Supply Chains IT decisions
Like all technologies, Cloud computing services have good and not so good features. However, the common perception is that operating within a Cloud environment is always cheaper than the same functions undertaken on-premises. But this is only correct under certain conditions.
Although IT decisions in organisations are typically driven by the IT department, about 70 percent of corporate data is generated or used by the Supply Chains group (Procurement, Operations Planning and Logistics), therefore this group should have a seat at the IT decision table. This is important because some forecasts estimate that by 2025, nearly fifty percent of IT applications designed for supply chains will be implemented in the Cloud.
Supply Chain professionals will therefore be involved in the decision, but from a different perspective. The IT department is interested in the time to achieve a return on investment (ROI); the ease to increase scale and software update regime. For Supply Chains professionals they need to know about data storage, bandwidth available and support.
Also, as Cloud costs vary by use, volumes of data will need to be forecast for specific applications, to account for surges events such as seasonal and holiday demands. Who will be responsible for (and signs off) data forecasts for supply chains? When and how and by whom will the analysis work be done?