The scope of logistics is very broad. It makes logistics companies also provide different services according to their specialists. Some logistics companies only provide partial logistics services, such as warehousing services, stevedoring, & cargo handling, and others.
However, large logistics companies with complete facilities and equipment usually can provide complete logistics services and meet your company’s logistics needs.
What exactly are the logistics services provided by a logistics company? In this article, we will explain it…
Logistics services are services that assist in the movement of goods in the supply chain, such as transportation of materials to companies, warehousing, and delivery to customers. Logistics services are very broad, so it grouped into several levels, such as 3PL, 4PL, and 5PL. We will discuss logistics service levels in the next article.
Logistics services are a very important part of supply chain management and play an important role in helping product flow control, effective planning, and efficient management of storing goods and information.
Therefore, to increase efficiency and get a better customer experience, a company should work with an experienced and trusted logistics company.
7 R is a concept that is very well known and very important to be applied in the logistics activities in a company. The 7 R concept also helps companies to plan the best logistics management to deal effectively with the complexity of services. Here is the concept of 7 R in logistics.
1. RIGHT PRODUCT
In the process of designing, producing, and selecting products, a company must look at the potential problems that can arise during the transportation process. Products when designed properly will greatly facilitate the logistics process. Ensuring standardization of product dimensions throughout the design process will make packaging, warehousing, product handling, and transportation much easier.
2. RIGHT CUSTOMER
Right Customer The customer is the core component and the focus of the supply chain process. Getting the right customers must go through several processes, such as identifying the customers to target. To get the characteristics of targeted customers, you can do market research. Market research will give you insight into who you should target and help you stick to your budget. With good market research, a company can choose the most effective marketing strategy to reach its target customers.
3. RIGHT PRICE
Determining product prices is a very important part of a company because the right product price will ensure the company’s profits and business continuity. Using a good system to store and update product prices also helps to be successful in logistics management services.
4. RIGHT DELIVERY
Producing and shipping the right amount of product is also important in logistics. The number of products is less than demand will result in customers not getting the product at the right time. However, the excess quantity will also increase warehousing costs and other related costs. So the production and delivery of products must be balanced with the demand for cost-efficiency.
5. RIGHT CONDITIONS
The right conditions in logistics speak of safe delivery. Product quality must be maintained until it reaches the customer. The distribution strategy must be arranged in such a way as to maintain product quality without increasing costs.
6. RIGHT TIME
Time is an important factor in logistics activities. Even if the other processes are performed accurately, the whole process can fail if the timing is not right. Long-term customer and business satisfaction are only possible if products are delivered to customers on time.
7. RIGHT PLACE
A good delivery system with location tracking is the most appropriate solution to overcome this. So the company can track the location of the product accurately and send it to the right place.