Transforming Transportation with Cloud-Based Technology

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Experts say the transportation industry can leverage cloud-based technology to optimize their supply chains with efficient and cost-effective solutions.

A growing number of industries are embracing cloud-based technologies for its proven ability to improve efficiency and help build connections. The 2018 Global Cloud Supply Chain Management Market Analysis reported that the value of the global Cloud SCM ‘accounted for USD 3.32 billion’ in 2017. They predict this number will increase ‘at a CAGR of 20.2%’ between 2018 and 2025. Research presented by Global Market Insights , shows that we can expect the ‘smart transportation market’ to reach USD 130 billion by 2024.

These figures show the economic growth of this market and highlights the benefits cloud adoption provide industries who integrate such technologies into their models.

The transportation industry faces many challenges as consumer demands for flexibility continues to increase. Booming ecommerce markets require supply chains to offer personalized customer experiences and faster delivery times. This places incredible pressure on transport supply chains, urging them to implement efficient and effective processes. This article details the various functions of this the Cloud, and identifies the significant role it will play in transforming the industry.

Cloud-Based Technology

In the 1950’s, mainframe computing was becoming too costly and companies identified the need to localize solutions to a singular computer system. Virtual machines became popular in the 1970’s, as their ability to operate multiple systems in a singular environment helped address the issues faced by mainframe computing. Today, research and development of innovative technologies is motivated by the same need: to improve efficiency and reduce operation costs.

As a leader in cloud computing technology, Salesforce also believes there are many benefits associated with integrating this technology into business processes.  Salesforce outlines the following reasons as to why companies should move to the cloud.

  • Improves Flexibility – Helps business scale up and down.
  • Helps small businesses implement ‘recovery solutions’.
  • Reduces system maintenance by offering ‘automatic software updates’.
  • Offers affordable solutions.
  • Improves workflow productivity.
  • Creates visibility that promotes collaboration.
  • Facilitates remote opportunities for employees.
  • Provides a central location for company documentation.
  • Positions company as a lead competitor.
  • Minimizes ‘carbon footprints’.

Based on the above ten benefits, there is no denying that cloud-based technologies can help companies in many ways. The process of modernizing supply chains relies heavily on the integration of the cloud. The transportation industry has recognized the positive impact cloud adoption has on improving the bottom-line of organizations.

The Transportation Industry

In February, Morai Logistics shared an infographic defining Industry 4.0. Research indicates that two thousand companies have already begun digitizing their supply chains. The investment into emerging platforms also boosts productivity and operations, lowers costs and improves transparency.

Cloud Management and real time communication are noted as two effective methods for achieving end-to-end results. American multinational technology company, IBM has conducted considerable research to understand how the Cloud is accelerating various industries, including transportation supply chains. There is a growing demand from customers who seek ‘alternative transport solutions’. By implementing cloud-based technologies, IBM states organizations can:

…redefine customer relationships, transform operations, improve governance and transparency, and expand business agility and capability.

Known for its ‘unconstrained capacity growth’, the cloud will continue to offer supply chains with advanced solutions. Statistically, 48% of executives believe the cloud will help improve data access, which will help supply chains build ‘customer loyalty’. Cloud adoption will enable organizations to implement personalized experiences for customers through Omni-channel processes.

Technology pioneers, IBM and Salesforce, provide significant research that illustrates how the cloud can effectively optimize the supply chains of many industries. In the face of growing demands for efficiency and immediacy, innovative cloud-based solutions will play a significant role in transforming the transportation industry.

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