Cloud solutions – Motivations for Moving Your Logistics Operations

Cloud solutions are clever in a way that they move the mover.

Companies in the supply chain industry, or businesses that move things, rely on their people, their fleet, and their operations software to make sure everyone receives their packages on time. These companies need to ensure deliveries are met, warehouses are maxed, and that everything is done with minimal costs. Traditional logistics software have been very helpful for the past 20 years in meeting these goals. However, with tougher and more competitive markets, and with the complexities brought by the Internet, businesses need to "move" elsewhere.

Traditional Solutions Examined

The very core of Australian logistics is yet to change after all these years. It's simply moving one item from point A to point B. Sometimes it's kept in point B before it's moved to point C. The emergence of cloud solutions and other Internet-based developments, however, opened up doors to improving services and operations. Shipments can now be tracked. Pick-ups can now be applied online. Despite these improvements, many logistics companies still lag behind. Much of this has to do with the kind of software – or worse, the lack of such software – they use in operations.

Prior to the emergence of cloud-based logistics software, companies have relied on manual recording of data. This might work for a transport business with a fleet of two or three cars. This might work for a storage space rental. This will not work with enterprise class businesses that need to move iron ore quick, or to decent sized warehouses that track dozens and dozens of palettes.

Other companies are more advanced and employ desktop based solutions like excel spreadsheets. They audit everything via such solutions. And then, there's the technology-savvy enterprises that process everything centrally through an operations software. These software, however, are often hosted locally within company servers or externally on third-party dedicated servers.

Why the Cloud is a Mover

With cloud solutions, the user sees just one plain interface: the software side. As for the hardware side? The cloud aggregates available space from different secure servers often based on different locations. The package is offered as one solution containing the software, hardware, and other services when applicable. What does this mean to CTOs and other technology decision makers in logistics companies?

This means it's one less worry. The company no longer has to worry about the hardware side to keep the software – and yes, the business – running. It's a big burden off their shoulders as IT hardware maintenance is no easy and cheap task. It requires full-time attention and a whole team to run.

Logistics software that run on the cloud also mean business possibilities. With the cloud, companies can easily scale data storage and computing needs when necessary. Noticing a spike in services? No worries because you're on the cloud and you can easily increase or decrease consumption with ease. This is not possible with dedicated servers because the hardware can accommodate data to a limit. Once that threshold is reached, you need to apply for more space and pay for the whole server. Paying in excess for unused space is never a wise financial decision for any company.

Cloud solutions allow logistics firms to do what they do, which is store and move items. The major difference is they are able to do their job more effectively as they focus more on operations, not on maintenance of the IT hardware infrastructure. The focus is on gaining more customers and deliveries, not on worrying if the allotted space on the dedicated server can carry the load. It is time to move to the cloud.

Learn more about the author: James Gasket