In the past few years, discussions surrounding cloud technology began to become more commonplace for most businesses. While cloud implementation and utilization for all sorts of business tasks is nothing new, the pandemic skyrocketed its usage to the forefront of most industries.

Businesses began to seek out ways to better adjust to the new economic landscape. Before the pandemic, little actual urgency was associated with the already rapid adoption of cloud-based services.

However, implementing cloud technology has become more critical than optional, as companies could migrate to gain an edge. The pandemic showed us that leveraging cloud-based applications might just be a critical step in competing in general.

Current Supply Chain Challenges

Many of the challenges that are currently plaguing supply chains are not necessarily new. But as time goes by and these issues remain unresolved (or worsen), the long-term consequences become more apparent.

Port Congestion

Granted, there have been some steps taken by the federal government that has eased port congestion slightly. Unfortunately, it may still be a few years before significant changes implemented now come full circle and are fully realized. 

Shortages

Shortages of both goods and workers are still a major issue affecting supply chains. But this shortage has not affected demand. In fact, demand for many items has risen sharply over the past few years.

This means that supply chain professionals are being forced to do more with less, all while taking every step they can to keep prices at a reasonable level.

Inflation

Across the world, inflation has caused major problems for both consumers and businesses. It’s a complex issue that is going to take a combined effort from multiple levels of government, companies, and consumers.

No one wants inflation to continue to rise, but by many accounts, it seems that inflation is going to be around throughout 2022.

Can Cloud Technology Address The Issues We Are Likely To See in 2022?

Besides the “quick fixes,” such as tweaking inventory management strategies, necessary to address some of the most immediate supply chain needs, cloud technology can go a long way in mitigating many of the issues affecting supply chains over time.

Improved Efficiency

As was stated in the previous section, workers are hard to come by right now. Through the use of the best available cloud technology, companies are able to shuffle around their team members as needed. This is especially critical in situations such as the current port congestion. By using the cloud, companies can communicate with all members of the supply chain and determine how long it is likely to take for goods to make it through a congested port.

This also means that even as the needs of a business grow, the company won’t necessarily need to hire more employees right away or turn away customers due to the inability to fill orders or keep up with demand.

Cloud-based systems can help these companies overcome said issues through streamlining communication and processing of digital information.

Customizability

Not all companies have the same exact needs or challenges. Cloud systems are adaptable based on the industry and business in question. This flexibility allows you to address any unique challenges that may come up over the course of the next year and beyond.

Better Accessibility

Drivers, warehouse workers, and anyone else involved in the supply chain can instantly access information from anywhere with the cloud. This is a huge advantage over systems that can only be used in one physical location, especially when the needs of a business change.

By the looks of it, being able to adapt to changes on the fly is going to be massively important in 2022. Getting everyone on the same page through cloud technology is one of the best ways to adapt to any last-minute changes that might affect operations.

Ability to Keep Costs Low

The cloud can be used to combat the rising costs we are seeing and will continue to see in the future. Having a physical system at your place of business may seem like a great idea in terms of security and maintenance. However, these systems can cost a fortune in upkeep.

Conversely, cloud technology is available for an affordable subscription fee and, as was discussed in the previous point, is available on any device, anywhere. 

Excellent Security

Cloud services often come with their own security system which can defend against even the most sophisticated of cyberattacks. This means that businesses don’t need to rely on smaller, often less effective security measures for keeping a company’s data protected.

With cybercrime on a steady rise, data security is always going to be an important concern.

Are There Downsides to Cloud Technology?

In the early days of cloud computing, there were some security concerns surrounding this new service. Over time, security professionals have figured out ways to defend and avoid cyberattacks and data breaches that were more common during the early stages of cloud adoption.

Naturally, all companies should closely consider the needs of their business and their industry before making a significant change in operations, such as migrating entire systems over to cloud-based platforms.

That being said, using cloud-based applications afford many benefits to companies, with few downsides.