Contribution of elastic logistics in industry growth

Introduction 

In the past few years, we have seen some excellent innovations in the transport and logistics sectors, including truck platooning, autonomous driving, electric vehicles and other intelligent transport solutions. Yet the industry failed to keep up with the changes in supply and demand until recently. Elastic logistics overcomes this hurdle; it gives flexibility to increase or decrease the ability to meet fluctuating production, warehousing, and shipping demands. In this article, along with the importance, future and growth of elastic logistics, we'll get into the details.

The lean management methods do not work when it comes to logistics. Though intended to be versatile, they are not optimised for logistics, primarily according to the variable demand in modern eCommerce. Lean business models might work well for the manufacturing and shelf stock industries; they are not tailored to logistics. Elastic logistics tends to fill those gaps along with middle-miles and warehousing. The role of elastic logistics in the supply chain remains unclear in practice; however, variables such as sailing schedules, container use, and carrier capacity are being established to make the supply chain more efficient and work with minimal waste.

Some challenges of elastic logistics.

• Over-manufacturing
• Overstocking
• Price volatility
• Half-full vessels

Advantages of elastic logistics.

        Delivery and demand patterns are increasingly difficult to forecast, and have a direct impact on the logistics industry. The co-action between supply and demand has always been at the core of the logistics industry. The rise in the digital age and eCommerce has, however, inflicted a shift, with the weight increasing towards consumers.

        Companies need to adapt in a customer-centric market according to consumer demands. Because market demands can be volatile, companies are searching for an elastic logistics solution to deal with these ever-changing demand levels.

Benefits of elastic logistics for the companies

1.Automation

        The main advantage comes in the form of automation, which turns out to be the most logical solution for a firm that wants to be more flexible in its scaling capabilities. Elastic logistics reduces human error and offers a more efficient packaging process in the production line which allows the company to adjust directly according to demand changes.

2.Third-party partnering 

        The benefit of elastic logistics is collaboration with third parties, which reduces the chance of spending more in internal operations. Companies can now lease additional warehouses locally and in remote locations to adapt to fluctuations in demand in the short term. In addition, the use of external fleets in the form of third-party distribution solutions such as courier services proves to be an successful way to keep ahead of unforeseen rising or decreasing customer demand. Elastic logistics thus provides robust scaling capacities.

3. Enhanced user experience

        All of this increases your ability to fix problems effectively regardless of how the freight shipment is transported. This therefore leads to better customer service and customer loyalty, resulting in enhanced customer retention.

Conclusion

        Growth in dynamic logistics means companies need to become more flexible in their activities and processes. And, there's no question that the implementation of technologies such as AI, IoT, analytics and drones will also affect the logistics future. The development of these technologies has made it necessary to make logistics companies more agile and inevitable.

        With today's growing volatile volatility in demand, along with the increasing need to sustain excellent user experiences, the need for the hour has been the adoption of elastic logistics. Even though the implementation of elastic logistics may sound overwhelming, it can turn out to be a groundbreaking strategy for your company with proper planning.

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