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Insights into Cloud Supply Chain Solutions

Supply chains are the lifeblood of any business. Increasing the speed and scale of suppliers is an essential catalyst for driving future revenue growth. With the revenue of every business, especially manufacturers, dependent on having an efficient, integrated and stable supply chain, the need for scalable and secure cloud-based Supply Chain Management (SCM) systems is increasing. Logistics, strategic sourcing, and transportation are areas where cloud SCM applications continue to lead adoption. Companies competing in this area of the supply chain rely on geographically-distributed business models that thrive on tight integration, real-time communication and global real-time collaboration. Cloud-based SCM systems can deliver on these requirements while increasing the quality of analytics, improving data management and defining a single system of record for the entire company.

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Some Cloud-Based SCM Facts

The Era Of Cloud Supply Chain Management Has Arrived

Supply Chain Management software has historically been on-premise, managed from a central location by IT teams that work to keep the system reliable. Onboarding suppliers in an on-premise world was often a tedious, time-consuming process that would take days and, in some cases, weeks. Relying on manual methods of supplier management alone drastically slowed down a company’s ability to develop and launch new products. On-premise SCM often created data silos that slowed down collaboration, communication, selling and service revenue opportunities.

Across all industries, and especially in manufacturing, customers’ expectations are driving a higher level of accuracy, speed, scale, and variety of new product development and services. Manufacturers have no choice but to step up their ability to deliver excellent, innovative, unique products on time and at the highest levels of quality to keep their existing customers while winning new ones. Cloud SCM systems and the cloud platforms they’re being built on today are providing the foundation all companies need to excel in meeting and exceeding customer expectations. Delivering greater speed, scale and simplicity, the era of Cloud SCMs has arrived.

The following are the key factors and catalysts driving the adoption of Cloud Supply Chain Management:

Source: Accenture, Supply Chain Management In The Cloud

Source: Accenture, Supply Chain Management In The Cloud

Source: Accenture, Supply Chain Management In The Cloud

Source: Forbes, Where Cloud Computing Is Improving Supply Chain Performance: Lessons Learned From SCM World

Source: Forbes, Where Cloud Computing Is Improving Supply Chain Performance: Lessons Learned From SCM World

Source: Forbes, Where Cloud Computing Is Improving Supply Chain Performance: Lessons Learned From SCM World

Benefits Of Cloud Supply Chain Management Software

Cloud SCM applications and the platforms supporting them create new opportunities to capture and act on a new series of supply chain metrics and key performance indicators. The Gartner Supply Chain Hierarchy of Metrics is a framework built on 17 key supply chain metrics. Using cloud SCM applications and the cloud platforms they’re based on, it’s now easier to capture data that had been difficult to obtain from on-premise systems in the past. Cloud SCM systems are delivering the following benefits today:

Conclusion

Adoption of Cloud SCM applications continues to accelerate based on the fact that they’re easier to deploy than on-premise SCM applications, they’re easier to customize, they can scale globally, they can be accessed through any Web browser and they can be configured to save on costs compared to on-premise systems. The greatest benefit that cloud SCM systems provide is the orchestration of globally distributed and diverse supplier networks to a common goal of becoming more demand-driven and responsive to customers.

Manufacturing strategies are becoming more diverse, ranging from assemble-to-order (ATO) to engineer-to-order (ETO). The greater the complexity of customized, configurable products, the more reliant manufacturers are in their supply chains. Manufacturers are more dependent on their supply chains than ever before. The opportunity to capture new metrics and KPIs related to supply chain performance is delivering insights many organizations never had before. All of these factors, when taken together, are leading to more efficient, economical supply chains that are driving greater business growth.

Get our Supply Chain Management Software Comparison Matrix.