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Effects on Supply Chain Responsiveness (Cloud Based)
Author’s Purpose
The purpose of this article is to develop an ecosystem for cloud-based supply chain
management (C-SCM) and investigate how it might enhance supply chain responsiveness (SCR).
The authors examine current, well-developed SCM information systems and suggest a C-SCM
system that improves visibility, adaptability, and change detection speed. They give a thorough
overview of SCM and related procedures in cloud settings, with an emphasis on the retail fashion
sector. The authors examined the possibilities of cloud-based SCR using examples from the retail
fashion sector. The authors add to the body of literature by outlining a thorough C-SCM system
and providing examples of how businesses may enhance their SCR in light of the growing
collaboration involved in the production, development, and delivery of goods and services.
Background
The supply chain refers to a network of interdependent organizations working together to
control, manage, and improve the flow of materials and information from suppliers to end users,
resulting in value for customers. Supply chain responsiveness is the ability of a supply chain to
satisfy customers' needs by deploying resources along the supply chain to identify and react to
market changes. It involves the coordination of activities and the integration of key business
processes within and across firms. Supply chain responsiveness is considered a rapid attempt to
meet customer requirements and is marketplace- or customer-oriented, with the ultimate goal
being to satisfy the customer (Sarpong, 2022). Increasing supply chain responsiveness can
improve supply and demand matching, reduce waste from excess inventory, and adapt to market
trends. However, the cost of implementing faster, more responsive supply chains, such as
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expedited shipping and reshoring production, can be significant. Many firms continue to rely on
slower, less expensive supply chains, as these methods can incur significant costs and may not
always outweigh the benefits of a more responsive supply chain (Tuna & Swinney, 2023).
Application of Supply Chain Management
Cloud-based supply chain management has several benefits, including improved
operational efficiency, simpler logistics, improved stakeholder communication, and greater real-
time data visibility. With the help of these technologies, businesses can enhance their supply
chain operations, gain a competitive edge in the global business environment, and respond
swiftly to shifting consumer demands. In the current corporate environment, cloud-based supply
chain management has become a game-changing technology that optimizes operations and
logistics.
Supply chain operations have greatly improved as a result of the use of cloud computing,
which offers advantages such as supply chain analytics, increased demand forecasting, simplified
procedures, and real-time data visibility. Organizations can make better decisions because of
improved data visibility, which boosts the agility and reactivity of the supply chain. Better
overall supply chain performance is the outcome of more efficient and cost-effective logistics
and operations. Precise demand estimation and scheduling maximize stock levels and guarantee
prompt product delivery (Giannakis et al., 2019).
To sum it up, the use of cloud-based supply chain management enables businesses to
improve supply chain procedures, obtain a competitive advantage in international trade, and
adapt successfully to changing market circumstances. Businesses that use cloud-based supply
chain management are well-positioned to improve supply chain performance, achieve
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operational excellence, and prosper in the digital supply chain management era as cloud
technology develops further. The prediction for the future points to a steady increase in the use of
cloud-based solutions as businesses realize how revolutionary they can be in transforming
operations and logistics and fostering corporate success (Giannakis et al., 2019).
Managerial Implications
Managers should consider the environmental implications of reshoring or nearshore
supply chains. Nearshore production may offer benefits but may also have environmental costs.
Subsidies or penalties on offshore production may have unintended sustainability implications.
Firms and managers should consider mitigation strategies to reduce environmental costs, such as
investing in energy-efficient technology or renewable energy sources. Reshoring incentives
should be focused on specific products, firms, and industries where customers substitute with
high-impact alternatives. The trade-off theory suggests that for an existing level of supply chain
complexity, there is an optimal level of supply chain risk reduction (SCR). The study proposes
that a continuous supply chain management (C-SCM) approach can enhance SCR despite
increased complexity. This approach enables IT real-time integration across complex supply
chains, resulting in greater responsiveness of procurement and manufacturing processes and
shorter lead times (Giannakis et al., 2019).
Additionally, managers need to concentrate on having the flexibility to scale almost every
link in a chain up or down. More interaction and communication are needed to manage a
responsive supply chain since changes to one component affect the chain as a whole. You might
establish guidelines to direct your reactions. For instance, you can decide not to take any action if
lead times grow by 4%. However, a responsive supply chain will alert you to the need for action,
some of which may be scheduled if lead times rise by 10% (Giannakis et al., 2019).
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Article Summary
The paper presents a reference approach for cloud-based supply chain management (C-
SCM) to improve supply chain reliability (SCR). Cloud technology offers numerous benefits,
including on-demand and cost-effective IT capabilities, enabling organizations to consume IT
resources on their own servers without purchasing licenses. This reduces the number of
integration interfaces, promoting real-time information integration and sharing. C-SCM can
accommodate sudden changes in data volumes and trading partners, enabling supply chain-wide
knowledge learning, decision-making, reaction, and optimization. This article highlighted the
benefits of C-SCM over conventional SCM approaches, including real-time end-to-end supply
chain visibility, improved collaboration between organizations, improved flexibility at various
levels, and the ability to capture exceptions, disruption risks, and business trends in real time.
The knowledge-learning capability can also achieve real-time reactions. C-SCM is beneficial for
various business processes, particularly those requiring intensive partner collaboration, such as
logistics management, purchase management, collaborative planning forecasts, and
replenishment (Giannakis et al., 2019).
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References
Giannakis, M., Spanaki, K., & Dubey, R. (2019). A cloud-based supply chain management
system: effects on supply chain responsiveness.CJournal of Enterprise Information
Management,C32(4), 585–607. https://doi.org/10.1108/jeim-05-2018-0106
Sarpong, D. (2022).CEffects of Supply Chain Responsiveness on Service Performance. 1–88.
https://pdf.usaid.gov/pdf_docs/PA00ZTC7.pdf
Tuna, A. K., & Swinney, R. (2023).CSustainability Implications of Supply Chain Responsiveness.
1–52. https://people.duke.edu/~rps23/SustainableResponsiveness.pdf
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