Cloud in Supply Chain
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Pfizer transformed its supply chain by moving to a common cloud-based platform. It required its 500 suppliers to also implement a cloud-based information exchange framework. This enabled greater visibility, flexibility and control of its complex global supply chain. Pfizer now has end-to-end shipment traceability across over 40,000 shipments handled on the new cloud platform in just two years. Cloud computing is becoming the new normal for supply chain management by providing benefits like speed, low costs, and a single source of truth accessible anywhere.
Cloud in Supply Chain
- 1. CLOUD IN SCM AMAL DEV M
- 2. CLOUD : PFIZER CASE STUDY Leading companies are building a track record for cloud computing- driven delivery and after over 25 acquisitions in two decades Pfizer needed to re-engineer its complex supply chain to enable greater Pfizer set about transforming its supply chain to “device independence”, by moving to one common cloud- based platform for management of the Pfizer required its 500 suppliers to implement a cloud computing-based, common- information- exchange framework on which each supplier was Pfizer went from zero shipment traceability to a device independent platform that has already handled more than 40,000 shipments in 2 years and Pfizer is now
- 3. CLOUD : THE NEW NORMAL • Coming into 2020, the worldwide public Cloud services market was on track to grow by 17% for a total of $266.4 billion in revenues this year—up from $227.8 billion last year • Breaking the Cloud down into two different segments, software as a service (SaaS) will claim $116 billion of the market in 2020, while Infrastructure-as-a-Service (IaaS) will hit $50 billion • Safe to say, COVID-19 will elevate those numbers even further as companies scramble to find technology that supports more remote, socially-distanced work arrangements • The global SaaS-based SCM market size is valued at $6,317 million in 2020, and is estimated to reach $9,420 million by 2023, growing at a CAGR of 19% from 2021 to 2023 $1,523 $1,834 $2,281 $2,784 $3,313 $3,841 $4,387 $5,264 $6,317 $9,420 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2023 SaaS for SCM market size($m) CAGR 19%
- 4. CLOUD : DIFFERENTIATIOR FOR SCM Volatility Cloud computing facilitates enhanced responsiveness to supply chain disruptions Data Volume By leveraging the surging data volumes, cloud solutions facilitate the actionable insights that make digital supply networks intelligent Digital Technology By moving to the cloud, organizations can operate with increased flexibility and mass-customize their products and services by faster adoption of new age technologies E2E Visibility The connected cloud enables real-time collaboration that makes end-to-end visibility for the supply chain possible
- 5. Connected • Real-time visibility: supply chains become more dynamic, secure and interactive • Seamless collaboration: supply chain capabilities are harmonized beyond physical boundaries • Highly evolved operating models: product/service delivery is exponentially improved to meet customer’s evolving demands Scalable • Maximum efficiency: integration of people, process and technology • Organizational flexibility: digital plug-and play enablers provide natural “configure and re-configure” capabilities • Personalized experiences: channel-centric supply networks help foster individualized products and services CLOUD : IDEAL SUPPLY CHAIN
- 6. Rapid • Enhanced responsiveness: using better information and sophisticated analytics to interpret and react speedily to disruptions, including demand and supply signals • Proactive prevention: decision support, driven by predictive analytics, helps to confirm reliability and rapid adaptability • Last mile postponement: swift repurposing of organizational assets at short notice helps to ensure that supplies always meet changing demands Intelligent • Actionable insights: innovative data analysis supports advanced decision-making • Automated execution: seamless human machine interaction increases operational efficiency • Enhanced, accelerated innovation: digital inspires and supports creative advances in design, personnel, operations and customer relationships
- 7. CLOUD: SCM CONTROL TOWER Solution • Cloud enabled Control tower systems connect trading partners and service providers to create a vibrant, “always on” electronic community • The data network spans the globe and must be capable of integrating with the proprietary systems of hundreds of partners Problem • Supply chains face a common challenge that detailed knowledge of operations is held locally creating silos—organizational, functional and cultural • Undermines effective collaboration between different elements of the supply chain, increasing the likelihood of problems emerging at a late stage, and limiting options for response
- 8. CLOUD : THE BENEFITS Speed • Much faster to deploy than linear on- premise ERP implementations • SaaS-based SCM solutions facilitate rapid demonstration of ROI and avoid long IT project queues • Upgrades can be delivered more timely with limited manpower Single Source of Truth • Enabling a single source of the truth • Accessible anywhere/anytime • Easily shared on a real-time basis • SaaS-based solutions can quickly lead to the connectivity that turns traditional supply chains into supply networks. Cost • Low cost-of-entry for fast-growing companies to build a business case and gain executive buy-in • Reduce the need for substantial upfront capital investment integration and configuration costs • Flexible implementation of SCM capabilities in small and mid-sized companies for rapid growth • Route to experiment with innovation at a lower cost, without long-term commitment Business Value
- 9. CLOUD : THE APPLICATIONS Supply Chain Planning Although levels of adoption in this segment are low, especially in large enterprises, the supply chain planning (SCP) market is expected to grow rapidly as current concerns—such as data security and ERP/cloud integration—are overcome Sourcing & Procurement There are high levels of adoption in this segment, largely because of the rapid implementation, low cost and innovation provided by SaaS solutions Manufacturing On-premise is the dominant software delivery model for manufacturing management. However, there are alternative delivery models for software supporting environmental, health and safety activities, quality management, and business intelligence Logistics Cloud computing is rapidly maturing to support collaborative transportation management solutions (TMS) along with other aspects of transportation management, such as sourcing of network capacity ,
- 10. CLOUD : THE ORGANIZATIONAL IMPACT Value • A value-creation function—which in some cases is an actual responsibility, akin to a program management office—works in concert with the business to assess and realize value from an IT initiative, drive innovation and provide an enhanced level of insight for stakeholders Architecture • To manage complex solution designs that may include combinations of private cloud, managed cloud, virtual private cloud and public cloud, a business architecture capability is required—one that pools resources and provides knowledge across key business functions and delivery needs Delivery • The service delivery environment today is highly complex in part because the architectural environment is more complex—a hybrid of legacy and cloud computing technologies. • In response to that complexity, there is a growing need for management skills outside the traditional sweet spot of IT managers. These skills will need to span service integration, an informed buying capability, contract facilitation and monitoring, and vendor development.
- 11. CLOUD : THE FUTURE • Cloud-based computing applications are expected to transform the PLM market in the medium- term, with these solutions being used to enable field force product support, as well as facilitating Marketing in collecting/analyzing customer data Product Lifecycle Management • New next-generation applications and real time data platforms are coming to market, with the first wave of cloud computing based applications for SCM already available • Processes that used to take hours can now be executed in seconds with in-memory database technology In-Memory Databases • Basic supply chain analytics will increasingly devolve into tactical departmental analytics, while a more strategic usage of supply chain performance management (SCPM) will, over time, replace this with a robust view of supply chain management Analytics
- 12. CLOUD IN SCM : SUMMARY Looking ahead, there are three phases of supply chain modernization ongoing • The first is migration to the Cloud • Followed by process modernization supported by growth technologies such as AI and advanced analytics • Finally, process augmentation, as companies will implement emerging technologies such as hyper-automation to deploy convergent SCM solutions across their global supply chains
- 13. REFERENCES • Paul Taylor, “Pfizer moves supply chain to cloud,” September 11, 2012 (www.ft.com/cms/s/0/1608e5d6-fc59-11e1-ac0f- 00144feabdc0.html?siteedition=uk#axzz31gZIsVem) • Gartner, Forecast: Public Cloud Services, Worldwide, 2012-2018, 2Q14 Update, June 2014 • Accenture and WSP, “Cloud Computing and Sustainability: The Environmental Benefits of Moving to the Cloud”, 2010 • https://www.scmr.com/article/the_ongoing_convergence_of_cloud_and_supply_ch ain_software
- 14. THANK YOU