Should Australian Logistics Companies Adopt Cloud Solutions Now?

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