Logistics

Benefits of Cloud-Based Logistics Management

Benefits of Cloud-Based Logistics and Supply Chain Management

Many logistics management teams still use excel sheets and boards to manage their fleet and delivery routes, because it’s a system that logistics managers know in depth, as they have been working this way since the very start of their companies. It’s familiar.

However, the logistics industry is getting more and more complex, and companies have better chances to compete, and have several advantages if they adopt technology as a partner for the logistics business.

As we explained in a previous blog, route optimization software solutions, scheduling routes, vehicle tracking, warehouse and shipping management, amongst other issues, have become indispensable because they help companies identify their weak points and the growth opportunities.

In order to properly implement these tools, Logistics Managers first need to adopt a new information management culture. Cloud-based solutions are the milestone of that whole new process. Let’s look into the main benefits of this huge data management service.

Full connectivity

“These platforms provide direct connectivity with networks of diverse trading partners –Supply Chain Digital says-, through any-to-any data exchange and online web portals. The resulting virtual communities enable shipment track and trace, streamline routine transactional workflow, and optimize the flow of equipment to maximize asset utilization. SaaS users readily connect with a network of equipment maintenance and repair providers on the web to manage container equipment and chassis repair estimates and service requests. Further, advancements in visibility technology allow companies to track equipment as it moves through the supply chain.”

Integration

On the cloud, companies can gather different pieces of information, located in different places and formats, under one big umbrella that helps to cross over and to discover new useful data. Supply Chain 24/7 explains.

Customization

The cloud allows you to adapt solutions for your own company’s reality and needs. The cloud’s ability to coordinate information with a specific solution can prevent any delays that might be caused by miscommunication or missed savings that might come from obfuscated data,” says Supply Chain 24/7.

Internal communication

Thanks to the cloud, a company can gather all data in a safe environment, and share this info with people inside your business. “In the traditional on-premise software model, not only would you need to procure or build the software at great capital expense, you would also need to build and maintain the infrastructure and employ personnel to operate it.

However, with a SaaS solutions, there is no upfront capital required for the software and you don’t have to worry about building and maintaining the infrastructure. Instead, the software is available on the web, and the SaaS provider, in exchange for your subscription fee, handlng all the heavy lifting on the back end, Supply Chain Digital says.

Real time (pricing and inventory)

The cloud provides relevant, reliable and fast information about the KPI´s of your business’ and immediately stores this data in servers. According to Supply Chain 24/7, “quickly understanding the price associated with every logistics element of your supply chain allows you to control your costs with finesse. Pricing elements within transportation and warehousing can fluctuate based on any number of factors: weather, market conditions, or demand.”

On the other hand, Real time inventory “allows you to maximize your ability to respond to demand fluctuations while holding onto your buffer against emergencies. Data flow from the cloud gives you infinitely more precise control over your inventory levels.”

Are you currently using any cloud-based solutions? What is your opinion of them?

Francisca is the Business Development Director of Drivin, a SaaS transportation management solution that generates an optimized delivery plan, improves customer service, and reduces transportation costs by up to 30% from day one.