In Quick we tell you about it.
A highly competitive environment, changing user demands and increasingly tight margins of error make elastic logistics an advantage for any online store.
The high cost of logistics land and its space requirements have caused different real estate companies to focus their attention on the construction of medium and small warehouses, close to or even within the main cities, leaving aside the large distribution centers on the outskirts of the city.
They are known as urban distribution platforms or urban warehouses, which are used by stores or online businesses . online of small or medium size, in search of greater efficiency and agility in the delivery of their orders.
In addition to their proximity, the adaptability and the personnel in charge of the warehouse are factors that determine this type of process. In other words, there is a transition from "rustic logistics" to elastic logistics.
What is Elastic Logistics?
Elastic logistics "refers to the flexibility to expand and reduce capacities, in order to align with demands within the supply chain, over a given period of time." (Taken from: OBS Business School - Elastic Logistics: A New Paradigm Shift).
In other words, it is the power to expand or restrict the resources of a warehouse under its delivery capacity.
With the elastic logistics, it is possible to scale the operations and resources of the warehouse according to the needs of the demand, with the purpose of NOT exceeding its costs in times of higher volume of outgoing products in the warehouse.
However, being flexible to reduce costs and margin for error is not as easy as it seems. In most cases, large corporations work under the Just in Time philosophy. Just in Time, while SMEs do it through the implementation of Lean Manufacturing. Lean Manufacturing("seeks ways to improve and optimize the production system, trying to eliminate or reduce all non-value adding activities in the production process.") (Taken from: Lean Manufacturing 1.0 - What it is and how to implement it in your company.
If you want to know more about this topic, please visit our Blog What is Just In Time?
What are the benefits of Elastic Logistics?
For a market that has been on the rise (digital), and shows no signs of changing, elastic logistics presents itself as one of the best delivery alternatives currently available.
Here at Quick, we tell you about its main benefits, among which the following stand out:
- Efficiency in delivery management - Adopting new methods (such as Just-in-Time, Just in Just in Time), that increase productivity in product preparation and subsequent shipment.
- Matching costs to revenues - Hiring staff only when demand requires it.
- Warehouse management flexibility - Working hand in hand with a WMS (Warehouse Management System) ensures warehouse scalability .
- Increases customer satisfaction - Providing personalized advice without the need to deal with logistical issues.
- Improve visibility and control of the operation - Implementing technological tools that allow you to know the status (in real time) of your inventory, SKU and shipments, providing transparency in your management.
Undoubtedly, the elastic logistics gives you the possibility to make your modus operandi according to market demands, saving costs and increasing your productivity, which translates into successful operational management.
Remember! Your goal is e-commerce, not logistics. Having a supplier that gives you security and confidence in your deliveries, not only guarantees customer satisfaction, but also gives you more time to focus on your core business and stay focused on the business.
Want to know more?
Visit our website and let logistics experts do it for you.
