Cloud Logistics: A trend you should implement in your supply chain

Cloud Logistics: A trend you should implement in your supply chain

The provision of services and logistics processes in the cloud has become a major trend in the world of industry around the world. The origin of this has to do with the need to solve problems in terms of supply chains: Both the usual problems, as the new ones that arise from the adoption of new technologies.

However, the main reason cloud logistics has become a matter of importance is that communications between the different agents, systems, and sectors of organizations become more immediate, reliable and secure. Also, the access to information is more fluid among the members of the company, in general.

Let us enter into the matter. Cloud Logistics is – essentially – a way to receive, store, transmit, analyze and distribute information within an organization. All the data produced from the performance of all the productive processes of the company (especially if we analyze this in terms of Internet of Things and Big Data,) are managed thanks to a central server connected to the Internet, from where you can direct, monitor and make executive decisions. This technological leap, in which the algorithms, telecommunications, and artificial intelligence are given a high profile, is equivalent to the speed, accessibility, and flexibility that the market for goods and services demands in an increasingly strict way nowadays.

To this extent, what is done in Cloud Logistics is, above all, to delegate the executive responsibilities to a logistics operator of the cloud (which does not even require an on-site presence) to be in charge of managing the different tasks of the systems, and allowing the company to invest all the time it saves in another sort of activities, which are necessary for the financial development and strengthening of the organization.

If you make an assessment of the current state of affairs in the world of logistics and supply chains, you will realize that the need for modernization of systems, in order to provide increasingly fast and efficient services, is directly related to the exponential increase in demand for goods and services in our globalized world of more than seven billion people.

For this reason, manufacturers and service providers around the world have tirelessly sought new options to formulate more effective plans, as well as to achieve a more complex deployment of technology that enables them to stand out among the competition as the fastest, warmest and most affordable companies in the market.

Cloud Logistics is one of those options that thousands of successful business owners have found and implemented. This is because this way of organizing the logistics of organizations allows more flexibility and correspondence between what companies are willing to pay as an investment in logistics services and what they recover later thanks to the reduction of costs, damages, and delays, among others.

Read also: What’s the role of Big Data in Logistics’ processes? by David Kiger

To tell the truth, the benefits of Cloud Logistics are more than the disadvantages (the latter, mainly to dependence on being connected to the Internet, which can sometimes be a problem.) First, what most catches the attention of many entrepreneurs Is the money saved on the initial investment. Any software implementation project means cost reduction in the long term and allows for greater effectiveness in any production process in the supply chain. In addition, because the systems are connected to the Internet, this facilitates the updates and can help you not to be left behind in the new technological tendencies that all the time overlap at a great speed.

Moreover, Cloud Logistics means a decrease in costs related to the considerable reduction of the company’s staff, as well as constant implementations and maintenance of machines, electronics, vehicles and infrastructure in general.

On the other hand, if your company is characterized by a fluctuating growth over time, Cloud Logistics can help you to increase or reduce the execution of any procedure, and thus shape your processes according to your productive needs.

Image courtesy of Michael Coghlan at Flickr.com

Another great benefit of Cloud Logistics is its flexibility. You can hire a company to design the software through which you will operate your business, and you can adapt the system’s operation to the needs and particularities of your company (this includes, of course, the internal regulations of your organization.) In turn, it significantly reduces the internal communication failures that may occur in your company, especially if the communication systems are outdated.

Now, if you are concerned about security, you can breathe in peace. Cloud Logistics does not necessarily depend on computer equipment, so there is no risk of data or information loss in case of mobile devices loss or damage. Because data is stored in the cloud, the stored information can be accessed regardless of whether a tablet or a computer is lost or damaged. What is important, though, is to strengthen computer security (to change passwords frequently, to install firewalls and antivirus, etc.)

I hope this brief introduction to such a vast subject has interested you and is useful for the development of your business. Until next time!

Recommended: 5 Benefits of cloud-based logistics and supply chain management

* Featured Image courtesy of Manuel at Pexels.com

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