Smart Warehousing Sep 16, 2022 2:00:00 PM 8 min read

Scaling Logistics Operations with Cloud Technology

Cloud computing has been a staple for years — but for many organizations, the full benefit of cloud technology has yet to be seen within logistics operations. As businesses continue the search for the strategies that will give them that edge over the competition, more are turning to the cloud.

In fact, an MHI report of more than 1,000 supply chain leaders showed that 54% of businesses surveyed are increasing (or substantially increasing!) their investment in cloud computing and storage. Interestingly, leaders also reported that in workplaces in which cloud technology was in place before the onset of the COVID-19 pandemic, teams could scale more quickly to meet exponential demand.

As the tide turns and many teams consider the value of the cloud, joining the movement will be necessary. What is cloud computing within logistics, and why is it so important? Keep reading to discover why your competitors are using cloud technology today — and why it’s something your company should consider for tomorrow.

 

What Does Cloud Computing Do For Operations?

At its core, cloud computing enables on-demand IT resources. Businesses no longer have to deal with massive, expensive physical servers. When a team needs more digital room for data or additional computing power for new tech needs, they can access it immediately from an online provider.

In the past, working with large amounts of data and storing it required a massive investment in systems and entire teams to operate those systems. Today, that can be outsourced — as a result, saving businesses millions while at the same time increasing their capabilities.

So what does cloud computing do for businesses? Take a look at these powerful components:

  • With access to various technical capabilities, teams can scale faster. Infrastructure resources enable businesses to utilize the storage, databases, analytics, and other tools they need to scale.
  • Getting the right resources for a tech project is easier than ever. You no longer need to worry about providing for more or less than your needs, which means avoiding wasted expenses and last-minute problems. Additionally, if your needs change, you can increase or decrease technological resources at the touch of a button.
  • Global Distribution. Reaching a new geographic region is no longer a months-long endeavor. It can happen in mere minutes, even if your desired location is on the other side of the world. This can make a huge difference in reducing errors and improving your customer experience.

Cloud computing businesses have been around for more than two decades now. Since the onset, capabilities have improved, and prices have decreased. Industry reports show that the cloud computing supply chain market will reach almost $9 billion in 2026. Utilizing cloud computing for logistics operations will soon be critical for keeping up with competitors.

 

Cloud Computing Overlayed on Cityscape - Smart Warehousing

 

Why Use Cloud Computing Technology For Your Operations?

 

1. Real-Time Results

By utilizing cloud computing capabilities, businesses can use real-time data on crucial logistics points to make real-time decisions. Problems ahead? Your cloud computing tech has already spotted the obstacle and routed the product to avoid it! From weather concerns to truck or transport shortages and more, cloud computing can make a difference. Just imagine how many standstills and order delays you can prevent with that information!

Beyond this considerable impact, real-time information can also be shared between manufacturing companies and retail. In mere moments, the entire supply chain is optimized and on the same page. And today’s customers expect real-time updates, which cloud technology allows you to provide.

 

2. Reduced Tech Costs

Before the latest developments in the cloud, getting data on your shipments meant investing in infrastructure, hardware, tech personnel teams, and more. These costs ended up increasing the overhead of the entire logistics area. With cloud technology, everything’s online, and all those insane overhead expenses disappear. Logistics operations big and small can take advantage of cloud technology without having to invest thousands in equipment and upkeep.

 

3. Remote Data Access

Knowing what’s going on with inventory couldn’t be more critical. With cloud computing, businesses and logistics partners can access this information anywhere. Want to check what’s going on with your latest shipment on the way home from work? Or on the other side of the country? All the necessary details are at your fingertips. Location-agnostic data is a game-changer for leaders of companies looking to scale.

Access to logistics information on the go means you can see availability fluctuations and make resulting pricing changes immediately. Company leaders can also get a real-time look into profit margins and other important data points that can inform your decisions, wherever you are.

 

4. Improved Efficiency

Efficiency is everything when it comes to logistics. How quickly and smoothly products run through your operations can make a tremendous difference in customer satisfaction and, ultimately, your profit. What causes problems in your logistics process? Frequently, human error causes oversupply, undersupply, or missed deadlines. Cloud computing is part of automating these operation processes to remove human error and add to your delivery speed.

Want a reminder when inventory dips? Wish you had an early indicator that demand is going to skyrocket? That’s where cloud technology and its capabilities can come into play.

 

Make Better Decisions with Cloud Computing Technology

Switching to the cloud is like the switch from manually searching for answers in an encyclopedia to getting the exact information you need in seconds from Google. Now imagine what that dramatic influx of information could do for your business.

Cloud computing allows businesses to work smarter, not harder, and accomplish more than ever. It enables logistics operations, manufacturers, and retailers to work together like never before. This technology, surprisingly enough, also reduces costs that filter down to the bottom line.

We’re excited to say Smart Warehousing is all about the innovation of cloud computing. In fact, our incredible inventory management system is already in the cloud. Because of that capability, we can provide all of our clients with instant visibility into their inventory, transaction level updates, and overall activity summary. That means your business can make data-backed decisions at a moment’s notice. Before long, you’ll gain a competitive edge by working in real-time, no longer feeling like you’re two steps behind.

Smart Warehousing can help you meet customer demands across the country with the data you need to do it right. Get in touch with the Smart Warehousing team today to find out how we can transform the way your logistics works by innovating with powerful technology like cloud computing.