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The management of goods and services from point of manufacture to the point of consumption refers to Logistics Management. It involves effectual planning, design, execution, control, and monitoring of supply chain activities.  For many years, logistics management was viewed as a necessary evil. That is, logistics activities had were needed for a manufacturing or retail firm to stay in business, but these activities were not seen as “strategic. But today, we know that Supply chain and Logistics management is vital to every company operating in numerous industries. The 7 “Rights’’ (also known as the 7 Rs) is one of the most crucial concepts in logistics management, and managers should strictly memorized in order to acquire the fundamental knowledge of Logistics.

What is Logistics?

Logistics is that part of supply chain management that plans, implements and controls the efficient, effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to meet customers’ requirements. It is about getting the right product, to the right customer, in the right quantity, in the right condition, at the right place, at the right time, and at the right cost.

There are many elements that play key roles within a logistical structure, for example, prices and volumes are reviewed to make sure they fulfill what it is being required. Quality assurance deals with the precision of what is being acquired and shipping and handling regulates and control the time that takes to move the items from the shipping point to the delivery point.

Logistics play a crucial role to ensure high levels of productivity, since it can reduce the time it takes to get what is being demanded in the hand of those that are manufacturing or delivering the goods and services to the final customers.

The role of logistics is integral in every industry. The main aim of Flex Logistics deals with taking care of 7 R’s these are as follows:

1. Right Product

While designing/manufacturing/selecting a product, the organization should look into potential issues that can arise during transportation. Special packaging requirements, for example, can arise from the product’s weight or bulk, its shape or its fragility and distance of transportation.

Product when designed properly will greatly facilitate logistics if they ensure a certain level of standardization in the product’s measurements during the design will make packaging, warehousing, product handling and transport considerably easier. The best strategy is to choose a product that is in demand and that can guarantee profits. Having right knowledge and using the right product will facilitate in efficaciously managing the time and resources.

2. Right Customer

Customers are the core component of supply chain processes. The right customer is about finding the customer and creating an awareness about our product and services. The greatest challenge involved in this would be to identify the customer to be targeted. The solution to finding the right customer would be to do a market research. Managers must have knowledge about their target market. If the products are sold in the right market then the company gains more leads and they get the right customers that can stay with them life-long.

A market research would give an insight into whom we are supposed to target. Then as per the budget one would choose which marketing strategies to employ so that the right people know about our product and how to access the product.

3. Right Price

Pricing is imperative for the businesses as it is the factor that decides whether it has incurred profit or loss. The supply chain manager should research market trends and set competitive prices for the goods and services. They must have an appropriate price value in order to track the company income and expenses. A good system for storing and updating the right prices ensures success in logistics management services.

4. Right Quantity

Sending right amount of products is also important in logistics. It is the task of the supply chain managers to find the right quantity of deliverables and to coordinate with the manufacturing and delivery team to get the right quantity of products delivered to the customers. If we do not meet the demand of product, we will ultimately loose some chance of making money. Also if we have excess quantity our warehousing expenses and other associated expenses will increase. So the production must be in a balance to cater the demand and must not make huge inventory cost.

5. Right Condition

The right condition in logistics is about the safe delivery of the proposed product. The quality of the products should be maintained till the time it reaches the end user or the customer. The distribution strategy should be such that it is preserving the quality of the product without increasing the overhead costs. It is the duty of the supply team to ensure that the goods are stored properly and delivered to the customers in the right condition.

6. Right Time

Time is a crucial factor in logistics. Even if everything else in the process is done accurately the entire process can fail if the timing is not right. You must have the products on the shelves or in stock at the right time to cater to the demand if the product demand is not met at the right time it might be lost to competition. Customer’s satisfaction and long-term relationship are only possible if the products are delivered to the customers at the right time. It is the task of managers to develop a tracking system and coordinate with the delivery team to get the items delivered before the deadline.

7. Right Place

The managers can develop a robust delivery system with location tracking so that both the customers and the providers can track the exact location of the product and get it delivered to the right place.

The demand for your product may vary depending on geography and demography and other factors. It is necessary to understand from doing extensive market research the exact place that needs to be targeted, as certain areas might have demand for the product whereas the other areas might not care about the product at all. It is important that the right product be sent to the right place. The supply chain managers should ensure that they have efficient and experienced delivery staff so that the product is delivered to the right place. After choosing the place it is important to choose a distribution strategy that would satisfy the demand without oversupplying or under-supplying the product at any given point.

Why Logistics is Important

Although many small businesses focus on the design and production of their products and services to best meet customer needs, if those products cannot reach customers, the business will fail. That is the major role that logistics plays.

But logistics also impacts other aspects of the business, too.

The more efficiently raw materials can be purchased, transported, and stored until used, the more profitable the business can be. Coordinating resources to allow for timely delivery and use of materials can make or break a company.

And on the customer side, if products cannot be produced and shipped in a timely manner, customer satisfaction can decline, also negatively impacting a company’s profitability and long-term viability.

The FLEX Logistics Team is Here to Help!

Our team understands the importance of getting your products to the market. That is why we aim to understand your business and build lasting relationships with you and your team. ​Whether you are looking to add a new warehouse to your existing operations, growing and need to increase your distribution efforts, or starting a new company, FLEX has the solutions to meet your supply chain needs.


Contact us today to discuss your current and future warehousing and logistics needs.  We will work together with you to understand your requirements and develop a solution that will set you up for future success.

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