The cloud is becoming an essential part of the supply chain.

Cloud computing: Disruptive for the supply chain

 
Cloud computing has been named one of the most disruptive technologies of the century – maybe even the most disruptive. Numbers pulled by IT research firm Gartner certainly show that companies are investing in the cloud; the firm reported earlier this year that by 2020, the shift to the cloud will impact more than $1 trillion in IT spending. The technology gives smaller organizations the resources to compete on a larger scale, and it’s allowing businesses of all shapes and sizes to remain relevant in an increasingly fast-paced business world.

Supply chain operators consider the cloud to be a highly useful, game-changing technology as well. A recent report released by SCM World, the annual Future of the Supply Chain survey, found that 58 percent of organizations see the cloud as a disruptive, critical force within their operations. In addition, an MHI study released earlier this year, “Accelerating Change: How Innovation is Driving Digital ‘Always-On’ Supply Chains,” discovered that within supply chain organizations, cloud computing adoption will leap to 86 percent over the next six to 10 years.

The cloud is a disruptive force in the supply chain.The cloud is a disruptive force in the supply chain.

 

Why is it so disruptive?

The textbook definition of “disruptive technology” is one that is groundbreaking for an entire industry or way of doing business. In that regard, cloud computing has followed the definition, as organizations are using it to cut expenses and redefine their roles in the global marketplace.

With the cloud, organizations can enjoy several key benefits, including:

  1. Agile operations make for a better supply chain: Agility is a big part of the reason organizations look for cloud-based solutions to their supply chain problems. Inspirage’s own recent market research study, “The Future of the Supply Chain in the Cloud,” found that 68 percent of companies were looking for solutions that can be deployed quickly and easily, and it was also important that these technologies scale easily in order to keep up with demand.
  2. Keep costs down with off-premises computing: The cost advantages alone prove that the cloud is worth the investment. Inspirage’s survey found that 72 percent of the business side of responding organizations cited cost reductions as the main reason for adopting the cloud. The general emphasis seems to be that If you don’t have to keep track of proprietary computing environments, once you have access to the highly collaborative tools the cloud offers, you can decrease your amount of IT spend and create a more efficient supply chain.

In all, the cloud is a key tool that supply chain operators will continue to invest in. By using cloud-based programs and taking advantage of the benefits of this disruptive technology, organizations can achieve and maintain relevance within their respective industries.

For more information about how the cloud can embolden your organization’s supply chain and create more agility within your operations, get in touch with the experts at Inspirage today.

Key Contributor: Sandeep Thigulla

Sandeep Thigulla possesses 12 years of project experience with Oracle applications and modules including Fusion Cloud Applications and the Oracle E-Business Suite (EBS), specifically Service Parts Planning (SPP) and Logistics, Customer Relationship Management (CRM), Supply Chain Management (SCM) and Order to Cash. He has successfully planned, executed, and monitored large complex projects with multiple clients globally. Industry experience includes high tech, retail services, manufacturing, and service industries. He is recognized as a leading expert for the Oracle Fusion Cloud Implementations within CRM and SCM.