Benefits of Cloud-Based Supply Chain Management
By Hugo Britt | June 21, 2022
Want to drive speed, efficiency, scalability, visibility, and agility while boosting resiliency and sustainability? It’s time to leverage the power of cloud technology in supply management.
Cloud-based supply chain management
The “cloud” is just another term for the internet. Cloud computing means shifting computing services such as data storage, software, intelligence, and analytics to the internet rather than hosting it “on-premise” or on your local servers. This offers economies of scale (something we talk about a lot here at Una), along with faster innovation and increased flexibility.
Leveraging the cloud means capital expenses such as installing and maintaining servers and relying on an in-house IT team to manage your systems becomes a thing of the past. Cloud SaaS (Software-as-a-Service) can be accessed and established quickly, without the usual time and cost associated with developing and deploying applications.
What are the benefits of cloud-based supply management?
According to a 2022 Accenture study, supply management executives who are leveraging cloud technology have reported the following stats:
- 26% increase in demand forecast accuracy
- 16% reduction in supply chain operating costs
- 5% increase in revenue growth and profitability.
In addition, 52% reported the cloud has helped them increase resiliency (by scaling up and down faster) and 48% noted an increase in sustainability.
Other benefits include:
Scalability
As business needs change, your existing IT systems must evolve to provide the necessary resources to meet those needs. This is especially important in terms of data management. As explained in Forbes, “All too often, increasing volumes of information from unwieldy, disparate sources get in the way [of scaling up], devouring much-needed resources and undermining the accuracy and reliability of insights.”
Cloud services allow you to scale without having to overhaul an entire system. Even if your company expands rapidly, a cloud provider has the off-site computing power to accommodate your needs.
Agility
Bypassing the time and costs associated with lengthy IT procurement or software development means companies can move faster by testing out concepts using cloud services.
Subscription models mean that if it’s not a good fit, you can simply try something else without the risk of having wasted significant resources. And if it’s a great fit, the solution can be scaled up across your entire business with ease.
Accessibility
Cloud services are, by nature, easy to access 24/7 via any device, no matter where you’re located.
Security
While some IT managers hesitate about handing over security to a cloud provider, the reality is that SaaS providers invest heavily in security technology and expertise.
Centralizing your spend data in the cloud with Una
Did you know that Una now offers a cloud-based data insights platform? We help our members identify savings, prevent IT software auto-renewals, and stop suppliers from overcharging you for your technology spend.
Moving to the cloud means digitizing and centralizing contracts, inventory, usage, spend, and supplier performance data into a “single source of truth” with easy-to-use dashboards. Importantly, your data will no longer be restricted by the number of servers you can purchase and host.
Better visibility enables enhanced analysis, leading to increased cost savings, lower risk, efficiencies, benchmarked supplier performance, and data-driven sourcing.
Raw, uncentralized data hosted on a spreadsheet will not remind you of the things that matter most. Having your spend data centralized in the cloud can enable automatic, proactive reminders about contract expirations and other red flags.
Interested in learning more about the importance of cloud-based supply chain management and moving your spend data to the cloud? Contact Una today.
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