Elastic logistics refers to a model of conducting business that’s flexible and agile enough to upscale or downscale consistent with the stress of the market.
• Maximizes and fills loads/capacity, especially for LTL shipments
• Optimizes routes for faster delivery and enhanced transport efficiency
• Reduces over-manufacturing and over-Stocking
• Diminishes price volatility
• Minimizes Risk
• Increases efficiency at multiple checkpoints of supply chain
• Enhances “perfect order fulfilment”
• Improves customer service
When it involves logistics, lean business practices don’t work. Although they’re meant to be flexible, they’re not adjusted for logistics, primarily as per the variable demand in modern ecommerce. Lean business models might work well for manufacturing (first-mile) and therefore the shelf stock (last-mile) industries; they’re not tailored for logistics (middle-mile).
Elastic logistics tends to fill these gaps alongside the middle-miles and warehousing. Practically, the importance of elastic logistics within the supply chain remains ambiguous; however, it’s developed to regulate variables like sailing schedules, container usage, and carrier space, to form the availability chain simpler and performance with a minimal amount of waste.
• Half-full vessels
• Price volatility
Elastic logistics has only recently become popular because technology advancements are a necessity so as for this type of model to figure. Data analytics and tracking make it easier to predict what’s getting to happen then create plans to reply effectively and in real-time.