Supply Chain as a Service (SCaaS) is a relatively new method of supply chain management in which all (or at least most) parts of the process are outsourced and taken over by a third-party company. This practice tends to benefit businesses in many ways, but also poses significant challenges for businesses that aren’t ready to take the plunge.
By leveraging cloud-based technology and using cutting-edge supply chain practices, many companies are reaping the rich benefits of SCaaS. Let’s look at the specific benefits of the model, as well as some implementation challenges.
The SCaaS promises
Companies that have implemented SCaaS or LPaaS (Logistics Platform as a Service) models have experienced significant cost reductions in various areas. By effectively using SCaaS, companies can benefit from the freedom of having a strictly on-demand employees and nurture a more vibrant, diverse workforce. They can rely on supply chain specialists only when they are needed and thus significantly reduce their personnel costs.
Everything changes in a fraction of a second when it comes to complex and interconnected global supply systems. For this reason, using the SCaaS model allows companies to quickly fill market gaps as they become available. SCaaS can help businesses scale and adjust the scope of their business quickly and efficiently, as access to industry connections opens up to senders through third parties without them outsourcing their time to establish these connections.
Draw upon the latest tech suite
The use of cloud-based software is an integral part of SCaaS operations. This technology fits perfectly into the SCaaS model and allows companies to gain insight into all the different parts of the supply chain. Just like the ability to leverage third-party company connections for your own supply chain, SCaaS also allows you to use their technology platforms, which are included through a centralized dashboard to promise personalization.
Why the hold up?
The word itself, “change”
The reason people do not adopt the latest technology often has little to do with the belief that technology will not help as it claims. Instead, it’s because people just want to stick with “the way it’s always been done.”
Habit is comfortable, change is not. Even when a new system is proven to work beyond a reasonable doubt, many companies still resist change. This has always been and always will be one of the biggest challenges when it comes to using new systems and technologies.
Let go doesn’t just happen
If you have control over all parts of your supply chain management, you may not want to give up that power. It’s not necessarily because you seek control, but you may have an appetite for ultimate control and ownership over when and how things are done.
Switching to a SCaaS system will certainly be different, but you won’t need to spend too much time managing your supply chain and can instead focus on streamlining other areas of your business.
That’s why, our innovators at TruKKer have hardcoded flexibility, agility, and adaptability into the DNA of our digital freight platform. Instilling these has allowed us to foster rewarding client relationships based on unseen transparency, which is made possible using advanced data-led innovations. Our advanced data science techniques are allowing us to spot vital gaps and often overlooked chinks in our customers’ supply networks. Partnership with us will always lead to tangible operational efficiency improvement, greater error reduction, and deeper performance analysis. Everything while allowing companies to experience ultimate financial control and have throughout visibility across their supply chains.