The advantages of cloud-based logistics management systems

Cloud based logistics management

The cloud-based logistics management system is an effective way of optimising the logistics processes in the supply chain. The logistics industry is increasingly adapting to newer technological trends to stay updated and enhance efficiency to fulfil the supply chain demands with utmost competency. Since all of it involves data and information, the cloud-based technology acts as a virtual platform offering scope for data storage, access and management. Integration of cloud technology with logistic management systems has brought a revolution in the productivity and efficiency of the supply chain. This blog highlights the benefits of introducing cloud technology into logistics processes.

Importance of logistics in the supply chain

The global supply chain was formulated to address and fulfil the demands of products, services, raw materials, and finished goods emerging across the world. The responsibility of the logistics industry is to monitor, regulate, coordinate and ensure the on-time delivery of resources. This helps to fulfil the supply chain demands within time. It helps improve the quality of the trade business processes and offers its clients safety and reliability. Newer trends in the logistics industry are being adapted to provide greater visibility and transparency between the consumer and the multiple logistics processes. The logistics industry aims to counter all the loopholes in the supply chain and formulate a secure and agile set of methods. These cover all facets of acquiring and supplying cargo through inter-modal transportation in logistics.

What is the role of a logistics management system?

The supply chain requires efficient governance to ensure that demand and supply processes are carried out timely and successfully. A logistics management system integrates software tools into logistics to automate cargo processing, packing and dispatching. Duly managed by technology and personnel, it allows tracking the resources, their incoming, outgoing, storage, shortage, and surplus. This offers efficient planning and distribution or consolidation of goods worldwide. The management system makes it easier to supervise third-party logistics service providers and aids in building a network between multiple providers and consumers or stakeholders. It helps refine each process and strategy to enhance the efficiency of the supply chain.

Use of Cloud in supply chain management

  • Cloud technology has enabled data storage, sharing, management and backup flexibility. Cloud infrastructures support virtual products rather than giving preference to any hardware.
  • Since the supply chain entails a wide range of processes and involves enormous amounts of data, its management system is based on cloud technology.
  • When utilised in the supply chain, the cloud helps closely track the complete lifecycle of any product or service. Stakeholders can easily access the information available, and the company provides greater transparency.
  • It helps reduce the chances of products getting lost in transit as you can track the whereabouts of individual goods during any stage of their transit.
  • The cloud has unlimited storage space to accommodate, organise and manage plenty of incoming data.
  • Since it is not restricted to being used on physical devices, anyone throughout the supply chain with access can download necessary information and optimise the supply process or strategy during any phase of transit if needed.

Role of cloud computing in Logistics

Cloud computing plays an active role in improving logistics’ global fate and enhancing efficiency.

  1. Integrated collaboration – The logistics industry includes a network of companies, businesses, suppliers, shippers and consumers from around the globe. In such cases, data is stored in the cloud to enable instant updates on any changes and facilitate seamless communication between all the parties involved.
  2. Managing inventory – The raw materials and finished goods are stored in warehouses waiting for their turn in transit. Since all the data is fed into the cloud, it helps manage and maintain inventory levels and track outgoing and incoming shipments. Therefore, it helps in optimising warehouse operations.
  3. Managing transport – The cloud-based transport management systems help monitor, track and filter out the best routes, schedules and modes of transport to optimise the cost of transportation. Real-time data also enables re-routing to better routes if any problem occurs in the allotted one.
  4. Enhancing customer experience – The access to real-time data provides added reliability and visibility of the shipment throughout its transit up to its delivery. The cloud-based customer service platform lets its customers post and quickly resolve queries.

Benefits of cloud-based logistics management systems

  1. Cost-effectiveness – Cloud-based systems do not require hardware resources or infrastructures to function. It works on a subscription or pay-per-use model that allows companies to pay for only those features and resources they need. It also helps reduce IT maintenance and support costs since no hardware is installed.
  2. Improved scalability and administration – Since cloud-based systems work on resources, a vital benefit is that companies can quickly scale up or down the resources according to the fluctuating market needs. This makes it easier to administer the cloud space and manage data.
  3. Flexibility in accessibility – Since the cloud uses the internet, it’s easily accessible on any device with an internet connection. It helps employees, partners, and customers collaborate better remotely by delivering real-time data. Customers and companies can easily track the shipment status via their systems or devices.
  4. Data Analytics – The cloud stores all the data received from different sources. These complex sets of data stored are used in data analytics to filter insights and supply chain KPIs to improve logistic operations and enhance productivity and efficiency. Data-driven decisions made using these insights offer quality solutions and powerful strategies.
  5. Security – Data security and customer confidentiality are held supreme in cloud-based systems. Data encryption, limiting access and regular security audits help preserve the integrity of crucial and personal data.

These advantages of cloud-based logistics management systems help the in tackling few of the challenges in logistics and transportation industry. Cloud based logistics delivers high-quality, productive and reliable results on time.

LOTUS Containers is a global shipping container marketer that provides professional support for all requirements by offering a wide range of container solutions and intermodal logistics. Our company specializes in providing container leasing services and sales of various shipping containers tailored to meet the diverse requirements of our customers.