5 Industries That Benefit the Most From Cloud-Based Supply Chain 


November 1, 2023

As of 2022, the cloud stored 60% of corporate data from organizations worldwide. With its ability to enhance business agility, improve scaling and security, and provide real-time visibility into critical processes, the cloud is a valuable tool for businesses across industries. 

More companies than ever are adopting cloud technologies to accomplish mission-critical tasks in their respective supply chain strategies. Consider the multiple cloud benefits for business sectors and how companies leverage cloud-based platforms and services to automate supply chain processes, respond to unexpected challenges, and improve business communication. 

1. Automotive 

Recent disruptions to automotive supply chains have significantly increased pressure on auto manufacturers and suppliers. Shortages of semiconductors and other components, long lead times, and challenges forecasting demand have highlighted the need for streamlining the supply chain. Automotive companies need agile solutions to respond to supply and demand gaps, manage unreliable suppliers, and balance cost-effectiveness while maintaining operations. 

Digital tools are the solution to many obstacles affecting the automotive industry. For example, automation offers automotive manufacturers a competitive advantage in the supply chain, with cloud computing as one of the most effective strategies. A vendor-managed inventory solution allows automotive trading partners to exchange inventory data and use recommended replenishment orders to improve in-stock rates. VMI accelerates communication between you and your suppliers and creates a demand-driven supply chain to respond better to demand fluctuations. 

Another effective cloud-based supply chain management tool for automotive manufacturers is integration with business systems. Cloud-based integrations seamlessly connect data throughout the supply chain to accelerate procurement, provide enhanced analytics, and ensure real-time supply chain visibility to keep the production line fed. Using automotive supply chain management solutions such as VMI and integrations improves visibility, scalability, and communication within the automotive supply chain. 

2. Grocery/CPG

Grocery stores and consumer packaged goods companies handle hundreds or thousands of products across multiple industries, often dealing with complicated global supply chains. Yet grocers, supermarkets, and CPG companies provide consumers with critical products and face high demand to maintain on-shelf availability. As a result, streamlining the grocery and CPG supply chains is vital for meeting customer expectations and staying ahead of the competition. 

One of the most significant benefits of cloud computing for business is the ability to streamline communication and essential business processes such as order fulfillment. Electronic data interchange software automates the exchange of documents such as purchase orders and invoices and integrates with your ERP system to streamline transaction processing and eliminate costly errors. EDI also enables you to do business with more trading partners who require EDI compliance. 

The advantages of EDI for grocery suppliers range from simplifying order processing to enabling real-time communication and supporting business growth. EDI allows grocery stores and CPG companies to tackle the latest grocery store supply chain trends by improving supplier communication, driving enhanced insights, and automating critical tasks. 

3. Manufacturing 

Agility is critical for manufacturers, as buyer demand is constantly shifting. Disruptions such as long lead times and manual processes make it complicated for manufacturers to manage increasingly global supply chains. Manufacturers need effective ways to forecast demand and ensure products reach buyers on time if they want to stay ahead in the market. 

Manufacturing companies that use cloud computing benefit from implementing solutions such as EDI and VMI to optimize their supply chains. EDI eliminates tedious manual document-sharing processes and improves supplier communication. VMI uses data sharing and advanced demand forecasting to reduce lead times and stock-outs. You can also use EDI to drop-ship products to customers. Drop-shipping for manufacturers allows you to connect with more retailers and distributors, expand online visibility, and reach more audiences with your products. 

Cloud tools also help manufacturers manage their supplier relationships. Supplier management is critical for boosting productivity and collaboration. A supplier enablement portal standardizes trading partner communication formats such as EDI, PDFs, and emails and delivers the data to the buyer’s ERP in their preferred format. Manufacturers use supplier enablement to gain transaction visibility and automate document exchange, simplifying supply chain management. 

4. Retail 

Today’s retailers face numerous challenges, from customers who demand fast fulfillment to the increased expectation to maintain in-store and online storefronts. With thousands of products to track and hundreds of supplier relationships to manage, companies face an extensive list of retail supply chain challenges. Sellers must implement efficient cloud-based solutions to manage omnichannel selling, gain inventory visibility, and meet customer expectations. 

Many retail supply chain solutions can help you achieve these goals. Cloud-based solutions such as online storefront integrations with business systems, including Shopify, Magento, and WooCommerce, allow retailers to update inventory levels across their storefronts to keep pricing and availability accurate for online buyers. 

Additional technology for retail success includes drop-shipping and EDI. Drop-shipping places the responsibility to fulfill orders on manufacturers, creating a symbiotic business relationship. An EDI solution helps merge disparate communication systems, manage changing demand, and increase supply chain visibility. VMI also enables real-time inventory tracking by sharing inventory levels between retailers and suppliers so you can keep items in stock and get products into customers’ hands quickly. 

5. Wholesale Distribution 

Wholesalers and distributors may serve many clients, and meeting their expectations can be challenging. Manual supply chain processes can no longer connect multiple systems, manage trading relationships, and keep up with a changing market. Wholesalers need automated cloud-based solutions to reduce costs, streamline processes, and earn revenue faster. 

Fortunately, wholesalers and distributors have many options for transitioning their supply chains to cloud-based tools. ERP integrations seamlessly connect orders from multiple eCommerce channels with your business system, optimizing order processing and increasing data accuracy. Cloud-based EDI accelerates the order-to-cash cycle by transferring order data directly into your ERP. VMI uses advanced forecasting to meet your buyers’ unique needs, even when they change unexpectedly. 

Leverage the Cloud to Improve Your Supply Chain 

Examples of companies that use cloud computing to manage their supply chains abound. From automotive manufacturers to grocery stores, every industry can benefit from using cloud solutions to streamline their supply chain processes, improve communication, manage inventory, and meet customer expectations. Tools such as VMI, EDI, ERP integrations, and supplier enablement provide the competitive edge your business needs to stay ahead. 

With the right solutions in place, you can simplify supply chain management. At TrueCommerce, we provide robust supply chain solutions, including supplier enablement and cloud-based VMI and EDI. To learn more about our solutions, capabilities, and integrations, contact our sales team

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