How to reap instant Benefits of Cloud Supply Chain Software

Posted by Martin Verwijmeren on Aug 20, 2015 4:25:12 AM

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By combining contemporary cloud technology with Software as a Service (SaaS) delivery, a wealth of opportunities in Supply Chain Management becomes available. You just have to:
  1. Embrace Customer Chain Control
  2. Implement Cloud based Supply Chain Software
  3. Contract your Solution as SaaS

1. Embrace Customer Chain Control 

“The speed at which supply chain innovation is being adopted coupled with rising consumer expectations for anytime, anywhere service is stressing traditional supply chains to near-breaking points,” says George Prest, CEO of the US Based Material Handling Institute (MHI).  As:

  •          51% of customers challenge us to lower our delivery costs
  •          50% of customers challenge us to offer faster response times
  •          49% of customers expect us to raise customer service levels

“Companies that continue to rely on on premise traditional supply chain solutions will struggle to remain competitive and deliver orders that are complete, accurate and on-time. Nowadays the customer becomes more and more in control of your supply chain and you need to facilitate this”.

As markets evolve toward increased globalization, free trade, and outsourcing, a growing interest arises to deploy solutions for supply chain orchestration as a strategic business weapon.

Instead of only focusing on siloed processes within logistics, Supply Chain Management will manage logistics from holistic business perspective. It focuses on activity coordination among other business areas like ecommerce, sales and marketing and especially among external channel partners in the value chain.

2. Implement Cloud based Software

To be able to put this holistic approach into practice enterprises are steadily moving their Supply Chain Software and Infrastructure to the cloud. Over the last years we see a massive increase in spends on cloud based solutions by more than 300%.

Sharing data between multiple partners and systems in a holistic omni channel supply chain is becoming an essential differentiating factor in today’s business landscape. Companies tapping in to the cloud as linking pin to the holistic supply chain will reap great benefits on both customer intimacy and operational excellence levels.

Cloud based solutions are particularly conducive to multimodal supply chain environments because they enable fast integration to large numbers of partners, automatic updates to carrier rates, customs regulations and on-demand visibility from anywhere.

The top uses for cloud computing these days are Sales, Operations and Supply Chain Management.

These systems will revolve around two axes of collaboration and coordination:

  1. Interfunctional: not just within the logistics functionality but more importantly across other functional areas within the same firm like sales, marketing and finance.
  2. Interorganizational: orchestrating product flows among channel members, i.e., those companies that are not owned or operated by the immediate firm.

The newest generation of Cloud Based Software facilitates on-demand visibility and orchestration functionality from anywhere to anyone in the world playing a critical fulfilment role in the end to end service performance to the customer.

3. Contract your Solution as SaaS

Despite the many technical terms that surround the topic of cloud computing, it is about much more than just technology. Crucial to cloud computing is the new business model, which can be summed up as ‘pay as you go, pay as you use’. Companies no longer buy a whole infrastructure or software suite, but instead pay only for what they need. Running Cloud based software on SaaS basis is a revolutionary trend that enables companies to shift from capital expenditure (Capex) to operational expenditure (Opex).

A hands on Mindmap on reaping instant Benefits of Cloud Supply Chain Software

To help you to instanly benefit from your Cloud Supply Chain Software, we have added a hands-on mind map to this article. Giving you a multi-dimensional perspective on your road to Supply Chain Orchestration in the cloud.

Mindmap Supply Chain Orchestration

Sources: Supply Chain Movement No 15, 04 2014, The 2015 MHI Annual Industry Report

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