Elastic logistics – Flexible, Efficient and Tech drivenAshish Kumar
In the supply chain community, the term Elastic logistics has been quite the talks over the past few years and is recognized as an exciting development. As we look at 3-4 years in the past, it has been surfaced as the latest development in supply chain management. But the idea of elastic logistics has been around long enough to raise important questions about what it can offer to a freight forwarder?
What is Elastic Logistics?
Elastic logistics refers to the flexibility to expand and shrink every required aspect of the supply chain efficiently based on the demand of its services within the supply chain. It is the expedition to oversee rapid increase and decrease in production, warehousing and shipping requirements on top of maintaining efficiency, improving customer experience and effectively controlling costs.
Elastic logistics helps supply chain run with minimum possible waste as it offers a solution to the challenges like half-full containers, warehouse overstocking and aggressive pricing. It also plays an essential role in managing traffic, reducing emissions and contributing to the elimination of global warming.
The benefits of using elastic logistics methods are effectiveness, control, accessibility, service quality and the ability to expand efficiently. There will be no need to move across the platforms as all the incoming and outgoing deliveries are managed through a single interface which further enhances the effectiveness. This streamlines monitoring of distribution process and unintended costs, irrespective of the distribution process followed. Improved transparency makes all the shipments easy to track. It simplifies warehouse arrangement for forthcoming shipments and facilitates fast responses to queries for the status of the customer orders. As a result, shipment processes can be rapidly and efficiently scaled up, as required. All of this provides the ability to quickly fix problems as they arise, irrespective of how the shipments are being handled. It delivers a unique user experience and increases overall service quality. This consequently enhances customer loyalty, which is crucial in achieving steady growth in this trade.
Whether it is freight forwarding or warehouse management, a major reason why elastic logistics has acquired traction over the period of time is that its benefits are perceived through technological solutions. This new technology-based logistics is perceptive as it is easy to use for more accurate predictions within smaller time frames, increasing efficiency and service quality.
For elastic logistics to be moulded as per requirement, it must be defined, projected and simulated. Data-driven stratagem enables logistics to be altered based on behavioral patterns, seasonal trends, and other factors. Analytics empowers organizations to look for patterns that could otherwise go unseen. A thorough data analysis simplifies and improves visibility, providing an enterprise with the knowledge it needs to be able to scale up and down its operations as needed. Depending on how accurate these simulations and estimates are, logistics solutions will be successfully optimized.
Once appropriate controls are incorporated, elastic logistics will dynamically adjust logistics on the spot, thus ensuring a more flexible, cost-efficient supply chain.