Five ways the cloud is changing supply chain management

1. Cost Reduction

Let’s start with one of the biggest benefits to supply chain management… utilising the power of the cloud reduces a company’s operational costs! The automation of tedious back office tasks ensures that your labour force can be used to better effect elsewhere. This can be achieved through the natural reduction in shipping times and duplicate orders that will come about when integrating with an automated shipping platform like ShipStation. Integrating an automated shipping platform with a Warehouse Management System will likely significantly lessen your processing cost per order. In a complicated marketplace the solution is relatively simple; the more you automate, the more you can do with your staff, the more your processing costs decrease.

Cloud computing

2. Integration, Integration

With so many moving parts it is imperative that your supply chain is consistent throughout the user experience, and a lot of this hinges on the ability to integrate across multiple platforms. The cloud makes Electronic Data Interchange possible, EDI standardizes and automates things like invoices and purchase orders, which can then be shared electronically between trading partners. When you integrate EDI with ERP and accounting systems it removes the need for masses of manual data entry, breaks down data silos and eliminates human error. If EDI is utilised within the shipping process it can also facilitate improved shipping rates by integrating with a number of systems, such as those of 3PL providers, once integrated it can then determine the least expensive way to fulfill an order.

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