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Top 5 Cloud-Based Benefits of Supply Chain Management

Last modified: June 29, 2016

The Cloud emerged and the interconnected world it now creates far surpasses the primordial Internet and Web 2.0. This advance is affecting the daily lives of consumers similarly to other technical breakthroughs such as the printing press, engines and personal computing. It is in the utilization of cutting edge technological advancements that the challenge becomes apparent when what seems appealing becomes a stretch and strain while merging new technology to current processes.  In the area of supply chain management, however, errors can be fatal to a business’s bottom line. Potential integrators quickly realize that even the startup steps are delicate and fear of the unknown can greatly deter adoption of a new technology to reap its benefits. Thankfully, with a Cloud-based supply chain management systems integrator, it is simpler to do than it appears.

Localized Supply Chain Management vs. cloud-based Supply Chain Management Solutions

Of the two solutions, the benefits of Cloud-based supply chain management exceeds localized methods of manual inventory analysis paired with local area purchasing. Several notable ways selecting the Cloud benefits companies are added savings, safety via redundancy, scalability and efficiency. Beyond those significant improvements, the Cloud solution integrates far more smoothly than localized software within current systems.

Cost Effectiveness

Business is still powerfully attuned to the laws of supply and demand even as transactions move online. In fact the increasing competition of the online markets offered by Cloud-based supply chain management technology now adds a greater range of features and pricing benefits for service users.

Companies are enabled to cut costs with expanding capabilities and an ever-widening customer base through the sheer scale of the Cloud. Maintaining full-scale data storage network management software and integrating it with local systems, including employing system administrators devours a hefty portion of your business’s budget from the cumulative expenses of hours, wages and equipment. The Cloud solution disperses the expenses across all users whether small or large corporations or sole proprietorships and expands the market capabilities to everyone regardless of size.

Integration Capable Design

From the core, the software and platform services on the Cloud-based supply chain management integration solution are designed to work in a simple and expeditious manner with the IT solutions businesses already utilize. A service that requires too much setup or major modifications to other factors of a business create secondary costs that drive away customers, so the hand of the market has driven the service providers to ensure that their systems are fully capable of integration with either minimal effort or included support.

Redundancy

How does one surmount the risks of downtime and accidental data loss in the switch to the Cloud? Those risks turned reality lead to expensive and potentially catastrophic interruptions. When implemented correctly, a Cloud-based supply chain management solution has more redundancy, not less. In fact, localized solutions are more risky than the established failsafe methods of the Cloud solution.

Isolated localized system solutions are more vulnerable than Cloud systems in the event of an outage. Even when one server area experiences a malfunction temporarily, the Cloud moves the data and software around multiple system servers to maintain fast processing speeds and uninterrupted services. Regardless of your location, The Cloud simply works on the go and you are not tied to your office, house or local internet hotspot. Suddenly, the glitches and outages that would shut down your company for hours while technical support frantically worked to restore services are a thing of the past.

Efficiency

By leveraging the force of data analysis and automated management, the Cloud intelligently shapes the systems of the resupply process. The word “automation” can induce fear of quadruple-sized orders mysteriously appearing due to a glitch in the code, but the cloud-based supply chain management system performs step-by-step, efficient analysis based on the input of business and programming experts. However, the Cloud does not dictate how the organization operates. No, it equips managers with the quick and easy data access to make the most intelligent choices based on sound data reporting free of funding or time constraints.

Scalability

With a traditional supply chain, modifications in your demands cascade into a multitude of considerations. While downsizing can be easy to undertake, adding supplies for a new business location can wreak havoc on the normal supply methods. With the older supply model, hunting for the inventory you need to manage multiple locations can quickly become a nightmarish, migraine-inducing process.

The Cloud, like its metaphorical name, is an amorphous body of network connections and data. For the cloud-based supply chain management system, scaling your supply upwards is as easy as writing a few new lines of information like the address of the new location and inputting additional data. If the management is performed on-site, the task of determining the new supply needs and acquiring sources becomes more intensive.

The Future of Business

While organizations have had the savvy to manage their own supply chains for years, with the development of the Cloud, owners now have quicker and more efficient data access to their supply chains. All sizes and all ages of businesses can benefit immediately by upgrading from a localized supply chain management service model to the Cloud.  Now free of repetitive, mind-numbing tasks, owners and workers are finally able to really focus on increasing company profits and enjoy peace of mind about the operation of their supply chains.

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