A variety of new ”logistics-as-a-service” business models reflect the latest trend of moving supply chain in the cloud. It helps companies to use customizable and modular cloud services on demand. A good old pay-per-use approach meets IT. Let’s take a look at the way you can develop a scalable and efficient system without building the traditional IT infrastructure.
Why on earth would I?
As we said earlier, the cloud for logistics enables rapid, efficient, and flexible access to IT services for any supply chain processes. Already today, more than 50% of logistics providers use cloud-based services, and a further 20% are planning to do so shortly, says IfCC.
Nowadays, web-based systems and APIs are the core of on-demand cloud logistics services. Rapid and reliable systems are merely replacing outdated legacy infrastructure. Moreover, edge computing will continuously enhance cloud logistics by utilizing computing power close to the data, drastically reducing bandwidth requirements.
Forrester predicts that more than half of global enterprises will be cloud-based soon. The supply chain industry will receive massive gains in terms of cost, season-oriented scalability, and demand. The companies with that model are already provided high availability without downtime to customers and recovering from accidents within a time frame of 15 minutes.
The likes of Amazon have set the bar high when it comes to delivering to the customers within a short period. Having a robust IT infrastructure is one of the basics that a supply chain should get right to meet customer expectations.
Many 3PL companies decided to move to the cloud as it was evident to them that having a cloud infrastructure would give them a competitive edge and help them improve their service.
Cloud as your core business driver
For many enterprises, building IT infrastructure takes time. Multiple companies continue to add capacity as they run out of computing power. As we can see, it’s not the best way to deal with it.
Let us ask: if adding capacity to on-premise infrastructure is the right thing to do?
We think there’s some other way. We advocate cloud migration as it enables you to be in total control of your supply chain. On the other way, you pay only for the operational performance you need, not for the whole infrastructure maintenance. Many logistics companies are already in cloud migration as either they keep some sensitive data on-premise.
Seamless cloud migration
Here are some bits of advice on how to move to the cloud smoothly:
- Not everything is cloud-friendly. Determine your challenges and compare it to the platform.
- Keep your eye on the security and breach attempts, customer complaints, downtime, and any regulatory moments. Get references and make sure you pay for reliable service.
- Carefully examine the cloud provider’s fees. Some providers have a pay-per-hour model, but they forget to tell you about additional expensive services, such as network traffic monitoring.
Anyway, logistics and transportation providers can have a great deal from the supply chain in the cloud. Empeek team is a seasoned squad of engineers with strong expertise both in cloud migration and logistics services. We advocate only experienced and reliable providers, such as Amazon, Microsoft, and Google. Thus, our team has numerous certifications from leading cloud providers.
Get in touch to discuss more opportunities for your company!