The Case for Cloud-Based Logistics Systems

The Case for Cloud-Based Logistics Systems

Image Courtesy: Supply Chain 24/7

IT systems and applications are vital to businesses and enterprises. The last couple of decades have been a great source of growth for information and communication technology and has strongly influenced organizational processes and logistics as well. The ecosystem of IT services is an interconnected set of hardware and software resources, and is conceptually similar to a manufacturing or retail supply chain.

In the case of supply chains, they generally have two functions: a physical function—the production of a particular product and transportation of each and every component to the desired place at the right time; and a market mediation function—to ensure that the product meets market needs in an appropriate manner. Logistics involves a plethora of suppliers, manufacturers, carriers, third logistics partners, fourth logistics partners, and financial institutions which are essential to transporting a product from place of origin into customer’s hands.

Basic Concepts of Cloud Computing

Cloud computing experts and administrators regularly maintain, update, and upgrade the applications that each client may require. In this way, all the clients are simultaneously a part of a complex virtual network that facilitates their business organization, because all the partners are constantly interconnected. The important aspect here is how time can be saved, efficiency can be increased, and high-quality data can be achieved. By adopting cloud solutions, an organization can focus on their core business, as cloud providers are under obligation to run information computing technology applications faster and more cost-efficiently; providing more efficient logistics software solutions.

Opportunities for Cloud Computing in Logistics

Logistics resources and web services are two quintessential aspects of cloud-oriented logistics. Logistics resource can be grouped under variability, geographical distribution, heterogeneity, morphological diversity, and self-governing zone. Further, a web application development company might propose or facilitate web services as characterized by distribution and heterogeneity in a cloud logistics platform integrated into the complexity of a cloud network. Logistics resources present a platform for the virtualization of information and material flows. 

Cloud computing enables scaling autonomous logistics applications flexibly based on the dynamically arising logistics demands. The purpose is to facilitate the smooth realization of individual and complex logistics services.

Impact of Cloud Computing

Collaboration

Logistic processes contain a large and variable number of participants, which is why the collaboration between all the entities can be inefficient and even unpredictable. A lack of cooperation between participants and barriers between different IT solutions in each company is the reason for pushing cloud computing as a new form of doing business in logistics.

Modernization

Modern logistics processes have been infamous for being volatile and unpredictable. This encourages the transformation of the traditional logistics organization. Most logistics processes have variable rather than fixed costs today. Hence, cloud computing offers modernization and enhancement of logistics organization and makes logistics processes more transparent and subject to data quality forecast which later facilitates decision-making process. 

Implementation Speed

This is one of the most important prerequisites in order to adopt cloud computation as a part of logistics software solutions. A wide bandwidth and a reliable internet connection are mandatory. With this, the implementation speed of cloud computing becomes very high.

Some other enefits and opportunities from cloud computing include:

  • Significant improvements in overall efficiency

  • Faster time-to-value realization;

  • A single source of a logistics process;

  • Complete transparency in the communication of all participants of the cloud

  • Comprehensive oversight of every process

  • A myriad of solutions and integrations

Conclusion

From large organizations to small startups, everyone has embraced cloud. It is time for logistics and supply chain management industry joins hands with cloud and bring out the best in each.

from DZone Cloud Zone

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