3 Ways Cloud Computing Helps in Optimizing Procurement and Logistics


We know it for a fact that cloud computing has the potential to offer a chance to share, analyze and aggregate all the information among different organizations. But, there are many industries that still wonder how cloud can take the process of procurement to the next level.


Here are 3 ways in which, cloud computing can help improve logistics and procurement processes in an organization.


Sustainability: Enterprises and even individual consumers today focus a lot on organizations that they do businesses with. With the help of Internet, it becomes easier for them to assess whether the practices of a particular company are at par with environment guidelines or if they indirectly support any kind of global conflict.


There are basically two ways with the help of which, cloud computing helps organizations employ the practices that are sustainable.


The first one is having an oversight for better practices. It is done by collecting more data coming from different sources, which, in turn, helps the organizations quickly identify the latest trends and various ways that the companies are interacting with the rest of the world.


Another way to do this is by improving energy efficiency. As cloud environments are powered by nothing else but shared server capabilities of different organizations, they don’t use as much energy compared to the traditional data centers.


Optimizing Port Efficiency: Ningbo recently installed a cloud infrastructure taking help from IBM. It is a bustling logistics hub with more than 5,000 firms that have stakes in the success of the port. The result is there less number of idling vehicles and expedited goods flow. The system allowed enterprises to participate in the program for installing GPS sensors on all their trucks.


This has helped a company in reducing their idle time by around 80%, thus translating to around $157,000 in terms of total savings. The electronic procurement services provide corporations the same solace such as cloud computing by allowing them to connect to millions of different potential suppliers around the globe. There are experts who provide tools and software necessary for obtaining the right cloud solutions for making the most of it.


Simplification of Complexity: It is not very difficult to understand global sourcing, but is indeed very difficult to put the same concept into practice. One single enterprise can easily have thousands of indirect and direct connections with different suppliers located across different locations of the world. This can become painfully simple just by leveraging cloud computing and aggregating all the digital information and making it available to every single partner.


As a cloud provider, if you were not targeting the Procurement and Logistics sector so far, then it’s time for you to proudly extend your services, and educate your potential customers about making a move to the cloud.

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