Latest Technology Insights
Stay abreast of what’s trending in the world of software development with our well-researched and curated technology blogs.
Disruptive and customized mobile solutions for all
Let’s build incredible apps together. Talk to an expert now.
Your one-stop web development agency
We cater to businesses of all sizes, types, and industries.
Advanced eCommerce solutions for enhanced shopping experience
Discuss with us for optimal and cost-effective solutions today.
Modern-age solutions for modern you
Expert CRM & ERP consultation is only a click away.
Migrate your offline business to cloud
Look no further; Closeloop houses certified cloud experts.
Empower your business with futuristic technology
Disruptive and customized mobile solutions for all
Modern-age solutions for modern you
Your one-stop web development agency
Migrate your offline business to cloud
Advanced eCommerce solutions for enhanced shopping experience
Empower your business with futuristic technology
Assim Gupta
CEOAssim Gupta is the CEO and Founder of Closeloop, a cutting-edge software development firm that brings bold ideas to life. Assim is a strategic thinker who always asks “WHY are we doing this?” before rolling up his sleeves and digging in. He is data-driven and highly analytical, yet his passion is working with teams to build unexpected, creative solutions that catapult companies forward.
Cloud computing is one of the hottest technologies in this era of digital transformation that is making a huge impact on almost every industry today. The logistics and shipment industry is no different.
Businesses in this industry are adopting modern technologies to transform the way they operate, improve work efficiency, get insights into data, make data-driven decisions, and enable a great customer experience.
Undoubtedly, cloud computing in logistics offers a wide range of benefits if the right approach and strategy are followed. In this industry, the value of data is priceless because of the opportunities it can offer if decisions are made based on the data.
Companies in this segment are already using several software and platforms to manage workflows and data. However, the introduction of cloud computing in logistics management makes things all the more convenient and brings a long-term impact.
Cloud computing is like renting a computer or storage space that is not physically present with you. Instead, it's located in a remote data center and accessed over the Internet. cloud-based logistics meets all your business computing tasks without any burden of maintenance, security, or upgrades.
Logistic companies generate and manage a significant amount of data regularly, including shipment details, tracking information, customer records, and operational metrics. The volume of data can vary depending on the size and scale of the company.
In most cases, utilizing cloud services is recommended for logistic companies. Cloud services offer scalable storage, efficient data management, and flexibility to handle fluctuating demands. They eliminate the need for upfront investments in infrastructure, provide data accessibility from anywhere, and offer built-in security measures.
Before knowing the role, importance, and pros and cons of cloud computing in logistics, it makes sense to go through some crucial past, present and future stats.
The cloud-based supply chain management market was valued at $3.26 billion in 2016 and crossed $8 billion in 2021, witnessing a growth of nearly 20% CAGR. The race for digital transformation has had a huge impact on the supply chain industry as well. Experts predict that the cloud supply chain market will grow at a CAGR of 11.09% till 2027.
The increasing adoption of cloud computing in logistics and supply chains has been a key driver, attributed to benefits such as cost reduction, improved operational efficiency, and heightened awareness of cloud advantages.
According to Mordor Intelligence, the cloud supply chain management market will reach nearly $9 billion by 2026, growing at a CAGR of over 11% from 2021 to 2026. This research also shows that reduced costs, efficiency, security, scalability, and easy integrations are the primary reasons behind the increasing use of cloud computing in the shipping industry.
In addition, the applications of cloud computing are also becoming prevalent in the supply chain through marine. The marine and marine management software market is predicted to reach $2.9 billion by 2026, up from $1.7 billion in 2021. This is a growth of over 11% CAGR from 2021 to 2026. The marine management software solutions are mostly relying on the cloud for automation of shipment operations, increased efficiency, data analytics, better collaboration, etc.
In the following paragraphs, we have highlighted a few benefits of cloud computing in the logistics industry. Let’s explore the same for better understanding and clarity of thoughts.
Affordability and reduction in operational costs is the primary reason behind the adoption of cloud computing in the logistics and shipping industry. Traditionally, businesses need to invest in infrastructure, hardware, and other equipment for the management of operations and storage of data. This involves higher costs.
In contrast, cloud computing brings everything online and eliminates the cost of infrastructure or hardware setup. Moreover, all sorts of data can be stored and accessed easily from anywhere. The use of Software-as-a-Service (SaaS) solutions is all the more in supply chain and logistics.
Numerous fast-growing businesses are implementing SaaS-based solutions to support heavy operational processes at relatively low pricing. Even businesses that have a tight budget can look forward to cloud adoption and gain the benefits it has to offer.
For instance, companies like Seaco and Matson have shifted their workloads to AWS cloud and are saving nearly 50% of their IT costs.
The lifecycle of a supply chain in logistics starts with the inventory. In order to control the risks and increase profits, it is crucial to have real-time access to the capacity and other information about the inventory.
On this front, the cloud enables instant access to inventory information, allowing businesses to know about the fluctuations in pricing or products (if any), as well as know important figures like profit margins and sellers. When they know about things like fluctuations in real time, it becomes easier to respond to them on time.
To be precise, instant data access helps in boosting sales, respond to demands faster, provide better customer service, and make adjustments in orders.
Since cloud computing is internet-enabled, all the data is available online, and all the connections can be made on the go using remote devices. Cloud enables connected logistics management, which brings together suppliers, vendors, as well as customers.
The communication and collaboration solutions powered by the cloud make it easier to take supply chain capabilities beyond physical boundaries. Furthermore, connectivity also facilitates dynamic provisioning, better utilization of resources, multi-tenancy, and efficient management of operations and tasks.
One of the most important benefits of cloud computing for logistics management is the ability to make decisions that are based on data analytics. It means that when the cloud is in use, it provides businesses with an analysis of a lot of data. This data can be analyzed by other cloud solutions, allowing them to make smart decisions, rather than just anticipating things and creating business plans.
Like other businesses, the logistics and shipping industry is already adopting solutions that are built on the cloud and make use of other modern technologies like machine learning (ML) and artificial intelligence (AI). Such robust solutions further help in gaining intelligent insights, optimizing performance, and driving new value.
In the logistics and shipment industry, the things that impact efficiency are human errors, missing deadlines, worrying about oversupply or undersupply, etc.
The introduction of cloud computing for logistics automates several processes and operations, which eventually reduces human errors. Moreover, it speeds up operations to save time and get things done without heavy supervision.
Companies can also set reminders related to the supply of products to get rid of undersupply and oversupply issues. Lastly, task automation and reminders also help in avoiding the problem of missing deadlines.
The cons or the disadvantages are quite negligible when compared to the benefits the cloud offers. Regardless of it, it is important to know the limitations as well when looking to adopt the cloud in the logistics business.
Everything available on the cloud or accessible through the cloud needs an active internet connection for processing. You can’t access new data, share files with others, or get real-time updates when the internet connectivity goes down or is interrupted. The issues can also occur if you are in an area that has a poor connection, like warehouses, etc.
While most cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud implement robust security solutions and standards, still data security is a concern in cloud computing. Mission-critical files and data can sometimes become open to breaches or system vulnerabilities.
It is by far the biggest limitation of cloud computing. Once you have chosen a cloud provider and started using the relevant cloud development solutions, it becomes tricky to transfer to another provider.
This is because not all providers have similar platforms. If you are not satisfied with a provider, you will find it complicated to switch to another. This is the reason many businesses rely on a hybrid cloud or multi-cloud strategy.
Since the infrastructure, platforms, and software provided by a cloud provider are completely owned by them, the control customers have over the functionalities and solutions is limited. You can’t customize or personalize everything according to your requirements.
So what types of cloud computing services can logistics and shipment services use? Here’s a detailed breakdown:
Infrastructure as a Service (IaaS): Think of IaaS as a virtual data center that can scale up or down on demand. There is no need to own and manage physical servers, storage, and equipment. You can use IaaS to access and use these resources over the Internet.
Platform as a Service (PaaS): PaaS makes business software development as hassle-free as it can get. With PaaS, you need not worry about databases, development tools, and operating systems. They are all available by design on the platform.
Software as a Service (SaaS): These are cloud-based apps tailored for specific business needs. For example, Salesforce CRM is a popular SaaS service. Logistic business owners can use SaaS to manage inventory, track shipments, or handle customer relationships. There is no need to install any software - everything is accessible through the internet browser.
Now that we have some idea about the cloud service types, let’s take a brief look at the different cloud deployment models:
Also Read: Oracle Cloud vs AWS: Make a Wise Choice as per Your Business Needs
By adopting cloud supply chain management, logistics companies can experience significant benefits such as reducing operating costs by 10-20%, improving inventory accuracy by 20-30%, and increasing order fulfillment rates by 9-10%.
Furthermore, cloud computing offers real-time visibility into the entire supply chain process. With just a few clicks, logistics companies can get accurate and timely data for well-informed decision-making.
But what does this visibility result in?
Overall, cloud supply chain management is a must-have tool for 21st-century logistics companies. It not only streamlines the entire supply chain but also gives companies a much-needed competitive edge in a constantly evolving business environment.
As a logistic business owner, if you are using cloud computing for the first time, there are a few best practices to keep in mind:
By following these best practices, logistics and shipment management businesses can leverage cloud computing for maximum growth and impact.
Cloud computing is a revolutionary technology that is making a massive impact on all industries, including logistics, shipping, and supply chain management. If used well with a solid cloud adoption strategy, it can bring numerous advantages and help businesses in logistics to put the leg on the accelerator of growth. Efficiency, cost optimization, real-time access to data, etc., are some significant benefits that can’t be ignored.
Feel free to contact us for a cloud computing consultation.
Stay abreast of what’s trending in the world of software development with our well-researched and curated technology blogs.
Delivering a software project is a challenging task, and numerous organizations struggle to com…
Enter the world of cloud computing and you're faced with a difficult decision: which platform i…
Are you ready to revolutionize your client service and take your business to greater heights? O…
You've heard the saying, "The customer is always right." But what does that mean for businesses…
CRM (Customer Relationship Management) innovation is a vital aspect of modern business as it he…
Looking to estimate the cost and time needed to complete your next software project? You're in …
Closeloop Technologies believes creativity helps achieve maximum growth in digital transformati…
United States, Dec 12, 2022- Closeloop Technologies, a leading software development company, ha…
Netsuite is a globally recognized business operating platform out-turn the growing companies to…
You may have heard about the benefits of AI in eCommerce, but did you know that AI can also be …
It would be best if you study how to perform quality assurance (QA), regardless of whether you …
Software is running the world. While this claim has been made numerous times before, the import…
Have you ever considered hiring a UI/UX design agency? If not, this blog will tell you all the …
Today, businesses are continuously looking for new methods to remain competitive in the face of…
In this tech-savvy world where everyone is keen to know the latest trends in technology, it is …
In the year 2022, it will be almost impossible to successfully manage a business, either a smal…
Technological advancements significantly impact various business sectors, and financial technol…
Building a successful website from scratch requires a lot of labor and, at the very least, desi…
The perpetual switch from the following technologies makes the business environment much more c…
The Amazon Web Services Certification program helps professionals gain credibility and self-ass…
When it comes to finding love, you don't need to go any further than your cell phone. In today'…
You might think you have plenty of time to figure out the migration to NetSuite, but honestly, …
Music runs through the veins of most people, if not all. It is a significant part of our routin…
The world is progressing towards portable technologies, from mobile phones to remote work, to a…
Technology is a wave: either sail the boat or sink out. The enterprises focused on automating b…
The Internet of Things is another revolution in the technology world, leaving us wondering how …
With about 60% of the global population actively accessing the Internet, people need modern way…
Determining the successful user data interactions and conversations is significant in revamping…
Professor Rana Nayar, a Ph.D. in English, a translator of poetry and short fiction from Punjabi…
Enterprise Resource Planning (ERP) solutions are the lifeblood of a business organization. Nets…
Financial technologies are taking the business world by storm. The changing perception regardin…
In the healthcare sector, a cyclone of technology is impacting thousands of lives today. From A…
In the dynamic world of business applications, one fixed solution for the constantly changing e…
While mobile devices were increasing significantly, the demand for mobile app development servi…
Whether big or small, businesses from different industries and start-up founders are taking cha…
We are living in a technology-driven world where almost everything is available at our fingerti…
Customers are the most important part or lifeblood of a business. The way you onboard customers…
To start an eCommerce business that becomes successful, the first step is to develop an enticin…
Fintech or financial technology has become one of the most popular ideas for startups today. In…
Recruiting software is a critical part of Human Resources Management (HRM). Basic functionality…
It can be very challenging and overwhelming to develop technology and software for a non-tech o…
As someone who attends dozens of startup pitches a month, “our product is cheaper” is a phrase …
PACEfunding’s Business Executive Is Shocked When The Vendor He Hired Fails To Deliver The Softw…
The Invisible Crushing Power of Software Why are companies afraid to partner with the vendors …
Painful Lawsuits: Huge Toll Taken on Executives at Uber, Equifax, St.Jude, and Provident Financ…
As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…
As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…
As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…
As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…
MoviePass caused major shifts in the movie industry when they lowered their monthly unlimited m…
There is nothing more tragic than a company with a great product that is hampered by poor user …
One of the most misunderstood fears entrepreneurs and startups have is that investors won’t inv…
I love meeting people who launch startups. Their energy and ambition inspire me. One of my life…
We use cookies to enhance our website, analyze website usage, and capitalize on our marketing efforts. Also, cookies help us to offer you a personalized experience.“Read Privacy and Cookie Policies”
Please enter your email to receive our latest blog in your mailbox.