The 7 R’s of Freight and Logistics in the UK
The freight and logistics industry and the variety of modes this includes, be it Road, Sea or Rail, is a vital component of all supply chains moving through the UK as well as in and out. The industry is indispensable to the UK economy. The Chartered Institute of Logistics and Transport developed the 7Rs to define the logistics industry as:
‘The Right product, in the Right quantity, in the Right condition, at the Right place, at the Right time, to the Right customer, at the Right price.’
Freight forms a component of logistics, by moving goods through global networks of road, rail, air, and maritime routes. Most supply chains will rely upon various modes of transport to transfer between these modes such as at ports and airports or upon arrival at a warehouse whereby the goods are sorted for their onward journey to ultimately reach the end customer. So what are the 7Rs, and what is their importance? We break them down below.
- Right Product
Products should be designed with transportation in mind and any potential issues there might be. Companies should be clear and precise about the specifications of the products they wish to ship.
- Right Quantity
Knowing the correct quantity of items is of great importance when it comes to logistics. With many third party providers, communication over the correct inventory is vital. The quantity of product will determine the kind of load required and whether it is one box, several boxes, a pallet or more.
- Right Condition
Customers rightly want their purchases to arrive in the expected condition so this must be considered from manufacture or repair through to the transportation process. Returns processes should be straightforward in the event of a fault or issue, so the customer can get the item sent back as soon as possible.
- Right Place
Tracking is much more expected nowadays, with customers wanting to track each part of their product’s journey. This end to end tracking experience allows for wrongly routed products or incorrect addresses to be quickly rectified. This avoids missing items or costs from incorrect delivery.
- Right Time
Time is more often than now a number one priority for the customer, fast, efficient delivery is expected in the world we live in. Orders running late can cost everyone involved, including the customer. Providing reliable delivery times will encourage customer loyalty.
- Right Customer
Identifying target customers is important in ensuring product is being supplied and delivered to the correct audience. Selling to the wrong customer will lead to costly repercussions. Marketing and research can help to reach the right markets at the right time and avoid losses.
- Right Price
Pricing should be competitive for the market you are selling into, and should also reflect demand. Of course the price should also ensure a healthy margin for profit to ensure longevity.
Although design and manufacture are crucial in launching a product to market, logistics should also be considered too as if the product cannot reach your desired customer then it will never get off the ground. Similarly, if products are shipped but shipping times are inefficient, then this will lead to dissatisfaction in your customers. Having a great product is one thing, but logistics plays a major role in its success.