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How the cloud is changing supply chain management

Written By: Charlotte Johnson(SEO Content Campaign Manager, Tillison Consulting)

How the cloud is changing supply chain management

The supply chain management industry is ever-growing, so rapidly that it is clear there is no stopping in the near future. With this, comes great expectations from the customers involved with this form of management. Now products are updated as soon as there is a new release with new companies being implemented into the market every day, to ensure those who use it are as satisfied as possible.

But, due to such demand now being received, the ​supply chain management ​industry has no room for failure, or they will quickly lose brand reputation. The organization must ensure that both have both scalability and agility to comply with the wants and needs of the clients.

Such high demands showed the business that it needed a change, to implement something that will help them stay above the orders efficiently, without risking the company name in the process. So, in the evolving corporate world, technology was clearly the best element to place in the industry.

Cloud computing technology has been swiftly introduced into the supply chain management industry, with many businesses using this new tech to help ease their processes and operations already in the workplace.

By removing the traditional form of management the impact of cloud computing on supply chain management has been significant, receiving benefits that are aiding in the overall running of the businesses, offering real-time developments and solutions.

What other ways can we see an impact of cloud computing on supply chain management and why should businesses clamber to add this feature to the everyday running of their business?


Within the lifetime of a business, a company may go through a series of changes and movements, some much more difficult than others. The particular difficulty comes from the flexibility of the traditional supply chain IT systems.

An IT system must have the ability to adapt and evolve itself into the necessary resource platform to meet the needs of those using it. This is something made possible with the implementation of the cloud.

The cloud services allow the user to scale the system without having the trouble of integrating an entire system, which takes a huge amount of time with a lot of space for error to take place. No matter how frequent the changes are or how large in size they are, the cloud has the ability to be as flexible as needed, to accommodate any needs.


Business Connect 1 Business Connect Magazine

With the use of cloud computing, the supply chain companies have the ability to access their platforms at any given time, anywhere in the world, as long as they have an internet connection available.

Essentially, this modification will give the users the ability to modify, connect and analyze data in real-time, as well as interact with colleagues or clients. By having this available, the job sector can also comply with those who would like to work in the industry, but have personal lifestyle issues deterring them from that possibility. This will then not only improve on the number of staff but the companies diverse workforce, unstereotyped.

Data Analysis

To a business, data is everything. It’s an integral part of the way in which a company runs, giving them the ability to adapt performance and processes to help retain better data. However, the steps taken for a human employee to organize and work through the data is far too long, costing the business when this time could be implemented elsewhere.

This is why through the implementation of Cloud management, the business now has the ability to analyze and collate data, at a speed that makes them highly competitive against the rest.

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Being able to withhold data on various different topics, a business can begin to learn how much stock they have in order, their customer behaviors, or the way in which a recent discount has worked in comparison to the level of sales in previous months. Through the use of cloud management, over 40% of UK and US retailers were able to find an increase in their intentional returns. This, of course, impacted their margins drastically, something they would not have seen without this form of

data analysis.

Being able to hold such data gives a business the chance to stay competitive in the industry. By having everything readily available, the company can adopt a strategy working towards giving their customers the optimal experience, without compromising their integrity, or profitability.


In supply chain management, the cloud-based systems have the potential of reducing a company’s operational costs. This is because there is no need to add costly features to the cloud systems, it comes fully prepared to aid the workforce.

As well as this, the cloud can help the businesses using it save money by:

  • Increasing the speed of invoices ​by generating them to the company as soon as possible.
  • Completing jobs faster​ through automated processes taking control of areas of tasks.
  • Removing duplicates​, as this can happen through the implementation of data of information into the systems. If it is already in there, it won’t need to be duplicated, which wastes time.
  • Reducing admin work​ by using an automated system that can take control of the mundane, repetitive tasks involved with admin, and allow that saved time to be allocated elsewhere. From this, processing costs decrease from the streamlining of tasks required to be completed by the cloud.
  • Avoiding returns ​by helping the business achieve a reduction in shipping time and duplication of orders.

Ultimately, through the use of the cloud systems, the business will increase efficiency, and in turn, will decrease business outgoings or payment of employees on jobs that are time wasteful. Across all levels of a business, through allocating cloud systems into the processes already in place, there will be a clear drive up in growth and profitability.


The impact of cloud computing on supply chain management is becoming more and more integral as companies grow and realize the levels of efficiency it can implement into their everyday proceedings.

Through the use of the cloud, businesses now have the ability to access and analyze data much faster within their supply chain, save money on efficiency levels, and be able to scale the systems as they please.

With all these at hand, it is clear the impact of the cloud on supply chain management is proving to be beneficial, to soon become the forefront of businesses all over, allowing them to work smarter, and be much more efficient in the workplace through removing the need to complete repetitive tasks and using automation instead.


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