Cloud Supply Chain Management to Ensure Supply Chain Resilience
The COVID-19 pandemic has demonstrated an increasing need for reliable supply chain technology solutions that users can access from anywhere. This article from TechBullion discusses some of the beneficial use cases and current limitations of cloud-based technologies for the supply chain.
The epidemic has served to emphasise the significance of cloud supply chain management. When COVID first brought the world to a halt, most firms were taken aback by the lack of visibility they had across the entire supply chain. Even the most knowledgeable and experienced executives had no idea where parts and goods were located, how effectively their suppliers were functioning, or how to adapt to demand shifts they had never seen before. This was due to the fact that, contrary to popular belief, most supply chains today are still relatively linear. The supply chain’s linearity provides an information lead time that is sometimes neglected, underestimated, or overlooked. Supply chains all around the world were thrown into disarray in a matter of weeks due to a lack of timely information that leaders required to make critical decisions that determined whether their supply networks stayed afloat or broke, and many supply chains did break at that time.
This is when the value of cloud computing for supply chain management became clear. Information latency is achieved through the cloud. It is what connects the supply chain’s complicated network of systems and data—from suppliers and their suppliers through inbound logistics providers, a company’s factories and warehouses, outbound carriers, distributors, and, finally, customers. And it is for this reason that the cloud is so transformative for supply chains. It delivers the technology and environment needed to take information sharing to new heights—affordably, securely, and in a timely manner.
With cloud computing implemented in to supply chain management, there is no more waiting for reports to process, no more manually combing through flat files of point-of-sale data, no more juggling several interfaces, and no more flying blind because the end-to-end supply chain information flow is entirely in the cloud. It is simply seamless integration among supply chain partners that provide near-real-time visibility into the entire supply chain.
Cloud Supply Chain Management Market Dynamics
According to Reports and Data, the cloud supply chain management market is expected to reach USD 15.89 billion in 2028 growing from USD 6.7 billion in 2020, registering a CAGR of 11.1 percent over the forecast period. Strong adoption of cloud-based functions in the transportation sector, persistent need of various enterprises to reduce investment costs, benefits of enhanced business offered by cloud supply chain management as a result of minimized potential failure, and spreading awareness regarding cloud supply chain management are some of the key factors driving the global cloud supply chain management market growth. A growing number of small, medium, and big businesses are embracing cloud computing platforms because of the numerous benefits, notably in terms of process efficiency and scalability at a lower cost.
Areas Where Cloud Computing Can Improve Supply Chain Management
Although cloud computing can help in many parts of the supply chain, there are four specific tasks where a cloud-based solution makes more sense.
Planning: Cloud-based systems can record itemised spend data, perform basic analytics, plan manufacturing runs, and execute statistical demand projections, among other things. Due to the rarity of planning and forecasting capabilities in ERP systems, a growing number of cloud service providers are include these features in their offerings.
Logistics: Apps for warehouse and transportation management are already available. Cloud-based solutions for network strategy, inventory, global trade compliance, replenishment planning, order processing, transportation load building, fleet management, and transportation route planning are the next step.
Procurement and Sourcing: Cloud supply chain solutions can assist to lower the total cost of ownership. These technologies are designed to be collaborative and accessible, which has substantial benefits for businesses that interact with thousands of suppliers on a regular basis.
Drawbacks Of Cloud Supply Chain Management
When it comes to cloud-based solutions, the most prevalent issue that businesses face is data security and privacy.
Only approved members, such as reliable supply chain partners, should have access to data. Although cloud-based solutions have many security systems in place to prevent unauthorised access to personal data, data security ultimately depends on how each organisation uses the resources available to them.
Cloud-based supply chain management software is growing in popularity, with estimates predicting significant growth in value and implementation in the future years. In order to stay competitive, businesses will have to leverage newer platforms as they become more agile and scalable.