Role of cloud computing in scm
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The document discusses the role of cloud computing in supply chain management (SCM). It outlines 8 key benefits: 1) Advanced analytics capabilities to make better decisions, 2) Integration of multiple platforms through standardized protocols, 3) Removal of geographic and political boundaries, 4) Enhanced security measures, 5) Increased IT capabilities by outsourcing to cloud providers, 6) Ability to adjust to market volatility by renegotiating cloud agreements, 7) Increased scalability to quickly adapt to changes in demand, 8) Reduced operational costs through automation and outsourcing of tasks. Overall, the document argues that cloud computing provides significant advantages to SCM by enabling data-driven decisions, seamless processes across systems, scalability, and
Role of cloud computing in scm
- 1. Role of Cloud computing in SCM Dr. Neeraj Kr Pandey Dr Neeraj Kumar Pandey
- 2. Dr Neeraj Kumar Pandey
- 3. 1.Advancement in Analytics Capabilities • analysis of data gathering required both a data entry clerk and a person to conduct data analysis. The cloud, in conjunction with the Internet of Things, has enabled rapid collection of data from various resources and analysis of this data. As a result, businesses can eradicate these former “human” positions in favor a service that performs the same results one an exponentially faster scale. Ultimately, this allows the business to make better decisions for how daily activities behave. Dr Neeraj Kumar Pandey
- 4. 2.Integration of Multiple Platforms • As more businesses have accessed supply chain management providers, a great deal of platforms have been created to facilitate this change. Unfortunately, many of these platforms do not coexist well with one another. The use of cloud technology enables multiple platforms to work with one another through a series of standardized protocols. Therefore, the previously existing digital boundaries between rapid communication and order fulfillment become nonexistent. An example of such binding technology is FlashTrac, Flash Global's proprietary supply chain management integration system. Dr Neeraj Kumar Pandey
- 5. 3.Removal of Geographic and Political Boundaries • In close relation to integration of systems, cloud technologies remove physical and political boundaries from the supply chain management perspective. Since many cloud hosts rely on common practices for accessing, storage, and retrieval of cloud data, the same information may be altered from any place on the globe. Furthermore, cloud technology allows for the dissolution of political debates between business practices; although, the rules of governing entities may have the capacity to limit Internet access, such as was seen in Egypt in past years. Dr Neeraj Kumar Pandey
- 6. 4.Enhanced Security Measures • Since cloud hosts have to abide by strict government and public perception standards for maintaining privacy, such as medical and financial data, cloud technology brings state-of- the-art security measures and practices to the forefront of supply chain management. Interconnectedness allows for massive security monitoring and implementation across all cloud-based digital planes while still maintaining communication and enhancing the flow of business practices. Dr Neeraj Kumar Pandey
- 7. 5.Increased IT Capabilities • Agreements with cloud providers allow supply chain management providers to eradicate the need for extensive in-house IT departments; although, some minimal in-house IT departments are usually retained for in-house physical IT needs. When in the business of using digital resources, such as those used for e-commerce, a business needs to ensure customers can resolve problems with their system at virtually any time. Therefore, most cloud hosts offer 24/7 support for those using their services, which can be rerouted to correcting issues with your customers without your input if you prefer. Dr Neeraj Kumar Pandey
- 8. 6.Adjusting to Market Volatility • supply chain management providers must always be wary of how resources will be used in the event of a collapse. The use of cloud technology provides a buffer against market volatility. Essentially, partnerships between a supply chain management provider and a cloud host are subject to renegotiation, or even cancelation, if the market suddenly declines. As a result, the supply chain entity is able to minimize associated costs with the collapse and maintain service at competitive rates. Dr Neeraj Kumar Pandey
- 9. 7.Increased Scalability Abilities • Since cloud technology insulates supply chain management providers from market volatility, it can also be used to achieve rapid scalability. As a budding business begins to experience higher demand for product, the respective supply chain management provider may need to increase production by factors of five, 10, or more. With each additional order comes the strain of extra bandwidth and processing capability, which cloud technology provides. Within minutes, a supply chain management provider can extend the terms, or services, with the respective cloud host to account for the instant growth in capability. Furthermore, the use of cloud-based analytics allows businesses to isolate key inefficiencies within the order fulfillment process, which will further grow the respective business. Dr Neeraj Kumar Pandey
- 10. 8.Reduced Costs • he greatest benefit of cloud technology on supply chain management providers is reduced operational costs. Throughout the supply chain, cloud technology can reduce the amount of workers needed to perform specific tasks. For example, the cloud could be used to automatically generate a report of needed product at a specific warehouse, trigger the respective shipment, and account for the product when received at the destination. As a result of minimizing human-input within the order processing, those employees may be then reassigned to other physical aspects of the supply chain. Additionally, supply chain management providers reap the benefits of lower security, IT, data analysis, and more. Dr Neeraj Kumar Pandey
- 11. References • http://cerasis.com/2015/07/23/cloud- technology-in-supply-chain-management/ • http://www.supplychaindigital.com/scm/clou d-computing-supply-chain • vivek srivastava “impact of cloud computing on supply chain management” IFMR, CHENNAI 2012. Dr Neeraj Kumar Pandey