The future for cloud based supply chain management solutions

The Future For Cloud Based Supply Chain Management Solutions-Free PDF

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INFOGRAPHIC SUMMARY CLOUD BASED SCM DISadvantages JUSTIFICATIOn REQUIRED. CURRENT APPROACH MOTIVATORS FOR CLOUD ADOPTION JUSTIFICATION AREAS. STRATEGIC ADVANTAGEs ADOPTION CHALLENGES END TO END SCM ADVANTAGES. SCM Processes in THE cloud NEW CAPABILITIES CONCLUSION. CLOUD BASED SCM advantages CHALLENGE AREAS, CONTENTS Survey conducted by IDG Connect on behalf of Oracle. Survey conducted by IDG Connect on behalf of Oracle Supply Chain Paper. 2 SCM to grow in next two years,Product lifecycle management is 16. expected to experience the most,growth in cloud based SCM over 14. the next two years followed by,INFOGRAPHIC,logistics global trade and ideation. and innovation 8,Product lifecycle Logistics Ideation and.
management global trade innovation,3 Cloud based SCM advantages. Respondents saw several advantages, This survey of senior managers and directors was conducted in four regions North America Europe of cloud based SCM with all listed. the Middle East and Africa EMEA Central and South America and Asia Pacific with the aim of advantages receiving significant. discovering attitudes towards and plans for the adoption of cloud based supply chain management responses While not in the top three. SCM solutions Faster implementations security is also seen as a big advantage. 61 for cloud based SCM Looking at the, We focused on three key areas scope of respondents SCM processes. 1 The criticality of supply chain to their business improved customer service is the biggest. 2 How to reach their business objectives through supply chain processes advantage from a domestic only point. Cost savings, 3 The propensity to use the supply chain cloud and reasons for adopting not adopting of view 25 cost savings is the biggest. 60 advantage regionally 31 and greater, We found that the ball is in the vendors court companies are ready to adopt cloud based SCM security wins globally 25 These are.
processes but need to see concrete evidence of business benefits and want both full vendor support effectively the greatest advantages of. and end to end solutions cloud based SCM and arguably cloud. 59 services generally as organisations, Improved customer service reap the benefits of agility cut capital. 1 Top three strategic advantages of supply chain management SCM expenditure and have direct two way. All respondents clearly see a range of advantages to SCM though there is some variability in the communications with customers and. perceived advantages dependent upon organisation size For example in organisations of 25 000 or partners. more employees customer centricity was the most popular advantage. 4 SCM Challenges Concerns regarding cloud security. Challenges exist in all stages of all 49,business processes and SCM is no. different Respondents saw several, challenges in adopting cloud based SCM Concerns over IT disruption. processes with concerns regarding cloud 42,security being the biggest challenge. followed fairly closely by concerns over Avoiding business disruption. Operational efficiencies Productivity improvements Cost savings disruption both IT disruption and. business disruption 42, Survey conducted by IDG Connect on behalf of Oracle Supply Chain Paper.
Respondents reported that they adopted,a range of approaches to supply chain. solution investment but within that there,were significant differences by region. The Asia Pacific region strongly prefers,incremental improvements 90 compared. to the other three regions responses from,which fell between 74 and 79 clearly. Current approach to supply chain management Current Desired. and by scope Transformational change showing a more conservative approach Incremental improvements to. to replace existing investments was existing investments. slightly less preferred 65 versus 70 A more conservative approach is also 78 37. for complementary add on functionality adopted by all respondents when it comes. and 78 for incremental improvements to to non domestic SCM improvement. existing investments solutions with 84 opting for regional. incremental SCM improvement solutions, We can see that incremental improvements and 81 for global improvement solutions.
to existing investments is preferred over the against 67 for domestic only That said Complementary add on. other two options albeit only slightly Given respondents selected the other two options functionality to existing investments. that 43 of respondents pursue all three in almost equal numbers 70 30. listed approaches to supply chain solution, investments there is no clear winner here Overall respondents adopt a conservative. The regional breakdown offers a different approach to replacing SCM solutions which. picture to that of the aggregated one above is a natural posture for so business critical a. Transformational to replace existing investments, Survey conducted by IDG Connect on behalf of Oracle Supply Chain Paper. Strategic advantages of Supply Chain Management,Strategic advantage Greatest strategic impact. Strategic 40,advantages,20 15 15 14, Operational Productivity Cost savings Greater Product. efficiencies improvements visibility and service,control innovation.
Respondents clearly see a range of When asked for the biggest single also conditioned by expectations it. advantages to SCM with all listed strategic advantage conferred by SCM is perceived by many organisations. advantages receiving significant respondents reported that cost savings especially smaller companies whose. responses 83 of respondents made the greatest impact 17 followed supply chain operations are more likely. selected three or more advantages by productivity improvements operational to be domestically focused that greater. Operational efficiencies was the most efficiencies 15 each and product service visibility and control on a global scale is. popular advantage with 66 followed innovation 14 The results were fairly not relevant and is ignored. by productivity improvements and cost similar across most respondent categories. savings 61 and 60 respectively but the biggest regional variations were From an organisational size perspective. in Central and South America where only the stand out results were that 22 of. These results were fairly consistent 3 selected operational efficiencies but organisations with 250 to 499 employees. across most respondent categories The where cost savings was the most selected perceived operational efficiencies as a. main regional variation was Asia Pacific option 19 and in Asia Pacific where strategic advantage of SCM while 27. where productivity improvements were productivity improvements received the of very large organisations those with. the most popular advantage 87 highest response 23 These results 25 000 or more employees saw the. suggest that high downward cost pressures productivity improvements of SCM as. The main organisational size variation and high levels of labour intensity are offering by far the largest single strategic. was in organisations of 25 000 or more prevalent in these two regions where advantage. employees where customer centricity emerging economies prevail. based on expectations needs was the The result from smaller organisations. most popular advantage 76 This Analysing the responses by scope uncovers suggests that they are seeing the. can be seen as a consequence of larger the perhaps surprising result that greater advantages of SCM as helping them to. organisations developing a tendency to visibility and control received the highest grow the company by improving product. become process rather than customer relative response 17 within a domestic and service innovation From the large. driven yet being aware of the need to SCM scope while globally the response organisation perspective they are aware. counteract this propensity by adopting a was just 10 It might be expected that of the inefficiencies of long supply chains. specifically customer centric philosophy visibility and control would be harder to with many intermediaries across a wide. achieve and so more desirable on a product portfolio and want to reduce. global scale However this response is costs and speed up the supply chain. Survey conducted by IDG Connect on behalf of Oracle Supply Chain Paper. in THE cloud, Several supply chain management With that in mind it seems more The regional picture however shows Supply chain management processes residing in the cloud. processes run in the cloud today with likely that the logistics services cited some interesting variations In North. about 75 of organisations deploying by respondents transportation and America logistics warehousing and. three or more SCM processes in warehousing are in fact internet supply chain planning both show Now In two years. the cloud Order management connected rather than being supplied as growth over the next two years of 13. logistics warehousing and logistics a service in EMEA ideation and innovation will. transportation are the most prevalent grow most 19 followed by product. SCM processes that reside in the cloud This analysis is borne out when looking lifecycle management 17 and asset 60. today 46 45 and 45 respectively at options that fewer respondents management 16 and in Asia Pacific 54 55. followed by manufacturing logistics selected such as product lifecycle product lifecycle management shows 49 48. global trade and supply chain planning management 30 and ideation and growth of 30 with logistics global 50. 41 40 and 40 respectively All innovation 33 Both of these along trade logistics warehousing and. these are closely clustered and are with logistics global trade 40 score sourcing procurement all showing 40 40. within or almost within the survey s very highly when we look at respondents growth of 13 Central and South. margin for error plans for the next two years compared American respondents have differing 33. to their deployment levels today with priorities with several cloud based SCM 30. It is interesting to note that growth predicted by respondents of processes set to shrink over the next. transportation and warehousing are 18 14 and 15 respectively Given two years the growth areas are product. relatively recent offerings in the cloud that cloud based SCM solutions are lifecycle management 23 and order 20. for many the cloud is coterminous with not prevalent today these supply chain management 10. the internet while the more commonly processes seem highly likely to find. agreed definition of cloud is that of a themselves deployed in the cloud by 10. remotely supplied service rather than 2018 Other areas where significant. simply remotely supplied connectivity growth is expected over the next two. years include fulfilment 9 supply,chain planning 9 and logistics. Ideation and,innovation,management,warehousing,Supply chain. global trade,Product lifecycle,warehousing 9, Survey conducted by IDG Connect on behalf of Oracle Supply Chain Paper. Significant advantages of cloud based supply chain management. Advantages Most significant,Cloud based,Faster implementations.
Cost savings,Improved customer service,advantages, Ability to leverage new technologies e g Internet of Things Industry 4 0. Greater security, With plans by respondents in most leverage new technologies e g Internet By region however EMEA respondents For those respondents within IT departments the ability to leverage new. regions to deploy SCM processes in of Things Industry 4 0 received the selected cost savings as the top option technologies e g Internet of Things Industry 4 0 also received significant. the cloud they were then asked about highest number of responses 61 24 while in North America improved responses 22 most probably because those in IT departments are more. which advantages they expected from in organisations of 5 000 to 24 999 customer service was the top option likely to be aware of new and upcoming technology developments and the. doing so Respondents saw several employees faster implementations is 24 both options pointing to high challenge of integrating these technologies with legacy applications that were. advantages of cloud based SCM clearly the most popular advantage levels of competition In Central and designed around the supply chains of 10 to 20 years ago. with all listed advantages receiving 87 and in organisations of 25 000 or South America 39 selected improved. significant responses over 43 95 more employees cost savings followed customer service making this option. selected three or more advantages by improved customer service received a very clear winner 13 percentage. The biggest advantages were faster high levels of response 78 and 68 points clear of the tied second placed. implementations cost savings and respectively options of cost savings and greater. improved customer service 61 60 security 26 each And in Asia Pacific. and 59 respectively These regional variations are broadly the highest percentage of respondents. in line with what might be expected of selected faster implementations as the. From a regional point of view organisations of that size most popular advantage 40 also 13. respondents in Central and South percentage points clear of the second. America saw the ability to leverage new Asked about the single most significant placed options cost savings and more. technologies e g Internet of Things advantage there was no single most agility in supply chain operations 27. Industry 4 0 receive the second highest popular opt. Survey conducted by IDG Connect on behalf of Oracle Supply Chain Paper 3 Strategic advantages Respondents clearly see a range of advantages to SCM with all listed advantages receiving significant responses 83 of respondents selected three or more advantages Operational efficiencies was the most popular advantage with 66 followed

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