Has it finally come for cloud solutions to take centre stage and control the Australian
supply chain industry? The issue of moving IT infrastructure to the cloud seems
to be a debate among IT consultants only. But the reality is decision makers in
transport and logistics enterprises should be involved. That's because taking
the cloud as an option, as opposed to staying with local-based technologies, is
a decision that can affect not just this quarter's financial expenditures but
also the company's ROI in the long run.
The Limitations of
Local-Based Programs
Today, many Australian enterprises still use
localised programs to run their operations. These are computer programs that
are hosted within office premises. Smaller data hardware are often referred to
as "closet servers" because they occupy little space as opposed to
full-blown data centres and are located inside the office. However, logistics software that is hosted in
such servers have several limitations that not only prevent the business from
improving services; they also cause expenses, albeit discreetly.
As opposed to cloud solutions, local servers are limited to operating within a
set network. This means, the only computers that can access the software are
those connected to the network. While some enterprises have managed to make
their program available on via wireless Intranet, it is still limited to the
Intranet and cannot be accessed via the Internet. This means drivers and other
employees off-site, or off the network, will need to record data manually and
encode it again manually once they arrive in company premises. This leads to
waste of employee hours and lower productivity. It can also lead to a raise in human
error.
But that's just one side of the problem. The
other side is with expenses related to the purchase and maintenance of IT
infrastructure. A local-based program will need an upfront investment as
equipment needs to be purchased. The recurring expenses involve utilities and
overhead for IT managers and staff. This issue is solved through cloud solutions.
The Cloud AsThe Option
The cloud is not an option, it is THE option. For
Australian supply chain companies, the ROI will depend on movement of the goods
– whether children's toys or iron ore from mines, it doesn't matter.Your
company cannot rely on local software because your people are always on the
move. To improve employee productivity, they must have access to your crucial
systems wherever they are. But given your operations software is available on
the Internet, it does not address the other issue, which is incurring expenses
via purchase and maintenance of local-based IT infrastructure.
What cloud-based logistics software give enterprises is the power of connectivity and
accessibility without the burden of maintaining the infrastructure. With the
cloud, the user gets both software and "hardware" so operations can
proceed as usual. However, with this option, you won't have to purchase actual
hardware and maintain it. The provider has that covered. And unlike dedicated
servers, you can easily increase or decrease your bandwidth requirements based
on the needs of the company and do it in real time.
So, has time come for Australian supply chain
companies to move to cloud solutions?
The best way to approach this is to consult with your software provider and see
if your company can move to the cloud.
Learn more about the author: James Gasket
