Cloud Computing Is Transforming Supply Chain Management

The Benefits of Cloud-Based Management

Though it can be challenging to transition to cloud systems from traditional management systems, this doesn’t outweigh the many benefits of cloud-based management, which include:

  1. Scalability: As business needs change, your existing IT systems must evolve to provide the necessary resources to meet those needs. Cloud services allow you to scale without having to overhaul an entire system. Even if your company expands rapidly, a cloud provider has the off-site computing power to accommodate your needs.
  2. Immediacy. It can take months to implement new software within existing IT systems, but you can contact one of the many cloud supply chain management software providers, and expect a new service to be up and running within a couple of weeks. Data migration can take a while, but some providers assist with the process.
  3. Cost containment. Because resources are on demand and immediate, scalability doesn’t come with the hefty price tag often associated with IT system changes. IT departments are learning to do more with less and allocate only about 11 percent of their budgets, on average, to new applications. With cloud-based management, a dedicated off-site IT team is standing by to limit downtime from technical malfunctions.
  4. Efficiency. By converting to a cloud service, information management no longer taxes internal resources, allowing you to shift team members from system management to ongoing needs, such as research and product development. Expect product innovations and improvement to come more quickly and without the need to hire more employees.
  5. Accessibility. Physical systems come with limitations. Oftentimes, employees must be on site to access information. The reverse is true with cloud computing. Within minutes, everyone from drivers to account managers can download all the necessary files on virtually any device, making it much easier to conduct business from anywhere.
  6. Onboarding. Difficulties often arise for supply chains during the onboarding process of new trade partners, with less than 30 percent of trade partners reporting a problem-free experience. This shouldn’t come as a surprise; it can take months to merge large quantities of data into internal IT systems. Access to new information is made much easier with cloud-based services, making onboarding processes much smoother.