Elastic Logistics: The Future of the Supply Chain


What is elastic logistics?

Elastic logistics refers to a model of conducting business that is flexible and agile enough to upscale or downscale according to the demands of the market. This allows supply chain operations to expand or shrink in almost real-time, based on predicted happenings in the market.

Elastic logistics uses automation processes in picking and packing, forcing warehousing and logistics further towards supply-led decision-making. This endless expansion and contraction of warehouse operations based on supply allows for more reliable financial control. Elastic logistics allows companies to operate supply chains more efficiently in the face of fluctuations, and provides for scaleable upscaling and downscaling depending on seasonal activity and other changes. The interplay between supply and demand has tipped largely in favor of demand.

The goals of the elastic logistics system include:

  • Reducing turnaround times
  • Moving shipments faster
  • Shrinking lead times
  • Meeting the needs of the end-customer by delivering quality products faster

There are lots of benefits for companies when successfully implementing elastic logistics.

Elastic logistics processes include managing incoming and outgoing deliveries through a single dashboard to improve efficiency and data capture. This also simplifies administration of delivery operations, allowing the user to recognize a rise in costs rapidly and respond through looking at alternatives both in terms of cost and fulfilling customer needs.

Elastic logistics create greater sustainability by allowing warehousing and logistics teams to deliver against deadlines whilst minimizing costs. As many organizations need to improve their operations and reduce their costs to remain competitive, elastic logistics is becoming a necessity for the modern production.