Elastic logistics - Resilient supply chain management

The future of Supply Chain Management

Elastic logistics allows for continuous rebalancing of logistics planning along the full distribution process, which is not supported by rigid up-front planning processes. Photo: Mixmove.




In a time where the logistics industry is especially challenged with changes in supply and demand, we need a more robust way of managing our traditional linear and rigid supply chains in order to be more responsive, efficient and remain competitive. Elastic logistics aims to address this challenge and refers to the agility and flexibility to upscale and downscale, in near real-time, in order to adapt to fluctuating market demands.

What is elastic logistics?

Elastic logistics focuses on optimally managing variables such as transport fill rates, container availability, warehouse optimisation and fluctuating demand to ensure an efficient supply chain with minimal waste. It ensures the efficient use of warehouse space by avoiding unnecessary stock, improving warehouse throughput and consolidating customer orders as close to the destination as possible.

What are the benefits of elastic logistics?

Technology solutions enabling elastic logistics eliminate the waste of space in warehouses by reducing the need for storage space, while managing the throughput of products through a warehouse or distribution centre with automated processes. This in turn results in optimal order management enabling just-in-time order fulfilment and the agility to respond to new and amended orders as part of routing, preparation and dispatching.

Elastic logistics further allows for continuous rebalancing of logistics planning along the full distribution process, which is not supported by rigid up-front planning processes.

Logistics practices such as drop shipping, whereby the retailer is responsible for the sales process while the wholesaler takes on the responsibility of delivery of the order, are enabled through the implementation of elastic logistics principles.

Who would benefit from elastic logistics?

The industries where we’ve seen the biggest impact are within retail, FMCG, consumer electronics, spare parts and pharmaceuticals. These industries typically have a large volume of different products, require parcel shipment and consolidation, need to manage reverse logistics and see high fluctuations in demand.

MIXMOVE supports your elastic logistics operations

The benefits of elastic logistics can only be achieved by implementing technology solutions which enable the efficient management of the middle mile.

MIXMOVE offers solutions to be used in terminals within the logistics network enabling elastic logistics management for the middle mile by connecting all shippers, carriers and service providers to a single platform. Decisions regarding how products are moved are made based on comprehensive rule sets defined for each terminal. These rule sets take into consideration many factors, including types of product, service level agreements and delivery constraints.

Consequently, end-to-end orders and itineraries are not prepared before cargo starts to move, but are planned and optimized throughout the process. The rules can easily be adjusted to respond to unplanned factors, such as the closure of a port, to immediately replan and reroute products.

Want to learn more about how MIXMOVE’s cloud solutions can help you build resilient and elastic logistics operations? Click here (https://www.mixmove.io/post/elastic-logistics) to learn more.



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