Cloud computing has always played an important role nowadays. It brings timely solutions with the rapidly changing pace of the market. It is also essential for the operation and management of the efficient supply chain system. Jasbir Singh is Vice President in the segment of Enterprise Resource Planning and Supply Chain Management (ERP/SCM), Oracle. He had a conversation with a newspaper about this tech issue.
According to Jasbir Singh, more than 70% of production facilities are using cloud application. They use it in the management process of the supply chain. The reason for the promotion to the transformation to cloud computing is the ability to customize the limits of supply chains applications. In addition, the cost and security are also major concerns of business. It helps to ensure business processes and timely response to the ever-changing needs of the market.
Sir, can you introduce some features about the management tools of the modern supply chain of Oracle. In your opinion, how should business take advantage of technology to improve the process of supply chain management?
The management tools of modern supply chain will convert the entire system. It comes from the performance of the basic functions to really becoming a competitive advantage for business. The Oracle Supply Chain Management (Oracle SCM) offers a comprehensive feature chain. It will help to modernize business activities in all fields, from demand and supply to the products.
Typically, Oracle has launched the Central Plan on Cloud. That integrates the entire supply and demand plans on a graphical background and modern visual analysis. This tool has structure of multi-dimensional analysis with simple, smart and efficient recommendations. All also supports for the process of prediction, inventory planning and supply for business.
Besides, the Oracle Order Management on Cloud will help SMEs closely manage their orders. Then it simultaneously integrates multiple data sources with the customized pricing and integrating features. Therefore, the complex supply process will be simplified.
In addition, the Oracle Supply Chain Management on Cloud will support business to renew and increase value chain rapidly. As well as reducing the risks to the minimal level, save costs and optimize the flexibility.
Trans-Pacific Partnership (TPP)
But, what are the factors which promote the SMEs to change to suit the modern market? especially when the ASIAN Economic Community (AEC) and the Agreement on the Trans-Pacific Partnership (TPP) is coming?
The SMEs should psychologically prepared for the upcoming changes from the AEC and TPP. This is the opportunity for the business to approach and penetrate to the new potential markets. However, the question here is how the SMEs will adapt to these changes.
There are recent studies and reports of the International Data Corporation (IDC). According to them, the supply chain on the cloud computing platform is growing rapidly. The applications of logistics on cloud are expected to increase by about 20% in 2019. While the applications on fixed systems seems to increase by under 5% only. Similarly, the applications of inventory management on cloud will increase by about 26%, while the version for the fixed system will increase by 4% only. These figures showed the clear change in the selection of the applications which support the supply chain management across all business areas.
The cause of this change is the ability to increase the speed of return and scaling of the applications of supply chain management without too many IT resources. With the modern applications, the deployment will be easy and fast and the risks was substantially reduced. The SMEs need to clearly understand these benefits and apply the modern applications to improve the performance of business as soon as possible.
Benefits from cloud
Because of the AEC and TPP, the SMEs need to accelerate the progress in order to increase their competition in the market. You think how helpful the technology will be for the local SMEs.
The fact asserted the applications of Enterprise Resource Planning (ERP), supply chain management, or logistics and business management on cloud will help the SMEs control the entire process from production to transportation, reduce costs, increase efficiency and ensure compliance with the essential rules, then increase their competitiveness in the market.
These applications will helps the SMEs provide the superior services thanks to the capability of optimizing processes and production time as well as build the seamlessly connected system with customers, providers and business partners.
In the extremely volatile business environment with dizzying speed of change, every business has to be ready to respond all the time and on any situations, and integrate the effectively supported applications. The prerequisite is whether the current dedicated system has enough capacity and flexibility to meet the ever-changing needs. Every business needs to own a more modern tools to refine and manage the price and the manufacturing procedure with reasonable cost to maintain their competitive advantage in the market.