As organizations are in need to fine-tune their operations and reduce their costs to remain competitive, elastic logistics is becoming essential in supply chain management.
FREMONT, CA: Supply chain management has become an integral part of business more than ever, standing vital to any company's success and customer satisfaction. However, organizations should be able to tune the supply chain. How responsive is a firm's supply chain management? Elasticity in logistics can improve supply chain management. In the coming years, it is likely that this elastic logistics will be at the forefront of many supply chains. Here's what firms need to know.
In elastic logistics, logistical capabilities are quickly shrunk and expanded to align with a supply chain's demand. It works hand-in-hand with supply chain forecasting, creating an agile infrastructure that can reduce costs and improve efficiency. Without elastic logistics, a firm is often left to operate at a less than efficient capacity to respond to higher demands. Elastic logistics will offer the most enhanced experience for customers while reducing risks and costs. With the ability to upscale and downscale operations on-the-fly, firms can deliver quickly and on-time. Also, the organization is not forced to upkeep a baseline during slower times, and instead, production is reduced to compensate.
Through elastic logistics, firms can better manage order deliveries, something that will become increasingly important in the years ahead. Perfect order fulfillment is the prime metric for any supply chain. With big data, automation, and other technologies, it is becoming easier to achieve ideal order deliveries, which are the dominant way in which the quality and consistency of a supply chain are evaluated. This increased accuracy leads to happy customers, in turn leading to enhanced customer retention.
When the appropriate controls are set in place, elastic logistics can adjust infrastructure on-the-fly, thereby offering firms a far more responsive, and cost-effective supply chain management ecosystem.
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