Five ways Cloud Technology is transforming Supply Chain Management


Cloud technology is transforming industries by leaps and bounds. Transport & Logistics is one of the prominent sectors affected by the digital revolution. By 2020, approximately 80% of supply chain interactions will happen across cloud-based commerce networks. The new rules of the game are radically changing the supply chain industry. Be it new regulations, or buyer expectations, the traditional supply chain model is being challenged at every step. The growing demand for end-to-end visibility, agility, and integration is beyond what traditional supply chain systems can offer. Here are the five top ways of why supply chain leaders are moving to cloud-based solutions.



1. Curb Operational Costs

Cost is a major factor that plays a vital role in an organization’s growth strategy. It’s evident that digitalizing the procedure reduces cost, especially in supply chain management. Further, process automation results in higher efficiency. Integrating an automated shipping platform would not only reduce shipping times but also the processing cost per order would be much lesser when coupled with a Warehouse Management System. The higher the automation level is, the more can be done by the staff and the more you save on your operating expenses.

2. Integration is the key

It is challenging for the traditional supply chain system to keep up with the dynamics of the T&L industry and the demand for enriched customer experience. Fortunately, multi-platform integration is making its foray into the supply chain at a rapid pace. Factors like, the Cloud-enabled Electronic Data Interchange (EDI) are making it possible which simplify things like invoices and purchase orders, which can be accessed by numerous trade partners. After integrating subsystems like EDI with back-end system and accounting systems, the requirement of manual data entry is eliminated which has a ripple effect of fewer human errors and increased efficiency. Using EDI in the shipping process helps a long way in providing improved shipping rates because of the integration of numerous value chain partners.

3. Smarter business ventures with data analytics

In the contemporary era, data is the fuel of the organization’s rapid growth. Fortunately, the progress in cloud technology has made data analysis faster than conventional ways could ever do. An over-the-air (OTA) update is a mechanism for remotely updating the internet-connected system. The OTA (over-the-air) data collection and analysis are revolutionary for any industry. Cloud-enabled data analysis is proving to be instrumental for firms to provide a tailor-made experience for clients without making a dent in their profit margins. 


4. Scalable Sustainability

Things can escalate quickly in the supply chain industry. When operations are highly dynamic, it is imperative that the scalability of the infrastructure is a priority. The best thing about a cloud-based solution is that it has the potential to grow parallelly to the existing business without burning a hole in the owner’s pocket. In scenarios when the production needs to be ramped up quickly, the client doesn’t need to worry about the processing capability of the infrastructure since service providers would already have a pricing structure in place, thereby making the whole expansion process much easier and hassle-free. Along with that, cloud-based data analysis quickly identifying and fixing the inefficiencies and errors within the supply chain which further acts as the catalyst to growth. In a nutshell, cloud technology has redefined sustainability by creating efficient ‘pay and play’ processes that are highly customized to suit everyone’s needs.

5. Adapting to modern customer

The latest trend from a survey conducted by Brightpearl reveals that over 70% of online shoppers look elsewhere if a particular is not available on one site. This is in contrast to the popular belief that loyal consumers wait until the product comes back in stock. Another report from AlixPartners states that average waiting time for an American shopper now stands at a maximum of 4.5 days. Moreover, offers like Amazon’s one-day delivery system would definitely have an impact on customer behaviour and this time would further drop in the near future. Delivery time can be shortened if factors, like locating, packaging and delivering an order, are made more efficient and that’s entirely possible by integrating the cloud technology in the supply chain.

Source-

https://www.mhlnews.com/global-supply-chain/article/22054764/lets-get-digital-supply-chains-are-going-to-get-smarter-in-2018
Supply Chain Dive, “4 Supply Chain Predictions for 2018”, January 2018

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