7 Benefits of Cloud-Based Logistics Management
The cloud has made headlines across industries, from technology to commodities, but no where can its effects be more clearly seen than within logistics.
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Demand-Driven Supply Chains
Demand-driven is not a new concept, but there is a clearer focus on customer demand in realtime, it is a transformational strategy because it changes the way organizations think about the marketplace.
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For more than 35 years, Tompkins has evolved with the marketplace to become the leading provider of growth and business strategy, global supply chain services, distribution operations consulting, information technology implementation, material handling integration, and benchmarking and best practices.
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The power of increased data, integrated communication, and real-time analytics has delivered savings multipliers beyond any previous advancement.
Cloud-based solutions are essential to getting the most value out of your operations.
The impact of the cloud on logistics can sometimes be so overwhelming that it’s hard to discern exactly what it is changing.
In the next few hundred words, we’ll boil down the essence of this revolution and why you should expect more than ever from your 3PL.
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.
With so much volatility, on the fly adjustments can make or break margins.
Remember, costs in the supply chain are quickly compounded down the value stream making even a slight savings through real-time pricing an enormous win.
The inventory you have on hand is your most direct means of controlling for risks and optimizing costs. It’s your business’s shield; how much agility can you sacrifice for greater protection?
Real-time inventory management allows you to maximizing 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.
Eliminate Multiple WMS and TMS Systems
TMS and WMS systems are instrumental to expediting procurement and shipping, however, multiple systems in the hands of multiple users can produce a huge number of different transportation options, with only one of them bearing the true lowest cost.
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.
Equipment and Utilization Patterns
Within any repetitive system, pattern recognition is essential to optimization. Cloud-integration allows metrics to be taken and analyzed in a myriad of ways to expedite making those patterns apparent within shipping and procurement.
From how equipment is utilized to the most frequent freight movement, cloud-based software systems help discover patterns and utilize them to better capitalize on abundance or eliminate wasteful excess.
Accurate Merge in Transit Model
When trying to coordinate the union of a number of components from several suppliers, possibly from all over the world, synchronizing processes is paramount to efficiency.
Within certain situations, having processes synchronized down to the hour might be required. Logistics solutions that allow for real-time monitoring through the cloud makes accurate models of merge in transit possible for the first time.
A process that was previously too complex to accurately estimate can now be forecasted and monitored through a real-time, online dashboard.
Office Resource Flexibility
Cloud-integrated logistics not only provides more data in real-time, it makes it accessible to your entire team, regardless of location or time. Universal accessibility makes processes that require round the clock oversight far more easily handled.
Logistics managers can observe processes in real-time from remote locations and allows immediate resource deployment in case response is needed.
Logistics optimization and management remains a formidably complex task, but the cloud continues to make the art infinitely more user-friendly and efficient.
Increased data delivered in real-time makes it possible to exercise extreme control over critical processes while increasing the flexibility with which it is implemented.