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To win in the new delivery economy, go into the cloud

By Jeffrey M. Kaplan

12 February 2018 15:10 PT

While Amazon defines consumer expectations for fast home delivery, businesses in almost every industry recognize that they need to turn to the cloud to pace. This involves reorganizing their transportation and logistics systems to meet growing customer expectations for delivery.

These growing demands have fueled the growth of a new generation of software solutions as a cloud-based service to deliver more cost-effective end-to-end delivery and execution capabilities. They have also forced almost all software vendors in this market to expand their functional capabilities to meet the full lifecycle of supply chain management requirements – from fleet to financial management.

All you have to do to recognize the changing face of the retail market is to pay attention to the growing number of packages that accumulate on the front of your neighbor. The explosive growth of the home delivery sector has also influenced the industrial and business world.

Getting the right package at the right place at the right price has become a fundamental requirement to stay competitive in the world at the request of today. Whether you sell pizzas or industrial products, shipping them on time at a competitive price is essential to ensure customer satisfaction and success.

Although growing competition among leading retailers in the world of consumerism is attracting attention, B2B companies that target specific industry requirements have also been facing greater logistics challenges and delivery.

These challenges have been compounded by the redefinition of transportation services, thanks to Uber and Lyft. Just as Amazon has set the bar for quick delivery in the world of consumption, Uber and Lyft have set new rules for the employment and management of workers in the delivery sector.

The supply chain and the cloud

Of course, none of these innovations would be possible without connectivity and analytics powered by the cloud. It has provided new ways to connect and track vehicles that carry products from the warehouse to residential door sills and industrial loading docks. The cloud has also delivered a new generation of software applications to manage every part of the supply chain management lifecycle process.

The supply chain and logistics requirements have prompted savvy B2B companies to migrate to the cloud.

For example, about three-quarters of cloud workloads up to 2021 will be business-centric and will use SaaS applications to do the job, the last one
The Global Cloud Index survey report states.

The database / analytics and the Internet of Things will be the fastest growing applications for the business segment, with a CAGR of 21% from 2016 to 2021, a jump of 2.6 times over five years, the Cisco survey report predicts.

Given the more complicated and demanding nature of logistics and satisfaction, the supply chain management market will grow by almost 50% over the next four years, from US $ 13 billion in US dollars. 2017 to 19 billion in 2021, according to forecasts by Gartner.

During the same period, SaaS-based SCM sales will increase significantly, while on-site licenses will decrease significantly, according to Gartner.

To look closer

However, the logistical challenges of today have also redefined the functioning of SCM systems.

Two-thirds of the companies surveyed thought they had advanced
According to Hackett Group researchers, the analysis would be of crucial importance to their supply chain activities over the next two to three years.

These expectations led the world
Connected logistics market to grow at a compound annual growth rate of about 30 percent until 2020 according to Technavio.

Meeting the growing need for logistics and supply chain management today means more than just meeting the day-to-day needs of managing and executing the supply chain. fleet.

Forty-four percent of the supply chain leaders improved their resource planning systems to get better visibility of the supply chain, based on the ratio of the supply chain. 39, study of the Hackett Group. easier.

In response, software companies have been trying to expand their product portfolios to provide a complete lifecycle of solutions and become strategic sources for their customers.

All aboard

Descartes Systems Group is an example of a software vendor that has been facing these challenges.

The company provides SaaS solutions to improve the productivity, performance and security of logistics-intensive businesses. Descartes solutions help companies better route, plan, track and measure their delivery resources. They also help plan, allocate and execute shipments. In addition, they evaluate, verify and pay transportation bills; access global trade data; and file customs and compliance documents for imports and exports.

While this seems to be all that a business might need from a logistics perspective, Descartes recently acquired Aljex Software, a provider of back office transportation management solutions for freight brokers and transportation companies. automate their logistics and supply chain business processes.

As the "economy of delivery" becomes a more important part of every industry, careful management of all aspects of the logistics process will become equally important.

Cloud-based SaaS solutions will be the preferred method for managing this increasingly complex and essential business process. In addition, the nature of these SaaS solutions has evolved to meet the growing expectations of consumers and B2B companies. The path to successful delivery methods will be to climb into the cloud or be left on the sidewalk.


Jeff Kaplan has been a columnist for the ECT News network since 2009. He focuses on cloud computing, SaaS, IT management, managed services, and Internet. 39, Internet of Things. He is General Manager of THINKstrategies.
Email Jeff.

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