Cloud-based SC - Taking businesses to the clouds!

Hello, readers! I'm Mathews currently pursuing 2nd year MBA at Amrita School of Business, Coimbatore.   Here's my new blog post!

         Onset of COVID-19 proved us how unpredictable the business environment could be and the need for a flexible, agile and up-to-date SCM system. Over this period, we witnessed the rapid rise in demand for personal protection equipments, sanitisers, masks etc where manufacturers were expecting an average or stunted demand. This shift in demand is calling our attention to the need for a cloud based SCM, which is inevitable to handle supply chain disruptions by meeting service level agreements.

        

 

Benefits of cloud based SCM 

§  Better quality levels:

Cloud SCM ensures quality level of inbound shipments by tracking and monitoring the quality of raw materials on a real-time basis. It helps us to reduce costs and increase customer satisfaction.

§  Reduced manufacturing cycle time:

Manufacturing process can be sped up only with the presence of consistent and clear data. Cloud SCM helps us to gather required information from multiple points across the world instantaneously, thus facilitating smooth manufacturing process and reduces MCT.  

§  Evaluation of Machine's performance:

Timely evaluation of machine's performance is essential for uninterrupted production and manual evaluation is a very tedious and time consuming process. Cloud SCM helps to gather and process OEE(overall equipment effectiveness) data and to ensure machine's health.

§  Automation of compliance with government rules and regulations:

Government rules and regulations for transportation of goods vary from region to region. Automating compliance and reporting could save a lot of time involved in the SC process and increase it's speed. 

§  Better trackability and traceability of raw materials:

For businesses spanning various geographical areas, real-time tracking of raw materials can help to reduce the variable costs involved during product recall by identifying product quality issues early. 

§  Efficient inventory planning using Cloud based WMS:

With the help of cloud based warehouse manage system, inventory for each production centre can be monitored and managed efficiently by integrating enterprise resource planning(ERP) to it. 

§  Reduced order cycle time:

Automating pricing, quoting and customer approvals can help the businesses to reduce the order cycle time and improve customer satisfaction levels.

Thus cloud based SCM systems could enable us to handle supply chain disruptions even during uncertain situations caused by pandemic, by enhancing procurement, planning, forecasting, logistics etc. with the help of SaaS solutions.