Next generation supply chain management: the impact of cloud computing

Abstract

PurposeThe purpose of this paper is to investigate the impact of cloud computing (CC) on supply chain management (SCM).Design/methodology/approachThe paper is conceptual and based on a literature review and conceptual analysis.FindingsToday, digital technology is the primary enabler of supply chain (SC) competitiveness. CC capabilities support competitive SC challenges through structural flexibility and responsiveness. An Internet platform based on CC and a digital ecosystem can serve as “information cross-docking” between SC stakeholders. In this way, the SC model is transformed from a traditional, linear model to a platform model with the simultaneous cooperation of all partners. Platform-based SCs will be a milestone in the evolution of SCM – here conceptualised as Supply Chain 3.0.Research limitations/implicationsCurrently, SCs managed holistically in cyberspace are rare in practice, and therefore empirical evidence on how digital technologies impact SC competitiveness is required in future research.Practical implicationsThis research generates insights that can help managers understand and develop the next generation of SCM with the use of CC, a modern and commonly available Information and Communication Technologies (ICT) tool.Originality/valueThe paper presents a conceptual basis of how CC enables structural flexibility of SCs through easy, real-time resource and capacity reconfiguration. CC not only reduces cost and increases flexibility but also offers an effective solution for disruptive new business models with the potential to revolutionise current SCM thinking.