The 7 C's in Logistics Explained
Logistics is supply chain operations that ensure the products reach the assigned destination on time. As a secondary activity, it interlinks the primary and tertiary activities through different modes of transportation. The 7 C’s in logistics is an innovative and contemporary solution to navigate intricate logistics. This concept covers the seven principles of logistics to optimize logistics operations. Connect, Create, Customize, Collaborate, Consolidate, Control, and Contribute are the seven principles you can use for optimum logistics efficiency.
In this article, we will explore the 7Cs in logistics in
detail, including their applications and how they contribute to supply chain
optimization.
What are the 7 C’s in logistics?
The 7 C’s in logistics are a set of principles that assist
in managing logistics operations effectively and guide companies in maintaining
long-term success. This administrative strategy helps businesses generate
efficient connections and robust collaborations, which enhance customer values.
Ensuring effective logistics management leads to supply chain management. In
the next section, we will discuss all the 7 C’s in detail.
Components of the 7 C's of logistics
Now, we will comprehensively discuss all 7 Cs in
logistics and their implications.
Connect: The first C in logistics in the 7-C’s framework
is connections. Today’s evolving world needs strong relationships among the
stakeholders involved, whether suppliers, logistics providers, customers, or
buyers. Because of technological advancements, you can easily connect overseas
with various customers. Let’s explore the implications of this aspect in
maintaining operational efficiency:
- You
can easily use a mix of container transportation modes through enhanced
connections, ensuring flexibility in fulfilling diverse cargo needs.
- Real-time
tracing enhances visibility and helps to analyze the expected arrival
times of the shipment.
- Relationships
with reliable freight forwarders and carriers optimize the shipping routes
and delivery times.
- Enhanced
communication ensures the seamless travel of goods globally on time and in
precise condition, along with consistency in logistics.
Create: The second C means creating customer value
and serving customer’s needs and expectations. As one of the best practices in
logistics, it offers customized solutions to meet customers' specific needs,
which must also change over time as customer needs evolve. Here are some
implications of this aspect:
- Providing
customers with additional services such as packaging, warehousing, or
labeling aligns operations for customers.
- Tailoring
solutions according to industries simplifies logistics operations. For
instance, temperature-sensitive storage for pharmaceuticals manages the
handling of goods.
- Cooperation
with customers helps in inventory control to minimize stockouts and
decrease storage expenses.
Customize: The third C in the 7 C’s in logistics is
customization. It refers to logistics providers providing tailored solutions to
meet customers' evolving demands. Let's discuss some implications of these
logistic service standards:
- It
allows companies to offer flexible services to their customers, from
shipping to ground transportation, that perfectly align with their
needs.
- With
evolving demand, your business partners must be able to change their
production accordingly.
- Technological
integration, such as AI and automation, provides cutting-edge solutions to
enhance efficiency and adaptability.
Collaborate: Coordinating with complex supply chains
is a necessity. It aims to build strong partnerships with suppliers, buyers, or
logistics providers for shared success. Take a glance at their contribution to supply
chains:
- Creating
a cooperative environment safeguards everyone’s interest in the same
objective, which is effective and timely delivery.
- This
collaboration encourages data sharing, providing faster and more effective
solutions to unforeseen logistical challenges.
- Partnerships
allow sharing of best practices and analyzing opportunities for supply chain optimization.
Consolidate: Here comes the fifth C among the 7 C’s
in logistics, which stands for consolidation. This aspect aims to reduce
expense and optimize efficiency and container space by combining small-sized
and fragmented items into a single unit. This will also reduce the
environmental impact of logistical process improvement. Here are some benefits
of consolidation in logistics:
- It
decreases transportation expenses by integrating the shipment into full
trucks or containers, which reduces expenses and fuel usage.
- Integration
decreases the number of incoming and outgoing shipments, streamlines warehouse
operations, and maximizes space.
- Less
shipment means less fuel usage, ultimately decreasing the carbon footprint
and forming more sustainable logistics.
Control: Control refers to maintaining the supply
chain visibility and ensuring the optimum quality of your operations. Real-time
tracking, quality, and inventory control minimize dangers or errors. The
following are the implications for the supply chain:
- Real-time
shipments offer up-to-date data about the shipment location and estimated
delivery times, fostering transparency.
- Executing
robust inventory management systems prevents stockouts, helps with product
availability, and decreases storage expenses.
- Lastly,
strict control measures throughout the whole supply chain help products
reach on time in the precise conditions.
Coordinate: The last C of the logistics is
coordination. It coordinates product schedules, stock levels, transportation,
and data flow. Efficient coordination among the various stakeholders involved
in enhanced logistics service levels and better asset utilization. Warehousing,
transportation, logistics optimization, loading, and unloading ensure the
efficient working of all parts together.
These 7 C’s in logistics help simplify your logistics
operations. Applying all these 7C’s framework supports supply chain operations
will help you enhance your logistical efficiency, decrease risks, satisfy
customers, and improve collaborations. You have to analyze the loopholes in
your operations and then implement these strategies.
As a container trading company, LOTUS Containers also deals
with logistical operations. At container ports, you can enjoy their services
while loading, unloading, and warehousing your goods. Their logistics are fully
structured and optimized, as per these 7 Cs.
Comments