7 Ways to Optimize Your Business and Drive Success Through The Use of “Right” Logistics
Described as, “the overall process of managing how resources are acquired, stored, and transported to a final destination,” logistics refers to the fundamental planning required for any operation to be successful. For all businesses, corporations, and organizations, logistics serve as the lifeline that brings the necessary resources together for an operation to function. Disruptions to this lifeline can create drastic consequences that impact an operation’s longevity.
It’s one thing to know how important logistics is to success, and quite another to know how to properly implement the right steps to achieve that success. Here at Logic-ology where we operate as a Third Party Logistics provider, it’s at the core of our business to understand the fundamentals of “right logistics” to provide our customers with the best service possible.
That’s where the 7 R’s of Logistics comes in, which outlines the 7 key things that leaders should take into consideration when coordinating their operations.
As one of the most well-known concepts used in logistics management, understanding and implementing the 7 R’s creates a solid foundation upon which a successful operation can be built.
The “7 R’s” can be broken down into:
- Right Product
- Right Customer
- Right Condition
- Right Place
- Right Time
- Right Cost
- Right Quantity
Let’s dive into the 7 R’s and explain how they can impact (or disrupt) success:
1. Right Product
When it comes to logistics, it’s important to take into account the product itself to ensure proper protocols are in place. Transportation, storage, and handling standards can differ vastly depending on the product.
The Logic-ology approach – we work closely with our customers to fully understand their products and their requirements so that we can provide the best possible solutions to ensure deliveries arrive at the final destination in perfect condition.
2. Right Customer
Establishing and understanding a target customer can help any operation streamline its processes to better serve its customers. Marketing, location, and operational standards should all be coordinated with the target customer in mind. As an operation grows, it’s possible to expand beyond the target customer, but only if the infrastructure is in place to be able to best serve multiple audiences simultaneously. Start first with a focused approach then expand with success.
The Logic-ology approach – we abide by this principle when choosing which clients we work with to ensure that we’re able to provide the exact services our clients require.
While we service all industries at a high level, at the heart of our business are two major industries: Food & Beverage based companies Production Based Manufacturing businesses
With our strategic focus being on these industries, we are able to source the specialized equipment needed while providing numerous unique solutions to the challenges these groups can face in their day-to-day operations.
3. Right Condition
When a shipment arrives at its final destination, the condition that it arrives in is vital to the client, end consumer, and the business reputation of a 3PL.
It’s the responsibility of the logistics provider to ensure that when the product reaches its final destination, it’s in the same condition that it was when it left the manufacturer. Proper logistics protocols and practices allow the condition of the product to be maintained as it moves throughout the supply chain.
The Logic-ology approach – we protect the condition of the product we work with through a variety of ways.
Firstly, we ONLY work with reputable carrier partners we know we can trust to handle shipments responsibly and respectfully.
Secondly, we work with our carrier partners to ensure proper precautions and procedures are in place to protect the product, including: Using equipment sourced for the specific product Following client-specific requirements (strapping, load bars, airbags) Implementing the use of custom check-lists specifically made for certain products
4. Right Place
If the product makes it all the way down the supply chain in pristine condition but winds up at the wrong place, it can create a lot of problems for a lot of people. Prevent delivery disruptions (or worse, lost product), by implementing air-tight protocols pertaining to the final delivery of the product to ensure it gets to where it needs to go.
The Logic-ology approach – by utilizing a checklist, we mitigate delivery mistakes that can be costly to both us and our customers, which goes as follows:
- Double-check addresses
- Personally book delivery appointments or follow up on provided delivery appointments to ensure all is correct
- Call in advance to ensure the delivery appointment is still available or if there are any special requirements upon arrival
- Communicate regularly with carriers to ensure they have correct delivery information
- Ensure all paperwork has proper addresses and instructions
5. Right Time
Each second really does count when it comes to logistics, and it’s important to connect with your customer to understand when they need their product to ensure we can deliver upon their request.
The Logic-ology approach – we track and trace all our shipments via GPS if available, and if not we connect regularly with the drivers to ensure the delivery is on track. Throughout the industry, we’re known for the timeliness of our deliveries, and this is the reputation we are committed to building upon.
6. Right Cost
Pricing services appropriately is vital to the success of any logistics operation. It’s important to offer competitive pricing that will attract customers, while also balancing appropriate margins to keep operations profitable without compromising the quality of service.
The Logic-ology approach – we always get a minimum of 6-10 freight quotes from our network of carrier partners per move to ensure we’re offering our customers the best possible pricing in an ever-changing market. As a relationship-based business, we build solid relationships with our carrier partners that allow us to leverage our long-term buying power to negotiate the best pricing. We further conduct market spot checks weekly on our main lanes to stay up to date on industry pricing.
7. Right Quantity
Having too little or too much of a product can result in insufficient supply or overpaying for supplies and storage. It’s important for the customer to try to order supplies based on storage space, customer demand, historical trends, and other key indicators to order ensure the correct amount of product is on hand.
It’s equally as important for a logistics provider to ensure that the quantity ordered is delivered on each shipment.
The Logic-ology approach – we work with our carrier partners to ensure all Bill of Ladings are signed off on at pick up and delivery to acknowledge that the quantity and quality of the goods are as expected and that nothing got lost or damaged along the way.
Consistently adhering to proper logistical practices is no small feat. It requires constant checks, balances, market research, equipment maintenance, protocol enhancements, and industry knowledge to stay efficient and ahead of the competition.
For many organizations, maintaining an in-house logistics team simply doesn’t make sense financially, and it often fails to provide the best solutions necessary to deliver optimal results.
Here at Logic-ology, logistics is what we do. We apply our proven method backed by the science of supply chain to offer our customers the most efficient and cost-effective solutions designed to drive the success of their business.
Focus on running your business and we’ll focus on making sure the logistical lifeline never runs dry.