The 5 R's of Supply Chain Management

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Supply Chain and Quality Management > Best Practices > The 5 R's of Supply Chain Management

The 5 R's of Supply Chain Management
ANUJ KUMAR SHRIVASTAVA, Manager, India, Premium Member
The main aim of SCM is a continuous supply of materials at 5 R 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.

Seven - 7 Rights in Logistics
Benjamin K.Doh, Interim Manager, Ghana, Member
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?

The 7 R's in Logistics (R = Rights)
Jaap de Jonge, Editor, Netherlands
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...

The 10 Rs or the 10 Rights in Supply Chain Management
Murli JS, Management Consultant, India, Member
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.

I Have Covered your Point in Flows of SCM
ANUJ KUMAR SHRIVASTAVA, Manager, India, Premium Member
@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.

Thanks for Covering my Suggestions
Murli JS, Management Consultant, India, Member
@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.

Rights in Supply Chain Management
Ashoke D Kulkarni, Management Consultant, India, Member
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.

It Depends on what You Mean by 'Quality'
Fabio Tilomelli
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.

Right to an Extent
ANUJ KUMAR SHRIVASTAVA, Manager, India, Premium Member
@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.

A not Right Extension is not a Right. it is a Mistake
Fabio Tilomelli
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.

The 5R's of Supply Chain Management
Emmanuel Fosu, Manager, Ghana, Member
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.

Should the 5 Rs of SCM Be Maintained as Such
Esi Bosuwaa, Student (Other), Ghana, Member
@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.

Some Views on your Questions
ANUJ KUMAR SHRIVASTAVA, Manager, India, Premium Member
@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!

3 Rs of Supply Chain Management Might Be Unnecessary
Bevis Qiu, China, Member
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 information will be wrong if the process is wrong.
- For the customer, this can be guaranteed by do the first of the 5Rs well.
- For the supplier, just my point, not too much need to stress it.

The 7 R's of Logistics
odhiambo tom, Manager, Kenya, Member
@Fabio Tilomelli. I agree with your explanation on the 5 Rís. 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 occurred where a wrong product is delivered to the right customer or the right product to the wrong customer. So the Seven R's are and should be considered everytime in SCM.

Avoid too Many Rís of Logistics
Sheryl, Member
Hi, everyone mentions very important Rís 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 Rís from the start I think it will also become a constraint.

SCM 5 R's Expansion to 11 R's
Patrick, Singapore, Member
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 customer in the right way means:
The right product with the right quantity in the right condition delivered at the right place at the right time to the right customer with the right quality (service) at the right price. To add more: using the right supplier (outsourcing to vendor) with the right processes and the right information.
In total these are 11 R's!
I think it may good idea to have this expansion to rightfully have the expectation set at the right path. Of course the 5 R's is the bedrock for the expansion.

The 11 R's of SCM are an Extended State of the 5 R's
ANUJ KUMAR SHRIVASTAVA, Manager, India, Premium Member
@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 be ignored in any of the industry. Because always the most flexible entities survive and not the strongest, the strategies and Rs can be changed, modified for making companies more flexible.

You are Right, But the Basics Cannot Be Avoided
ANUJ KUMAR SHRIVASTAVA, Manager, India, Premium Member
@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 flow of the materials ensuring the continued production.
If all the above R's are perfect, we can then integrate it to Cost Saving, Making the system Lean, Reducing Inventory and achieving a competitive advantage.

Procuring According to the 5 Rights
WONDER DESMOND, Student (University), Ghana, Member
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?

Origin of the 5 R's
Tracey Bennett, Manager, United Kingdom, Member
Hi, can anyone tell me the origin of the 5 R's? Is it a by-product of JIT from the Toyota production system?

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