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The 7 R's of Supply Chain Management - Know here
By AMREP | Posted on Oct. 14, 2022
Updated on December 12, 2023
Supply chain management (SCM) is the process of planning, measuring, and monitoring the flow of goods and services from the suppliers to the end customer. It aims to align all company processes toward an optimally functioning supply chain network. The SCM framework has 7 general principles known as the seven 'R's—they are Right product, Right place, Right time, Right quantity, Right quality, Right cost, and Right service.
7 R's of Supply Chain Management are often used in business and other professional contexts as a mnemonic device for remembering a series of guidelines or principles. Applying these principles to your everyday practices will help you become more effective and successful in your role as a supply chain manager.
The 7r's Of Logistics In Supply Chain Management
A supply chain is a network of organizations that are interconnected in order to provide products and services to customers. Ready to dive into the 7 'R's of supply chain management? Here is what you need to know! 😊
1. Right Product - The goods, materials, or services offered
During the design/manufacturing/selection process of a product, the organization needs to investigate any potential issues that could occur during transportation. For example, special packaging requirements might be necessary depending on the weight or bulk of the product, its fragility, or the distance it needs to travel. You can save time and resources by having the right knowledge and using the right product. You may also get production management services to get the right quality products at the right time.
2. Right Customer - Manage the supply chain over the long run
Customers are the most important part of any supply chain process - without them, businesses wouldn't exist! The key to finding the right customers is market research. Managers must have a good understanding of their target market in order to identify potential customers and sell to them effectively. If businesses sell their products in the right markets, they will gain more leads and attract customers that will stay with them for a long time.
3. Right Price - Determine market-competitive prices
Pricing is one of the most important factors for businesses, as it can make the difference between profit and loss. Supply chain managers should research market trends and set competitive prices for goods and services. Having the right prices in place helps to track company income and expenses, and having a good system for storing and updating prices is essential for successful logistics management services.
4. Right Quantity - Meeting the demand
Logistics plays a pivotal role in the success of a business, as it is the supply chain manager's responsibility to not only find the right quantity of deliverables but also to coordinate with the manufacturing and delivery team to get the correct amount of products delivered to customers. If businesses do not meet customer demand, they will lose out on potential revenue.
5. Right Location - Ensure goods go where they should
As a supply chain manager, it's important to assemble a team of people who can deliver products and goods to the right location on time, every time. This generally means using location-tracking software and maintaining open communication with your drivers.
6. Right Time - Make sure your deliveries are on time
Supply chain managers play a vital role in ensuring the smooth flow of goods and materials from point A to point B - and beyond. Keeping track of inventory levels, deliveries, and shipments can help speed up delivery times and avoid any potential bottlenecks in the supply chain. In today's fast-paced world, meeting (or exceeding) customer expectations is key to maintaining a good reputation. So supply chains need to be able to deliver on their promises. By using the right tracking software and considering different variables that might affect delivery times, supply chains can often get products to their destination even before the deadline. Also make sure about your objectives of supplier quality management.
7. Right Quality - Check your goods' condition
It's important to understand that on-time deliveries are only a small part of the bigger picture when it comes to satisfying your customers. If your products are defective or damaged when they arrive, it won't matter how on-time the delivery was. That's why it's crucial to know how to store and handle your goods, so they arrive in perfect condition every time. Quality is the lifeblood of your supply chain, so you need to be aware of different conditions that could affect the quality of your product - including last-mile issues. Understanding all of these factors can build positive relationships with your customers and keep them returning for more.
As a business owner, there are many different things you have to consider when setting up a supply chain management program. However, the right approach can help you save time and money while driving efficiency and reducing waste. We hope you found our blog post about the 7 R's of supply chain management to be helpful. If you have any questions about supply chain management or need help setting up your own program, don't hesitate to contact us. We are always happy to help! The AMREP Supplier Management Services team is here to assist with your supply chain management.
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