Why Supply Chain Management Should be Integrated With Cloud Computing
Today our business environments are evolving as never before. Rapid implementation of technology into all aspects of business is making service availability and product delivery nigh-instantaneous. Growing competition is forcing enterprises to reduce prices, thereby necessitating searches for operational cost savings. New technology is among the top choices for modern enterprises seeking to streamline, especially for automating and streamlining supply chain operations.
Cloud computing has also made its way into the Supply Chain Management strategy of contemporary manufacturing businesses, offering radical change for both technological deployment and the creation and storage of data.
Almost every major manufacturing company is following some form of supply-chain management practice. Components are sourced from different partners who may be distributed across the planet. So what difference will cloud computing make in the SCM process for a business?
For any manufacturing business, a mere Intra-Organisational collaboration platform is insufficient. Inter-Organisational collaboration platforms are a must. Their business partners must be constantly available via a communication platform that eliminates all technical barriers and provides a convenient interface for exchange of information. Cue cloud computing.
Common Communication platform:
Suppliers or partners of a firm can be located in different cities, states or countries. To collaborate effectively, they need uninterrupted communication with the parent firm. Yet there is a big problem: each supplier follows a different operational standard with their own tools and communication interfaces. Cloud computing therefore allows these companies to follow a common business standard or SCM protocol. It can provide a common communication interface for the parent firm which is accessible by any supplier at any place and at any time.
The Security Angle:
Exchanges of goods and services between companies and suppliers involve a great deal of financial and trustworthy commitments. Vital information should never fall into the wrong hands. Cloud computing allows the communication interface to be secured with firewalls, intrusion alarms, data security encryption techniques and much more. It provides a secure gateway for the smooth flow of critical data.
Software as a Service option:
Cloud computing allows business enterprises to use a Software as a Service (SaaS) model wherein they do not have to physically install hardware or deploy any software to help them manage their SCM models. Monitoring and tracking SCM strategies involves expensive utility tools which also require specialized personnel to handle installation and operation.
No Need of Physical Presence:
Since cloud computing brings the parent company and its suppliers into a single communication framework, it reduces the need for executives to visit the supplier location to monitor performance and quality. Cloud computing can thus streamline information delivery across various business channels by ensuring strict compliance with a common business language… and eliminating fatal communication gaps.
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About the Guest Author:
Mandira Srivastava is a fulltime freelance writer who specializes in technology, health and fitness, politics, and financial writing. Equipped with degree of mass communication and having worked for both private and corporate clients, I have experience meeting a wide range of writing requirements and styles.
