5 ways cloud computing is transforming Supply Chain Management
Much of the processes in supply chain management can now be enabled using cloud computing technologies. Previously, supply chain management was heavily reliant on in-person processes. However, there is no doubt that with the introduction of cloud computing technologies, much of these works can be done automatically with little or no human intervention. Let’s take a look at 5 such ways cloud computing is transforming the face of supply chain management:
- Increased security: Cloud hosts have the responsibility of following the strict laws imposed by the government to ensure security measures are in place. This includes keeping all medical and financial data secure to maintain privacy of such sensitive information. Security monitoring has become much easier while at the same time not tampering with communication and the business practices.
- Enhanced IT potential: There is no longer a need for in-house IT departments with supply chain management providers collaborating with cloud providers. In some cases, however, in-house IT departments are still present to maintain certain IT needs. Using digital resources means there is a need for constant customer service. This is why cloud providers have customer services 24/7 to offer support to those in need.
- Greater scalability: Cloud technology enables increased scalability with no hassles. At any point of time, if the supply chain management provider wishes to expand their production, they can do so without any difficult using cloud technology. Cloud technologies readily provide greater processing capability and bandwidth and these services are provided in no time to the user. This instant growth in capability would not be possible without the presence of cloud technology.
- Reduced costs: With the implementation of cloud technologies costs are reduced drastically. This is primarily because cloud technologies are associated with the ‘pay-as-you-go’ service wherein you only pay for the services that you opt to use. The number of workers can be reduced for several tasks all through the supply chain process with the introduction of cloud technology. This in turn reduces costs as the number of employee wages to be paid are reduced. Moreover, as tedious tasks are handled by the cloud, humans can be assigned to other aspects of the supply chain that require their expertise.
- Increased analytic capabilities: Traditionally, gathering and analysis of data were done by humans, but today, cloud technologies together with the Internet of Things has made it easier to gather data from a variety of resources and analyze them as well. This can help eradicate humans involved in these activities as the cloud helps to perform the same activity much faster and more efficiently. This will greatly benefit businesses in making better decisions quicker.
Also Read: 6 Keys To Achieving Success With Artificial Intelligence In Supply Chain
Supply chain companies need to use cloud technologies to increase their competitive advantage and stay ahead of their competitors. The advantages provided by the cloud to supply chain companies are enormous and will help the company grow in the long run. Much of the problems associated with traditional forms of supply chain can now be eradicated with the establishment of cloud based technologies.