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Process Improvement Paper OR Analyze a recent article - Assignment Example

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ARTICLE: “Supply-chain Management: Growing Global Complexity Drives Companies into the 'Cloud'” When I came across this article the first thing that caught my attention was that how can complexity drive any complexity into the “cloud”. It was interesting to find out that in this period of worldwide recession how can companies be ecstatic…
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Process Improvement Paper OR Analyze a recent article
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As a result of this many trading companies had to face challenges dealing with their supply chain. All the retailers, manufacturers, clients, transportation providers, shipments with suppliers and end users all had to suffer because of this and eventually the overall activity endures the dilemma. To get rid of that setback and to streamline their supply all over the world, such companies decided to bring into use the concept of ‘cloud computing’. I was not aware of the concept of cloud before although that was quite known in the business as well as IT world. Cloud basically means a network of computers that deliver software and data for service purposes. According to Gartner, cloud computing means, “ a style of computing whose massively scalable and elastic, IT- related capabilities are provided ‘as a service’ to external customers using internet technologies.” Cloud computing is a term that is basically used for hosting delivery or distribution services over the Internet. It has added to the improved transportation and efficiency of trade-related services of many companies and vendors like GT Nexus, Descartes System Group and Management Dynamics. It provides a variety of business softwares like Customer relationship management, NetSuite, e-business and accounting tools etc that can be used by multinationals in order to manage their logistics processes, transportation and trade compliance. This software would help the multinationals to manage the complexity and variability in their supply chains. Companies and people think that the most successful companies are the ones with best products and services but we cannot neglect the input of their supply chains in the overall activity. It is because of their efficient and organized supply chains that they are able to produce and deliver quality products and services. On this, Professor Christopher, Cranfield School of Management, England once said, “We don’t compete as individual businesses anymore; we compete as supply chains”. Multinationals that use primitive ways like Microsoft Excel, e-mail and EDI (Electronic Data In charge) software and formats for management can take advantage of this cost effective new cloud technology to work together with their suppliers in order to formulate precise delivery forecasts and to avoid delayed or late deliveries to the end users. Companies invest great amount of their budget in operations to organize and maintain their supply-chain management. Since global supply chains are fragmented and there is this high level of complexity because of the huge network, companies should go for this new way of working. And cloud computing can help such companies through its different service categories like IaaS (Infrastructure-as-a-Service), PaaS (Platform-as-a-Service) and SaaS (Software-as-a-Service). To reduce this cost here, Greg Kefer, of Business Director Development at Oakland says, “Cloud gives you access to a multibillion dollar technology infrastructure.” The concept of Virtual supply chain was introduced by companies to reduce the increased complexity of global supply chains and also the costs that are incurred by this. Moving from vertical supply chain to virtual supply chain was primarily to reduce the involved operation costs. But it could not Read More
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