Cloud computing has made a great impact on the technology world, with former doubters now fully on board with the still-maturing technology. Countless industries have adopted some form of cloud computing solution at various points in their business.
If your business hasn’t tested some type of cloud application, there is likely very little time to waste – the supply chain does not wait for anyone. The industry is expected to top $41.7 billion by 2026, analyst predicts, with a compound annual growth rate (CAGR) of 10.3%.
Although the supply chain might have initially resisted the adoption of emerging technologies, the benefits of cloud computing were just too appealing. Since the cloud uses company resources as a utility instead of forcing companies to maintain their own computing infrastructure, the on-demand principle should make life a lot easier.
There are a lot of companies that contribute to the global supply chain economy, with a wide variety of industries that help contribute. Even though it’s hard to nail down an official explanation of what companies are responsible for the supply chain economy, it’s heavily focused on services – and not as much about physical products, at least a lot of the time.
What is the Cloud Supply Chain?
There is no denying cloud computing technology has great ramifications for the supply chain, with decision-makers and managers able to better track products through the lifecycle. This greatly helps lower the chance of lost merchandise, with the ability to track products in real-time.
The cloud supply chain is focused on providing end-to-end supply chain support to ensure warehousing, freight, and other travel logistics can properly utilize the cloud.
To follow this pattern, the cloud supply chain has an integration hub that lets partners view vital operational data – all in real-time – of the entire supply chain. Before the cloud, supply chain management succeeded in a relatively stable environment, depending on more predictable business cycles that made it easier for management teams to navigate.
That began to change, however, as businesses had to adjust to digitalization and move online – but the supply chain lagged behind other sectors that were faster to adapt to the Industrial Internet of Things (IIoT).
In today’s world, the supply chain combines physical product shipments along with an emphasis on services and the information is readily available.
As data volumes continue to rise at a fervent pace, being able to have easy access to information cannot be ignored. Efficiency is a common goal that has become more achievable with help of the cloud, though finding new integrations should be discussed between decision-makers and their vendors.
The cloud greatly improves the supply chain with speed and scalability. When a company’s business operation grows, the IT they rely on can easily grow alongside it. Ideally, there should not be any other reason for complete system overhauls, with new software integrations also happening at a rapid pace.
This is exactly why end-to-end visibility is important, because alarms can be generated as part of the integrated transactional systems portion of the lifecycle.
Downtime of a supply chain technology is extremely inconvenient and costly. However, relying on the cloud helps reduce downtime issues, with downtime usually just a few minutes per year, rather than costly hours of service disruption that would occur before cloud-heavy solutions were implemented.
These new connected services are extremely intelligent, able to analyze analytics, smart apps, and other groundbreaking solutions which can feed into accurate predictive analytics technology.
Typically, businesses endured a supply chain that was extremely siloed, with information not uncommonly rather difficult to share. It was on technology platforms to help break down those siloes and ensure the information that was formerly fragmented be accessible in a single resource.
Expect the cloud supply chain to continue to evolve alongside the traditional supply chain – and the companies that help keep the world moving forward. Supply chains are evolving and the cloud is an absolutely great tool to ensure your workers are able to receive – and track – products across the logistical lifecycle.
Real-time visibility and seamless collaboration paired with actionable insights contribute to automated execution for a personalized experience based on a company’s specific business needs.
Now that the network view helps break down siloes, with local data available in a central access point, the company-wide organization makes it even easier to track products through the lifecycle. Solutions are available for decision-makers willing to put in time and effort towards product analysis.