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Benefits of Adopting The Cloud

Digitally connected cloud networks are becoming an increasingly pertinent reality. For supply chain and logistics, these networks are the future. They increase visibility by keeping track of the components in the supply chain, providing immense flexibility to work and workable insights for managers to make informed decisions. This is done simultaneously while maintaining pace of operations and adjusting the scale of operations as necessary.

We look at the immediate advantages of cloud systems first and then the advantages that can be derived from implementation of cloud systems across the complete supply chain of a business.

Immediate Highs

If software as a service (SaaS) models for supply chain management are implemented in the organization, the following benefits can be reaped almost immediately by the organization, which will help garner support from different stakeholders for further implementation of the cloud.

Implementation and results with great pace
Cloud systems utilize a central digital framework and infrastructure for accessing data and integrating it with the proprietary systems already in place like the TMS and the ERP. Therefore, it doesn’t take that long to implement. Deployment is faster than linear systems that utilize on-premise (business-centric hardware and software) methodology. Cloud systems show real-time and swift metrics for ROI, avoiding IT bottlenecks. If there is a need to upgrade the cloud system, specialized professionals possessing knowledge about the ins and outs of the cloud software, can implement it easily and effectively. The whole process is not very time intensive.

Creating Unique Business Competencies
Small and medium sized companies can really feel the advantage of cloud based solutions. The reason being, that the cloud was designed with fast pace and flexibility in mind. The implementation of the cloud in supply chain can allow them to explore the implicit potential in their supply chain and logistics management capabilities. Its obligation free as they can experiment a little with innovation at a lower cost. This allows the development of competencies needed for operating the system.

The Cost Advantage
For logistics and supply chain intensive companies to grow, cloud based management is a great solution. Using the cloud’s SaaS model, companies starting out with their business can justify their decision to opt for cloud based systems because of a relatively low cost system that deploys fast.

If the managers who implement this system can explain (or better yet, show) the advantages of cloud based systems to the C-suite of their organization, they are more likely to buy into the idea or investing more into the cloud to gain quick and tangible results. Organizations with limited budgets can view this system as a cheaper and more effective alternative to on-premise solutions as they can work with a limited amount of IT resources. The need for investing straight forward into capital and follow the age old premise o a lifecycle to see returns after a couple of years can be avoided and the money can be diverted towards operational costs with implementation of the cloud.

Central and Immediate Real Time Access
The data is present on the cloud and can be accessed from anywhere and on any electronic device such as a tablet, phone or a laptop/computer. Due to increased connectivity between the partners and vendors, the supply chain which deals with goods and services can be revolutionized to become supply chain networks. Increased shareability of information allows for innovation and creative problem solving; all of which happens in real time.

Long Term Benefits

There are certain long term benefits of implementing cloud systems throughout the supply chain.

Intelligent Business and use of Predictive Analytics
Using the vast sea of real-time data and the predictive analytics options available with the cloud, managers can gain valuable insights into the processes involved. They can work those insights into short and long-term goal-focused strategies. Smart apps and IoT enabled hardware can help get the right information to make managerial decisions when it counts. Models evaluating decisions while using predictive analytics can help identify pitfalls before they happen and help managers make an alternative decision yielding better results.

Swift Execution in an uncertain Environment
Supply chain networks mentioned earlier can be leveraged and sped up. Managers will be able to make fast and accurate decisions despite the uncertainty in their working environment thanks to the cloud. Demand and supply gaps can be tracked in real time. Successfully interpreting real-time data after it is analyzed can help managers in proactively dealing with disruptions. Processes and systems can be made more reliable with the use of predictive analysis, making the supply chain more agile and adaptable in dealing with change.

Targeting efforts on a Larger or Smaller Scale
Along with fast execution, efficient targeting is also possible. Using cloud management systems and computing, the managers are able to reallocate and direct resources to different areas in order to get into a specific niche which predictive analytics show to be lucrative. They can also target specific customers or segments to pursue loyalty goals or expand their current market by acquiring new customers. Leveraging technology, people and processes (and their seamless integration under the cloud) managers may effectively scale their operations up or down, depending on the needs of the business. Experiences can be personalized for vendors and customers alike so products are developed using workable insights. Using the Unfreeze-Change-Freeze model in management, managers can alter the processes and products to incorporate useful changes to products and systems alike, that too, naturally.

Thus we see that adopting the cloud poses a number of significant long-term and immediate effects for the organization which can help it reach great heights. To learn more about cloud services or to get cloud management services for your organization, feel free to contact us at Routique.


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