The 7 Rights of Logistics Essential to Supply Chain Management

Logistics is central to the success of any business because it details the coordination of goods and resources to meet specific customer needs. Logistics management is a process of planning and implementing a supply chain operation from the beginning to the end to meet these customer requirements. Many elements play a role in logistics, such as price, volume, and timely delivery of supplies. When managed efficiently, logistics can improve revenue while optimizing your system for storing, tracking, shipping, and delivering goods and services.

Logistics plays a significant role in the supply chain in various industries, from medical devices, pharmaceuticals, and food to telecommunications and industrial manufacturing. There are fundamental principles that define customer requirements and, consequently, should inform your decision-making on logistics. Widely known as the 7Rs, these principles include:

Right product

You will need a deep understanding of the market to offer the proper logistics services and predict product shifts to attract customers and grow your business. During the start of the pandemic, we combined our healthcare expertise at Northfield with our global supply chain presence to help health centers procure life-saving medical supplies. Any third-party logistics partner should supplement your product knowledge and add value to your operations.

Right quantity

Having the correct quantity of products or services available is necessary to keep your supply chain flowing seamlessly. For each order received, it’s the job of your logistics partner to ensure that the correct quantity is delivered every time.

Right condition

A product on offer must be stored, packed, and transported with care from the warehouse and delivered in the advertised condition to customers. The more organized your logistics operations, the higher your rate of consistently providing products and services that delight your customers.

Right place

In the same way products and supplies are expected to be delivered in the proper condition; they also need to be delivered to the right place. A sound logistics management partner ensures their delivery routes and planning are foolproof, robust, and efficient.

Right time

Timely delivery of products is vital to keeping your business’s reputation and profits. A tracking system can help you understand where your service providers and deliveries are and when they will arrive at their destination.

Right customer

To thrive in the logistics and supply chain industry, you will need to understand your market and the target market of your customer. The more acquainted you are with your customer’s wants and needs, the better positioned you are to offer them the right services. This insight is necessary and ensures your business is aligned with the supply chain needs of the market.

Right price

Lastly, you will need to set the right price on your products and services to continue to grow your business with healthy margins. In the same vein, customers ordering from your suppliers often demand transparent pricing. Where possible, a logistics management system can assist you in tracking pricing and expense data over time. Insight from such data will inform your long-term pricing strategy and enable supplier partners to extract additional value from each transaction.

Many businesses focus on design and production while investing little to nothing into logistics to meet customer needs. Good products, acquired at the right price and quantity, have to reach their destination in the right condition and time to satisfy customer expectations. No matter the industry, these seven critical elements work together to ensure the long-term viability of your business.

The Right Products, in the Right Place, at the Right Time

A lack of real-time insights into inventory levels can cripple your business with overstock and out-of-stock scenarios. Northfield’s global logistics solution offers proactive inventory planning, facilitates inventory optimization, and empowers demand planners to replenish supplies regularly. Reach out to our team to learn more.