Cloud Computing: Role of cloud computing in scm

1. Role of Cloud computing in
SCM
Dr. Neeraj Kr Pandey
Dr Neeraj Kumar Pandey

2. Dr Neeraj Kumar Pandey

3. 1.Advancement in Analytics
Capabilities
• analysis of data gathering required both a data
entry clerk and a person to conduct data
analysis. The cloud, in conjunction with
the Internet of Things, has enabled rapid
collection of data from various resources and
analysis of this data. As a result, businesses can
eradicate these former “human” positions in
favor a service that performs the same results
one an exponentially faster scale. Ultimately,
this allows the business to make better
decisions for how daily activities behave.
Dr Neeraj Kumar Pandey

4. 2.Integration of Multiple Platforms
• As more businesses have accessed supply chain
management providers, a great deal of platforms
have been created to facilitate this change.
Unfortunately, many of these platforms do not
coexist well with one another. The use of cloud
technology enables multiple platforms to work with
one another through a series of standardized
protocols. Therefore, the previously existing digital
boundaries between rapid communication and
order fulfillment become nonexistent. An example of
such binding technology is FlashTrac, Flash Global's
proprietary supply chain management integration
system.
Dr Neeraj Kumar Pandey

5. 3.Removal of Geographic and
Political Boundaries
• In close relation to integration of systems, cloud
technologies remove physical and political
boundaries from the supply chain management
perspective. Since many cloud hosts rely on common
practices for accessing, storage, and retrieval of
cloud data, the same information may be altered
from any place on the globe. Furthermore, cloud
technology allows for the dissolution of political
debates between business practices; although, the
rules of governing entities may have the capacity to
limit Internet access, such as was seen in Egypt in
past years.
Dr Neeraj Kumar Pandey

6. 4.Enhanced Security Measures
• Since cloud hosts have to abide by strict
government and public perception standards
for maintaining privacy, such as medical and
financial data, cloud technology brings state-of-
the-art security measures and practices to the
forefront of supply chain management.
Interconnectedness allows for massive security
monitoring and implementation across all
cloud-based digital planes while still
maintaining communication and enhancing the
flow of business practices.
Dr Neeraj Kumar Pandey

7. 5.Increased IT Capabilities
• Agreements with cloud providers allow supply chain
management providers to eradicate the need for
extensive in-house IT departments; although, some
minimal in-house IT departments are usually
retained for in-house physical IT needs. When in the
business of using digital resources, such as those
used for e-commerce, a business needs to ensure
customers can resolve problems with their system at
virtually any time. Therefore, most cloud hosts offer
24/7 support for those using their services, which
can be rerouted to correcting issues with your
customers without your input if you prefer.
Dr Neeraj Kumar Pandey

8. 6.Adjusting to Market Volatility
• supply chain management providers must
always be wary of how resources will be used
in the event of a collapse. The use of cloud
technology provides a buffer against market
volatility. Essentially, partnerships between a
supply chain management provider and a cloud
host are subject to renegotiation, or
even cancelation, if the market suddenly
declines. As a result, the supply chain entity is
able to minimize associated costs with the
collapse and maintain service at competitive
rates.
Dr Neeraj Kumar Pandey

9. 7.Increased Scalability Abilities
• Since cloud technology insulates supply chain
management providers from market volatility, it can also
be used to achieve rapid scalability. As a budding
business begins to experience higher demand for
product, the respective supply chain management
provider may need to increase production by factors of
five, 10, or more. With each additional order comes the
strain of extra bandwidth and processing capability,
which cloud technology provides. Within minutes, a
supply chain management provider can extend the
terms, or services, with the respective cloud host to
account for the instant growth in capability.
Furthermore, the use of cloud-based analytics allows
businesses to isolate key inefficiencies within the order
fulfillment process, which will further grow the
respective business.
Dr Neeraj Kumar Pandey

10. 8.Reduced Costs
• he greatest benefit of cloud technology on supply
chain management providers is reduced operational
costs. Throughout the supply chain, cloud
technology can reduce the amount of workers
needed to perform specific tasks. For example, the
cloud could be used to automatically generate a
report of needed product at a specific warehouse,
trigger the respective shipment, and account for the
product when received at the destination. As a result
of minimizing human-input within the order
processing, those employees may be then reassigned
to other physical aspects of the supply chain.
Additionally, supply chain management providers
reap the benefits of lower security, IT, data analysis,
and more.
Dr Neeraj Kumar Pandey

11. References
• http://cerasis.com/2015/07/23/cloud-
technology-in-supply-chain-management/
• http://www.supplychaindigital.com/scm/clou
d-computing-supply-chain
• vivek srivastava “impact of cloud computing on
supply chain management” IFMR, CHENNAI
2012.
Dr Neeraj Kumar Pandey