Feasibility of supply chain on cloud

Abstract

Due to changing external environments and increasing uncertainty, it has become essential for companies to be prepared for every scenario. Today, almost every company employed heavily in supply chain and logistics has an on-premise supply chain management system to handle the day-to-day activities efficiently. Another option for these companies is to migrate this supply chain system on cloud. There are various benefits of having a supply chain system on cloud such as reduction of costs, option to scale up/down whenever needed, ability to see data real-time and make decisions accordingly, accurate forecasts, pricing model based on usage etc. In spite of many benefits, many companies are still very sceptical about migrating to cloud. We have tried to understand the supply chain models followed in different industries and their pain points. We have also interviewed people from various companies to understand the reasons behind not migrating to cloud. Some reasons include network issues, huge investment in on-premise system infrastructure, security doubts, no control over data etc. Finally, we have come up with a list of recommendations to address each of these problems.