Cloud computing is by no means the new kid on the block. But its technology and reach continue to evolve and it is becoming more and more integrated into the supply chain world.
The key advantage of working in the cloud is that all your data, software and services operate via the internet rather than locally on your computer. So, it’s a far superior solution for collaboration and process efficiencies, which are central to supply chain success. As is security, which the cloud has in abundance. Let’s take a look at how cloud procurement is transforming the supply chain.
The cloud creates an agile supply chain
The need for the procurement and supply chain sector to become more agile and to accelerate toward digital transformation became all too clear during the pandemic and continues to reverberate throughout the sector. Using cloud technology means companies can adjust and adapt their computing resources and deploy new applications far more quickly than with legacy systems.
The cloud offers transparency
Transparency and visibility of the end-to-end supply chain are critical, not only to deliver streamlined, efficient and economically-viable business operations but also for maintaining consumer and supplier confidence. As with system agility, this visibility means business leaders can make faster decisions based on up-to-date intelligence and mitigate potential risks. Responding to changes and fluctuations in the market is far easier and decisions should be better informed.
The cloud improves supply chain efficiency
Now, more than ever, supply chain leaders need to be able to coordinate every element across the supply chain. This cannot be done without optimising performance and process efficiencies and ensuring effective collaboration, internally and externally. Networked processes, such as that delivered by the cloud offers this and more. This is clear in the findings of Accenture’s 2022 survey which revealed that 41% of all executives said the desire to increase supply chain efficiency was a top-three reason for migrating their supply chains to the cloud.
The cloud helps business control costs
In fact, the aforementioned research by Accenture revealed that executives on average attributed their cloud use to a 26% increase in demand forecast accuracy, a 16% reduction in supply chain operating costs and a 5% increase in revenue growth and profitability.
The cloud helps businesses with their ESG strategy and framework.
Working in the cloud helps ensure business processes and activities are transparent which is a key element in achieving ESG (environmental, social and governance) goals. End-to-end visibility also helps businesses to reduce environmental impact and increase regulatory compliance. Accenture’s study showed that around half of executives said the cloud has helped them successfully increase resiliency (52%) and sustainability (48%).
These are just some of the reasons why the cloud is transforming the supply chain sector. As procurement and supply chain recruitment specialists we aren’t the right people to give guidance on the best way to create a cloud network or how to optimise its deployment. We do know, however, that if you and your business are to succeed in this brave new cloud-based world you will need the right people in your team to make it happen.
The supply chain sector has been a little slow moving towards digital transformation but that must change. AI technologies, Big Data, cloud computing, cybersecurity and other digital and analytics skills are critical to supply chain success. And that means attracting and engaging the top talent with the skills to implement, manage and optimise these systems and tools.
If you want to digitally transform your team, contact us today. We have access to the brightest stars in procurement and supply chain and we would love to help.
