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ANUJ KUMAR SHRIVASTAVA
Manager, India
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The 5 or 7 Rights of Logistics and Supply Chain Management
The main aim of SCM is a continuous supply of materials at 5 "rights" (5 Rs) which are:
1. The Right Place
2. The Right Time
3. The Right Quantity
4. The Right Quality
5. The Right Price
This can be done efficiently if a company has all of the following 3 flows arranged properly:
1. Cash Flow
2. Material Flow
3. Information Flow.
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Benjamin K.Doh, Ghana
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Seven - 7 Rights in Logistics Hello Anuj, I agree totally with the 5 Rights, but I learnt there are two more Rights, do you know about them?
These 2 Rights added to the existing 5 Rights making them to 7 Rights according to some professionals, any idea?
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Jaap de Jonge
Editor, Netherlands
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The 7 Rights in Logistics (7 R's) I found a list of 7 R's mentioning the following extra R's in SCM / Logistics:
6. The Right Product
7. The Right Customer
The list also mentioned Right Condition, but that I believe that one is included in The Right Quality?
I am not sure however if they add much to the 5 mentioned by Anuj if we focus on continuous supply of materials...
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Murli JS
Management Consultant, India
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The 10 Rs or the 10 Rights in Supply Chain Management The list is correct, but (for SCM) it is not complete. Then also add to the list:
8. Right Processes
9. Right Information
10. Right Supplier
Unless all these aspects are taken care of, it is difficult to ensure an effective SCM.
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ANUJ KUMAR SHRIVASTAVA
Manager, India
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I Have Covered your Point in Flows of SCM @Jaap de Jonge: Thank you Jaap. You are right. This is a modern trend of collaborating SCM with the marketing which covers 4P. I did not include it as it becomes a part of Product, Price, Place and Promotion. But yes they can be considered as a valid point.
@Murli JS: Respected Murli Sir, I have already added your points in the flow. The information flow covers your point.
Process and Right supplier would be the part of Material Flow.
Still thanks for updating here.
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Murli JS
Management Consultant, India
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Thanks for Covering my Suggestions @ANUJ KUMAR SHRIVASTAVA: Thanks Anuj for accepting my suggestions. It is indeed exciting to keep sharing info as much as possible and keep learning. Thanks and regards.
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Ashoke D Kulkarni, India
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Rights in Supply Chain Management All 10 Rs indicated by various members are acceptable to me.
However all these Rs would prove to be futile if the OEM / Manufacturer does not have right philosophy and methodology of sustaining himself in the global competitive marketplace.
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Fabio Tilomelli, Italy
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It Depends on what You Mean by 'Quality' If you mean the respect of all the requirements, maybe the fourth point includes all the others.
I do not agree with Mr. Murli J.S. on point 8, because you cannot have quality without applying the right processes and vice-versa (the right processes are a portion of what you can call quality).
Even point ten is not relevant, because it is the consequence of the first five 'Rights'.
I believe the most important ones are the first five rights, the following five are like "second row" rights.
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ANUJ KUMAR SHRIVASTAVA
Manager, India
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Right to an Extent @Fabio Tilomelli: Quality is defined as what you think about it.
For example, companies like Volkswagen define quality according to what management defines it should be. On the other hand, TATA defines quality as what the customer wants.
So you made a valid point there.
Also the 5Rs of SCM are as it is. But what Mr Murli added could be specific to a particular industry whereas what I have written is more in general.
10 points of Right Supplier actually means the vendor selection process is considering the best among T1, T2.. And L1, L2. And many such factors. So it could not be just a consequence, but among the Rs for certain environments.
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Fabio Tilomelli, Italy
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A not Right Extension is not a Right. it is a Mistake Quality is defined by international standard ISO 9000, you cannot define it as you wish. You can consider your client more valuable (client orientation is one of the eight principles of quality), you can put your accent on management (remember the role of the management representative). In a more understandable way:
6 - if your product is not the right one what do you do? Do you change it and start your production of some other product? Is it feasible?
7 - If he buys your product he IS a customer. If he doesn't buy, he is not a customer, and you have lost your time.
8 - if you do not apply the right processes you are out of market in a minute, because of the "muda" you do not fire out.
9 - if you don't have the right info, how can you be competitive?
10 - SCM: the first letter is for "supply" (redundant)
I believe an extension weakens the strength of this framework, instead of empowering it. I believe you're just applying some quality requirements to the framework, nothing more.
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Emmanuel Fosu
Manager, Ghana
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The 5R's of Supply Chain Management The first 5 R's are the bedrock of SCM and I think should be maintained as such. The other additions are just expansion of the first 5 R's.
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Esi Bosuwaa
Student (Other), Ghana
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The 7 Rights in Logistics (7 R's) @Emmanuel Fosu: I perfectly agree with you. But I also think adding the 2 Rs will help others understand more of what all the Rs are talking about.
Before then, we need to know what exactly the company needs, the urgent of the needs and others. Some companies overlook things and purchase anyhow and later regret of the not using the Rs to get what they really needed.
I think professionals need to educate their organisation about the need for the Rs when evaluating a supplier. Rather than thinking or believing that the supplier would know all the rights and act accordingly.
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ANUJ KUMAR SHRIVASTAVA
Manager, India
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Some Views on your Questions @Fabio Tilomelli: The Quality standards differ w.r.t. the definition of an organization. The ISO norms though stand, sometimes the requirement of the customer is just touching the lower limit of it and maintain the cost.
6. Change of product and feasibility depends on a type of customer and the quantity you are producing.
Porter's Force of Bargaining Power of Suppliers gives clarity here.
7. In SCM the customer looks at a product before he buys, and the advance payments in large business is calculated as per the stages of manufacturing most of times
8. Process and Quality are interrelated. The best process for you may not be best for other as he might be using so called waste for some other manufacturing and business.
The only point in the process is to meet required quality of customer at a price less than the competitors.
9. Right info means proper information about the product, its development, manufacturing process, BOM and vendors along with lead times at all stages!
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Bevis Qiu
China
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3 Rs of Supply Chain Management Might Be Unnecessary In my view, the following three Rs might be unnecessary: The Right Process, Customer, and Supplier:
- For the process, this could be involved in information. From the beginning to the end, the inform...
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odhiambo tom
Manager, Kenya
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The 7 R's of Logistics @Fabio Tilomelli. I agree with your explanation on the 5 R’s. Maybe the last three R's are a repetition(No. 8,9&10). For product and Customer are a crucial addition to the 5 R's. Incidences have occur...
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Sheryl
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Avoid too Many R’s of Logistics Hi, everyone mentions very important R’s of Logistics because how many aspects will be focused more refined results will be achieved.
But, on the other hand, if we distinguish so many R’s from the st...
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Patrick
Singapore
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SCM 5 R's Expansion to 11 R's I may be wrong, but looking at it from a different perspective, for the proper delivery of a product (task oriented) to a customer, the 5R's may not cover all aspects of it.
To deliver a product to a...
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ANUJ KUMAR SHRIVASTAVA
Manager, India
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The 11 R's of SCM are an Extended State of the 5 R's @Patrick: Hello, thanks for your views. As you stated, the 5 R which I mentioned in the post are only the baseline. They can be extended as per the requirement of the industries, but the basics cannot...
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ANUJ KUMAR SHRIVASTAVA
Manager, India
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You are Right, But the Basics Cannot be Avoided @Sheryl: Off course you are right that classifying and distinguishing various R's could become a constraint, but the point is we're specifying the main aspect ensuring the main aim of SCM for a smooth...
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WONDER DESMOND
Student (University), Ghana
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Procuring According to the 5 Rights Assuming you are a procurement officer in an organisation and you are asked to procure for your organisation. Which of the rights(5Rs) will you consider first, second, etc. Why?...
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