Question

What is meant by "cloud technology" or "cloud computing" and how can it be used to implement lean management principles in a supply chain?

Answer 1

In cloud computing, there is the location of a server remotely for logical procession and thereby running of applications. Local computer is just a display whereas the storage and processing is managed by the cloud server. Hence, all computing services from the storage of the applications on the server to the processing power of the same, is done by the server. All it requires is a reliable internet connection and always on-internet to access the same from the server and to store the data in the remote server. However, there are certain impacts of cloud computing and storage upon privacy as well.

In case of its implementation to lean management principles in a supply chain, it is to be noted that Cloud computing provide the service providers like ICT various means that could be undertaken with the motive of waste elimination techniques from the Supply chain. It further facilitates in transiting the demand-driven model of operations into being more efficient. In addition, capacity management is one of the core functions of the supply chain. Here, cloud-computing can help in minimizing the capacity of the waste thereby aiming at improving the efficiency of the operations and generating such cost savings that are sustainable in nature. Hence, there is basically an application of the lean management principles in a supply chain with that of the cloud technology such that the cloud capacity management is used to exploit various ways by which lean could be in turn applied to the Supply chain models.