Cloud computing for the logistics industry

Cloud computing for the logistics industry
In recent years we have experienced a technological revolution where new terms such as Internet of Things, Big Data, Blockchain, and Cloud Computing to mention a few, appear more frequently. For us, these terms are the result of years of experimentation, work, and research. At the end of the day, at Cobuild we firmly believe that by writing a line of code we write our future, and technology is taking an important position in all industries, optimizing processes, reducing costs, performing important tasks, and giving us a glimpse of the ability we have to create something revolutionary.

Naturally, it is a fascinating topic, and that is why we created this space to share what technology can do for us.

In short, this is what Cloud Computing is about

The term Cloud Computing refers to shared software and/or information that users access via the web. Rather than storing information on their physical servers or computer hard drives, users rely on servers that are maintained by the cloud computing software providers. From the user perspective, all information is stored and readily accessible online in a 24/7 format, and from various types of devices, such as desktops, laptops, tablets, and smartphones. That being said, instead of using their physical servers or hard drives to store the software and information, more and more logistics professionals are subscribing to these software services that are housed and accessible online.

How does it work?

We can find two different parts within Cloud Computing systems:

  • The Front-End or user interface: here we include the computer network and the application to access the cloud service.

  • The Back-End: which would be the cloud service itself, that is all the systems that use the cloud to store information, including servers and computers.

Although it is a rather complex system, we will try to explain it as simply as possible. In Cloud Computing, all the gears are in charge of connecting to a central server that will be in charge of managing the operation of the system. This will use key protocols and middleware software to facilitate the connection between the computers that communicate with each other.

There are three types of cloud computing:

  • Infraestructure as a Service (IaaS)

  • Software as a Service (SaaS)

  • Platform as a Service (PaaS)

Why does the cloud seem like such an attractive option?

For starters, it offers a high degree of flexibility and scalability. In contrast to on-premise storage and software hosting—which could require expensive IT projects to add more storage capacity or processing power—the cloud lets you pay as you go, using as much or as little capacity as you need at any given time. This can help you to achieve a modicum of budget certainty, yes, but it can also help you to navigate unexpected spikes in demand or other scenarios where you might need more computing power than usual. As you potentially beef up your IT infrastructure with new apps and devices, the cloud can make it easy to scale up your capacity while integrating a variety of different data sources (due to the cloud’s accessible, decentralized nature).

Cloud Computing for the logistics industry

Many logistics companies have begun to use this technology to optimize their operations, reducing costs and minimizing their dependence on local databases, which is necessary in a globalized environment.

Cloud platforms can facilitate agile, real-time communications between the different components of the supply chain, which means greater effectiveness in responding to problems or adapting to new circumstances, as well as increased efficiency in collaborations. Among the most significant advantages of using Cloud Computing in the supply chain, especially for logistics management we have:

  • Real-time inventory management, maximizing capacity to respond to fluctuations in demand while maintaining a buffer against emergencies.

  • Systems integration. While WMS and TMS are critical systems for streamlining procurement and shipping, having multiple systems in the hands of a variety of users with different profiles can result in lack of coordination and inefficiency. Cloud capability allows you to avoid delays that can be caused by miscommunication and boost savings.

  • Dynamic pricing, according to fluctuations in costs, is a fundamental aspect in supply chain logistics management, which can see its margins affected due to volatility.

  • Accurate matching in the transit model. When trying to coordinate the joining of a number of components from various suppliers, possibly from around the world, synchronizing processes is paramount to ensure efficiency. Logistics solutions that enable real-time monitoring via the cloud enable more accurate models that are supported by an enhanced forecasting system and expanded control capabilities.

Cobuild Lab offers SaaS (Software-as-a-Service) which is a method used to allow data to be accessed from basically any device with an internet connection, and by using this cloud-based model we (as software developers) can lower down costs and improve effectiveness in every project. With this model, your company doesn’t need to install, maintain and update hardware and software. Access is easy and simple: you’ll only need an internet connection.

It was the most used deployment method in 2020 for basically every type of business technology around the globe, from mom and pops to big enterprises. Here’s why:

✔️ You can customize it

✔️ It gives you much better access to your company’s data

✔️ It can lower your costs since you don’t need physical storage for your data anymore, it’s all on the cloud!

✔️ It’s practical: You don’t need hardware or software to maintain, you’ve got web-based software now and all you need is an internet connection

About Cobuild Lab

We partner with industry experts to solve Logistical and Productivity problems with Custom Software Solutions, Cloud Computing, Artificial Intelligence, and the Internet of Things. Since 2012 we've focused on developing and combining cutting-edge techniques, tools, and technologies to increase development speed to deliver faster results

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