How the Cloud Is Driving Supply-Chain Collaboration

The very nature of collaboration makes it ideal for cloud technology, says Rosenberg. A single connection enables communication among multiple partners.

Information-technology platforms for buyer-seller relations aren't new, he notes. Companies have been collaborating through private networks for decades. But the cloud takes it a step further, providing the capability to manage a variety of key business processes.

With the help of the cloud, business-process management can take place among many discrete organizations. The obvious tool for that goal is a supplier portal, although Rosenberg doesn't believe that the concept could have reached its full potential without the aid of the cloud. Combining cloud technology with a portal, especially for smaller companies, can realize benefits that weren't possible before.

Small and large organizations alike can benefit, says Rosenberg. Smaller entities can share services in a way that mirrors the activities of larger companies. The latter can benefit "from the ability to transact with everybody," says Rosenberg. "They can dramatically reduce the cost of ownership."

Some companies have been reluctant to embrace the cloud out of concerns over security and privacy. "It's a risk," acknowledges Rosenberg, while stressing that the security issue has been addressed extensively and successfully by users of cloud technology.

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Keywords: supply chain, supply chain management, cloud supply chain, SaaS, sourcing solutions, supply chain planning, supply chain systems, inventory control, supplier management