Question:

How can the supply chain benefit from a cloud-based infrastructure? What are some of the cons of cloud-based computing and how can those be overcome? Should all organizations implement a cloud-based infrastructure? Why or why not? Provide an example of an organization currently using the SAP cloud for some of its logistics or supply chain function.

Agree or Disagree?

The supply chain has many benefits that arise from a cloud based infrastructure. The cloud contains services like applications, storage, and software that can be used "on demand" without requiring physical hardware at the usage point. Some benefits is using cloud based services Include better integration and collaboration, scalability, transparency, automated procurement, low cost , and less financial risks (Eletrnico, 2022). More and more businesses are starting to use cloud in their supply chain. One of the biggest company cloud users that has implemented in their supply chain and is a vendor is Amazon. Some of the most common usage of the cloud daily is application based. If you have an iPhone you are likely using cloud service to store the contents of your phone. If you are using Microsoft through your schools email, this would be considered a cloud based application. However, as beneficial as a cloud based infrastructure is, it also comes with cons. Since the cloud is owned by service providers you have a limited control, it relies heavily on Internet, requiring good connection speeds, a slower restoration in data and backups, and limited flexibility (Singh, 2022). Although technical control is limited, businesses still have options to choose what type of licensing they may agree to. So choosing a vendor that is reliable, safe, and secure would be a first step in researching who to use to support your closed data. While some backups and restoring may take long, with faster Internet connection, this can assist with faster uploading and downloading of data. In most cases businesses and individuals carry a lot of files, and this is something that just "comes with the territory" of data movement. Also, although the cloud is Internet reliant, most businesses if not all, already rely on the Internet, so this won't be as much as a deal breaker when it comes to doing business. There are some times where Internet outages happen, but its a rare event. Since the cloud holds data through third party companies not all businesses should use the cloud for everything. Some data that is considered confidential and only on a need to know basis like government material should not rely on cloud based data storage. This could be a potential hacking risk. Also hospitals with patient information should not rely on third party cloud services that will also have the potential to risk patient data (Catlett, 2013). In all, overtime it is likely more and more businesses will migrate to cloud based services for accessibility, transparency, and easy communication between different parts of the logistic realm in order to take advantage of all the benefits mentioned above.