Supply Chain based on cloud computing

1. The Role of
Cloud
Computing in
Supply Chain
Management
(SCM)

2. Agenda
 Supply chain (SC)
 Supply chain Management
 SCM based on cloud computing (CSCM)
 Benefits of Cloud-computing in Supply Chain Management (SCM)
 Cloud Computing Services for Supply Chain Management
 Considerations and Challenges
 Real-world cases leveraging cloud computing services in supply chain management

3. Supply chain (SC)

4. Supply Chain Management (SCM)
• Supply chain management (SCM) refers to the coordination and oversight
of all activities involved in the production, procurement, transformation,
and distribution of goods and services from supplier to the point of
consumption. It encompasses the entire network of organizations,
resources, and processes involved in delivering products or services to
customers.
• The primary goal of supply chain management is to optimize efficiency,
reduce costs, and maximize customer satisfaction through monitoring a set
of stages.

5. Supply Chain Management (SCM) Stages
Procurement : The process of sourcing raw materials, components, or finished products from suppliers.
Production: The transformation of raw materials into finished product.
Logistics :The management of the flow and storage of products and inventory management.
Distribution: The delivery of products to customers.
Inventory: The control and optimization of inventory levels.
Demand Planning: Forecasting customer demand to optimize production.
Supplier Relation Management: Building and maintaining strong relationships with suppliers to ensure timely.
Risk Management: Identifying risks that can disrupt the supply chain.
Information systems: Utilizing technology to gather, analyze, and share information across the supply chain.

6. SCM based on cloud computing
• Supply Chain Management (SCM) based on cloud computing refers to the
utilization of cloud computing technologies and services to support and enhance
various aspects of supply chain operations.

7. SCM based on cloud computing (cont.)
• Cloud computing offers a scalable, flexible, and cost-effective platform for
managing and optimizing supply chain processes.

8. Benefits of Cloud-computing in Supply Chain
Management (SCM)
Improve Collaboration and Connectivity : Cloud-based SCM enables seamless collaboration
and connectivity among different stakeholders .
Enhance Data Sharing and Visibility: Cloud-based SCM systems allow stakeholders to share
and access supply chain data in real-time.
Demand Planning and Forecasting : Cloud-based SCM platforms often include advanced
analytics and forecasting capabilities. By leveraging cloud-based computing power and data
analytics tools.
 Inventory Management: Cloud-based SCM systems provide real-time inventory visibility and
control. Cloud-based SCM platform can track inventory levels, monitor stock movements, and
trigger automated replenishment processes.This improves inventory accuracy, minimizes
stockouts, and reduces carrying costs.

9. Benefits of Cloud-computing in Supply Chain
Management (SCM) cont.
Scalability and Flexibility: Cloud-based SCM solutions allows organizations to scale
their resources up or down based on demand, without the need for significant upfront
investments in hardware or software. This flexibility enables companies to adapt quickly to
market dynamics and scale their supply chain operations accordingly.
Logistics and Transportation Management: Cloud-based SCM platforms offer features
for managing logistics and transportation operations.This includes route optimization,
carrier selection, shipment tracking, and real-time visibility into transportation activities.
Cloud-based SCM systems enable integration with transportation management systems
(TMS), GPS tracking devices, and other logistics tools to streamline the movement of
goods and enhance supply chain efficiency.

10. Cloud Computing Services for Supply Chain
Management
 Compute services: Virtual machines and containers for running applications and platforms over the
internet without the need to manage the underlying physical hardware (e.g. Amazon, Microsoft Azure)
 Storage services: Scalable and durable storage for allowing stack holders to store a large amount of data
without the need for maintaining their own physical storage infrastructure.
 Networking services: Refers to the infrastructure that enable communication and connectivity between
various cloud resources and services and ensure a reliable and efficient data transmission and access (e.g.
Virtual private networks (VPN),Content Delivery Networks (CDN)).
 Database services: Managed databases for efficient data storage, data integration from various supply
chains and applications and retrieval.
 Analytics and Big Data services: Tools for processing and analyzing large volumes of supply chain data
for giving insights and recommendations to stack holders for determining the specific areas where cloud
solutions can be implemented.
 Security and identity services: Provides a set of measures to protect data and applications from threats
(e.g. Encrypted data ,Authentication and Authorization).

11. Considerations and Challenges
Data security and privacy: Supply chain management involves the exchange of
sensitive and confidential data, including customer information, financial data,
environmental factors of products , orders serial numbers and business information.
Ensuring the security and privacy of this data is crucial issue for preventing
unauthorized access.
Integration complexity: Supply chain management involves multiple stakeholders,
including suppliers, manufacturers, distributors, and retailers for ensuring seamless
data flow across the entire supply chain can be complex.
Connectivity and network reliability: Supply chain based on Cloud computing
heavily relies on internet connectivity for data access and real-time collaboration. In
some regions or remote locations, reliable internet connectivity may be limited or
unavailable

12. Real-world cases leveraging cloud computing
services in supply chain management
• Managing Logistics: Cloud computing platforms can handle and moniter the
movement and distribution of vehicles, as well as guide delivery routes for
maximum efficiency.
• Example for Managing Logistics : FedEx applies Microsoft Azure cloud
technology to monitor risks for packages along the route, tracking weather
conditions or delays in movement.
• Automating Inventory Management: Everyone in the supply chain balances
anticipating shortages and preventing too much oversupply. Automation of
inventory management helps to timely determine critical levels of goods in
warehouses and stores.
• Example for Managing Logistics :Walmart assists its sellers simplify inventory
management with Seller Cloud. The cloud-based platform allows you to
maintain ideal inventory levels for each SKU by sending timely alerts.

13. Real-world cases leveraging cloud computing
services in supply chain management Cont.
• Managing Maintenance and Equipment Breakdowns :
• It provides tracking mechanical effects on equipment, such as pressure
drops, temperature anomalies, etc. With the help of special sensors, you
can monitor threats and quickly react to them, extending the life of
machines.
• Another advantage of this approach is the reduced equipment downtime,
which usually eats up about 1-10% of working time.
• Example of Managing Maintenance and Equipment Breakdowns :
• Deutsche Bahn uses KONUX smart sensor technology and cloud solutions
to avoid infrastructure failure. It allows them to lower costs by 25% by
maximizing performance and minimizing downtime.

14. References

15. Thank you