An Exploratory Study on how Modern Supply Chain can Thrive on Elastic Logistic.

Abstract

This study focuses on Elastic Logistics, an emerging concept in supply chain and potential driver of supply chain in coming times. It also focuses on major technologies that support and form a potential perfect model for Elastic Logistics. The everyday logistics operations are defined by reciprocity of supply and demand. There are lot of uncertainties and disruptions experienced by logistics industry. Logistics organizations are transforming their operations to be flexible to plan the service capacity and tackle the changes in demand. With Amazon setting trend for same day delivery or next day delivery, the expectations of consumers have been increased from retailers and e-commerce companies. Rise in freight cost due to current pandemic situation, extreme weather conditions, climate change, delivering on time to avoid shortage and achieve cost savings are the challenges that need to be tackled by logistics industry. The solution for logistics companies is being flexible, and expanding/contracting according to demand, i.e., Elastic Logistics. Elastic logistics concept includes outsourcing of logistics services, enabling automation in industries, digitalization, integration of various departments of organization and partners on a single platform and implementation of Transportation Management Services (TMS). More organizations will take help from third-party logistics (3PL) providers and utilize their fleet, IT capabilities and networking. This will enable companies to concentrate on their core competency, and deliver products and services on time, while doing cost savings at the same time. This study puts forward the concept of Elastic logistics, its drivers, its benefits and how it can be potential solution for supply chain uncertainties in coming time.