There has been a change to how consumers shop. Home delivery shopping has been embraced by the UK consumer,  and new channels such as ‘click and collect’, as well as services that deliver orders placed before 10pm to store or a home address the next day, are starting to become the norm in the UK.Logistics managers now have a complex problem, how to manage the demand for existing channels and maintain the flow of the more predictable day-to-day demand, yet still:
- support the introduction of new shopping channels
- have the flexibility to manage more volatile ‘trends’ until they are a proven commodity
- hit Service Level Agreements
- avoid introducing any risk to the supply chain
- and deliver it all within the same confines of the existing warehouse 
The financial winners will be the distributors who can manage the external forces and create the most efficient supply chain. For some it will be achieved by investing millions in state of the art facilities to create the new super hubs. For others it will be re-engineering and streamlining the existing facilities, possibly with some expansion. 
There is an answer for those who want to maximise the investment in line with their business’ growth: The ‘Elastic Warehouse’.  
What’s the big idea?
Take Christmas trading; an operation needs to distribute millions of Christmas puddings over a 12 week period. The capacity to manage inbound and outbound distribution at speed must increase without compromising standards or SLAs. It’s vital to ensure lorries aren’t backing up, and delivery deadlines with stores are kept. Requests to pick products ready for shipment are constant, to meet consumer demand, so it’s essential to pick orders accurately and in time, plus keep the more everyday operation running smoothly.
This poses all sorts of process and people challenges, and identifying how to prioritise stock through the warehouse. Failure to overcome issues will restrict the company’s ability to bid for larger, flexible contracts or curtail revenue opportunities. It could also bring fines if goods perish, are damaged or arrive late. In today’s ultra-competitive market no company can afford to restrict its opportunity for growth, or risk incurring costs just because its warehouse isn’t big enough, or becomes inefficient under pressure.
What is an Elastic Warehouse?
The Elastic Warehouse delivers the flexibility that logistic managers need - the capability to manage more arrivals at the warehouse door, accommodate more stock, and easily find items for quick onward distribution, all within the parameters of the existing property.
The Elastic Warehouse virtually expands and contracts in line with demand, and at a moment’s notice. It’s a versatile way of managing the assets you have.
It can be achieved through a variety of ways, all resting on technology.  The approach provides companies with:
- the flexibility to meet fluctuations and unplanned changes to demand
- the potential to take on more contracts and not forfeit seasonal work
- financial stability, accounting for fluctuations in a far more controlled way
- increase work flow without jeopardising SLAs or impeding regulatory standards
- improved staff efficiencies from well organised working conditions
There are four main approaches:
Elastic Overheads –works on the principle of making your existing investments work harder . It involves use of the latest technology to optimise all assets, including staff.
Elastic Outsource –outsources the warehousing and distribution of key seasonal lines for a finite period so that the existing operation can stay focused on the core lines. To be successful the customer should experience no change to the service they receive.
Elastic Tech –a technology lead implementation. Manual   processes and   paperwork are replaced with warehouse management systems, automatic data capture and mobile computing devices, including handheld and vehicle mounted computers.
Elastic Blend - cherry pick elements of the first three approaches to give the ultimate financial and operational control.  
The technology that can make an Elastic Warehouse a reality is available. The beauty of the Elastic Warehouse is it is scalable – it’s possible to evolve from one model to another, as the company strategy, economics and finances dictate. Determine which model is best to start with and align it to a three to five year plan to ensure an ROI on investment is achieved.
Is the Elastic Warehouse right for my organisation? The answer is most probably yes. Any company that wants to become more efficient and reduce costs, or pursue new revenue opportunities, should be thinking about adopting an Elastic Warehouse strategy