Article

The Prospects of Cloud Computing in Supply Chain Management (A Theoretical Perspective)

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Abstract

p> Today’s world organizations are searching for ways to minimize the cost and maximize the efficiency of each cycle of their supply chain, such as procurement, manufacturing, and distribution, particularly for those that handle multiple supply chains. Cloud computing technology emerges as an effective tool that, according to some researches, contributes to firms’ effectiveness and competiveness by providing the right infrastructure and business solutions for the entire supply chain via the Internet. This study aims to shed more light on the prospects of cloud computing in supply chain management. More specifically, with focus on cloud computing’s suitability and benefits by offering a thorough review and analysis to previous and current research, including all types of published materials that lead to an adequate answer for the main research problem, as follows: What are the prospects and benefits of cloud computing technology in the supply chain of business organizations? This research method relies solely on secondary data, such as research papers, reference materials, conference proceedings, and all types of reliable data that serve the purpose of this paper. The major conclusion of this study is that; Organizations that work in a more turbulent environment are the ones that feel the effect of the cloud computing technology on their supply chain performance compared to those that work in a more stable business environment. Therefore, the degree of importance of cloud computing adoption varies from one sector to another, therefore, cloud computing—if adopted properly—can improve the supply chain performance in terms of cost, quality, speed, and flexibility. </p

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... Newer technologies such as Cloud Computing offer several advantages over traditional IT models, including faster data transaction speeds, greater elasticity, flexibility, delivery efficacy and increased organisational performance (Marston et al., 2011;S anchez et al., 2012;Jede and Teuteberg, 2016;Liu et al., 2016;Maqueira et al., 2019). Cloud Computing can be applied to most business functions, including logistics (Oliveira et al., 2013;Rai et al., 2015;Al-Jawazneh, 2016). ...
... These systems use various innovative technologies, such as the internet of Things, RFID, Artificial Intelligence, Augmented Reality and Virtual Reality, among others (Yan et al., 2014;Zhong et al., 2015;Botta et al., 2016). The use of Cloud-Supported Logistics could, therefore, result in better business performance (Oliveira et al., 2014;Vermula and Zsifkovits, 2016;Al-Jawazneh, 2016). ...
... Cloud-Supported Logistics could support collaboration between logistics networks and facilitate the planning and optimisation of location data capture, route analysis and statistical forecasting processes (Abdulaziz, 2012;Li et al., 2013;Oliveira et al., 2013;Subramanian et al., 2015). Cloud-Supported Logistics could also support planning and time allocation applications and long-distance control systems (Abdulaziz, 2012;Vermula and Zsifkovits, 2016;Al-Jawazneh, 2016). Thus, Cloud-Supported Logistics could help create flexibility, scalability and speed and so improve the visibility of the company, its processes and its relationship with its logistics partners (Bruque et al., 2015). ...
Article
Purpose With support from the dynamic capabilities theory, this paper examines the role of Cloud Computing technology use in logistics (Cloud-Supported Logistics) and its effect on business results in Lean manufacturing management (Lean Production implementation) and Supply Chain Integration contexts. Design/methodology/approach Using the survey method, a random sample of 260 companies in intermediate positions in their supply chains was gathered from a population of 1,717 Spanish companies and used to test five hypotheses. The data were collected by telephone survey using a computerised system with a response rate of 15.6% (260 valid questionnaires). Structural equation modelling was used to test the five proposed hypotheses. Findings The findings indicate that Cloud-Supported Logistics use plays an important role in achieving better business results in Lean Production environments. Lean Production has been found to have both a direct effect and an even more powerful indirect effect on performance through the Cloud-Supported Logistics and Supply Chain Integration that these technologies produce. Supply Chain Integration is also found to have a mediating effect in the Cloud-Supported Logistics–performance relationship. Originality/value This study is valuable for academics and practitioners as it provides evidence of the relevant role played by Cloud-Supported Logistics in Lean Production implementation contexts. Cloud-Supported Logistics and Lean Production are strategically and operationally linked and their joint use results in Supply Chain Integration and better business performance.
... This provides the cloud computing is handle multiple process and improve the performance of procurement, manufacturing, and distribution systems. Also, the effective and efficient adoption of cloud computing can improve the organizational performance in terms of cost, quality, speed, and adaptability of supply chain firms [5]. Furthermore the cloud computing used as an optimizing technology that contributes to optimize by providing infrastructure, platform and software solutions for the full supply chain systems. ...
... As a result of this it needs critical selection and implementation of the cloud computing systems on manufacturing firm. Thus to enhance efficient business process and apply right infrastructure in the company's entire systems via the internet, appropriate cloud computing systems are adopted [5,41]. In place of a result effective data management systems through cloud computing technologies are essential to resource utilization, operational efficiency, customer centricity, compliance, agile distribution systems, and, the overall success and competitiveness of firm. ...
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Abstract: Cloud computing systems have emerged as a useful technology that contributes to this optimization SCI process by providing infrastructure, platform, and software solutions for the whole supply chain via the internet. But in developing regions like Ethiopia, there's a weak traditional, fragmental, non-integrated, weak, and underdeveloped supply chain process. There’s still space for research on real industrial applications where Ethiopian firms strive for cloud-based integration and implement new models and integration strategies practices in their supply chains. Thus, this study is designed to investigate the impacts of cloud computing technology on the supply chain integration process to improve the performance and comparative advantage of manufacturing industries in general, and the Ethiopian basic metal industry in particular. Using primary and literature survey data, the study has been carried-out through SPSS correlation and regression analysis methods. The study shows that the adoption and utilization of cloud-based services in supply chain integration leads to improvements in both the performance and competitiveness of the firm at regional and global levels. In particular, the cloud-based supply chain integration strategies provide enhanced resource utilization, reduce the constraints on information flow in the firm, increase product and service visibility, and create flexibility within systems within supply chain partners, and manufacturing industries as a whole. According to these investigations, cloud computing has a great impact on supply chain integrations so as to improve the performance and comparative advantage of the firm. Thus, effective and efficient utilization of cloud-based supply chain integrations has a higher positive impact on firm performance and competitiveness. Furthermore, this study demonstrates that data privacy, information risk, security issues, cloud architecture, process customization, and trust among collaborators must be prioritized for long-term supply chain systems and joint ventures in cloud-based supply chain integration. Keywords: Supply Chain Integration, Cloud Computing, Comparative Advantage, Supply Chain Security, Manufacturing Performance
... This provides the cloud computing is handle multiple process and improve the performance of procurement, manufacturing, and distribution systems. Also, the effective and efficient adoption of cloud computing can improve the organizational performance in terms of cost, quality, speed, and adaptability of supply chain firms [5]. Furthermore the cloud computing used as an optimizing technology that contributes to optimize by providing infrastructure, platform and software solutions for the full supply chain systems. ...
... As a result of this it needs critical selection and implementation of the cloud computing systems on manufacturing firm. Thus to enhance efficient business process and apply right infrastructure in the company's entire systems via the internet, appropriate cloud computing systems are adopted [5,41]. In place of a result effective data management systems through cloud computing technologies are essential to resource utilization, operational efficiency, customer centricity, compliance, agile distribution systems, and, the overall success and competitiveness of firm. ...
Article
Full-text available
Cloud computing systems have emerged as a useful technology that contributes to this optimization SCI process by providing infrastructure, platform, and software solutions for the whole supply chain via the internet. But in developing regions like Ethiopia, there's a weak traditional, fragmental, non-integrated, weak, and underdeveloped supply chain process. There's still space for research on real industrial applications where Ethiopian firms strive for cloud-based integration and implement new models and integration strategies practices in their supply chains. Thus, this study is designed to investigate the impacts of cloud computing technology on the supply chain integration process to improve the performance and comparative advantage of manufacturing industries in general, and the Ethiopian basic metal industry in particular. Using primary and literature survey data, the study has been carried-out through SPSS correlation and regression analysis methods. The study shows that the adoption and utilization of cloud-based services in supply chain integration leads to improvements in both the performance and competitiveness of the firm at regional and global levels. In particular, the cloud-based supply chain integration strategies provide enhanced resource utilization, reduce the constraints on information flow in the firm, increase product and service visibility, and create flexibility within systems within supply chain partners, and manufacturing industries as a whole. According to these investigations, cloud computing has a great impact on supply chain integrations so as to improve the performance and comparative advantage of the firm. Thus, effective and efficient utilization of cloud-based supply chain integrations has a higher positive impact on firm performance and competitiveness. Furthermore, this study demonstrates that data privacy, information risk, security issues, cloud architecture, process customization, and trust among collaborators must be prioritized for long-term supply chain systems and joint ventures in cloud-based supply chain integration.
... Logistics companies get enormous benefits with saving costs, time, and efforts on establishing their own IT infrastructure by applying cloud computing in supply chain management, [1]. Cloud computing technology emerges as an effective tool that, according to some research, contributes to firms' effectiveness and competitiveness by providing the right infrastructure and business solutions for the entire supply chain via the Internet, [2]. . Therefore, the more integrated the flow of data between customers and suppliers, the easier it becomes to balance supply and demand across the entire network (Ali Sayed, 2012). ...
Article
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The logistics and supply chain sector find itself at a critical inflexion point, with mounting pressures to enhance efficiency, increase cost competitiveness and serve the dynamic needs of consumers. To aid such goals, technologies of cloud computing combined with artificial intelligence (AI) come into play. Scalable resources, real-time data access (SaaS), and collaboration offer a superior environment for consolidation, better communication between departments and resource integration across business operations. Further, AI with sophisticated techniques of machine learning have ability to analyze large data sets which enables businesses to automate certain tasks while minimizing certain operations apart from providing predictions. This paper dwells on how cloud computing combined with AI can help in transformation of logistics supply chain management. How businesses across the verticals are leveraging these technologies to improve operations and providing a beacon for technological advancements in their growth. Furthermore, how cloud and AI integration can help industry and gain competitive edge in a rapidly evolving market to foster a more agile, resilient customer centric ecosystem. By adopting such technologies, businesses can navigate through the complexities of modern logistics and supply chain challenges and stay relevant in this hyper competitive digital landscape.
... In reality, as clients with less computational limit can just associate with the cloud in the way considered by the special organizations, they inactively consume content and different administrations instead of producing substance themselves. Access of administrations turns into the standard, and spilling assumes control as the prevailing descriptor of client conduct [24,25,26]. Because the absence of interoperability between frameworks, once they have been sent out into the cloud, individual data and client produced substance will be hard to exchange starting with one framework to the next -along these lines considered the specialist co-op to direct terms of engagement in a way that was up to this time outlandish on an open web. ...
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Portable and mobile devices are one of the most expedient sources accessible that can give the latest update regarding events happening around humans and machines altogether in a convenient way despite the location of users which can be stationary as well as in motion. In addition, what we need and what information is required can be downloaded quickly on these mobile devices from anywhere. While mobile devices not only the source of communication but also used for other purposes such as data processing, computers, uploading, downloading video and audio files. Given the storage capacity of these devices and the data load in performing several tasks, the blocking problem is clearly expected. At hand is a prerequisite outside help to improve the situation and platform for cloud computing proposals in this environment, But it is actually problematic to ought to right to use these platforms easily. Now, arises a need that somehow has to find the mobile devices actually can access the cloud computing display place and also must be guaranteed access anywhere, anytime. The virtual cloud computing platform is basically alone a means that could be useful because of the ubiquity of mobile devices. This document is an effort to describe and jotting down their association and ubiquitous cloud computing in addition to what means to get benefited from the creation of the IT platform in the virtual cloud. In this paper, various pervasive and cloud computing challenges and techniques are discussed in detail. Certain available techniques are considered along with the comparison among each other to identify the better option for adoption.
... In reality, as clients with less computational limit can just associate with the cloud in the way considered by the special organizations, they inactively consume content and different administrations instead of producing substance themselves. Access of administrations turns into the standard, and spilling assumes control as the prevailing descriptor of client conduct [24,25,26]. Because the absence of interoperability between frameworks, once they have been sent out into the cloud, individual data and client produced substance will be hard to exchange starting with one framework to the next -along these lines considered the specialist co-op to direct terms of engagement in a way that was up to this time outlandish on an open web. ...
... With Web 3.0 technology, cloud computing has changed the way business model and operation management was operated in the manufacturing sector by the digital transformation [1]. With this technology shift, cloud-based manufacturing was developed to enclose cloud computing, virtualization, and the Internet of things (IoT) for these operations to increase productivity and decrease costs [2]. ...
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Cloud manufacturing has emerged as a breakthrough of IT services, including the internet of things (IoT) and artificial intelligence (AI) for business processes in the manufacturing sector. It has also brought the need to complete the integrated business processes such as an integrated supply chain, inventory management, and production for utilizing this technology. In this context, IT decision-makers attempt to develop a cloud-based manufacturing model for downloading, configuring, and maintaining machinery from cloud providers that enables the top managers just to focus on their product in business. The research aims to build for monitoring the differences between cloud manufacturing adopters and non-adopters to understand the behavioral intention by monitoring the Diffusion of Innovation (DOI) theory and the Technological, Organizational, and Environmental (TOE) theory of cloud manufacturing adoption. An independent t-test sample was used to analyze data. 19 manufacturing cloud adopters and 19 non-cloud adopters were selected to analyze data via SPSS 26.0 in Turkey. The results exhibited that manufacturing cloud adopters and non-cloud adopters considered the same for relative advantage, cost-saving, competitive pressure, and regulatory support. However, they found differences in security concerns, compatibility, complexity, technological readiness, and top management support. The study brought an outlook for understanding the benefits, drawbacks, and hinders of cloud manufacturing of manufacturers. This will enable comprehensive information for cloud providers to offer appropriate integrated software according to manufacturers’ needs of the production.
... Además, CC posibilita la integración de procesos con costes más bajos, con un menor tiempo de despliegue, aumentando la velocidad de respuesta en los procesos y fomentando la innovación (Vermula y Zsifkovits, 2016). Varios de los impactos ejercidos por CC en la CS pueden tener una relación positiva con la integración de los procesos y actividades de la CS, tales como la escalabilidad y flexibilidad de operaciones y procesos (Berman et al., 2012;Kshetri, 2010;Xu, 2012;Durowoju et al., 2011;Lal y Bharadwaj, 2016;Al-jawazneh, 2016), la agilidad y adaptación a los cambios (Adjei, 2015;Vickery et al., 2010;Vermula y Zsifkovits, 2016;Dhar, 2012;Lal y Bharadwaj, 2016), la coordinación a través de servidores de CC (Jede y Teuteberg, 2015;Autry et al., 2010;Liu et al., 2010) y la planificación de la CS (Leukel et al., 2011;Jede y Teuteberg, 2015;Cegielski et al., 2012). ...
Conference Paper
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... Esto ocurre porque CC puede ser aplicada en la producción, planificación, abastecimiento, servicios de gestión de repuestos, o gestión de ventas, optimizando así las capacidades de cadena de abastecimiento (Vermula y Zsifkovits, 2016;Rai et al., 2015). Además, varios de los impactos ejercidos por CC pueden tener una relación positiva con la OCA, tales como la escalabilidad y flexibilidad de operaciones y procesos ( Berman et al., 2012;Kshetri, 2010;Xu, 2012;Durowoju et al., 2011;Lal y Bharadwaj, 2016;Al-jawazneh, 2016), la agilidad y adaptación a los cambios ( Adjei, 2015;Vickery et al., 2010;Vermula y Zsifkovits, 2016;Dhar, 2012;Lal y Bharadwaj, 2016) y la planificación de la cadena de abastecimento ( Leukel et al., 2011;Jede y Teuteberg, 2015;Cegielski et al., 2012). ...
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This study was funded in part by a research grant provided by Ernst & Young LLP Center for Business Knowledge, which was administered by Jeffrey Pratt and LeAnne Gershkowitz. The authors appreciate and acknowledge the help and support of Ernst & Young LLP Global Supply Chain Network and especially the guidance and assistance of Christopher Gopal and Gene Tyndall. Note: This paper was subsequently published in International Journal of Physical Distribution & Logistics Management, Volume 28 Number 8, 1998.
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(This article originally appeared in Management Science, April 1997, Volume 43, Number 4, pp. 546–558, published by The Institute of Management Sciences.) Consider a series of companies in a supply chain, each of whom orders from its immediate upstream member. In this setting, inbound orders from a downstream member serve as a valuable informational input to upstream production and inventory decisions. This paper claims that the information transferred in the form of “orders” tends to be distorted and can misguide upstream members in their inventory and production decisions. In particular, the variance of orders may be larger than that of sales, and distortion tends to increase as one moves upstream—a phenomenon termed “bullwhip effect.” This paper analyzes four sources of the bullwhip effect: demand signal processing, rationing game, order batching, and price variations. Actions that can be taken to mitigate the detrimental impact of this distortion are also discussed.
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  • I Foster
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Foster, I., Zhao, Y., Raicu, I., & Lu, S. (2008). Cloud computing and grid computing 360-degree compared. 2008 Grid Computing Environments Workshop. GCE'08 (pp. 1-10).
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