Use Cases of Cloud Computing in Logistics

Imagine not having to work. Sorry, I didn’t mean to start like that.

Imagine that most of your processes and operations are automated. Yes, you still control part of the work, but it takes minimal time and effort, ensuring better performance in return.

Sounds strange? Not at all, because today there is the possibility of migrating workflows to the cloud with all the associated benefits.

This edition of the newsletter is dedicated to cloud computing and its role in logistics. You will learn not only about the capabilities of modern systems but also practical use cases of their application. Let's get started.

Logistics and Cloud Computing: An Effective Tandem

What is logistics? It is primarily:

• Route planning.
• Transportation management.
• Warehouse capacity control.
• Handling orders and documents.
• Accounting and financial operations.
• Analytics and forecasting.

An interesting fact: most of these tasks can be automated. However, due to the massive amount of data, you will need a powerful system with a network and complex architecture. Alternatively, an enterprise "cloud" with ERP and other software solutions deployed within it.

The latter option is more cost-effective, though at first glance, it might not seem so. The initial investment might hurt the budget, but you can reduce costs by implementing your infrastructure step by step.

Before making a decision to deploy cloud capabilities, take a look at the following examples of their application.

Automating Operations in Supply Chains

Logistic processes are primarily about how effectively the supply system is built. A cloud-based operating environment typically allows for the automation of building and maintaining these supply chains.

For example, in one of our previous projects, we implemented a system for synchronizing the database between warehouses, sales points, and the online store. This allowed the business owner to efficiently:

• manage product assortment in offline stores;
• plan purchases and returns of unsold goods;
• optimize inventory accounting;
• analyze demand for various product categories;
• improve sales and scale operations.

The newly created system has a web-based interface, allowing access to the operational environment from any device and location. As a result, this expands work opportunities and further reduces the workload on the business.

Cooperation of All Departments

Conditional ERP is a web-based system with a multi-layered access structure to all corporate data. Accordingly, each employee is granted access to a specific list of documents and tools.

However, this is only part of the advantage. The other lies in the fact that cooperative remote work on anything becomes possible.

For example, there is a certain document that needs data input from the sales staff, warehouse managers, accountants, and department heads. With cloud-based ERP, they can all work on it simultaneously, track changes through the information backup system, and collect signatures from the responsible parties.

The same applies to tools; information from all databases is synchronized and displayed in a unified format. This means that any changes become immediately available to all structural units, improving staff productivity and customer service levels.

Data Security

Information is the lifeblood of any business, especially in logistics. This includes customer data, corporate records, transportation routes, and partner agreements.

Local devices can store data for a long time, but there are several drawbacks:

• All data is stored on separate equipment, which complicates access.
• Storage media can become damaged, and data can be lost during maintenance or due to failures.
• Some data quickly becomes outdated, and its update process is complicated by fragmentation.
• There are risks of direct data theft due to various software and physical vulnerabilities.

A cloud environment, however, is free from such problems, offering several advantages, including:

• Continuous data backup and document and database version control.
• A multi-tier access system that prevents unauthorized access to critical data.
• A multi-layered protection system that encrypts data with various protocols.

Another advantage is the distributed nature of the system's capabilities, ensuring that even with a targeted attack, corporate data cannot be stolen or destroyed.

Optimizing Staff Operations

A cloud-based system can automate your routine processes. This includes the following aspects:

• Processing incoming requests and generating payment receipts for services.
• Tracking goods, inventory, and financials.
• Managing logistics routes and making decisions about order prioritization, etc.
• Analyzing current and historical data, which allows for demand forecasting and supply chain optimization.
• Accelerating document handling, such as automatic data entry, task delegation, and report generation.

In fact, this is far from the full potential, especially considering the possibility of integrating artificial intelligence into the digital infrastructure.

Modularity

With a local operational environment, a logistics business depends on numerous tools that need to be installed on each individual device and synchronized with each other, but with the cloud, this problem disappears.

Yes, you can deploy a conditional platform (say, ERP) and gradually upgrade it. Your infrastructure can have the following architecture:

• Server part.
• Communication and control part.
• Toolkit with GUI.
• Physical part.

Formally, staff members have access to the last two subsystems, specifically the GUI and physical devices for working with the cloud product. The actual computational power and data reside on remote servers, which are the foundation of the system.

Thus, no matter how you expand the platform's functionality, you will consistently get high system performance and convenient access.

A Few Words in Conclusion

The benefits and capabilities described above, as well as the algorithms for using cloud solutions, are universal. The potential of your platform will depend entirely on your business needs and the implementation of the digital infrastructure.

Typically, you can choose between:

• Off-the-shelf SaaS packages.
• Custom development from scratch.
• Modernization of OSS platforms.

The first option is optimal for small businesses with standardized processes. The second is more suitable for large companies that need complete system customization. The third combines the strengths of the previous two, offering sufficient flexibility at a lower deployment cost.

I would recommend that you first assess the budget and needs of the logistics business, and only then move the operational component to the cloud, after choosing the system format in advance.