5 Reasons Supply Chain Management is Evolving Because of Cloud Technology
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The advancement of cloud technology brings with it major improvements to supply chain management. Offering a wide range of solutions and developments, modern cloud software goes way beyond what was previously thought possible. Cloud computing technology is an everyday facet of the modern business, and should be utilized to its full potential. Particularly in a post pandemic world, new uses continue to be found for cloud software.
To do so, it’s important to assess where the benefits of cloud technology lie in supply chain management. The availability of cloud-based software solutions for supply chain management has many benefits. This article will consider five benefits of cloud technology; analytics, connectivity, scalability, cost reduction, and integration.
Wave goodbye to long-winded data analysis. Removing the need for data entry personnel and data analysts, cloud technology offers efficient and understandable analytics. This provides you with swift access to analytic information, and reduces the costs involved with human data analysis. Two areas within a business that benefit greatly from the use of analytical insight, in different ways, are order management systems and marketing.
The order management system (OMS) of a business is an area that really benefits from insightful analysis. Maintaining a streamlined OMS is beneficial in a number of ways, but to ensure it stays streamlined, analytics are vital.
Analytics provide insight into high and low performing products by tracking and monitoring all orders. If you provide a wide variety of products then knowing where the success, profit margins, and potential losses lie is crucial. Not only can analytics help you monitor and manage inventory, but they can help you sell it, too.
Marketing relies heavily on analytics. Analytics provides information on your customers, such as age, location, and gender, as well as showing which products are popular with which groups. Using this information, it is possible to build up a detailed and thorough map of where your strengths and weaknesses lie.
Furthermore, analytics plays a key role in social media marketing and the creation of SEO content. Analytics insights are easily the biggest revolution in marketing By using these insights to create targeted advertising, your business can take advantage of this. Learn to love advanced analytics insights!
The world in 2020 is all about connectivity, and supply chain management is no different. With so many moving parts and separate systems within a business, cloud technology provides the solutions needed to bring them together.
By allowing everyone to access the information and resources they need, when they need them, cloud systems help streamline processes that previously would have been time consuming and clunky. Cloud based digital asset management has certainly contributed to the stratospheric rise in remote working. Furthermore, improved connectivity means improved delivery times and quicker communication with customers.
As the 2020 remote revolution continues, the need for cloud technology has significantly expanded. With 94% of enterprises using cloud services, it’s clear to see that the cloud is an integral part of working life. By providing access to information from anywhere and on pretty much any device, cloud technology has enabled people to work from home all over the globe.
Whether recently made remote due to Covid-19, or a long-term remote professional, using cloud software is what makes it possible to work away from the office. When 42% of the U.S labor force is working from home, being able to access what you need when you need it enables employees to continue doing their jobs to the best of their ability.
Providing world class services for customers is no easy feat. Consumers expect ever faster turn around and delivery times, more efficient customer service procedures, and instant access to the products they want.
When customers feel disconnected from a company, they’re much less likely to buy a product. Cloud systems enable greater connectivity between business and customer by aiding with communication. A study from Brightpearl found over 70% of customers would search for an item elsewhere if it was immediately unavailable in one place. That shows how important it is to make sure products are ready and waiting for buyers.
Cloud technology aids connectivity which aids customer experience, putting your business ahead of the competition.
Put your business ahead by putting connectivity at the forefront of your remote and customer strategies. Image source: unsplash.com
Ensuring your business grows with the times is vital to success. No more do you need to worry about keeping your systems up to date with growth, the cloud can do it for you! When implementing long term softwares and systems, it is important to avoid creating additional work for yourself.
Having to manually update information or software can be time consuming and detract from more pressing issues. By taking the time to invest in easily-scalable cloud software from the start, you can be assured that tracking your business as it grows will be easy and manageable.
There are many ways cloud software can ease the transition upwards as your business takes off. By protecting supply chain managers from volatile markets, rapid growth can be achieved. Instead of long order processing times, supply chain managers can alter the availability of services and goods instantly. Cloud software can also help with change control tracking.
This quick response time is critical as a world of instant gratification develops. If the product isn’t there, the customer will look elsewhere. Insulate yourself from customer churn by using cloud systems to ensure your products are where they need to be, even as your business grows.
As well as assisting with internal systems, using techniques like implementing post-purchase surveys helps you keep track of your customer experience. Rather than losing customers during expansion, instead you can retain and attract new customers by meeting their expectations, thus encouraging further growth.
Help your business grow and scale up with cloud technology. Image source: unsplash.com
When it’s possible to outsource routine and admin work to the cloud, it makes sense from both an efficiency and cost reduction point of view. Automating time consuming yet simple data tasks like entry, analysis, and security, greatly reduces their resource consumption. By reducing the operational costs of your business, you can put greater investment into growth and improvement.
One example of a way cloud software can assist with cost reduction is in inventory management. Why is inventory management important? Well, poorly managed inventory is definitely one way to waste resources. As your business grows, poorly managed inventory will see wastage in terms of stock and resources, thus cutting into your profit margins.
By contrast, well managed inventory will aid your growth and success, as well as removing layers of stress and wasted time. By utilizing cloud technology within inventory management, your business can reduce the use of valuable resources and find more time for the important tasks.
When looking for a way to streamline your inventory management system, cloud technology should be the first solution you explore. If you make use of omnichannel retail, an automated cloud system can help you save time on exploring sales within different channels. That’s by compiling them into easy to navigate data sets.
Furthermore, you can avoid wasting money on overstocking while keeping up with an increasing demand for your products.
Use cloud technology to help with cost reduction throughout your internal processes. Image source: unsplash.com
The final point to be explored in this article, integration is one of the most useful features of cloud technology. As explored above, there are many ways cloud software can be made useful, and almost all of them rely on integration to some degree. From customer experience to internal processes, integrated aspects of your business can provide fascinating data analytics as well as help you see where to take the next step.
There are many areas within supply chain management that benefit from integration. Whether it’s tracking sales and inventory or assessing customer satisfaction and experience. In all cases being able to see data sets from across different systems is incredibly useful.
With so many moving parts within the supply chain, keeping things consistent manually can be a challenge. By making use of Electronic Data Interchange (EDI) through cloud software, you can standardize and automate anything from invoices to purchase orders and share these easily with those who need to know.
A particularly useful factor is the ability to integrate customer experience into pretty much everything you do. Being able to quickly deal with customer complaints requires transparent knowledge of systems for troubleshooting and repair. For example, integrating escalation management into your supply chain helps shine a light on issues that need resolving for smooth operations.
When those within the chain of management can easily respond to queries and difficulties, customers are left feeling satisfied and your business can identify problems early on. Create the experience customers expect with better item data. Integration is at the core of cloud technology.
See how integrating your systems benefits customers, employees and internal processes. Image source: unsplash.com
The evolution of supply chain management through cloud technology is far from complete. As technology continues to improve, there will be more practical applications of it found within the business world.
When considering how cloud technology can help your business move forward, remember the benefits of analytics and integration, cost reduction and scalability. Explore the market for cloud software options that are best suited to your business and see how the cloud can clear the way for your business to take its next steps.
