A cloud-based supply chain management system: effects on supply chain responsiveness

Abstract

Purpose

Despite the ongoing calls for the incorporation of the cloud utility model, the effect of the cloud on elements of supply chain performance is still an evolving area of research. The purpose of this paper is to develop the architecture of a cloud-based supply chain management (C-SCM) ecosystem and explore how it enhances supply chain responsiveness (SCR).

Design/methodology/approach

First, the authors discuss the potential benefits that cloud computing can yield, compared to existing mature SCM information systems and solutions through a comprehensive literature review. The authors conceptualise SCR in terms of the level of visibility in the supply chain, supply chain flexibility and rapid detection and reaction to changes, and then the authors build the detailed architecture of a C-SCM system. The proposed ecosystem introduces a view of SCM and the associated practices when transferred to cloud environments. The potential to enhance SCR through the cloud is explored with scenarios on a case of supply chain operations in fashion retail industry.

Findings

The findings show that the proposed system can enhance all three dimensions of SCR. Implications for supply chain practice and how companies can migrate to a cloud supply chain are drawn.

Originality/value

Given that the development, creation and delivery of goods and services are increasingly becoming a joint effort of several parties in a supply chain, the authors contribute to the existing literature by introducing a comprehensive C-SCM system and show how companies can enhance their SCR.