Cloud-Based Supply Chain Management 

Cloud-based supply chain tools and applications have revolutionized supply chain processes and operations. They allow you to quickly respond to changes and disruptions and help them to achieve accuracy, scaling, and speed. Today, we’ll discuss cloud-based supply chain management; statistical facts and figures, how to start it, and its benefits and advantages.

What is Cloud-Based Supply Chain Management?

Cloud-based supply chain management is a type of software and application that employs cloud storage and cloud computing technology to deal with various SC processes and operations from any geographical location and any device or web browser. It allows you to perform the following functions and operations online;

  • Supply chain intelligence
  • End-to-end logistics software
  • Supplier relation management
  • Procure and sourcing modules
  • Warehouse management

In fact, it allows you to develop digital threats ranging from entire supply chain processes in the daily routine operations for high transparency and smooth data flow.

Statistical Facts about Cloud-Based Supply Chain Management 

  • The investment in cloud technology would multiply in the upcoming years
  • The top executive said that the cloud technology helped them to achieve 48% sustainability and 52% resilience
  • 41% of the SC managers said that the efficiency made them shift to cloud technology
  • 21% of the SC managers said that they have applied cloud technology in the entire SC processes
  • Cloud SC software amplifies 26% demand forecast accuracy and 5% profitability
  • Growth in cloud-based SC would increase by 11 billion dollars by 2023

Starting Cloud-Based Supply Chain Management 

Transitioning from traditional on-premise software installation to cloud-based supply chain software requires a well-structured and systematic approach.

Analyzing Existing System

First of all, you should check the maturity and implementation of the prevailing SC software. You need to make sure that your BIs, CRM, ERP, and other tools in the SC on-premise installed tools have the capability to integrate with the cloud-based technology.

Creating Checklist

It is significant that you should create a checklist of all the pending issues and problems that you want to address. While doing so, your budget for vendor support, additional necessary features, and software should be ready. Once you know your budget and requirements, then it becomes much easier for you to choose your software.

Benefits & Advantages of Cloud-Based Supply Chain Management 

Some of the key benefits and advantages of cloud-based supply chain management are as follows;

Better Scalability

The term “scalability” means the capability of your business to reach customer demands without losing the quality of the data. The usage of cloud technology in B2B purchasing makes sure that you have got high scalability because it helps you to manage resources in various scenarios. A scalable SC system would help you to combine technology, people, and processes; these elements play a significant role in achieving competitiveness and agility in a changing environment.

Collaboration & Integration

Collaboration, coordination, and shared working space play a significant role in the production and procurement processes. Cloud SC system offers you the benefits of integrating businesses, teams, and people and easy sharing of information.


Businesses and companies need to be highly agile and quick in the changing environment. The cloud system employs analytics and information in the procurement and SC processes and allows them to make smart decisions. However, it is highly significant to identify the digital transformation phase that would help the company to ease the processes.

Sustainable Businesses

Cloud SC system helps you not to invest in the complicated IT infrastructure and offers you a more sustainable and cost-efficient option. Ultimately, it has a positive impact on the environment by reducing the carbon emission rate.

Limited Financial Risks

Cloud system helps businesses and companies to avoid financial losses in SC procurement and other processes and amplifies productivity and growth. Tools and software like PaaS and SaaS help businesses and companies to save time, resources, and energy.


Cloud system gives you the option of automation, and it helps businesses and companies in the following ways;

  • Amplifying competitive strengths
  • Limited unnecessary expenses
  • No need for short term and long-term strategies
  • No pressure on team members to work smartly

High Transparency

Openness and transparency are the key elements of the cloud system, and they require you to update data in real-time. It benefits businesses in various ways;

  • Managing risk factor
  • Collaboration and coordination among various SC processes
  • Compliance
  • Good impact on information transparency

No Data Loss

On-premise IT infrastructure and SC software may seem interesting, but it is vulnerable to hardware malfunctioning, physical damage, and other natural disasters. The cloud system makes sure that your data is safe on the server, and you can access it anytime, anyplace, and anywhere.

Tech Development

Cloud system-providing vendors and suppliers regularly upgrade their technology and system in terms of the following;

  • Security measures
  • New firewall
  • Computer processing power
  • Server upgrades
  • Updated software version


Cloud system allows companies to easily share information, communication, and collaborate with various parties. It helps them to share information across multiple locations and platforms efficiently without any delays and conflict.

Conclusion: Cloud-Based Supply Chain Management 

After an in-depth study of cloud-based supply chain management; we have realized that cloud technology is growing and efficient. If you are learning about the cloud SC system, then you should keep in mind the abovementioned benefits, statistical figures, and how it works.

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