Normally, when new advances in software are released, the last departments to be able to take advantage of them are the transport and logistics departments. Why? The most common reason behind this seeming neglect is that ERP applications and manufacturing departments take precedence. Once their needs have been taken care of, not much is left in the budget to cater to logistics and transport.
That has been the way of things so far, but not anymore. There is a new player in town. It is called cloud computing and not only is it revolutionizing the way companies operate, but also ensuring that supply chain operations are some of the first departments to benefit from it.
Cloud computing has changed where computing takes place. No longer does it happen on desktops; instead, remote computers come into play. Using wireless or wired connections, personal digital assistants, personal computers, cell phones and handheld devices connect to these remote computers. The user does not have to invest in licenses and maintenance and upgrade of infrastructure. In fact, costs are so low that these services are paid for from the operational budget. As a result, approval becomes simpler and quicker.
This clearly shows that cloud computing is now vital for supply chain management. In fact, this is why supply chain shows more interest in developments in the cloud and accepts it more easily than does manufacturing. Supply chains need to be able to share event information that is real-time – something that manufacturers don’t need to.
In addition, supply chains and logistics aren’t very different regardless of which industry they service. Their aims and objectives are the same and the resources they use are similar. Manufacturing, on the other hand, is vastly different depending upon the product being manufactured.
Cloud service systems offer a lot of advantages to supply chain and logistics. When it comes to transport, clients only have to pay per transaction and then only for whatever features they use. Therefore, if market conditions dictate that less freight be transported, clients also pay less. They offer EDI solutions that are more efficient and even automate message flows or manual processes.
Cloud technology is definitely here to stay. Increasingly, companies are turning to it and expect to maintain if not grow their usage of this technology. The main reasons behind this move are speed and ease of deployment and cost-effectiveness. The technology allows supply chain managers to get the same technological advances that other departments already utilize and do so at lower costs and little to no disruptions in business.
Article Published by : Luke Lonergan
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