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Home > Posts > Adoption of Supply Chain Management Solutions via the Cloud in Asia: Present Scenario and Future Outlook
November 27

Adoption of Supply Chain Management Solutions via the Cloud in Asia: Present Scenario and Future Outlook

Keywords: SCM, Cloud Computing, SaaS, Transportation Management, Supply Chain Planning, Warehouse Solutions.

Executive Overview
ARC Advisory Group recently conducted an end user survey to identify the current status, trends, and adoption of supply chain management (SCM) solutions via cloud in Asia. The survey also focused on understanding the end user reasons for deploying or not deploying SCM solutions via cloud. The survey also captures the achievements of the SCM on cloud users and where they see the technology flourishing in a five-year timespan.

With the onset of the recent economic recession, companies started looking at utilizing technology to reduce costs and increase efficiency. This helped create interest in cloud computing (software, platform, and infrastructure offered via a service) with its promise of low upfront costs, since companies can deploy any part of the software, as a service, by paying in the "per use" model. Though there were some initial hesitations concerning security and scalability, suppliers have addressed these issues to a great extent by bringing in different cloud models (public, private, and hybrid).

The technology is turning out to be a boon for companies that need IT as an enabler, but have budget constraints. Supply chain applications are late to the cloud environment compared to CRM, ERP, and other enterprise-level solutions, but have garnered good attention. The most common SCM deployments are for transportation management solutions, followed by supply chain planning and warehouse solutions.

Key findings include:

  • Low overall adoption of SCM applications in Asia lead to low adoption of cloud SCM deployments
  • General lack of awareness of the solutions being offered in the cloud
  • Those who have used cloud-based applications view these as a low-cost alternatives to on-premise applications
  • Ripping out and replacing existing systems (and the business processes that depend on them) isn't feasible for most organizations. As a result, for a significant portion of those companies, supply chain software in the cloud is likely to be fundamentally hybrid
  • Many potential users have expressed security concerns
  • This is an opportune time for potential users to weigh the pros and cons of implementing a cloud delivery model for SCM applications


Table of Contents

  • Executive Overview
  • Survey Findings and Analysis
  • User's Awareness About Benefits of SCM Offerings via Cloud in Asia
  • Reasons for Evaluating SCM on Cloud
  • Benefits of Cloud vs. On-Premise Solutions
  • Benefits Accrued from Cloud Solution Adoption
  • Pricing Models of the Deployed Solutions
  • Different SCM Solutions Deployed via Cloud Solutions
  • Different Deployment Methods for Cloud
  • SCM on Cloud Suppliers, Service Providers, and Implementers
  • Reasons for Not Deploying SCM Solutions via Cloud    
  • Changes Expected in the Next Five Years in SCM Cloud Solutions
  • Recommendations


ARC Advisory Group clients can view the complete report at this Link.

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