The Cloud Have Some Serious Arguments
Key current Supply Chain Management challenges lead us to Cloud Deployments: globalization, increasing organizational complexity, mobile and distributed workforce, connection to IoT data, end-to-end (multi-enterprise) supply chains. Supply Chains are becoming more and more interdependent and complex to manage, and collaboration between stakeholders is strategic in a world where change is a daily concern, and adaptability a key competency.
Some Insights to Consider More Deeply
Supply chain management is gaining importance in companies, because top management is realizing more and more how high the impact of a well managed supply chain is on revenue, profit and cash flow, and how much it has become a tool to drive business growth. Optimal supply chain management delivers a high return on investment, and this is why companies choose to implement Advanced Planning Systems.
As there is no time to loose, initial implementation, roll outs, enhancements, new requirements, upgrades should be carried out as quickly as possible without disturbing the business. In this situation, a Cloud implementation is obvious as it allows the customers to focus on their core business.
Cloud makes collaboration and global deployment simpler as the only requirement for the organization is to have connectivity to the data center.
While many companies agree on most of the positive impacts of the Cloud on their business, they sometimes fear security issues. The fact is that Cloud security certifications are very high, and often companies do not realize that they are in fact much safer than that of their own infrastructure. Let me give you a concrete example: last summer, the “Petya” virus paralyzed many companies around the world. A global food and beverage manufacturer was highly affected by this virus as all their computer applications shut down except one: DynaSys DSCP because it was in the cloud.
If compared basically, cloud costs may seem higher than on premise at first, but when making a comparison it is important to ensure you are comparing like for like. When companies compare all of the costs they incur, a Cloud solution may be more cost effective as they will enjoy the benefits of the economies of scale in delivering the service to the customer. Also, Cloud must not just be seen as a deployment option, but also as a strategy that gives the company the opportunity to concentrate on his core business, and therefore increase busness performance.
The Cloud therefore provides a great future for Demand & Supply Chain Planning, and the trends show an increased adoption of SaaS in 2018 and the following years as part of the supply chain digital transformation.