DALLAS, Tex.–According to a tech brief from One Network Enterprises, supply chain solutions delivered as a cloud platform service over the web will outperform their on-premise alternative.
In terms of time and responsiveness, on-premise solutions “artificially segment” into buckets and cycles what is in reality a continuous process. The artificial batch “wait” time between a triggering event and a solution response that is inherent in standalone systems leads to both avoidable service failures and unnecessary inventory buildup, said the company.
A cloud platform-based model can detect in real-time and selectively direct that add Item1 (displacing filler Item2) be added to the truckload about to depart and thus avoid either missing the sale or pushing another complete truckload to the destination.
On-premise solutions have an internal perspective on supply chain events. For example, a buyer’s OMS may have one view of expected receipts; the supplier’s OMS an adjusted view of what actually can be delivered. During the interval at which those perspectives are not “synced”, the replenishmen process may iterate (and make poor decisions) for a couple of cycles until the data variance is flushed. Cloud platform-based solutions by design maintain a single version of the truth for all parties.
When it comes to asset utilization, supply chains enabled with on-premise technology tend to have fixed, well-defined resource pools from which they can draw capacity. On the other hand, cloud platform-enabled supply chains provide the capability for all types of assets (manufacturing, storage, transportation, computing, etc.) to be dynamically visible and allocated to match current supply and demand conditions on the ground, the company said.
For example, if you know the inventory that is available, you can build full truckloads that go to market with multiple stops, eliminating excess miles and touches.
There is also a simplified connectivity to cloud solutions, where on premise solutions typically require repetitive connections to each trading partner or asset provider. Often with legacy systems, integrations that include enhancements or changes take months and sometimes years. Cloud platform-based technology allows each enterprise to connect one time to the “grid” and begin interacting with and gaining visibility over all participants already present.
Supply chain performance is directly related to cost efficient velocity. Cloud-enabled supply chains are able to move from weekly or monthly plans to those that capture the critical changes that are happening every day, every hour, said One Networks.