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  • Essay / The Impact of Cloud Supply Chain on Amazon's Supply Chain Management Practices

    Through the study, I learned important information about the importance of cloud supply chain Cloud provisioning to improve the competitiveness of an organization. According to Truong (2014), cloud computing is transforming the way businesses conduct operations through its flexible computing solutions. Therefore, cloud computing allows organizations such as Amazon to provide their customers with on-demand computing services characterized by high availability, scalability and reliability in a distributed environment. However, it should be noted that organizations can only maintain and create their competitive advantages if they use cloud computing as a unique and valuable resource. As many business areas adopt and expand the use of cloud computing, supply chain practitioners have begun to take an interest in it. It is undeniable that the use of cloud computing can significantly benefit supply chain management due to its ability to not only reduce start-up expenses but also improve supply chain integration. supply, stimulate inter-company collaboration, minimize delivery times and increase supply visibility. chain and reduce the time it takes for a business to respond to its customers. Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the Original EssayFrom the study, I also understood that there has been a dramatic growth in cloud supply chain solutions . In fact, Truong (2014) highlights that cloud adoption in supply chain management increased by 40% in 2013. This increase is attributable to the fact that many companies view the cloud as their primary means of Sourcing applications, although this technology is new in supply chain management. Questions remain regarding the use of cloud computing technology to improve supply chain performance while subjecting organizations to minimal risk. I also realized that many organizations are looking for cloud-based solutions because of the benefits they will gain while ignoring the difficulties and challenges that define the use of cloud computing. The organization's management must make strategic decisions before integrating cloud supply chain solutions into their internal applications and systems. Incurring unexpected and additional expenses is evident when implementing cloud-based supply chain solutions due to the transition process, compliance with new regulations, and the need to train employees (Vanpoucke, Vereecke and Muylle, 2017). In this context, a cloud-based solution increases recurring costs while reducing start-up costs, which hurts supply chain efficiency. Using cloud-based solutions also leads to privacy and security concerns because the organization's applications and systems, such as customer data, are on a remote server; hence the importance for providers to assure their customers that there will be a solution to any potential legal issues, privacy concerns and data leaks. Organizational supply chain managers should play a leading role in monitoring and assessing the risks associated with the adoption of cloud computing in themanagement of their supply chain. Summary of what I learned about the importance of supply chain management integration and how it can be achieved From the study, I understood that the Supply chain integration involves creating a smooth process through the design of materials and well-coordinated information flows within the system. Another aspect was the coordination of exchange tactics and processes between supply chain partners. Improving the smooth flow of materials and information eliminates the boundaries that exist between parties in the supply chain, in addition to reducing the uncertainty triggered by the bullwhip effect in the supply chain. It can be argued that the fluid flow of materials and information in companies leads to a significant reduction in inventory and makes order cycles more reliable. However, the use of information technology such as cloud-based solutions, which play a crucial role in promoting the integration of supply chains, would achieve a well-organized supply chain. Information technology allows supply chain partners to increase the complexity and volume of information exchanged while increasing real-time data sharing. Therefore, there is extensive visibility across the supply chain. However, effective supply chain integration requires the merging of operational integration and information exchange tactics. Information exchange tactics involve the coordination of communication and information transfer, while functional integration involves coordinated and collaborative decision-making and work processes between chain partners. supply, leading to the development of joint activities (Vanpoucke et al., 2017). I also noted that there are two types of supply chain integration: customer onboarding and supplier onboarding. The primary goal of supplier onboarding is to improve visibility up the supply chain while reducing uncertainty. Reducing uncertainty is achieved through appropriate information exchange, which consequently decreases the risk resulting from demand volatility, lead time fluctuations and order changes. Customer integration, on the other hand, is defined by the flow of materials, services, and information to end users, including feedback to the focal company from customers. Supplier competitive position and customer empowerment in an integrated supply chain comes through ensuring that adequate resources and attention are given to activities such as customer service, transaction fulfillment, order customization and searching for information. Supply chain managers must ensure that customers are included in the decision-making process to strengthen materials coordination within the main company. Through supply chain integration analysis, I realized that companies mainly focus on integrating their supply chain for one key reason which is to streamline their process. Once organizational processes are streamlined, the organization automatically reduces transaction costs, achieves greater responsiveness, and smoothes the flow of information. Therefore, organizations can use information technology not only to gain competitive advantage,.