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Streamlining Supply Chain Management on Cloud

Streamlining Supply Chain Management on Cloud


Streamlining business on cloud computing is currently the most strategic way to keep businesses thriving and remain competitive. It has been noticed that the supply chain industry is currently also following this trend.

According to an SCM World study, there are several interesting insights into how cloud computing applications and platforms are streamlining supply chain management. Some important key takeaways are as follow:

  1. Four supply chain strategies are most cloud-friendly and have the greatest potential to deliver the network effect such as Sales & Operations Planning (S&OP), Transportation Management Systems (TMS), Spare Parts Management and Store Shelf Optimisation.
  2. As it provides the system of record corporate-wide, an ERP system is the key to cloud computing adoption in supply chain management.  About 56% of the study’s respondents have standardised on SAP ERP but 7% of respondents still don’t have an ERP system. Transportation Management System (TMS) and Warehouse Management System (WMS) are two applications that are still hard to modify.
  3. Streamlining supply chains can be done through real-time communication. However, only 12% of enterprises have already applied the extensive communication platform while almost a quarter of respondents still rely on emails, phone calls and faxes.
  4. Problem-solving in supply chain can be done twice faster through cloud computing platforms.

Cloud-based management system brings many benefits as follow:

Increased efficiency. Launching your supply chain management services online will increase the efficiency of your business. Configurable rules, routeing guides, policy management and custom workflows that exist in the cloud allow management to automate repeatable tasks and save much time and budget as well.

The managed automation and data analysis will result in a more effective resupply process.

Cost effectiveness. Streamlining supply chain management on cloud can cut down some expenses. As more transactions are going online, companies can save time and effort to maintain data storage network management, including streamlining the workforces to manage the automation.

As everything can be interlinked to the related departments faster, the process becomes much more efficient. Also, companies can also widen the market and increase the profits as well.

Redundancy. A cloud-based supply chain management allows employees to access the data storage system anywhere, anytime. Although cloud systems are possibly susceptible to any errors and malfunctions, companies can still benefit from the backup applications and platforms to prevent the data errors and loss.

Scalability. As the business is growing, the existing IT system always needs to evolve and meet the increasing needs of data restoration and other automation systems. Increasing the scale without overhauling the existing system can only be done through cloud-based supply chain management.

Streamlining supply chain management on cloud leads both employers and employees to stay focused on advancing the industry and increasing the profits without concerning too much on the supply chain’s operation.

This article was first published here.