By now, chances are good that you’ve considered moving some or all of your supply chain technology to the cloud. Or at the very least, you’ve heard about the advantages of cloud-based supply chain management (SCM) and wondered if such a strategy is right for you.
If you’re still on the fence, this article will highlight some of the most compelling benefits that can be achieved by migrating traditional on-premise SCM technologies to cloud systems and platforms. It will also describe how focusing on workforce management solutions may be the best place to start.
The benefits of a cloud-based supply chain
Let’s face it: You’re in a highly competitive market and constantly looking for new ways to improve your supply chain, especially when it comes to increasing speed, efficiency, and collaboration with partners and vendors. Moving SCM technologies and other solutions may give you exactly the edge you need.
Specifically, cloud platforms offer many significant advantages over on-premise deployments and manual supply chain processes:
- Eliminate capital spending to reduce costs and increase affordability: Cloud computing eliminates the need for hardware and its related costs. You simply pay as you go with a predictable monthly fee, which is treated as an operating expense to help with cash flow.
- Increase scalability and flexibility: Additionally, cloud platforms are ideal for businesses with changing bandwidth requirements. If your needs change, it’s easy to scale up/down to accommodate new business volume, add new users or technologies, or meet other requirements.
- Improve collaboration and enjoy faster response times: Moving to the cloud also helps you better respond to unexpected events and day-to-day market pressures. For example, a study from SCM World found that 46% of respondents reported that cloud computing led to increased collaboration and the ability to solve new problems twice as fast as they could with on-premise SCM technology. Improving your agility can help you focus on winning new customers, implementing new strategies, and increasing your overall competitiveness.
- Minimize IT’s burden: As a service provider, the cloud vendor is responsible for managing the solution, including updates, bug fixes, and general maintenance. This model frees your critical IT resources to focus on high value technologies and processes that enhance the customer experience and differentiate your organization.
With so much to gain, it’s safe to say most organizations could benefit from moving their SCM solutions and other technologies to the cloud.