The Seven R’s of Logistics
- Right Product : During the process of selecting a product, a company should look into potential issues that can arise during transportation stage. For instance, fragile or oversized products require special packaging, and this could affect the decision of choosing the most suitable transportation mode.
- Right Quantity : The right quantity plays an important role in logistics. Knowing the exact quantity and meet the demand is the key point for a manufacturer in keeping reputation and avoid losing money. If a company produces too much products, the warehouse would be overloaded and other related expenses will be raised. For any logistics company, with the help of modern technology, the company can easily manage all quantities of goods to deliver.
- Right Conditions: Delivering products in the right condition refers to the safety factor in shipment. The quality of the product should be maintained, and the packaging must be intact when reaching the end user or the customer. It can be considered the responsibility of the supply team and distribution team to preserve the quality of the product without increasing overall costs. Häagen-Dazs is famous for its delicious and luxury ice-cream. In order to maintain the quality of the products, Loop – one of its distributors in the US has chosen to ship ice-cream in reusable frozen container. They also develop a cooler box system to fit inside the reusable Loop tote bag so that customers can keep the ice-cream cool for 24 to 36 hours after the purchase.
- Right Place: The next important factor is to make sure the products are being delivered to the right destination. In addition to having experienced delivery staff, the company should also have an effective Transportation Management System or a Route Optimization Software. These types of system can help in tracking and organizing the movements of the materials and products, providing managers with the opportunity to look back and analyze past decisions through data storage capabilities.
- Right Time: Timing is another important factor when it comes to logistics, since more and more customers are having concern on the time of delivery. In order to maintain competitive advantages in the industry, there should be no delay delivering the products to end consumers. With the routing software, the company can have the most optimized route and therefore save up time. With the help of a Route Optimization Software, a company can optimize shipment routing, shipment load planning, shipment tracking and even routing guide, etc. A great software system like can give insight through reports, dashboards, charts and other features that enable better decision making, therefore saving time for the company.
- Right Customer: After being created, the right products must be delivered to the right customers. The greatest challenge in this process is how to identify targeted customers and spread the awareness about the products or services. A useful market research would give managers insight of potential customers and therefore allocate the budget for marketing strategies wisely. By doing that, a company will be able to gain more leads and reach more customers.
- Right Cost: Last but not least, combining with previous factors, products should be shipped at the most suitable cost. An appropriate price point not only ensure the company profit but also help gaining competitive position in the market. As mentioned above, using a route optimization software can help reduce total transportation costs as well as operating costs by reducing total route distance and average miles between stops.