Logistics and Supply Chain Technology Report 2021

Chapter 3: Cloud Technology

The move towards cloud-first operations in the logistics space heralds a number of potentially key improvements in supply chain management. From dealing with variations in demand patterns and assessing supply bottlenecks to ridding operations of legacy infrastructure and reducing operational costs associated with data storage, the future of a responsive and reliable data-centric system in supply chain has now come to be synonymous with cloud technology. Crucially, cloud computing infrastructure enables supply chain businesses to drive together towards the long-awaited goal of end-to-end visibility, enabling a growing ecosystem of transparent and interconnected systems and processes such as the Internet of Things (IoT) to flourish. To this extent, common cloud frameworks can be viewed as a growth enabler, able to extend digital transformation by facilitating vendor collaboration and data visibility at each stage along the chain, spanning from sourcing and production to delivery and last-mile processes. However, whilst the cloud can provide a helpful platform upon which collaboration with suppliers can be coordinated, approaches must be thoughtful, especially with large networks of suppliers to onboard to new systems. Setup costs can rise rapidly when shifting operations to the cloud, necessitating new hires to facilitate the change in infrastructure. In order to expedite the shift to the cloud, upstream solutions providers must present enough flexibility to allow smaller suppliers across all geographical regions to easily input data and reduce data gaps at minimal operational cost whilst being able ensure that the data model can scale to the needs of larger operations. A pragmatic approach to upstream solutions will expedite uptake across the region and the industry at large. Some tension remains within this transition as decision-makers deliberate between public, private and hybrid cloud architecture solutions. A global and increasingly more remote workforce demands cloud infrastructure that offers greater control, speed and flexibility. To this effect, hybrid solutions presents a number of key advantages relative to both on-premise and other solutions, maintaining maintaining connectivity for enterprise clients and providing tangible cost and security improvements for data management.