5 Important Considerations to Get Supply Chain Management on Cloud

Category: Marketing By: Content Rally Posted on: February 19, 2016

In today’s economy, doing what you have always done, even if you do it well, is no longer adequate. Under pressure to maintain costs and produce results, despite challenging circumstances, you must transform rather than improve. It implies adapting to various philosophies, methods, and processes that make organizations best in class. Here are 5 important considerations for organizations to get their supply chain management on the cloud.


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Understanding the data quality approach:

Software applications are only as good as the data that feeds them. That doesn’t change with the cloud. A cloud-based supply chain needs to have common data in order to maintain a quality process that will monitor and improve outcomes for clients. As all of them share the same platform, a common process will have the work of one team lead to results for everyone in the network.

Making technology work for you:

Too many organizations continue to select software with the hope that it will increase efficiency and structure the workflow and various processes around the technology. Instead, organizations should first review the processes of what they need to improve, and then select the technology that will satisfy their needs. Although this may seem to be self-evident, we do see organizations buy first and then figure out what’s wrong later.

Looking out for some active consumer community:

Cloud community members have turned out to be much like a software-company user group, as they continue to share the same platform. Communities actively working in data quality and partner relations are the ones who are rapidly turning out to be industry influencers, as they speak as a collection of major shippers. In supply chain management, organizations have been sharing a small and common set of partners, and this can turn out to be powerful to them.

Making sure that you are satisfied with the security approach:

Skeptics generally point at data security and avoid cloud computing. In reality, cloud computing has a strong and effective system with all the processes in place, as they have businesses depending on it. Cloud vendors are well prepared to answer tough questions about security and data integrity. All you have to do is ask.

Putting contracts under supply chain:

Purchasing and procurement teams often tend to negotiate for savings during the entire sourcing process but are rarely successful. The reasons for it vary and they fail to communicate the terms to affected business organizations. That is besides the failure to monitor contract compliance. One major benefit of shifting supply chain management to the cloud is that the entire process will ensure that contracts are collected and maintained in a common repository.

These five best practices are not a complete list but offer a roadmap for SCM organizations to gain value and relevance among their parent companies.

Amy Jackson is a freelancer and has experience of over 7 years in supply chain management process, Procurement, and Analytics. She has been writing on supply chain planning, predictive analytics solutions, prescriptive analytics, and other solutions.  Follow her on Google+ and get to know about the latest business trends.

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