Cloud technology has the ability to improve communication across the entire supply chain. It allows all partners within a supply chain to easily collaborate with one another. Imagine a social media platform such as Facebook or Linkedin that easily allows you to send real time updates to all members of your supply chain. This can can help defuse problems that arise within each supply chain link.
There are many communication barriers that may arise with a new supply chain partner. As a result, during this transition your firm is at risk. Cloud technology breaks down these barriers to improve your supply chain network. As a result, it saves costs by helping you avoid the risks that come with poor communication.
Instead of waiting to update your system when a new version is out, cloud computing updates your systems instantly. These updates are more regular, will quickly fix bugs, and will ensure your system is always up-to-date. Also, cloud updates are less effort on your employees, partners, and your IT department. Unlike other systems, you do not need to shut down your software to run updates. This prevents issues for partners who need access to your data.
Complete visibility is the ultimate goal for all supply chains. The more visibility you have into your supply chain, the more control you have over each part. As a result, you can improve efficiency, get rid of non-value adding activities, and reduce wastage. Cloud computing gives you access to each part of your supply chain, no matter how many trading partners you have or where in the world they are. It can connect you and give real-time updates. As a result, you can react quickly to potential issues. Cloud computing allows you to come as close as possible to complete supply chain visibility.
Storing all of your data onto the internet may seem daunting. You may think that it is less secure than hosting data on your own servers. After all, you want visibility but you also want to protect your data. In reality, cloud storage can be more secure than local hosting. Firms providing cloud services take more preventative measures to ensure that their servers are secure. As a result, they tend to focus more on security than an those hosting their own data.
Want to learn more? Find out how Clear Spider’s Cloud-Based Inventory Management Software can improve your supply chain.