Problem
Cloud Computing in the Supply Chain
Given the complexity of supply chain management, there's always been a need for robust tools to manage information and processes. In the past, legacy systems were often purpose-built providing an adequate solution for the specific business. But given the need for information exchange, to provide partners and channel members with access to valuable insight, at a moment's notice; the time for change is now. The advent of cloud computing, and cloud computing as a service, make it possible for members of the channel to accomplish high-level and specific inquiries for information, without the need for expensive hardware and technical expertise.
How cloud-based solutions make this possible. The basic architecture of cloud-based solutions provides all the back-end services, massive computer power, and software engineering that would challenge any standalone business system efficiency. These solutions can be provided via standard web-based access with no need for specialized hardware. This web-based access guarantees that partners throughout the channel can have instant visibility of data regardless of their location and sophistication. Cloud-based solutions also remove the requirement for physical infrastructure and all the maintenance required to keep that infrastructure operational. The providers of these services handle all the hardware considerations through a dispersed method. The backups, distribution, along with security can be done by providers that solely focus on this service. From a protection standpoint, the service providers handle the bulk of security, architecture management, and updates. Because of the nature of cloud-based solutions, they were initially designed to be flexible and require only 20% of the resources to accomplish an update as compared to legacy systems. The costs associated with cloud-based solutions are significantly lower and currently, there are several methods of providing these services.
SaaS or software as a service is but one method of providing this service. Cloud-based platforms allow a payment model that supports usage and is flexible enough to accommodate the various scopes of businesses involved in supply chain management. These services allow individual members of the channel to only pay for the information that they need. Ostensibly, it is a pay-as-you-go service. " The true power of cloud computing lies in the way it changes the economics of computing." This format allows channel members to instantly expand their infrastructure in a manageable cost-effective manner. A key attribute of any infrastructure project is quality control and maintenance requirements. With cloud-based solutions, all the data management, message transformation, flow management, routing, data aggregation, data quality, security, and communication management, are handled by the provider.
Cloud-based infrastructure solutions, thus provide an opportunity for the community to instantly have visibility on the transactions throughout the channel. They provide an opportunity to optimize the flow of equipment and materials. This exchange is easy, which allows for maximum utilization of assets, shared by the channel. All the individual members have to do is maintain security, monitoring, and utilization at their particular business. As a result of these advancements in cloud computing and its synchronization with supply chain management, it is now possible to have ground truth, instant visibility, and one source to rely on for all channel members. The evolution of today's global supply chain requires solutions such as cloud-based computing to maintain competitiveness and agility. Manually driven supply chains can no longer compete, and legacy solutions are only partial answers.
References
Pierce, F. (2020, May 17). Cloud computing in the supply chain. Supply Chain Magazine.
Sharma, Pawankumar (2023) "Cloud Computing for Supply Chain Management and Warehouse
Automation: A Case Study of Azure Cloud," International Journal of Smart Sensor and Adhoc Network: Vol. 3: Iss. 4, Article 4.
Task
Given the ubiquitous nature of cloud-based computing, what drawbacks or sacrifices do you think will inhibit the widespread adoption of these services in supply chain management?