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Slash finances 4 ways cloud solutions cut your logistics expenses


Published on - Logistics companies that are yet to use cloud solutions in their operations are throwing away money.

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Slash finances 4 ways cloud solutions cut your logistics expenses

  1. 1. Slash Finances: 4 Ways Cloud Solutions Cut YourLogistics ExpensesLogistics companies that are yet to use cloud solutions intheir operations are throwing away money.By using out-dated, disparate, orcompany-owned solutions, yourbusiness is setting its financedepartment on solutions
  2. 2. The availability of online-basedprograms and the demand tostreamline operations frommanufacturer to consumer should beenough for logistics firms toreconsider their options. A bettermotivation though is saving money.CFOs should understand how the cloud impacts operationsand expenses. Here are some ways cloud-based logisticssoftware can help your company cut your expenses.
  3. 3. Upfront Expense – Infrastructure InvestmentIts hard to convince finance to spend on IT infrastructureconsidering it is 1) a major upfront investment and 2) amonthly recurring expense. Lets talk about the first part ofthe problem. For a company thats looking to cut itsexpenses, it will not help if it shells out a massive amount ofmoney to purchase the equipment needed to set up ITinfrastructure – infrastructure necessary to run theoperations management software. Cloud solutions, on theother hand, wont require you to purchase or updatehardware. Providers shoulder that expense.
  4. 4. Recurring Expenses – PowerData centres are among the biggest consumers of electricityon the planet. They run 24 hours a day, seven days a weekwithout rest. They require redundant power to keep theservers functioning. They also need electricity to maintaincooling. By not using cloud-based logistics software andopting to set up your own infrastructure, you are effectivelyagreeing to spend more money each and every month onutilities. Go for the cloud and avoid this recurring expense.
  5. 5. Recurring Expenses – ManpowerHeres a factor that is oftenoverlooked when weighing betweencloud and local software solutions forlogistics operations. If you choose toset up, upgrade, or keep your own ITinfrastructure, the company would need to hire a wholeengineering team dedicated to the maintenance of the ITinfrastructure. A data centre will have at least two layers:the physical layer and the IT layer.
  6. 6. This means you need engineers and technicians to maintainthe physical layer, which is space, power, and cooling. On theIT side, you have the cabinets, racks, and servers, amongothers. On top of all of this, you need a data centre managerto oversee everything. Cloud solutions allow you to skip thishuge overhead because the provider is in charge of theinfrastructure maintenance. You are in charge of your ownbusiness: logistics.Recurring Expenses – ConsumptionThe amount of data you can store and use is fixed when youhave a data centre.
  7. 7. It depends on the hardware you have installed. If you want toincrease your data consumption, you need to reinvest andpurchase more servers. Those servers need racks andcabinets, as well as space, power, and cooling. When your useof the logistics software grows, you need to reinvest again.But what happens when demand drops? You still need tomaintain the same amount of hardware, leading to a waste ofpower and manpower hours. With dedicated servers forrent, you can increase or decrease the servers you require butit would take time, depending on availability.
  8. 8. Consider using cloud solutions for your logistics businesstoday. You can cut your upfront and recurring expenses, aswell as streamline your operations.