Is cloud computing merely a trend or the future of computing as we know it? In recent years, analysts have used survey after survey to find out if IT leaders and organizations would embrace Internet-based shared computing services.

You might be surprised to learn that ArrowStream had the answer to that question almost 10 years ago when cloud computing was still known as ASP (Application Service Provider). We were delivering cloud-based solutions long before hard economic realities made it a top business priority to migrate away from front-loaded investment models and find lighter weight, more flexible technology options.

ArrowStream Chooses SaaS in 2001
ArrowStream made SaaS (now more popularly called cloud computing) our chosen delivery model way back in 2001. The cost savings, flexibility, convenience, efficiency and collaboration capabilities of cloud computing reflected exactly what we set out to be almost a decade ago-the company that transforms the foodservice industry supply chains from reactive apparatuses into a dynamic network of business information and trading partners. We knew the road to greater business performance, bottom-line results and fierce customer loyalty traveled via the supply chain and SaaS was the best vehicle to get us there.

Those five core benefits that convinced ArrowStream to use SaaS a decade ago mirror many of the benefits business leaders across the foodservice industry (and beyond) are looking to gain from “the Cloud” today. They include:

Cost Savings
Cost effectiveness is a top and enduring priority for businesses working throughout the foodservice supply chain, from manufacturing to distribution to restaurant chains.  Cloud computing saves businesses significant upfront and long-term costs. Lower TCO (total cost of ownership) begins with the fact that there are no startup infrastructure costs.  Hardware, software, and ongoing maintenance is provided by the service provider. Technology is accessed securely over the Internet using a browser.

Businesses are also able to “pay as they go.” For example, that means ArrowStream clients only pay for supply chain services they use rather than paying for a giant solution package in which only parts would be utilized.  With centralized automated updates, cloud computing eliminates several administrative and operational tasks and offers one of today’s surest paths to greater efficiency.

Flexibility
Businesses expand and contract at different times, but often technology investments are a one-time buy at one size. The cloud changes that by establishing constant access to technologies and services over the Internet. Businesses can easily scale their technology subscriptions with the fluctuating size and needs of their businesses. Simply increase subscription numbers over the cloud to add new users. The same goes for scaling back. Businesses can easily cut back users and reduce access to programs to immediately reduce business costs.

It’s also simple to expand the capabilities of a solution via the cloud. For example, should a business’ supply chain reporting needs increase, ArrowStream OnDemamd customers can easily expand their reporting capabilities online. They can also reduce them if they are not being used.

The instantaneous flexibility businesses gain through the cloud not only equals rapid scalability but also gives businesses more direct, immediate control over supply chain costs.

Convenience
Internet-based services offer a level of convenience that anyone who banks or shops online understands very well. It’s hard to beat the convenience of being able to log in and get information from anywhere at any time. ArrowStream OnDemand clients have enjoyed that freedom for nearly a decade, which has expanded real-time management visibility into supply chain operations.

Because supply chain data and applications are always accessible anywhere, supply chain teams are better connected with the business teams (marketing, procurement, etc.) they collaborate with, the trading partners upon whom they depend, and the senior executive leaders who are eager to better understand supply chain operations.

Increased Efficiencies
Several operational efficiencies are gained as a result of cloud computing. For example, the expanded and widespread access to supply chain information means greater flexibility and more informed, faster decision making.  The simplicity of online services means less training for users and less training costs for businesses. Because there are fewer demands on the company infrastructure with cloud-based solutions, businesses save on infrastructure maintenance costs.

Simplified, Secure Collaboration
Since ArrowStream’s inception, we have advocated greater trading partner collaboration across the supply chain. However, divergent backend systems and technologies have made this a complex process. Not so with cloud computing, which gives businesses a shared space where they can immediately provide trading partners with access to critical supply chain information (inventory levels, delivery schedules, etc.). By having access to the cloud, businesses can protect the data they feel is essential to competitive advantage while sharing vital knowledge that can keep the supply chains of their partners and clients highly efficient and informed.

No matter what you name it-ASP, SaaS, cloud computing -the benefits of Web-based services are tremendous, especially across the supply chain where access to real-time knowledge has a powerful impact on day-to-day business results. As more businesses and trading partners seek out greater supply chain efficiency via the cloud, the faster and more insightful well-managed supply chains become.  It’s an evolution that’s about to gain big momentum, which is why ArrowStream is glad to be years ahead of the learning curve.

This entry was posted on Sunday, June 27th, 2010 at 9:59 pm and is filed under Industry Trends, Real Time Data, Supply Chain, Technology. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.