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Sep 30, 20224 min read

The Rise of Cloud Computing & its impact on Logistics

Here's how they play a part for each other.



Cloud computing has been the talk of the town for a while now as it is part of the evolution of technology. It has been in existence for around 20 years and has been through multiple adjustments, for instance, the creation of Software as a Service (SaaS) and the rise of cloud computing as a service platform and infrastructure. The variations that live in cloud computing today have made this a more useful, crucial, and effective platform or tool for many industries.


An example of an industry that implements the use of the cloud is logistics. Global events such as the US-China Trade war, Brexit, and COVID-19 Pandemic, have increased uncertainty and volatility all over the world. With this, companies have been shifting their focus to ‘purpose-led’ technology transformation in order to address strategic priorities as well as a gain for competitive advantage. Based on a survey from the 2019 Gartner Future of Supply Chain, 79% out of 1,219 companies surveyed are investing to be a digital business by 2025 and the cloud is one of the six technology enablers underlying the digitalization journey.


Another reason for this is because of digitalization, consumers in the logistics industry today are looking for transparency in the logistics process - following from the start to finish. The cloud gives businesses the ability to share information that the consumer needs while also securely hiding company-sensitive data. In addition to this, there is no need for companies to invest even more money in the infrastructure of a dedicated IT team and the maintenance of changes.


Aside from meeting the high demands of consumers, how can it help the internal business process? There must be a reason why the integration of cloud computing has been commonly used among the different sectors in the logistics industry in the past years. The sectors where the cloud has seen such integration, are Forecasting and Planning, Service & Spare Parts Management, and Servicing and Procurement. So, how has the cloud made working easier?


Let's take a look at three reasons how!



1. Efficiency at its Finest Imagine a world where you manage to handle every delivery timely and without any errors from the start all the way to finish. Well, that's a 'too-good-to-be-true' dream that we have because there are days where mistakes and errors are bound to happen - some we'll be able to control and some we can't.


For sure, all of us are working hard towards that 'too-good-to-be-true' dream daily. What we can do is to do our best to control what we can right?


The cloud is a part of it that we can control as it increases the possibility of minimizing errors and mistakes by automating tasks during the setup. To add on to that, it also optimizes efficient management of business's logistics and supply chain process. Eventually, doing this increases time-efficiency which allows businesses to run things without needing to supervise heavily on multiple tasks.


2. Real-time Access to Inventory


Just like the latest news, clothing collection, shoe drop or newest game edition, we want to be the first to know it. Getting instant access is the demand everywhere because people want to be able to retrieve information from wherever they are. 


The cloud gives the instant access to inventory information to employees which will shorten the time it takes to respond to demands, boost sales, make timely adjustments to orders or deliveries and ultimately, provide better customer service.


As it can provide the all-around necessary information, from anywhere and anytime to employees, it makes it convenient to work as it quickens the time it takes to respond to demands and opens up the possibility of making timely adjustment to orders which will most probably lead to better customer service and ultimately boosting sales.


With the cloud, gone are the days where you have to flip the endless stack of papers with inventory information and numbers. Imagine being able to search for the information you need with just a click of a button and typing in keywords - oh yes that sounds really good.


3. Bonding Anyone, Anywhere, Anytime; Supply Chain and Logistics Management As the cloud system uses the internet, it gives users the flexibility to access the necessary information or get some work done from wherever they are, whenever they want using their phones, tablets, or laptop. With a connected supply chain and logistics management, it gives companies the ability to resolve difficulties more promptly with minimal resources.


These three points are the impact of the cloud that is most commonly seen across the logistics industry. As far as Cloud Computing goes, if it continues to evolve at its current or faster rate, there might possibly be more options for companies to further tap into in order to advance their business. This is the fact that many logistics companies will be moving towards adopting cloud-based solutions in the near future.


Cloud, Logistics, and Efficiency

With the benefits that the cloud has brought and will continue to carry forward for the logistics and supply chain industry, we can expect more advancements and integration in the coming times. This will play a huge role for many businesses as it increases convenience, flexibility, and efficiency across the different business processes. Therefore, the cloud is one way for businesses to meet the continuously increasing demands of partners, suppliers, and consumers.


Is integrating the cloud, the one step you need to take to improve the efficiency of your business?



 


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