Is your Supply Chain Technology Strategy Swimming against the Tide?

In the ever-evolving world of supply chain technology, there are winners and losers, with outdated ideas left behind. A true winner is the one that brings value to its users, creating use cases that become viral sensations. Amidst this landscape, cloud deployment stands tall as one of the triumphant innovations.

Gone are the days when supply chain planning solutions were monolithic and burdensome. These solutions were complex, challenging to navigate, time-consuming to deploy, and had a significant impact on a company’s balance sheet.

Breaking Free from Monolithic Solutions

Traditionally, these monolithic solutions were implemented on premise, residing on servers maintained by the customer or in a private cloud. Each configuration was tailored to suit specific business cases. However, unlike transactional systems, planning is a dynamic process, with business realities changing every few years. To keep these colossal solutions operational, frequent upgrades were necessary, both in terms of money and time investment.

The monolithic solutions were deployed on premise either on the servers maintained by the customer or on a private cloud.  These were configured based on the prevailing business cases. Unlike transactional systems, planning is much more dynamic. In planning, business realities change every 3-4 years. In this changing scenario, the only way to make these mammoth solutions work, was to go for a so called upgrade. This upgrade process also consumed good amount of money and time.

Given these circumstances, supply chain planning solutions were accessible only to a select few major players with substantial financial resources.

But then, a group of nimble players emerged, revolutionizing the architecture and deployment of supply chain planning solutions. These innovative solutions were cloud-based, purpose-built, user-friendly, and cost-effective. They essentially democratized the world of supply chain planning.

Unlike their monolithic predecessors, these modern solutions operate on a regular release schedule, ensuring customers always have access to the latest and greatest functionalities.

Overcoming Concerns and Embracing the Cloud

Despite these advancements and changing industry landscape, some companies still cling to the outdated practice of on-premise solutions. They justify their stance by raising concerns about data confidentiality. In the hierarchy of data confidentiality, financial data, customer data, and recipes/BOM data are the most critical elements, in that specific order. Financial and invoicing solutions house the first category, CRM solutions handle the second, and ERP solutions manage the third. Interestingly, the cloud versions of these solutions are experiencing rapid growth, surpassing their on-premise counterparts. When it comes to supply chain planning, cloud deployments are witnessing an 18% growth rate compared to a mere 6% for on-premise solutions. It’s only a matter of time before the tide completely turns.

Embracing Cloud-Based Supply Chain Planning

Embracing the cloud for supply chain planning offers numerous benefits. Firstly, it ensures accessibility and availability of the latest features and functionalities to all users. With regular updates and improvements, companies can stay ahead of the curve and make the most informed decisions. Secondly, cloud solutions eliminate the need for expensive and time-consuming upgrades. Updates and maintenance are seamlessly handled by the service provider, saving valuable resources. Lastly, the cloud provides scalability and flexibility, enabling businesses to adapt to changing market conditions and expand their operations effortlessly.

Riding the Wave of Progress

As more and more companies recognize the advantages of cloud-based supply chain planning, the tide is shifting decisively towards this innovative approach. It’s imperative for businesses to reassess their technology strategies and seize the opportunity to ride the wave of progress. The era of monolithic on-premise solutions is fading, making way for a more efficient, cost-effective, and agile future.

In conclusion, it’s time to evaluate your supply chain technology strategy and determine whether it’s swimming against the tide. Embracing cloud deployment for supply chain planning can unlock a world of possibilities, providing your business with the competitive edge it needs to thrive in today’s dynamic market. The future belongs to those who embrace change and leverage the power of technology to drive success.