Cloud computing in logistic and Supply Chain Management environment

Abstract

Today in the era of digitalization Cloud computing is the cornerstone of modern business models in every industry. Cloud computing is a high-tech platform that will facilitate companies or organizations to manage and host their services without worrying about the stability and security of information telecommunication. Rapid driving technological changes are unstopped process in this Industry 4.0. world. Cloud computing is a trend with enormous implications. Cloud computing provides access to large-scale remote resources in a very efficient and quick manner, with huge potential to adapted and dramatically changed business models in line with current needs and requirements. Despite all the benefits of digital technology, the loss of data and security is the primary concern for companies, which are boosting companies from moving to the cloud entirely. Cloud technologies allow companies to quickly adopt emerging technologies like augmented reality, stability, security, advanced mobile apps, and advanced analytics. Their application is becoming ubiquitous and standardized in the logistics and Supply chain management sector. The logistics industry is characterized by many parties collaboration, where actors that must be integrated and synchronized along the supply chain. 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. In this digital transformation, the cloud computing has a key role, it becomes the catalyst for this transformation. Cloud computing, as one of the forces for digitalization, can foster collaboration among the parties in a supply chain, can promote innovation and embed it into organizations, and enable new competitors to enter the market with innovative offers. This makes the usage of cloud computing a very promising issue in global market competitional condition.

Full text

2021

The Journal of Economics ISSN 1857-9973 is an international, open access, peer reviewed, online journal. The
journal focuses on the following areas of publication: Economics (Microeconomics, Macroeconomics, International
Economics), Banking and Finance, Accounting and Auditing, Management and Business, Entrepreneurship and
Marketing.
It provides an academic platform for professionals and researchers to contribute innovative work in the field. Journal
of Economics carries original and full-length articles that reflect the latest research and developments in both
theoretical and practical aspects of economics,finance, business and management.
Organizational Board
Riste Temjanovski, Goce Delcev University, Faculty of Economics, North Macedonia- President
Janka Dimitrova, University "Goce Delchev", Faculty of Economics, North Macedonia - Member
Elenica Sofijanova, University "Goce Delchev", Faculty of Economics, North Macedonia - Member
Olivera Gjorgieva-Trajkovska, University "Goce Delchev", Faculty of Economics, North Macedonia -
Member
Tamara Jovanov-Apasieva, University "Goce Delchev", Faculty of Economics, North Macedonia -
Member
Mila Mitreva, University "Goce Delchev", Faculty of Economics, North Macedonia - Member
International Editorial Board
Dr Suzana Stefanovic, University of Nis, Faculty of Economics, Nis, Serbia, Serbia and Montenegro
Dr Jovo Ateljevic, University of Banja Luka, Faculty of Economics, Republika Srpska, Bosnia and
Herzegovina, Bosnia and Herzegovina
Dr Hristo Georgiev Sirashky, Academia "Dimitar Acenov" Faculty of management and marketing -
Svishtov, R.Bulgaria, Bulgaria
Dr Alexander Petrov Ganchev, Dimitar A. Tsenov Academy of Economics, Svishtov, Bulgaria
Dr Nikolas Hourvouliades, The American College of Thessaloniki, Greece, Greece
Dr Milenko Popovic, Mediterranean University, Serbia and Montenegro
Dr Mehmet Huseyin Bilgin, Istanbul Medeniyet University, Turkey
Dr Riste Temjanovski, "Goce Delcev" University – Stip, North Macedonia
Dr Janka Dimitrova, University "Goce Delchev", Faculty of Economics, North Macedonia
Dr Elenica Sofijanova, University "Goce Delchev", Faculty of Economics, North Macedonia
Principal Contact
Riste Temjanovski, PhD
"Goce Delcev" University
Phone +38932550335
riste.temjanovski@ugd.edu.mk
Support Contact
Janka Dimitrova, PhD
Phone +38932550332
janka.dimitrova@ugd.edu.mk

Journal of Economics, 6 (1) 2021 ISSN 1857-9973
Contents
Title
Page
1
Financial Contagion and Volatility Spillover: an exploration into Bitcoin Future
and FOREX Future Markets
UDC 336.746:004.91.056.55]:336.76}:303.725.3(100)”2017/2019”
Konstantinos Tsiaras
1-12
2
The Impact and the Potential Disruption of the Blockchain Technology on
Marketing
UDC 658.8:004.031.4
Zlatko Bezovski1, Tamara Jovanov Apasieva2, Riste Temjanovski3
13-22
3
Cloud computing in logistic and Supply Chain Management environment
UDC 004.75:004.455]:658.86/.87
Riste Temjanovski,1 Zlatko Bezovski,2 Tamara Jovanov Apasieva3
23-32
4
Benefits of using CRM (Customer Relationship Management) by Accounting
Services Providers
UDC 005.42:658.89]:657:658.64
Dushko Kocev
33-44
5
Economic Aspects of Public Debt
UDC 336.27.01
330.34/.35:336.27
Stevan Gaber1, Ilija Gruevski2
45-53
6
Spc technigues in the non – manufacturing areas
UDC 005.6:303.71]:658.5/.7
Elenica Sofijanova,1 Goran Mitev,2
54-64
7
Multilevel Perspective of Human Capital Resources: Recent Debates on
Construct Clarification and its Measurement
UDC 331.101.262.01
Vesna Zabijakin Chatleska1
65-75
8
Basic Time Series Models in Financial Forecasting
UDC 658.14/.17-021.57:303.733.3
Ilija Gruevski1, Stevan Gaber2
76-89
9
The effects of the globalization process on developing countries
UDC 339.5/.9-027.511(100-773)
Vlatko Paceskoski1 , Krume Nikoloski 2
90-97

23
Cloud computing in logistic and Supply Chain
Management environment
ISSN 1857-9973 UDC 004.75:004.455]:658.86/.87
Riste Temjanovski,1 Zlatko Bezovski,2 Tamara Jovanov
Apasieva3
1 University Goce Delcev Stip, Faculty of Economics, riste.temjanovski@ugd.edu.mk
2University Goce Delcev Stip, Faculty of Economics, zlatko.bezovski@ugd.edu.mk
3 University Goce Delcev Stip, Faculty of Economics, tamara.jovanov@ugd.edu.mk
Abstract
Today in the era of digitalization Cloud computing is the cornerstone of modern
business models in every industry. Cloud computing is a high-tech platform that will
facilitate companies or organizations to manage and host their services without
worrying about the stability and security of information telecommunication. Rapid
driving technological changes are unstopped process in this Industry 4.0. world. Cloud
computing is a trend with enormous implications. Cloud computing provides access to
large-scale remote resources in a very efficient and quick manner, with huge potential
to adapted and dramatically changed business models in line with current needs and
requirements.
Despite all the benefits of digital technology, the loss of data and security is the primary
concern for companies, which are boosting companies from moving to the cloud
entirely. Cloud technologies allow companies to quickly adopt emerging technologies
like augmented reality, stability, security, advanced mobile apps, and advanced
analytics.
Their application is becoming ubiquitous and standardized in the logistics and Supply
chain management sector. The logistics industry is characterized by many parties
collaboration, where actors that must be integrated and synchronized along the supply
chain. 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. In this digital transformation, the cloud computing has a key role, it
becomes the catalyst for this transformation. Cloud computing, as one of the forces for
digitalization, can foster collaboration among the parties in a supply chain, can promote
innovation and embed it into organizations, and enable new competitors to enter the
market with innovative offers. This makes the usage of cloud computing a very
promising issue in global market competitional condition.
Keyword
Cloud computing, Digitalisation Environment, Logistic, Supply chain management,
Distribution channels

24
1. Introduction
We are living in a world in continuous evolution, where all companies need to drive their activity
to new forms of technology. Digital transformation of the global world imposed the need for
structural business change. Therefore, Cloud Computing is the ubiquitous appearance within
the rapid transformation of business models in almost all industries and is an integral part of
the business environment. Cloud computing in combination with machine learning, IoT,
blockchain technologies, it can bring even more opportunities for logistic and supply chains
environment. Limited resources and increased customer demand can be catalysts for cloud
adoption. 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. In this digital transformation, the cloud computing has a key role, it becomes the
catalyst for this transformation. While from one hand the IT infrastructure needs to be
reachable within a short time in the case of an emergency, from the other it should not waste
resources during normal operation. The use of cloud computing with its elasticity ensures that
costs are held low, the quality is raised, and the time of distribution is on acceptable capacity.
This is a typical advantage of cloud computing: fast access to services and infrastructure when
needed without prior large investments.
Nowadays every company measures their performance through customer experience, a cloud-
enabled and cloud-delivered business model supports organizations to adopt newer channels
to offer high-level customer experience by differentiating its strategy and solutions over the
current market competitors.
2. Cloud Computing as vital force to digital business transformation
Without a well-developed transport, logistics and supply chain management system, well-
configured IT infrastructure, quality and professionally trained and motivating staff not all the
benefits of a country's economic policy can be guaranteed. Only a planned and organized
transport system can provide better logistics efficiency, reduce operating costs, and promote
the quality of services, and thus greater competitiveness in global markets. Improving transport
systems strengthens the public and private sectors. A well-managed logistics system can
significantly increase and strengthen the competitiveness of public enterprises and private
companies. Companies’ efficiencies and transformation in on-going global processes and
implementation of high-tech are imperative toward better market position. Those new
technological models as well as Cloud computing system has become a new standardize norm
across dynamic industries such as the logistics sector.
Innovation, especially technological innovation over the last decades, has led to significant
productivity improvement and, thus, to economic growth increasing trade volumes and
associated logistics activity.[1] In order to be competitive, and to bring an added value to the
company, each company should embrace the digital transformation process when required, to
upgrade their old IT infrastructure into a new one. Beyond adopting cloud solutions, a company
should integrate new forms of technologies that speed up, automate and improve business,
such as Artificial Intelligence, Machine Learning, Big Data Analytics, and the Internet of Things
(IoT), etc. Considering that these technologies require heavy computational power and storage
space, Cloud Computing comes as a solution to integrate these technologies.[2]
Today in the digitalization era the logistics industry has plenty of potential to be transformed
and cloud computing is an important factor. Increasing demands from customers, pressure on
prices, fuel costs, ecommerce, and environmental awareness among others have raised the
bar by which logistic activities are measured.

25
Without a well-developed transport, logistics and supply chain management system, well-
configured IT infrastructure, quality and professionally trained and motivating staff not all the
benefits of a country's economic policy can be guaranteed, pointed out Gomez, Grand and
Grivas. [3]
They indicated that the logistics industry can also profit from these innovations, however, it is
marked by the large number of involved parties along the supply chain which brings new
challenges of integration. Although many standards such as container sizes, the Serial
Shipping Container Code or the electronic data interchange (EDI) have been established, the
industry procedures remain very heterogeneous. Cloud computing, as one of the forces for
digitalization, can foster collaboration among the parties in a supply chain, can promote
innovation and embed it into organizations, and enable new competitors to enter the market
with innovative offers.
Figure 1 Cloud Computing Environment in market conditions
Source: Zagorulko A.: Logistics and Supply Chain in the Cloud: Capabilities and Migration Strategies.
Intellias: Inteligent software Engineering. [4]
Cloud environments, which are known for their flexibility, noted Zagorulko [5] is enabler of
previously untapped business models. Logistics as a service (LaaS) is one of them. With LaaS,
customers can use only necessary parts of cloud based supply chain solutions or access only
critical parts of the supply chain via customizable modules within a cloud based logistics
platform. Logistics providers, in turn, get a scalable infrastructure with advanced capabilities
for managing cloud computing in supply chains without traditional on-premises development,
setup, and maintenance, saving money compared to running one’s own IT infrastructure.
Digital connectivity is a vital force and strengthens the economic cohesion of companies for
more stable competition in the global market. These aspects are key elements for the
development of cloud computing platforms of companies in the logistics sector. It aims to offer
high quality digital infrastructure, combined with all transport models that will enable optimal
use of existing facilities. Undoubtedly, such an approach will be maximized with some national,
regional and global support through clearly defined standardized norms. Furthermore,
standardized and automated processes may not be enough. Such digital processes require a
comprehensive and thorough transformation using new insights and thinking from important
institutional bodies, to use all available new technology to create new opportunities and tackle
problems that the industry may not have enough of.

26
Last year, digital business transformation has entered a more challenging and urgency-driven
phase due to the COVID-19 pandemic. Global giants are obliged to providing customers with
cost-effective and productive digital solutions as every industry is economically hard-hit from
the pandemic. The sudden shutdowns of offices, schools, and enterprises have increased the
demand for cloud solutions and services. According to GlobeNewswire report, [6] the global
cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1
billion by 2025, at a Compound Annual Growth Rate (CAGR) of 17.5% during the forecast
period.
Cloud computing will be continued with their attractiveness to business owners as it eliminates
physical obstacles of working processes due COVID-19 19 pandemic. Further, the forecast
will go-on to greater adoption of cloud services to replace conventional apps, platforms, and
business services. Trends like the internet of everything, something that cloud computing offer
in every business, where things start to communicate directly with each other and become
autonomous, will be imperative forthcoming period and new levels of automated processes.
3. Cloud computing system and distributing ecosystem
In the future strategic projections of the companies, a new type of technology called "cloud"
computers stands out. Cloud computing systems are a model of computer systems in which
companies and individuals receive power and software applications over the Internet, rather
than buying hardware or software and installing it on their computers. Cloud computing is
currently the fastest growing form of computing.
According to Glöckner and Franczyk [7] Cloud Logistics is a model, based on and inspired by
the paradigm of cloud computing, for enabling ubiquitous, convenient, on-demand network
access to a shared pool of configurable and virtualized logistics resources (e.g. means of
transportation from different modes of transport, warehouses, domain-specific knowledge,
logistics applications, and services) that can be rapidly provisioned and released with minimal
management effort or service provider interaction. This cloud model is composed of the five
essential characteristics of cloud computing (on-demand self-service, broad network access,
resource pooling, rapid elasticity, measured service) but is adjusted in consequence of
logistics’ more physical character. This comprises: a location dependency of services, the need
of knowledge about that current location as well as a lower elasticity due to slower allocation
of physical resource.
The idea of cloud computing was envisioned even before Internet was created. The first
scholarly use of the term “cloud computing” was in a 1997 lecture by Ramnath Chellappa [8]
whereas he advised that cloud computing is going to be a “new computing paradigm where
the boundaries of computing will be determined by economic rationale rather than technical
limits alone”. The first practical implementation of cloud was by Salesforce.com where it
became the first enterprise-level application provider by offering its services through Internet.
According to the National Institute of Standards and Technology (NIST) [9] Cloud computing
is a model for enabling convenient, on-demand network access to a shared pool of
configurable computing resources (e.g., networks, servers, storage, applications, and
services) that can be rapidly provisioned and released with minimal management effort or
service provider interaction.
The authors Peter Mell and Timothy Grance of the National Institute of Standards and
Technology (NIST) [10] define the notion Cloud computing as a model for enabling ubiquitous,
convenient, on-demand network access to a shared pool of configurable computing resources
(e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned
and released with minimal management effort or service provider interaction. This cloud model
is composed of five essential characteristics, three service models, and four deployment
models.

27
Table 2 Structure of cloud model according NIST
Essential
Characteristics:
On-demand
self-service.
A consumer can unilaterally provision computing
capabilities, such as server time and network storage, as
needed automatically without requiring human
interaction with each service provider
Broad
network
access
Capabilities are available over the network and
accessed through standard mechanisms that promote
use by heterogeneous thin or thick client platforms (e.g.,
mobile phones, tablets, laptops, and workstations).
Resource
pooling
The provider’s computing resources are pooled to serve
multiple consumers using a multi-tenant model, with
different physical and virtual resources dynamically
assigned and reassigned according to consumer
demand.
Rapid
elasticity.
Capabilities can be elastically provisioned and released,
in some cases automatically, to scale rapidly outward
and inward commensurate with demand.
Measured
service
Cloud systems automatically control and optimize
resource use by leveraging a metering capability at
some level of abstraction appropriate to the type of
service (e.g., storage, processing, bandwidth, and active
user accounts)
Service Models:
Software as
a Service
(SaaS).
The capability provided to the consumer is to use the
provider’s applications running on a cloud infrastructure
. The applications are accessible from various client
devices through either a thin client interface, such as a
web browser (e.g., web-based email), or a program
interface.
Platform as a
Service
(PaaS).
The capability provided to the consumer is to deploy
onto the cloud infrastructure consumer-created or
acquired applications created using programming
languages, libraries, services, and tools supported by
the provider.
Infrastructure
as a Service
(IaaS).
The capability provided to the consumer is to provision
processing, storage, networks, and other fundamental
computing resources where the consumer is able to
deploy and run arbitrary software, which can include
operating systems and applications.
Deployment
Models:
Private
cloud.
The cloud infrastructure is provisioned for exclusive use
by a single organization comprising multiple consumers
(e.g., business units). It may be owned, managed, and
operated by the organization, a third party, or some
combination of them, and it may exist on or off premises.
Community
cloud.
The cloud infrastructure is provisioned for exclusive use
by a specific community of consumers from
organizations that have shared concerns (e.g., mission,
security requirements, policy, and compliance
considerations). It may be owned, managed, and
operated by one or more of the organizations in the
community, a third party, or some combination of them,
and it may exist on or off premises

28
Public cloud
The cloud infrastructure is provisioned for open use by
the general public. It may be owned, managed, and
operated by a business, academic, or government
organization, or some combination of them. It exists on
the premises of the cloud provider
Hybrid cloud
The cloud infrastructure is a composition of two or more
distinct cloud infrastructures (private, community, or
public) that remain unique entities, but are bound
together by standardized or proprietary technology that
enables data and application portability (e.g., cloud
bursting for load balancing between clouds).
Source: Mell P., Grance T.: The NIST Definition of Cloud Computing: Recommendations of
the National Institute of Standards and Technology. NIST: Special Publication 800-145, 2011
Cloud computing system enable the creation of new markets and provide communication
between resources and demand. As a result, companies and individuals around the world can
participate in innovation, wealth creation and social connectivity in ways previously unknown.
Cloud computers provide software applications, access, storage and data management
without requiring users to know location information and other details of the computer
infrastructure. Working "on the cloud" is not a short-term phenomenon, but a permanent trend.
Thanks to this model, the economy is expected to be more efficient, to provide more room for
maneuver and to use the most modern and secure software at a much more favorable price.
For users, this means that they will only need internet access, where all their data will be
stored.
Distributed systems have incorporated many systems and new technologies that are
compatible with collaboration tools for optimizing processes. More and more companies are
opting for an on-demand service model based on the cloud computing paradigm to transform
their costs of infrastructure investment into variable costs. This change in the economic model
is having an important impact on the companies’ cost of accessing technology.
According to Rauch et all.[11] next essential components of collaborative cloud manufacturing
(CCM) are cloud computing and the concept of cloud manufacturing. The idea of “cloud
manufacturing” is currently raising high expectations for the still-visionary value concept. In the
future, industrial production changes in the medium and long term through the wider use of
advanced manufacturing technologies by no longer selling the physical product but only the
product data. The transport of products could be replaced in the future via the data transfer of
product data according to visionary approaches. The products could then be manufactured
and assembled in distributed networks of small factories with highly adaptive and changeable
manufacturing systems and qualified staff for final assembling and finishing. Essential
elements for realizing cloud manufacturing are digitalized manufacturing technologies,
cyberphysical production systems, cloud computing, Internet of Things, semantic web, and
high-performance computing.
Benefits of Cloud-computing in supply chain management
Adam Robinson [12] recommends a clear solution proposition to compare advantages of
cloud-based Supply Chain Management Solution over the traditional model of manual
inventory analysis combined with local area purchasing. Most notably, the Cloud solution will
typically be more affordable, more efficient, safer thanks to redundant systems, infinitely
scalable, and easier to integrate with existing systems than localized software. Cloud
architectures provide unlimited resources that can support big data management and

29
exploitation. The essential characteristics of the cloud computing lie in on-demand self-service,
broad network access, resource pooling, rapid elasticity and measured services (Mell and
Grance, 2011). [13] These characteristics make it possible to design and implement services
to deal with big data management and exploitation using cloud resources to support
applications such as ITS.
His focus on clarifying these principles is conducted to these five Big benefits of Cloud-based
supply chain management:
Table 2 Five big benefits of Cloud-based supply chain management
Affordability
The core principles of supply and demand haven’t lost any of their
power over how we do business, even with the shift towards online
interactions. The wide market offered by Cloud-based supply chain
management technology creates a highly competitive environment
where the service user wins in terms of both features and cost. In
this environment the scale of the Cloud companies allows them to
continuously reduce costs as their capabilities and customer base
expands. A fully fledged data storage network with management
software, system administrators, and integration with your local
systems could cost an unpleasantly large amount of the budget
when you add up the costs of equipment, personnel, and time. By
spreading the cost amongst you and other clients that need their
service, the Cloud solution spreads the cost and develops affordable
pricing schemes for businesses that might not otherwise have the
same capability.
Integration
Capable Design
From the core, the software and platform services on the Cloud-
based supply chain management integration solution are designed
to work in a simple and expeditious manner with the IT solutions
businesses already utilize. A service that requires too much setup or
major modifications to other factors of a business create secondary
costs that drive away customers, so the hand of the market has
driven the service providers to ensure that their systems are fully
capable of integration with either minimal effort or included support.
Redundancy
One of the most common worries about switching over to Cloud
systems for any type of service is the fear of downtime or accidental
data loss resulting in lost profits and catastrophic interruptions. The
reality of the situation is that a Cloud-based supply chain
management solution, such as a web-based Transportation
management system (TMS), implemented properly has more
redundancy and established failsafe methods that are far less likely
to suffer damage than local solutions.
Efficiency
Cloud solutions leverage the power of managed automation and
data analysis to form an intelligent system of resupply processes.
The word “automation” can induce fear of quadruple-sized orders
mysteriously appearing due to a glitch in the code, but the cloud-
based supply chain management system performs step-by-step,
efficient analysis based on the input of business and programming
experts. Instead of taking control of your business, the software
provides the ability for your management team to make the most
informed decisions they can with minimal strain on the budget or time
of your current workforce.
Scalability
With a traditional supply chain, modifications in your demands
cascade into a multitude of considerations. Downsizing is typically
an easy endeavor, but increasing your supply for additions like a new

30
storefront can wreak havoc on the normal supply methods. With the
older supply model, hunting for the inventory you need to manage
multiple locations can quickly become a nightmarish, migraine-
inducing process.
Source: Robinson A.: 5 Big benefits of Cloud-based supply chain management.
https://cerasis.com/cloud-based-supply-chain-management/ [accessed on 02.02.2021]
In principle, cloud computing involves two components, a cloud infrastructure and software
applications. The first consists of the hardware resources required to support the cloud
services being provided and typically includes server, storage and network components. The
second component refers to software applications and computing power for running business
applications, provided via the internet by third parties. According to Eurostat estimations, 36%
of EU enterprises used cloud computing in 2020, mostly for email and storage of files.
Compared with 2018, the use of cloud computing in the EU increased particularly in the
manufacturing sector in 2020. [14]
According to Mishra Dh. [15] Cloud computing is getting attention of all the leading business
players due to its untapped potential of growth and service efficiency. In the recent years, cloud
computing has grown from being a gifted logic and potential and business is virtualization
concept to one of the fastest growing segments of the IT industry. Now, recession-hit
companies are increasingly realizing that simply by tapping into the cloud and gain fast access
to best-of-breed business applications or drastically boost their infrastructure resources, all at
negligible cost.
Some research and estimates show that 90% of the $ 16.5 trillion realized globally between
business entities is based on supply chain management and the use of so-called cloud
technologies as a source of professional services. [Melter J., 2016] [16] Modern businesses
use the Internet to enhance the research and development design of contemporary practices
globally by combining greater access to information and data to foster innovation.
Cloud computing in 2021 has become the go-to model for information technology as
companies prioritize as-a-service providers over traditional vendors, accelerate digital
transformation projects, and enable the new normal of work following the COVID-19
pandemic. The COVID-19 pandemic and the move to remote work and video
conferencing are accelerating moves to the cloud. Enterprises increasingly are seeing the
cloud as a digital transformation engine as well as a technology that improves business
continuity. As work was forced to go remote due to stay-at-home orders, tasks were largely
done on cloud infrastructure. Collaboration tools such as Microsoft Teams and Google
Meet became cogs in the companies' broader cloud ecosystem. Zoom not only lands
subscription revenue, but also runs on cloud providers such as AWS and Oracle.
Nowadays is promoting Multicloud model is both a selling point and an aspirational goal for
enterprises. Companies are well aware of vendor lock-in and want to abstract their applications
so they can be moved across clouds. The multicloud theme is being promoted among legacy
vendors that have created platforms that can plug into multiple clouds -- often with a heavy
dose of VMware or Red Hat. [17]
It is expected that in the future, logistics companies will also strive for expansion in new
technological challenges. Its benefits will affect the existing growth of new technological
information, will accelerate growth in the overall market sphere and will affect new consumer
benefits. However, the challenge for logistics organizations is to focus innovation, vision and
marketing opportunity on adapting each e-business to the desired spheres of influence.

31
Conclusion
Cloud computing in combination with machine learning, IoT, blockchain technologies, it can
bring even more opportunities for logistic and supply chains environment. Those digital
systems provide cheap and fast instantiation of computer power through the use of virtualized
on-demand resources. Limited resources and increased customer demand can be catalysts
for cloud adoption. Logistics companies get enormous benefit with save costs, time, and efforts
on establishing their own IT infrastructure by applying cloud computing to supply chain
management. Digital transformation of the global world imposed the need for structural
business change. Therefore, Cloud Computing is the ubiquitous appearance within the rapid
transformation of business models in almost all industries and is an integral part of the business
environment.
Among the biggest challenges logistics companies and their end customers face in everyday
operations are transportation costs, business processes, customer service, and supply chain
visibility. Most of these challenges can be solved by introducing cloud computing in supply
chain management, which provides two types of opportunities.
The cloud will be a basic but advanced requirement for delivering customer-centric logistics
services in years to come. Moreover, it will help cut IT costs for maintaining infrastructure and
setting up solutions and allow service providers to target small businesses who prefer to pay
for technology on a subscription basis. The flexibility of cloud services is one of their biggest
advantages.
Summarizing, no one knows what the future holds, but it would not be surprising to see an
increase in the usage of cloud computing and other technology to deal with the complex
everyday challenges that the industry and humanity faces.
References:
[1] Delfmann W., Jaekel F. (2012.: “The Cloud – Logistics for the future”? discussionpaper, German
Logistics Association - BVL International, Ed., 2012. p.3.
[2] https://www.euronovate.com/the-role-of-cloud-computing-in-digital-transformation/
[accessed: 03.02.2021]
[3] Gomez M., Grand S., Grivas G.S.(2015). “Digitalisation in logistics and the role of cloud computing.
Logistic innovation”. 2/2015. p.1.
https://irf.fhnw.ch/bitstream/handle/11654/11571/vnl_logistics-innovation_2015-2_s4-
7.pdf?sequence=1&isAllowed=y [accessed on 03.02.2021]
[4] https://www.intellias.com/logistics-and-supply-chain-in-the-cloud-capabilities-and-migration-
strategies/ [accessed: 03.02.2021]
[5] Zagorulko A.: Logistics and Supply Chain in the Cloud: Capabilities and Migration Strategies.
Intellias: Inteligent software Engineering.
https://www.intellias.com/logistics-and-supply-chain-in-the-cloud-capabilities-and-migration-strategies/
[accessed: 03.02.2021]
[6] GlobeNewswire: Cloud Computing Industry to Grow from $371.4 Billion in 2020 to $832.1 Billion by
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