The recent historic supply chain disruptions are likely to continue, but it is hard to predict what might happen next. Having an “elastic” supply chain can be critical in overcoming these problems, and Managed IT can help.

The Need to Overcome Supply Chain and Logistics Disruptions

Wholesale, distribution, supply chain, and logistics have all been disrupted greatly since 2020. The shockwaves are still reverberating from the COVID-19 pandemic, and now new disruptions are manifesting thanks to war and global instability. 

Supply and demand dynamics are shifting rapidly during times of dramatic uncertainty. Supply chain shortages are further throwing fuel onto the logistical bonfire.

Previous patterns of supply chain management no longer have value in this new world of unpredictability and volatility. However, an elastic supply chain can help.

What Is an Elastic Supply Chain?

The concept of an elastic supply chain is a dramatic departure from traditional business models. Previously, businesses would run based on fixed shipping capacities. The problem with fixed shipping capacities is that they don’t do well during times of rapid change and extreme volatility.

Elastic capacity is a newer model of supply chain management that allows for more flexibility and adaptability. The idea is to be “light on your feet” and – to take a term from project management – agile enough to quickly pivot when the need arises.

Elastic supply chain management is critical in industries where seasonal demand might involve heavy fluctuations in shipping needs and capacity – for example, weathering summer surges for certain products. But an elastic supply chain is also important for times of uncertainty, times like we are in right now, when previously relied upon vendors fall short or parts become scarce.

The past practice of booking shipping capacity way in advance may not be cost-effective since everything is so hard to predict right now.

As explained in a recent article in Forbes, “If fixed capacity is defined by rigidity, elastic capacity is defined by flexibility. Elastic capacity is the ability to stretch capacity at a low, incremental cost to meet changing demand.”

Cloud computing is like this – you pay for what you use, and you scale as needed. 

However, enacting elasticity in a virtual sense and doing something similar with real goods and services are two different things.

Steps to an Elastic Supply Chain

Building a more elastic supply chain system can be done through some planning and smart strategy including:

• Assessing current workflows to find areas for improvement
• Getting a handle on existing capacity through accurate metrics
• Coming up with and monitoring the right key performance indicators (KPIs
• Identifying areas of vulnerability and places where bottlenecks might tend to occur
• Investing in technology upgrades to make everything run smoother

With the right strategy, you can achieve more resilience with your supply chain and logistics planning.

How Managed IT Can Help Make Your Supply Chain More Elastic

With so many challenges affecting the modern supply chain manager, trying to create a truly flexible and elastic logistics organization can be hard. However, it is not impossible. One of the ways to become more successful is by leveraging technology to your advantage. This is where Managed IT can help.

Managed IT is a service provided by a qualified technology vendor who can help institute, manage, and monitor your company’s networks and computer systems. With Managed IT, you have a team of certified technology consultants who are able to craft and implement short- and long-term technology infrastructure plans to obtain business goals and objectives.

More flexibility and responsiveness to sudden changes in the supply chain will require constant visibility into the organization as well as strong data analytics. Managed IT can support this. Additionally, cloud data storage can enable your business to scale online as needed.

Managed IT for Supply Chain Management

For businesses involved in wholesale, distribution, supply chain, and logistics, Managed IT can make a huge difference in creating an elastic vs. a fixed capacity. Blue Technologies can help improve your supply chain through proactive and dedicated IT support 24/7. We will work with you to create a road map to institute a reliable infrastructure that can scale using innovative and advanced technologies. As your needs grow, Blue Technologies can grow with you.

Supply chain elasticity is the key to navigating the present moment, and Managed IT can help. Contact a Blue Technologies consultant to schedule a free assessment of your IT environment.