How Can Cloud Technology Help the Supply Chain?

Cloud computing is showing a lot of promise in how it can help the supply chain. It has the potential to streamline the entire process and revolutionize the way products are manufactured and distributed.


One of the advantages of the world’s global supply chain is that companies can have items manufactured from any country in the world and have their final products shipped internationally.

However, dealing with products and inventory on such a global level means that it can take a long time to get to the finished product delivered to the final destination.

Another major drawback has been that companies often aren’t sure where in the supply chain those products are. Cloud computing however, can change all that and make the process much more efficient.

Real-Time Tracking

One of the biggest benefits of cloud computing for the supply chain is its ability to provide real-time tracking of products. As products are handled throughout the process, the items can be easily tracked.

In the past, many businesses who handled products weren’t able to afford software that would allow them to track inventory.

However, with cloud computing, they can input data into the cloud without the need to purchase expensive software.

Better Information about Shipping Options

Cloud computing can save a lot of money throughout each step of the supply chain.

For example, real-time tracking will allow suppliers to make better informed decisions about shipping.

Suppliers can see where a product is along the chain and can conduct research to see which shipping company will be best suited to get a product to its final destination based on price and time. This information also gives companies better estimates about when products will arrive at their destinations.

Improves Efficiency

The cloud can also allow companies to be aware of pending orders. This can help them better estimate how much material needs to be ordered and which manufacturing plants need to boost production.

Companies can be more efficient when they’re able to track production along each step of the process. This can help ensure they are meeting deadlines and fulfilling orders accurately.

Data Management

There are a variety of cloud tools for the supply chain that allow for streamlined data management. Many of them have applications that will compile charts, graphs and a variety of data in seconds.

For example, suppliers may be able to quickly determine which shipping companies have the best track records for delivering orders on time and which products are holding up the process. These types of applications can help suppliers learn more about how they can streamline the entire process.

It can also help them track inventory and determine when to order new products. All of this information can provide better estimates about when orders will be filled and products will be delivered.

Cloud computing is likely to make a big difference in the national and international supply chain.

In the end, it may help increase efficiency and reduce overall costs.

About the Author: Amy Morin writes about parenting, psychology and business related topics such as how companies can accept credit cards online.

License: Creative Commons image source

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