The Elastic Logistics approach has become an appropriate response recently when Supply Chain Management (SCM) found the challenges of persistently tracking an enormous variety of items and suppliers and the need to fulfill ever-growing client’s personalized demands and expectations. Elastic Logistics represents a great way to adjust to client’s expectations, such as technology, communication, and speed.
What is elastic logistics?
What defines this approach is “flexibility” to right-size inventory, fitting the demands of the market in a specified time, enhancing the logistics service processes, and increasing the elasticity of the logistics process to respond to market instabilities profitably.
How this new thinking empowers a company’s service
- Innovative platforms or software implemented in your Supply Chain boost customer’ experience, crucial when building brand loyalty.
- A 4.0 Platform keeps all stakeholders connected simultaneously to get reliable visibility to their cargoes.
- They can easily see the vehicle position; they would be capable of interconnecting across the platform to interchange documents or issue invoices.
- To expand or shrink capability as required in prior-agreement of forecasts; upscaling and downscaling, depending on new demand activity.
- It allows organisations to run Supply Chains more effectively to cope with these fluctuations.
- It focuses on variables such as demand variation, weather conditions, freight space or shortage, sailing and flight timetables.
How to foster flexibility in your company
- Implement the solutions at all levels within the company. Elastic Logistics should encompass all business areas from cost control to warehouse management to delivery and beyond.
- It demands software tracking technology and high-level data granularity to generate visibility.
- Incorporating Artificial Intelligence (AI) into your SC drives the agility to redesign operations and, in the end, model a robust customer’s experience.
- Automation can increase infrastructure and services agility.
- Use just one intelligent toolset that integrates everything on a synchronised process.
- Put into operation solutions centred on the most advanced technology to support on-time delivery while maintaining costs steady despite demand strains.
- They manage the most accurate timetable, with easy implementation, user-friendly, access to innovative tools, maps and communication.
- Explore for new associates, accept customised proposals, get into service-provider settings, all in place.
Benefits of Elastic Logistics and warehousing
E-commerce, automation processes in packing and picking, warehouse management, and multi-channel marketing compel warehousing and Logistics further towards supply-led decision-making —this constant-extending and contracting of warehouse processes grounded on predictable supply builds towards a more consistent financial control.
The Elastic Logistics processes include managing arriving and outgoing deliveries, achieved through a specific dashboard to develop efficiency and improve data correction and capture. It also aids the administration of delivery processes, granting the user ready recognition on cost escalation and response, looking at other alternatives whether in terms of price or fulfilment of customer’s need.
When enhancing visibility through suitable software, these kinds of platforms help you to identify existing stock levels more effectively. They also facilitate improved customer satisfaction and proactive marketing solutions, such as the prompt removal of e-commerce store items promotions when inventory has been consumed and rapid restoration of them when new supplies arrive.
Elastic Logistics simplifies warehouse planning, automates the dispatch process, founding each decision firstly on customer’s preferences, then on goals and costs, and making shipping or freight processes scalable straight away.
Who should look into Elastic Logistics?
One way to classify the sectors that find Elastic Logistics useful is to say those that are customer-centric. It particularly favours the retail, fashion and pharmaceutical industries due to the infrastructures it uses, such as On-demand warehouse rental and Third Party Logistics to cope with market variabilities.
However, Elastic Logistics is unnecessary for industries with infrequent price fluctuation, where demand is primarily constant, and goods are complicated to transport (e.g. large-scale agricultural production or mining) because they are not always customer-driven.
Further comments: this approach boosts customer retention, a primary goal for most industries. Used strategically, Elastic Logistics creates greater sustainability, allowing warehousing and logistics teams to delivering supplies on time, whilst reducing costs.
Is your company customer-centric? If yes, then the Elastic Logistics approach is right for you!