is going smoothly.

Conclusion,

In conclusion, I would like to tell you, all of the 7 rights of logistics need to consider when you are doing some activity in your supply chain. Such as purchasing, selling, logistics activities, transport, distribution, etc. Because all 7 rights of logistics are depending on each other.

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