In recent years, cloud computing has taken a prominent place in the IT world. With big names like Microsoft, Google, Oracle making major moves towards cloud solutions, it’s not surprising that many companies are also turning to this revolutionary technology. One of the most important applications of this transformative technology is supply chain management.
This article will explore how cloud solutions are influencing supply chain management in the digital age. But before that, we will dive deeper to understand the importance of the cloud for businesses in the digital age.
What Is The Cloud’s Real Worth For Businesses?
The cloud is a network of servers that provides companies with the flexibility to quickly adjust the number of computing resources as needed, up or down; the ability to reduce the time (and cost) in developing and deploying new applications; integration with a whole new world of players; and visibility across operations.
A company that uses the cloud not only saves money, but also benefits from many other advantages. It provides unrestricted access to cutting-edge technologies and capabilities. Lastly, the cloud also helps accelerate the transition to more sustainable practices by reducing the need for inefficient data storage.
How Does Cloud Computing Affect Supply Chain Management?
With the COVID-19 outbreak, supply chain leaders have been challenged to figure out how to quickly and cost-effectively meet different demands while ensuring their supply chains are flexible. This is where cloud computing comes into play.
Cloud technology is important to supply chain management for two reasons. First, it allows companies to use more data than ever regarding planning and forecasting stages of their product life cycle. Second, cloud computing can be used to provide real-time updates on a company’s inventory levels instead of having workers manually input data. The cloud provides vast amounts of computing power, with a simple data and digital architecture for companies to reconfigure how they work. By improving how companies access information, cloud computing allows them to act quickly on matters affecting their supply chain processes.
Thus, cloud computing provides big benefits to businesses regarding both cost and efficiency of operations. These changes can have major benefits for supply chain management in the digital age, and thus companies should be prepared to take advantage of them when they transition towards cloud solutions.
Where Are The Current And Future Opportunities For The Supply Chain If It Moves Towards Cloud Computing?
Supply chain executives can influence all aspects of the supply chain by incorporating cloud solutions into engineering (product), planning, procurement, manufacturing, fulfillment, and service. This will lead them to build a more connected, intelligent, and innovative supply chain in the long run. To combat short- and long-term problems, such as providing remote access to a wealth of data, collaborating and collecting data in real-time to improve consumer experiences, and reacting to unexpected disruptions, all supply chain functions must embrace the cloud.
Given the cloud’s rapid rise in popularity, it’s no surprise that it has already made significant headway in the procurement function. Both planning and delivery have a medium level of cloud penetration but have immense potential for future adoption of cloud technologies.
Apart from that, while R&D and engineering usage of the cloud is low today, there is a lot of promise in using cloud-based product lifecycle management solutions to speed up the launch of new goods. Manufacturers are gradually transferring execution systems into the cloud as acceptance grows, which is expected to continue.
Why Should You Invest In Moving Your Supply Chain System Onto The Cloud?
Not only is investing in cloud solutions for the supply chain management right for your company’s bottom line, but it may also be necessary if you want to stay relevant within an increasingly competitive industry. For example, due to global suppliers and supply chains suffering severe shutdowns and disruptions, many firms face significant uncertainties in their day-to-day operations. The issue is exacerbated because these restricted and limited supplies are subject to international border restrictions.
For example, Wipro’s supply chain management solution, based on Oracle’s Supply Chain, aims to address these problems by creating simulated supply exception situations and providing solutions that can be quickly implemented. The system uses automation to reduce the amount of labor spent on supply chain analysis significantly. It enables planners to create intelligent dashboards that can model impact on orders and prioritize purchases. The solution can be rapidly implemented to assist businesses in boosting planning, supplier risk assessment, and order fulfillment in critical circumstances.
In summation, cloud computing can be a boon to companies that wish to improve their supply chain management. Not only does the technology allow for greater inventory control and real-time updates on an organization’s activities, but it also provides access to invaluable data, which may help businesses pinpoint areas where they need improvement.
In the future, we will see more and more companies making the transition towards cloud-based supply chain systems. Even though such a system can be expensive to implement, it will eventually pay for itself in increased revenue. As these benefits become clear to businesses worldwide, other industries may also begin looking into how they can benefit from cloud computing.
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