The Impact of Cloud Computing on the Supply Chain

Cloud technology is not necessarily anything new, and has been around for about twenty years now, but supply chain professionals are still adopting it at a relatively slow rate.

Although the process of industry moving over to cloud computing is still in its early days, the technology is a great option for any supply chain manager. Cloud computing brings with it the possibility to closely and accurately track produce as it passes through its life cycle. Supply chain management which is based in the cloud can be used to reduce instances of products being lost, as any shipment can be located at any stage of it’s journey. It also allows managers to make fast decisions and take action when a shipment is lost on its way and needs to be redirected.

Regular systems for supply chain management require many more transactions without offering real-time insight and the capacity for 360-degree management that cloud-based solutions do.

Why Use Cloud Based Management? The benefits.
The transition to cloud-based solutions can be challenging, but the benefits far outweigh any work, which is required. Here are some of the benefits:
1. Scalability. Businesses need to adapt, change and grow, and IT systems must be capable of facilitating this. Having services based in the cloud will allow companies to scale up without much hassle. Even in cases where growth is rapid, off premise cloud providers will have all the computational power required.

2. Immediacy. Implementing new software can take months on old and existing IT systems, but with cloud based solutions, it is possible to contact your provider and have new services up and running in less than two weeks.

3. Containment of costs. As resources are on demand and available immediately, the price of scalability is much lower than in the past. IT departments are now able to do more with less.