At the start of the COVID-19 pandemic, places all over the world were locked down. Many jobs could be done temporarily or permanently from home, but a lot of manufacturing and factory jobs couldn't. When these factories were closed for weeks or months at a time, important parts and equipment could not be shipped to customers all over the world. This was the start of problems with the supply chain that haven't been fixed yet, and it's been more than two and a half years.
Mckinsey did a survey of supply chain leaders and found that
All of this shows that organizations need to digitize procurement in order to save money and make the procurement process more flexible.
Soon, customers will get sick of hearing about pandemics as the cause of supply chain problems and will just want companies to figure it out and do what they said they would do, which is where cloud solutions can be leveraged.
Businesses and supply chains, as well as digital technologies like cloud computing, need to be combined into a digital supply network. This can be done by combining physical cargo flows with human resources, finances, and data.
Cloud computing applications give important information like schedules for picking up and delivering cargo, how well a vendor is doing, and how much equipment is being used. They also automate a number of time-consuming manual tasks. This automation gets rid of billing mistakes, speeds up processes, and gives managers access to important information about supply chains, so they can make better decisions based on facts.
Cloud-based solutions offer competitive advantages like real-time visibility, data insights, flexibility and agility, and the ability to grow. Intelligent digital supply chain networks have never before been able to be changed by cloud-based solutions in real time. Companies that use this advantage to connect easily with their customers, suppliers, service providers, and other stakeholders in the ecosystem can gain a competitive edge.
Many people still think that the main benefit of the supply chain cloud is that it saves money, which is true. The main reason companies told us they moved their supply chains to the cloud was to save money. But saving money is just the start.
The cloud makes things faster, more flexible, bigger, and easier to see. The cloud makes it easy for companies to change their computing resources quickly. It cuts down on the time and money needed to build and deploy new apps. It helps companies work with a whole new set of players. And it gives you the information you need to make decisions faster and with more knowledge. So, companies can plan for and predict changes and risks in the market and across the supply network. They can also design, make, and deliver custom products and services to keep customers coming back.
Lastly, the cloud helps make supply networks more responsible and environmentally friendly. It helps companies use new technologies to reduce the environmental impact of their supply networks, make better use of their resources, comply more with regulations, and reduce risks. With the cloud, businesses can keep track of how well they are doing and make decisions based on a balanced view. They can think about growth, making money, being sustainable, and being different at the same time.
Cloud computing tools have multiple strategic advantages over on-premises solutions for supply chain managers, such as:
Making a cloud-based supply network is an ambitious goal. It needs to be done in a structured and disciplined way. Every company will start from a different place and use a different method. Leaders in the supply chain need to know where their organization is on a scale of cloud maturity and what they need to do to move forward.
Definity First has seen the sharp rise in the number of customers who use the cloud. We're happy to offer cloud solutions and services that can help your business grow with new features and strong security to keep your most important data safe. There are a lot of different combinations that can be changed to fit the needs of your organization. If you want to know more about what we offer in the cloud, please get in touch with us.