Few things have such a direct result in company accounts like the supply chain. Achieving efficient, dynamic and quality logistics improves your numbers and customer satisfaction. That is why companies do not rest in the search to improve this part of their business, and the leap to the supply chain in the cloud wants to be one of the solutions for the future.
“Today’s organizations need levels of agility, integration and visibility that are beyond what traditional supply chain systems were designed to provide.” This is explained by a report from Oracle, one of the world giants of technology and cloud services. The study details the six main reasons why companies are betting on the supply chain in the cloud.
What is supply chain in the cloud
Programs in the cloud are those that are not installed on our computers, nor do they store data on our computers, but rather use external servers to be executed. In the same way, the supply chain in the cloud is one that is capable of working in this way, facilitating sections such as visibility, traceability and communication between the various agents involved.
According to the 2018 IDC survey, “75% of companies feel that the cloud will be a critical element in achieving logistics excellence today and tomorrow.”
6 reasons to jump to the supply chain in the cloud
According to the Oracle study, these are the top six reasons to get on the supply chain in the cloud:
“Product data is often scattered in silos throughout the supply chain, so there is no single, centralized version of the truth,” the report denounces.
For Oracle, the supply chain in the cloud provides the organization with the strategic alignment and complete visibility over the financial and strategic data necessary to select and invest in the products with the most profit potential.
Order processing is essential in companies. Oracle proposes a series of questions to assess how much we could benefit from our orders by working in the cloud. For example, do you and your customers have full visibility into order status and product inventory?
Planning is an essential point of any supply chain. Asking ourselves what our sales are going to be, how long it takes us to carry out our processes or what solutions we are going to have in the face of possible risks and incidents. Having the information in the cloud allows the organization to have more reliable data and share it in a more optimized way, which leads to better decisions.
“With so many variables in risk, cost, regulatory compliance, and sustainability across the globe, it can be very difficult to adequately measure costs and manage risk,” the report says. Once again, having viable and transparent information on your costs can make a difference when it comes to assessing your suppliers and controlling your expenses.
“Currently, 66% of manufacturing companies in the 17 countries consulted are already using cloud services for two or more applications. It is expected that by 2023, cloud services will account for almost half of the software programs of companies”, ventures Oracle. This means that the importance of this class of systems will be fundamental in how companies manufacture -and control the manufacturing processes- of their products.
The delivery of the final product and its logistics cannot be missing from a review of the needs of a supply chain. Oracle sees the value of responding to the growing demand for faster delivery, control of information and the ability to know our logistics costs. “Supply chain in the cloud is the easiest way to handle one of the most complicated aspects of business,” the article explains in reference to logistics and deliveries.