7R’s or 7 Rights plays a significant role in the backing of supply chains and international logistics. Every organization wants to excel in its functionality. They want the work to be done with optimal utilization of resources. Supply chain management corresponds to the management of products & services from the point of production to the end-user. It includes planning, designing, implementing, managing, and tracking supply chain activities.

Managing supply chain management is central to all industries. A supply chain is very much important for the organization. SCM’s main aim is to take care of 7 R’s as it continues to follow.

Role of 7 R’s :

1. Right Product : The essential component of the supply operations is the goods delivered to the customer from the supplier. Supply chain managers should be aware of this. What kind of product they need to make, treat and transport. The net approach is to pick a product that is in demand and which can guarantee income. Getting the right information and using the right product would help maximize the time and money efficiently.

2. Right Quantity : It’s also necessary to submit the right amount of goods in logistics. The supply chain administrators are charged with identifying the right amount of deliverables and working with the production and distribution department to get the best quantity of goods distributed to the customers. All things should be taken proper care of and handled wisely. While packing it must be checked that the quality should be according to the demand. Less quantity will take the customer towards the wrong perception of the company.

3. Right Condition : The product should reach the customer in good condition. Of utmost importance is the consistency of the deliverables. The procurement department is obligated to ensure that the products are properly packed and shipped in the right condition to the customers.

4. Right Place : The next important aspect is that they will give the right material to the correct location. Supply chain administrators should ensure that they have competent and qualified logistics personnel to deliver the content at the proper place. Managers should build a comprehensive position tracking distribution system so that both consumers and suppliers should monitor the products at the exact location & deliver it to the right spot.

5. Right Time : In logistics, the duration is a crucial factor. The happiness of consumers and the long-term partnership are only possible if the goods are delivered to consumers at the perfect time. Managers tasked with creating a tracking system and working with the distribution team to get the items shipped before the deadline. Customer satisfaction is the key to success. Thus the delivery time for the product is always crucial for a business as this leads to happy faces of the customer. Proper monitoring is required so that one can catch up with the flaws if any occur in the process.

6. Right Customer : Customers are the cornerstone of supply chain operations. The managers need to learn their target audience. If the goods are sold in the correct market so that the business will receive more leads and they will get the best customers to stick with them for a lifetime. Organizations should always target the right customers.

7. Right Price : Pricing is crucial for companies, as it is the aspect that determines the profit or loss that has sustained. The supply chain manager will analyze industry dynamics and place the products and services at reasonable prices. Also, a program should be in a place that maintains a record of costs and periodically checks them so that the goods sold at the correct cost.

These are the seven R’s of supply chain management that ensures that the whole process of logistics is carried out effectively.

Conclusion :

Logix Platform’s innovative and comprehensive logistics software is capable of managing your whole logistics and supply chain operations effectively. Logix Platform allows you to manage all aspects of your logistics business from automating operations to automating billings and accounting, invoicing and optimizing business workflows. We also have more than 40+ carriers associated with the system and easy integrations to enhance your business experience.

With Logix Platform, get access to eComGlobus, an advanced eCommerce Fulfillment platform that offers all eCommerce logistics solutions in a single platform to manage your eCommerce/Shopify store very easily.

The warehousing, which comprises around 10% of the overall logistics cost, has a significant impact on optimizing the remaining 90% that includes transportation, inventory management, material handling, packaging, etc. The analysis points out that the industry is growing at a CAGR of 10.5% and is further expected to rise with the Covid-19 vaccine distribution.

The warehousing and logistics industry had an admirable run last year as Covid-19 forced businesses to focus on continuity plans and supply chain constraints. The growth momentum is expected to continue in 2021 as sectors like e-commerce, FMCG and pharmaceuticals look to penetrate deeper into tier II and III cities.

Logistics players and analysts are convinced about the sector’s performance as they say that e-commerce firms will continue to push for cost-efficient and swift last-mile delivery. Besides, the growing demand for cold chains, and with India vying to be a manufacturing hub, the requirement for large automated warehouses and omnichannel logistics solutions will continue to grow.

As per Savills India, industrial and warehousing space absorption is expected to grow 83% y-o-y to 47.7 m sq ft in 2021, driven by robust growth in e-commerce and manufacturing.

This would be driven by the challenges customers faced and had to overcome in 2020, which made it clear for many organizations, especially SMEs, that having the right partners to support their supply chain and logistics needs is a must to enable growth without disruption.

Customers will engage partners who can bring stability, scale and sustainability. There would be a clear shift in customers’ long-term strategy to make some changes to adjust to new norms, which includes an increase in inventory holding and reducing supply chain costs. Customers will also continuously look out for reliability in service and ability of this segment to scale up and down without incremental costs, he added.

Warehousing demand in post-Covid-19 scenario would follow a hub-and-spoke model, largely with product companies focusing on reducing inefficiencies in the supply chain, which happen due to the bullwhip effect, by increasing availability of their products closer to consumption points, he added.

Omni-channel strategy has now become central for most of the companies which are into retail, FMCG and pharmaceuticals and has given a big opportunity to third party logistics (3PL) providers.

Growing demand for cold chain, pharmaceutical warehouses as well as growth in e-commerce and organized retail are likely to drive warehousing demand in 2021. In addition, strong macroeconomic fundamentals and government’s policy support in implementation will continue to fuel growth for the entire sub-asset class of industrial and logistics.

Warehousing players have started to invest more in automation and mechanization for contactless operations. Some of these warehouse technologies are smart analytics, warehouse management system, warehouse mobility solutions amongst others.

For efficient operations, the Indian warehousing sector is gradually shifting to the Internet of Things (IoT). The industry has also started integrating sustainability into its standard operating procedures. Companies are adopting designs and practices that reduce their carbon footprint and operating costs.

The warehousing and logistics market in India started gaining impetus with the highest supply and absorption. The demand is expected to increase in 2021 and reach close to 35 million square feet of absorption, almost similar in line with 2019 levels, supported by growing demand in sectors such as 3PL (third party logistics) and e-commerce. 3PL has become one of the fastest-growing segments in the warehousing space, contributing nearly 35 percent of total net absorption in 2020.

Conclusion :

Logix Platform is a cloud-based ERP software which is a modern age ERP system that manages your logistics, warehousing and transportation operations without hassle. With Logix WMS, get access to integrated, cloud-based and customizable WMS that helps you manage and automate inventories with optimized functionalities. Logix Platform is fully customizable according to your organizational needs. It comes up with e-commerce and carrier integrations to enhance your business experience. Our major eCommerce business partners are Shopify, Magento, opencart, and woo commerce. We also have more than 40+ major carrier partners like FedEx, Aramex, DHL, and UPS.

A significant portion of a business’s day-to-day operations involves fulfilling customer orders. The order fulfillment process begins when the customer places an order and ends when the order arrives at their doorstep.

When a business grows beyond its capability to manage order fulfillment in-house, it might be time to consider outsourcing certain functions to third-party logistics companies (aka 3PL services).

How 3PL’s handle Order fulfillment?

Receiving a third party logistics can’t fulfill customer orders if they don’t have inventory, so the first step in the process is moving your inventory to the third-party logistics warehouse.

After a customer places an order, the next step is for the third-party logistics to begin fulfilling the order by “picking” the item. Depending on the type of integrative technology the 3PL offers, this information can be automatically sent to 3PL or you might have to upload orders to their system manually.

Once all items in an order have been picked, they are packaged for shipping. Depending on what options for customization your 3PL offers, you may be able to choose the packaging for your orders.

After the order is picked and packaged, it is forwarded to a shipping carrier. Some 3PL companies have a preferred shipping carrier, while others compare costs to choose the best combination of price and delivery speed. In most cases, shipping carriers pick up orders from the 3PL’s warehouses.

Not all orders end when the shipment hits the customer’s doorstep. Returns are a significant concern for many businesses, and they can get messy if you’re managing a large stock of inventory on your own. When you hand over this aspect of the supply chain to a third-party logistics provider, all returns are directed back to the third-party logistics, where they are processed, restocked, or disposed of according to your company’s policy.

Three Valuable services that third-party logistics offers :

(a) Warehouse Storage :Hiring a 3PL saves you from having to find storage space for all of your inventory. Many third-party logistics providers offer shared storage, managing order fulfillment for multiple clients out of one physical location to maximize efficiency and keep costs down.

(b) Inventory Distribution :Many third-party logistics providers manage multiple warehouse locations so your company’s inventory can be distributed across several fulfillment centers for fast shipment to different parts of the country. With the right technology, 3PL can automate the fulfillment process, automatically routing orders to the best fulfillment center. Third-party logistics providers make extensive use of automation like this to make inventory distribution profitable for their clients.

(c) Picking, Packing and Shipping :In addition to storing your company’s inventory, a 3PL provider has staff in place to perform the specific tasks associated with order fulfillment, including picking the products in each order and packaging them appropriately for shipping.

Conclusion :

At LogixGrid , every action we take while fulfilling your order has an automatic, corresponding digital counterpart in our dashboard, which keeps 3PL order fulfillment processes efficient and consistent. Each step is directed by information that is automatically populated in the dashboard when an order is placed.

It also comes up with e-commerce and carrier integrations to enhance your business experience.

With Logix Platform, get access to eComGlobus, an advanced eCommerce Fulfillment platform that offers all eCommerce logistics solutions in a single platform to manage your eCommerce/Shopify store very easily.