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Know Why Supply Chain Leaders are Moving to the Cloud

By Logistics Tech Outlook | Wednesday, August 07, 2019

Cloud-based supply chain management offers a wealth of benefits, including low upfront investment, secure access, faster deployments, simplified integration, ongoing upgrades, and scalability.

FREMONT, CA: Good supply chain management (SCM) is critical to the operational efficiency, client focus, compliance, carbon footprint, and eventually, the overall achievement of the organization. If handled correctly, the supply chain can improve the customer experience, which will ultimately help in building the reputation of the brand, boosting the bottom line. The modifications are in the areas of enhanced buyer expectations, shorter product life cycles, demand fluctuations, new market entrants, and bad visibility of globalized supply chains and more are testing the boundaries of the traditional on-site supply chain model.

On-premises supply chains are not able to keep up with the needs of today. Business change pace keeps accelerating and demonstrates no sign of slowing down. Customers expect more, goods are launched and updated faster than ever before, and new businesses are entering the market every day. With so much to keep up with, it can cost an organization to lack agility and scalability across the supply chain.

Supply chain management on-site can add unnecessary costs to innovation and often lack the flexibility necessary to react properly and rapidly to an evolving company landscape. The rigidity of the supply chain may not only hinder growth but may threaten the entire survival of an organization.

Many established organizations find that as IT budgets are being lowered, the requirements of their supply chains are rising. Instead of driving innovation, too much money is often spent on maintenance and upgrades. And it can be time-consuming and costly with on-site alternatives, upgrades, and the capacity to leverage emerging technologies. For new companies, the scenario is no easier. The big upfront investments engaged in constructing an efficient supply chain may be daunting-or out of reach.

The Modern End-to-End Supply Chain

Supply chain innovators are moving toward constructing a contemporary, flexible, end-to-end supply chain that is more adapted to the vibrant problems of today's company setting due to the shortcomings of rigid legacy on-premises apps. Ultimately, this implies a move to the cloud.

Cloud-based SCM offers a wealth of benefits, including low upfront investment, secure access, faster deployments, simplified integration, ongoing upgrades, and scalability.

The Best Cloud SCM Solutions have the following six features:

1. Agility: Modern end-to-end supply chains offer higher scalability and agility with more IT flexibility to make expansion and contraction easier. The ability to respond to the continuously changing demands is critical to modern business, and cloud supply chain management allows deploying new services and capabilities quickly and securely and easily scaling to meet demand.

2. Ease of Use: SCM enables to outsource management, maintenance, and upgrades in the cloud deployments. Instead, the time and money spent on maintaining the lights on can be focused on innovation. Additionally, there are numerous efficiency benefits, including simple and intuitive user experience, quick access to accurate and timely analytics, social collaboration tools, and much more all of which can be accessed from virtually any device, anywhere, anytime.

3. Connectivity and Completeness: One of SCM's greatest on-site problems is the potential challenge of integrating systems to ensure data is coherent and readily available throughout the company. Cloud supply chain management allows open, seamless integration with all kinds of IT solutions to allow real-time collaboration and extensive visibility in a single version of the reality that has a tangible effect on effectiveness and productivity.

4. Cost Efficiency: Cloud-based SCM can give both established and new organizations countless economic benefits. Low upfront investments and subscription-based pricing appeal to organizations as they neutralize the capital needed for a big original outlay, while more affordable upgrades and new capacity rollouts make it far less costly to adapt to modifications than a massive IT overhaul. Furthermore, the cloud allows simple integration of evolving technologies that can provide ideas to enhance your company results as well as decrease expenses and accelerate procedures by automating repetitive duties.

5. Security: Supply chain data is critical, so it should be ensured that the data is secure when the data is placed in the cloud. To do this, the cloud solution needs to support best-in-class safety characteristics such as encryption, virus scanning, and white list support, and the data center needs to deliver physical and logical security that is embassy-grade.

6. Flexible, Fast, and Safe Deployment: A tremendous advantage of SCM in the cloud is that the entire supply chain does not need to be transformed at once. The migration can be prioritized and executed it at the correct speed for the organization by providing a flexible path to the cloud, where those components can be selected that will yield the biggest value.

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