News | August 2nd, 2018
Cloud or on-premise software: which one is better for your business?
The use of information systems in the logistics industry continues to increase every year. Businesses today abandon software installation on local hardware because they are subscribing to software that they can access with any web browser through cloud deployment. Cloud-based software is less costly than on-premise systems. Cloud technologies also help businesses reduce IT costs like hardware and support staff.
It is very important for the managers to plan the logistics processes and to pour these plans into the data. Loss of such important data as a result of any mistake or not being able to act on time can cause disruptions in the business process.
Cloud computing technology is, therefore, a very important technology for logistics / supply chain.
First of all, let’s look at what cloud computing is basically and how it works.
With cloud computing technology, large data sets have become stored and accessible over the internet. Cloud computing is the process of storing data that we store on our hard disks on virtual servers in the internet environment.
That means your computer, which stores your personal and professional information, becomes a device that only allows you to connect to the Internet. All your office programs, your files, your images, your calendar, your personal information, in short, the computer’s memory starts to hide in the cloud.
Thus, you can handle your business by accessing this information and programs from any device and anywhere you can connect to the internet.
In the logistics industry where many processes such as transportation, warehousing, distribution, vehicle tracking and finance are managed at the same time, you can reduce your costs by half due to cloud computing. In addition to the cost advantage, you are also able to make many of the controls you need to perform at the same time easier.
You can get a cost advantage of up to 50% in logistics
When we evaluate quickly with a general overview, we see that on premise investments are;
– increasing the instant workload,
– bringing a lot of cost on the enterprises due to the change in seasonal work intensity and the low profit margins,
– being too slow and late to meet instant customer needs, and
– becoming a frustrating dream of logistics companies, due to the 99.999% SLA expected from logistics companies in recent years.
Now, let’s look at the benefits and advantages of cloud-based logistics technology in just three basic chapters:
1- Cloud technology has a better resource management capability in the logistics industry.
There is no need for a different desktop to handle resources; it is possible to manage the process with internet access and a single browser.
2- Your basic cost planning is easier to prepare.
Because you can manage your cloud supply chain in real time, order processing, storage, inventory management, shipping and general pricing are both more scalable and cheaper.
3- Your quality assessment becomes more efficient.
Cloud-based logistics assesses the company’s ability to realize more realistically. Standards are captured more easily by controlling each stage of the process faster and better. It is easy to identify quality violations and solving problems requires less effort and less money.
As Simply Deliver, we are pleased to provide 24/7 robust, reliable and fast service to logistics companies with our cloud infrastructure based in The Netherlands. We integrate cloud technology in a sector-compatible manner and help your business move more securely in its operations.
Osman Akdemir
Founder, Simply Deliver
