What is elastic logistics, and how does it support the trades?

As a supplier or builder in the trades, no two clients or projects are alike. Construction demand, timelines, materials required, you name it, it’s different for everyone. That’s why, now more than ever, construction delivery logistics need to be agile. And that’s where elastic logistics come in. 

What is elastic logistics? 

Elastic delivery logistics is a company’s ability to shrink and grow logistical capacity to tailor fit a supply chain’s needs. Always agile, elastic logistics works in tandem with supply chain forecasting, creating a flexible, reliable infrastructure. Elastic logistics can simplify operations and reduce costs based on supply chain needs and demand. 

Without an elastic logistics model, businesses are pigeonholed into inefficient processes, often providing for a higher volume of demand than needed. Driven by automation and historical logistical data, operators working with elastic logistics can grow and shrink infrastructure in a cost-effective and expedient way. Trucks are deployed when and as needed, and businesses can utilize only the necessary resources. 

Due to its agile nature, elastic logistics is the only realistically scalable supply chain solution for the future. As data and technology continue to evolve, delivery logistics will become increasingly streamlined and less convoluted. 

Examples of elastic logistics

One of the most relatable examples of elastic logistics? Seasonal Black Friday madness. Suppose an e-commerce supplier or business has a regular delivery fleet but is forecasting an inability to meet demand over Black Friday. In that case, they may opt to temporarily expand operations for the weeks following the holiday. 

In a construction context, if a new project breaks ground near you, your business may be expected to deliver 5 times the appliance or equipment materials than you usually would. Again, you might choose to temporarily balloon your operations to meet the demand and keep your clients happy. 

Construction supply delivery: the shift to technology

So why hasn’t elastic logistics been in practice for decades? It comes down to technology advancements. 

Data analytics and traffic forecasting are more intuitive than ever, and supply chain volumes are easier now to accurately predict in shorter time frames. Since growing past infancy, construction suppliers can now obtain real-time data and visibility into demand. Third-party logistics providers (3PLs) use this data to expedite shipment and delivery execution like never before. 

Even for historically complex use cases like remote delivery, these jobs are made achievable with hotshot support that can be booked in a tight timeframe. And for those who interconnect their elastic logistics operations with a nationwide fleet, there is virtually no project that can’t be adapted to quickly. In warehouses, automation and forecasting are most often linked with effective elasticity, and these advancements in tech have helped vessels, manufacturers, and drivers scale their operations. 

Breaking down the benefits of elastic logistics for construction

Yes, elastic logistics keeps your operations simple and agile. But the benefits don’t just stop there. Elastic logistics also:

• Grows customer retention rates: Fast delivery at lower costs with live tracking means customers keep coming back. 
• Shrinks pricing volatility: Pricing volatility is lessened as the facilities used vary according to the demand.
• Scales your operations: By accomplishing more in less time, delivery bookers can scale without the stress.
• Reduces the risk: Businesses benefit from being more resilient and less risky. 
• Eliminates deadstock issues: Because you can better predict demand, stock issues are easily anticipated and addressed, meaning clients stay satisfied. 

As far as downsides go, it used to be that not every business could access the tech. But thanks to a boost stemming from the COVID-19 pandemic, logistics platforms have become more accessible and productive for all, with data baked in and pricing set and competitive. 

Implementing elastic logistics for your construction business: 4 steps

1. Microfulfillment points

Microfulfillment points support a business in expanding its delivery capabilities and cater to additional and spontaneous demand. This strategy involves leveraging additional space within existing stores or renting pop-up warehouses to store excess inventory. This leads to quicker, cheaper, and more convenient delivery for all.

2. An omnichannel strategy

Fulfillment strategies and models need to be re-worked to better align with an elastic model. This involves reducing inventory and leaning into more of a just-in-time (JIT) model, reducing waste, and producing on demand. This strategy makes for a seamless experience across all channels, once the right forecasting is in place. 

3. Smart automations 

Smart automations, combined with continuous learning or AI models, support rapid inventory adjustments to meet demand. Radio Frequency Identification Technology (RFID) robots and barcode scanners, for example, enable smarter warehouse management when picking, packing, cycle counting, and sending out supplies. 

4. Cloud-based logistics tech

The most important part of having a successful elastic logistics strategy is having the right technology behind you. The right delivery software provides suppliers with insights from real-time data, enabling them to make informed decisions and execute with confidence. This enables end-to-end supply chain visibility, ultimately optimizing inventory management and demand forecasting. 

Must-have features for your elastic logistics software

So what should you look for in an elastic logistics software? Many platforms come with various bells and whistles, but ideally, you’d want:

• Live tracking: Show customers and shippers a live map of deliveries en route. 
• Live traffic updates: Pre-plan and know what to expect with current traffic conditions. 
• Photo delivery confirmation: Rest assured that your spontaneous delivery made it on time. 
• Carrier management: Leverage carrier dashboards to dive deep into logistics data.
• Integration support: Use a delivery app with API support, so all your operational tools are streamlined. 

Is your construction company ready to move toward elastic logistics? Get Curri

We’d bet that your business in the trades could benefit from a more agile approach to delivery and supply chain logistics. That’s exactly where Curri comes in. We’re not just delivery, we’re a comprehensive logistics platform that covers every must-have feature you need for an elastic approach. 

Use services like LTL delivery, dedicated route planning, hotshot delivery, and more to retain clients and build trust, all while staying flexible. Book a demo with our team today, and kickstart your elastic logistics strategy in no time.