Learn About The 7 Rights Of Logistics
To manage business activities most effectively, businesses not only focus on promoting and producing but also must manage the supply chain well. From there, "7 rights of logistics" was born to point out the important factors that businesses need to ensure during supply chain operations. So what are the 7 rights of logistics? Let's find out with Au Viet Rack in this article!
7 rights of logistics
1. Right product
The right product in logistics is the most important factor, playing a core role in business operations. Products are the soul of a business, so ensuring the best quality for products helps customers be satisfied and become loyal customers in the long run. If you sell many product lines at the same time, your business will receive more orders from customers with many different product categories and requirements. At that time, the business's job is to ensure accurate delivery according to the order. If the product the customer ordered is not delivered correctly, even if it is an unexpected incident, it will take a lot of time for both parties to return the goods, thereby leading to the loss of a number of customers that the business has.
The right product is the most important factor in the 7 rights of logistics
In addition, for products that are difficult to transport, the design of the product shape and packaging also need to be considered. If a product is designed and packaged intelligently and suitable for the transportation process, it will reduce loading and unloading time, transport many goods at the same time and significantly reduce the risk of product damage.
For example, IKEA products are designed to be shipped in flat packages, allowing more products to be shipped per load. This results in fewer shipments, which means less fuel consumption and fewer emissions.
2. Right customer
Every product has unique characteristics to meet the needs of a certain customer segment. To deliver the right products to the right customers, businesses need to conduct market research to identify their target customers. Then run promotional campaigns to attract customers. Thanks to identifying the right customers, sales increase significantly and bring a large source of potential customers to the business.
It is necessary to identify target customers in logistics
3. Right quantities
From the moment the order is received to the packaging and shipping stages, everything needs to be carefully checked to ensure delivery of the correct quantity according to the customer's request to create prestige for customers.
In addition, manufacturers need to have plans to anticipate market needs and backup plans for risks. If a business does not produce additional spare products or does not store raw materials, it will be difficult to adapt in situations where products are damaged en masse or market demand suddenly increases. On the contrary, overproducing too many products during a period of sharp decline in market demand will cause a backlog of goods, which in the long run can be damaged and cause financial losses for businesses. Predictive planning helps keep the number of products in stock at a reasonable level, and the merchandise management process also becomes easier to control.
>>> See more: All of the best types of logistics warehouse racking today
4. Right condition
Correct conditions in logistics means keeping goods in the best condition when delivered to customers. An order needs to go through many steps of preparation and shipping to reach its destination. No matter how great a product a business produces, if it reaches the customer and is damaged, distorted, or broken, it is still considered a poor quality product. Therefore, the packaging and transportation process needs to be strictly controlled and ensure storage conditions. For example, an ice cream manufacturing company needs to always keep the temperature freezing when transporting ice cream to any location, and a rice or flour distribution business must always keep the product dry until delivered to the customer.
5. Right place
Delivering to the right location not only helps speed up delivery time for customers but also helps businesses save a lot of transportation costs. Businesses need to plan transportation and create schedules for destinations that are most convenient for transportation. In addition, there are currently some very useful software that help closely manage all goods movement processes, help businesses save time and fuel, and analyze the efficiency of the transportation process. shipping, significantly reducing cases of confusion about delivery locations.
Delivery to the right location helps save time and costs
6. Right time
As the logistics industry develops and e-commerce activities tend to grow, competition in delivery services between parties is becoming more and more fierce. Customers demand faster delivery times because they do not want to wait long and there are many other options outside. Businesses can cut out some unnecessary procedures or steps, reduce packaging time and use software to create reasonable delivery routes. Delivery time needs to be shortened or at least at the latest expected time, otherwise it will create a bad impression in the eyes of customers.
Right time increases customer satisfaction
7. Right cost
Combining all the above costs, businesses will know the original price of the product, thereby adjusting the selling price appropriately. Filter out unnecessary steps, shorten processes and establish plans to optimize all resources in the supply chain to significantly reduce costs for businesses. From there, the price of products reaching consumers will also decrease, creating a very competitive position for businesses in the market.
It can be seen that the 7 rights of logistics provide a comprehensive view of all aspects that need to be focused on in logistics management. Highly effective supply chain management according to the "7 rights" will help increase customer experience and create a reputable image for the business in the long run.
