In the days before the cloud, capabilities were extremely limited because supply and demand chains only had traditional IT systems, interfaces and infrastructures at their disposal. Once cloud computing came on the scene, the industry got redefined. Yet, it's important to note that the cloud is not merely an evolution of traditional IT; it's not simply a better, faster, cheaper data center in the sky, nor is it the same as the old IT, but squared or cubed. The cloud is a quantum leap. With the cloud, the industry can approach challenges from different angles. Foundationally, the cloud has enabled totally new capabilities that were not possible before.
Two significant benefits the cloud provides to the supply and demand industry are data and automation. In the past, data was an endless ocean of information, which concealed insights, but gleaning relevant data was difficult. Now, through cloud computing, Internet of Things (IoT) devices, sensors, GPS devices, RFID and anything else producing information can all be compiled into one place. Then, through artificial intelligence (AI) data mining, machine learning and deep learning, companies can leverage the cloud to extract value more quickly and easily.
Cloud automation, particularly automation across the whole chain, allows for responsive non-human systems to independently complete tasks without direct human interaction. It has accelerated dozens of processes from warehousing to transportation. For example, today, some physical warehouses can have a data or digital warehouse behind them capable of notifying businesses of peaks and anomalies, making it more valuable than the actual warehouse it supports. Additionally, automation can take people out of their menial, manual and repetitive tasks and free them to focus on the things that a computer can't do, such as more creative, strategic and customer experience-oriented tasks.
Outside of data and automation, the cloud gives unlimited storage and unlimited computing power, allowing for innovations that were unthinkable before. It also provides a true value proposition through collaboration, making joint decisions absent of silos, driving actions across the enterprise while aligning towards a common goal.
The cloud and its new systems operate on real-time sensing and responding to changes in the current environment, which could be anything from weather, social attitudes, competitors' prices or other dynamic elements. Using dynamic point-in-time data, AI predictive analytics and machine learning, a business can build a demand and supply chain that is more responsive, resilient and agile than ever before.Â
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Before businesses get overzealous and find themselves as the builder who started a project without enough funds or resources – it's necessary to make the appropriate preparations to avoid the common mistake of attempting to use cloud-like features without first establishing the cloud as a foundational supporting element to business processes.
