Cloud-based services are taking over the supply chain management market. The incredible opportunities for advanced analytics and big data are just a few of the features that are making businesses take notice of Software-as-a-service (SaaS) supply chain management solutions.
There are numerous cost reduction implications that are associated with streamlining your supply chain using cloud-based solutions, but the actual advantages of the switch from on-premise legacy systems go far beyond that. In fact, cloud-based software is changing the entire concept of supply chain management.
While there are still concerns that make some companies hesitant to make the switch, it’s obvious that cloud supply chain management software has revolutionized how small and mid-sized companies plan their product lifecycle.
How Cloud Computing is Changing Supply Chain Management
Cloud supply chain management software are having a far greater effect than previously anticipated. Businesses are beginning to understand that supply chain management is no longer just about transportation management, inventory management, warehouse management and the physical flow of products. Today, they’re realizing that it goes far beyond. SCM encompasses every aspect of the business and its values, including data, talent and even finance.
The ability to integrate data and analytics into the SCM workflow helps companies discover actionable insights and streamline their data flow across the entire organization, and even to partners.
Streamlining the data flow makes the entire supply chain planning process digital, encompassing every part of the enterprise. In turn, this allows for seamless collaboration between different supply chains, creating an environment in which it’s easier to ensure an efficient workflow and a quick response to disruptions.
Instead of focusing on individual functions, businesses are now able to implement real-time monitoring of their supply chain, creating even more opportunities for cost improvement and optimized performance.
Benefits of Cloud Supply Chain Management Software
The transition from legacy systems to cloud supply chain management software solutions can be challenging, but more and more businesses are seeing the huge benefits it can bring, and are choosing to make the switch.
Below are just a few of the advantages that come with employing cloud supply chain management software:
The one benefit that puts cloud supply chain management software head and shoulders above on-premise solutions is the ability to support real-time data. These real-time updates give companies unparalleled supply chain visibility, making it easy to make on-the-spot adjustments.
Once connected, the use of cognitive equipment and smart apps allow to make informed decisions about each aspect of the digital supply network. The potential of supply chain analytics can also help businesses take their demand planning to a whole new level by giving access to an unprecedented amount of usable data.
The connectivity potential of cloud technology also allows for never-before-seen flexibility to “plug-in” new parts of the system. It’s very easy to introduce new elements to the supply chain using cloud software – adding new partners or suppliers has become a nearly automated process, especially when compared to on-premise solutions.
The top supply chain management software solutions all have a seamless UX design that allows you to easily integrate new people and processes, as well as do deep customization for different segments of the market.
No Maintenance Required
With cloud-based computing, you don’t have to worry about taking maintaining your software and IT infrastructure. Current technology advancements and the increase of stable internet speed has allowed for even such complicated software as SCM to become less dependent on location. So no matter where you are, you can use a fully functional cloud supply chain management software.
Since software updates and maintenance are handled by the service provider, companies can drastically reduce their IT departments. This not only saves money, but is efficient in and of itself because the SCM SaaS has better-equipped resources to solve problems quickly.
Never before small and medium businesses had access to professional software that allowed to greatly increase efficiency. Not long ago, small businesses had to rely on very simple tools such as Excel and MS Project, while advanced SCM software was reserved for big companies who had the resources to host and maintain it on their own.
Right now, with the rise of cloud supply chain management software, even smaller businesses and mid-sized companies can access the most cutting-edge planning and logistics tools. This provides a tremendous impact on efficiency, allowing them to compete with bigger competitors. Using cloud services for SCM means that scaling up doesn’t come with the financial burden that it used to, and at the same time, it’s much more time-efficient.