Elastic Logistics

13 mayo 2019

The market advances so quickly that a new model change appears:

The elastic logistics with the emergence of the new technologies and the digitization, the logistics has become a critical area for the majority of the industries, having to go through a period of reinvention continues; to manage the highly changing demand, companies need their operations to be elastic, to plan actions according to the requirement.

Elastic logistics refers to the flexibility to expand and reduce capabilities, in order to align with the demands, within the supply chain, for a certain period of time.
The trend marks that, instead of reducing the inventory to the greatest extent possible, companies should respond to unpredictability, with elastic strategies designed to:

1. Adjust to the oscillation of the seasonal demand, as flows of demands more volatile through multiple channels of sale and mainly of e-commerce.
2. Maintain service levels to customers, minimizing logistics costs.
3. Improve the customer experience, adding visibility in real time.

The current management models will no longer be completely useful in this new environment. These provide answers to requirements such as cost control, warehouse management, distribution channels. However, companies should focus on improving their level of customer satisfaction.

Technology plays a key role for companies that want to develop elasticity in their supply chain. BigData, artificial intelligence, automation, robots and drones, the Internet of Things (IoT) will allow supply chains to operate within the parameters of elasticity required by the market and Industry 4.0.

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