Hector Martinez Mar 22, 2022 6 min read

How to Improve Supply Chains Through Cloud Business Applications

Cloud computing is quickly gaining traction to promote automation in all organizations. Supply chains aren't immune to this evolution either.

Businesses are looking for ways to improve their supply chain operations, and cloud-based apps and automation hold plenty of promise. With the help of cloud-based applications, organizations can drastically cut down costs and improve productivity while minimizing errors.

Now is the right time for businesses to enhance their supply chains using cutting-edge technology. The result is Software as a Service or SaaS models that allow manufacturers to integrate cloud-based applications into their supply chain operations. So, it's no wonder that the global SaaS market will be worth $60.3 billion by 2023.

Let's see how these cloud-based applications help organizations improve their workflows.

Incorporating Cloud-Based Applications into your Supply Chains

Cloud-based applications come in handy at every level of the supply chain, and there are many applications that these types of applications allow. These applications include:

1. Offsetting labor shortage due to the pandemic: This is done by transforming the workforce on the shop floor and substituting it with industrial robotics, AI automation, and IoT sensors.

2. ERP Transformation: Legacy systems are becoming inefficient, and a modernized ERP system will allow organizations to simplify their workflow. The integration of cloud-based applications will help businesses support growth and keep up with the pace of the industry.

3. Meaningful insight collection: According to a survey by McKinsey, organizations that integrated AI-enabled supply management systems could cut down their logistics costs by 15%. Cloud-based applications achieve this by connecting disparate systems, unifying data, increasing supply chain visibility, and recruiting AI to collect decision-making insights.

4. Enables Reverse Supply Chain: The world is getting more focused on the circular economy, and cloud-based applications can allow organizations to achieve this. Integrating cloud-based applications to manage reverse supply chains can set them on the path to sustainability.

Benefits of Cloud-Based Applications

Several factors make the investment in cloud-based applications feasible for organizations trying to streamline their supply chain. Some of these benefits include:

Intelligence and automation

Cloud-based applications are created with high cognitive intelligence. This allows managers to obtain meaningful data and insights that can be harnessed to improve workflows.

The best part is that cloud computing is easy to implement and use, and you get plenty of expert suggestions on how to improve your systems. Due to its automation capabilities, it also allows you to execute these plans for operational efficiency. An example of this would be automatic orders based on specific triggers set into the application.

Real-Time Visibility

It is common to see several actions taking place at the same time. Manually tracking these actions can be difficult and increase the risk of human error. With cloud-based applications, you can ensure that all instances and occurrences are being tracked simultaneously. Real-time visibility will allow you to make informed business decisions. This can translate into improved operations in the long run.


As a company grows, there will come a time when it will need to increase resources. Scaling is a part of every growing business, and with the help of cloud-based applications, you can affordably improve scalability.


We all know that manual processes take more time than automated systems. Cloud-based applications allow you to maximize speed when getting tasks done. This speed can translate into efficiency and cost reduction. The proactive identification of risks and opportunities can help you take action sooner than manual methods.


Hiring employees to track your supply chain or running manual tasks can be costly for an organization, not to mention the factor of human error that will always be present. Automating these systems with the help of cloud-based applications can help you improve your organizational efficiency and save costs that you would previously incur due to workflow bottlenecks or logistic issues. Furthermore, it eliminates the need to invest in servers or software since all the data is stored and sent from cloud storage.


Wrapping Up

Cloud computing has taken the world by storm, and cloud-based applications are becoming necessary for businesses. Legacy systems are becoming obsolete, and organizations are looking to move towards automation to grow their business. When we look at the supply chain industry, several factors indicate the need for automation.

Solutions such as Definity First allow organizations to harness the power of cloud computing and use it to automate their operations. This will enable these organizations to save on cost and resources while minimizing the risk of errors and providing insightful data to improve their business.

Learn how Definity First can help you streamline your supply chain operations.