Supply chain management has been undergoing massive changes since cloud computing went mainstream. Cloud-based software and applications can now scale operations in all industries regardless of shape and size. By the end of 2020, 90% of spending on execution systems related to supply chain will be cloud-based. SCM (supply chain management) technology will constitute a competitive advantage in business for 65% of supply chain professionals, triggering an $11 billion value spike by 2023.
Improved manufacturing cycle times
Optimizing inventory, forecasting accuracy, and attaining better supplier quality without affecting manufacturing cycle times are critical priorities today. In simple terms, “cycle time” refers to the time spent between creating a product and storing it in inventory. Improving this metric demands clear, consistent data that cloud-computing can provide via automated solutions. Without it, warehousing operations remain stuck between geo-locations and time zones.
For cloud-based software to render results, communication is key. To improve supply chain cycle times, data has to be shared and exchanged properly between all parties involved. Real-time applications can guarantee accuracy because they can show when, where, and why delays happen; mitigating risks and viable offering solutions to make improvements ahead of time.
Speeding OEE metric calculations with cloud-based solutions
An OEE (overall equipment effectiveness) metric is a formula that guarantees a certain tool or production machine is in excellent health. Calculating performance manually has led to time-draining practices in the past. The rise in popularity of cloud-computing can now measure performance, quality, and availability with a lot more accuracy.
Everything from machine health to overall performance can be tracked; and in case of malfunctions, maintenance is provided on the spot without creating any delays. Cloud-based SCM enables precise OEE data gathering and analysis, without placing any barriers between the parties involved in the process due to cloud technology.
Automated reporting and compliance with scalable cloud applications
To save time and maintain focus on keeping production lines on schedule, scalable cloud applications can easily be implemented to ease manual processes via automated reporting and compliance. The supply chain industry as a whole is heavily affected by regulation across different countries and governments. Reporting requires data input that can severely impact employee productivity dealing with creating and delivering products.
Manufacturers in healthcare, for example, can use cloud-based compliance apps to save time when reporting and cataloging records. A solution implemented on the cloud provides a competitive advantage, saving both time and money. Niche providers can also benefit from the technology as each micro-industry is at liberty to set its own rules and regulations to guarantee the safe transportation of goods. Without keeping a close eye on the supply chain, companies can experience delays or malfunctions that slows down the whole production line.
The need for fast scalability is now more acute than ever. Depending on legacy, in-house software often leads to wasted valued resources. For a company’s inventory to grow, dealing with scaling challenges starts with decreasing production time and putting cloud-based software at the forefront of your strategy to accumulate value.
Cloud-based WMS (warehouse management system) for better supply chain performance
WMS (warehouse management systems) based on the cloud have the ability to provide better supply chain performance via production planning and order management optimization across different warehouse locations. The more insights you have on your inventory the better chances you get to manage and plan accordingly and preserve production efficiency.
Together with enterprise resource planning (ERP) systems, cloud-based WMS can generate more accurate data that shows patters; in time, it can anticipate demand shifts and foster excellent order management, growth in revenue, and customer relationships. When properly integrated into supply chain management, product development, and engineering, cloud-based apps can enable teams to scale globally and attain increased product quality levels.