This week I was somewhat enlightened to better understand when the benefits of multi-tenant cloud computing really makes a difference in supply chain. It can be summarized in two words: Collaboration and, even more important, Simplicity. In this particular case it was embodied by one of our recently acquired software solutions – iSupply.

Hence I will make an exception and talk a little about product in this post; iSupply aims at helping Suppliers and Buyers drive out inventory by collaborating around a common view of on-hand inventory, planned supply and projected consumption. Via a smart and clean visualization principle that is shared between the parties you apply a responsibility for who makes the decision on how much and when to replenish. This can be a true collaborative VMI, a recommended call-off against a blanket order, or a traditional discrete PO. In each case it means basing the decision on what resides in a shared application.

When I first saw this approach I was truly a skeptic. I started to think of all the nitty gritty details we want to optimize to get every aspect covered in an overly complex advanced planning and optimization software. Or all the integration work required for automating inbound logistics with information-rich ASNs linking to serialized package identifiers. These are approaches that can take years to implement and even longer to master.

So what’s the secret? That the solution can be used by many companies in a collaborative environment is obviously important. But, as the late Frank Zappa used to say: The magic word of tonight is…:  SIMPLICITY. 

In the iSupply case it means:

• Understandable – Firstly it is key that the solution relates to an understandable process and has features that are easy to grasp.  Note that it does not mean the underlying software solution is simple! It is invariably more difficult to build a system that hides underlying complexities.
• Non-invasive – Next, and what can really distinguish a solution like iSupply, is to ensure it can be implemented very quickly across multiple companies without changing (basically) anything in the existing software landscape. This non-invasive approach is key to leverage the strength in the ‘software on tap’ principle.
• Transparent – As it creates a clean process that all involved parties can envision and implement, you also get very focused and conveyable ways to measure results transparently across all involved.

Don’t get me wrong. I am not saying that we can replace all streamlined transaction process automation and system integration  just like that. What I really try to say is that the software-as-a-service approach can help us free ourselves from our traditional thinking and (usually pretty complex) concepts for peer-to-peer integration and seek new collaborative ways to Keep It Simple!

Right or wrong? Let us know what you think!

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