We are all aware how cloud computing has become a real game-changer in all aspects of business, but especially in how it's rapidly redefining the traditional supply chain model, as explained here by Accenture.
Cloud computing can help organisations to cope in almost any marketplace. While manufacturers still spend on materials, machinery, factories and employees, investments in supply chain management tools are accounting for an increasingly large chunk of money nowadays.
Supply chain disrution is still having a huge impact on businesses according the Allianz Risk Barometer, with over 50% of businesses still suffering a massive or large impact due to supply chain disruption in the last 12 months. Transparency is key is and cloud-based technology can help to make complex supply chains more competitive, efficient and transparent.
As a result, in 2020 Gartner reported the supply chain management software market grew 8.6% in 2019, exceeding $15 billion in vendor revenue. And in 2022 Gartner predicts that supply chain technology that enables better decision making by using advanced analytics will become a clear competitive advantage.
What can you expect from cloud-based supply chain software?
We’ve identified four key ways that supply chain software (SCM) benefits from the cloud...
Reliability and security are big concerns for any hosted service platform and especially so in supply chain management. With cloud-based supply chain solutions, the service provider is responsible for implementing the required security frameworks and encryption, and is also responsible for keeping the platform online.
If we used a traditional hosted services model with dedicated hardware, our in-house experts would be responsible to keep the service up and running, and would take all responsibility for any issues or technical failures. However, Segura’s cloud-hosted platform and all associated customer information is built around a geocluster resilience model across multiple global tier 1 data centres from Amazon Web Services (AWS). This means that if a single location has issues, there’s no lost data or disruption to our service. We promise our clients 99.999% availability of our system – and since day one, we have been able to maintain 100% accessibility.
Cloud-based supply chain technology also has the capability to analyse large amounts of collected data. For example, Segura can calculate rebates due from individual suppliers, bringing together valuable insights automatically which would otherwise require a lot of time and effort to be invested.
Modern supply chains can rely on the collaboration of suppliers, manufacturers, retailers and distributors, often spread across several continents and time zones. In order to make this possible, supply chain management tools need to be easy to access.
With cloud-hosted supply chain software, users can gain real-time information from anywhere in the world at any time - all that’s needed is a secure internet connection and log in details. Segura is simple to set up, and once all parties are signed in, they each have access to the same tools and information.
As well as an informative, flexible and easy to understand User Interface, Segura also provides a full EDI transactional layer, allowing our more sophisticated partners with ERP and PLM systems to transact with us via web services and electronic data exchange. This allows for much greater productivity, reduction in administrative overhead and removal of human errors.
4. Flexibility & SPEED
Traditional self-managed hosted services models require racks of servers, as well as duplicated back up and recovery locations. This means a big capital investment, big overheads and a big energy footprint to boot. The cloud model still provides the same levels of capability, but aggregates these services for larger numbers of customers. Cloud hosting providers such as Amazon Web Services (AWS) therefore allow cloud focused businesses like Segura to replace this kind of CapEx heavy service provision with a manageable regular service fee, and we pass these savings onto our clients.
Cloud-hosted supply chain platforms are also fast and affordable to set up, roll out and operate. Cloud-based software can be expanded at a rapid rate, allowing an almost unlimited number of new supply chain partners to join a company's flexible framework. This can help to operate an efficient and responsive supply chain, working and expanding at top speed whilst staying in control.
The business case to invest in cloud supply chain management software
So you can see a compelling business case for retailers to manage their supply chain network, orders and data in the cloud. Not only can it reduce overheads and increase reliability compared to a self-hosted system, but it can speed up the time it takes to reach complete supply chain visibility, through a network of shared supplier information, accessible from anywhere in the world. And by collecting all supplier data in one portal, retailers can benefit from valuable real-time insights, take quicker steps to meet compliance standards and benefit from performance improvements at a fast pace.
If you would like to find out if Segura supply chain mapping software can help your business, please get in touch.