Tutorial 4

This document is a tutorial on cloud manufacturing that discusses challenges companies face when adopting cloud-based supply chain management technologies. It compares traditional supply chain management to cloud-based systems, noting cloud offers benefits like scalability, speed of implementation, and accessibility across devices. However, the document also outlines several common challenges, including data security and privacy risks if data is hacked or acquired by competitors. Other challenges are outdated business thinking requiring cultural changes to sharing data, risks of system availability issues causing delays, and lack of customization in standardized cloud systems not fitting all specific supply chain needs.

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Tutorial 4

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FACULTY OF MANUFACTURING

ENGINEERING

SEM I 2020/2021

4BMFG-1

BMFG 4123 CLOUD MANUFACTURING

TUTORIAL 4

LECTURER’S NAME : PROFESOR MADYA DR LIEW PAY JUN

STUDENT NAME : NUR ATIRAH ASNA BINTI MOHAMAD RAUS

MATRICS NUMBER : B051710149

SECTION : 4BMFG-1/
1. Differentiate the traditional supply chain management and cloud computing in

supply chain management.

 Traditional supply chain management systems are much more transactional,

and can’t offer the real-time accuracy and 360-degree management of cloud

management solutions while cloud computing supply chain management

offers much benefits as they are scalability without having overhaul an entire

system, immediacy of cloud supply chain management software providers

during implementation, high efficiency where product innovations and

improvement to come more quickly and without the need to hire more

employees and its accessibility where everyone from drivers to account

managers can download all the necessary files on virtually any device within

 The Cloud allows for greater collaboration because it gives your business the

ability to communicate and share data more easily than traditional tools do.

minutes.
2. Explain the most common challenges and limitations that companies face when using

cloud-based technologies in supply chain management.

The most common challenges and limitations that companies face when using cloud-
based technologies are data security and privacy, the outdated business thinking,
system availability, as well as lack of customization, as discussed in the following
paragraphs.

A. Data Security and Privacy

 Cloud computing systems as softwarecproducts cannot always ensure

confidentiality andcas a result run increasing risk of being infiltratedcby
hacking systems. Additionally, possible data acquisition by competing
companies would pose an imminent threat to the whole supply chain.

B. The outdated business thinking

 The sharing of data and information with public implies a radical change on
thetraditional way of working and thinking, which can be a significant cultural
business issue. Adopting cloud technology implies a radical change in the
business model of the whole supply chain network. Companies are concerned
that wide sharing and disclosure of such data could lead to loss of their
competitive advantage. In other words, all the supply chain partners, who have
been managing their operations till now with common on-premises
infrastructure, should learn how to use the new cloud systems effectively.
Such adaptations cannot be completed in a short period of time, since the
transition to a more open way of business strategy needs slow pace to carry
out.

C. System availability

 Supply chain operations are crucial for a company’s financial welfare and as a
result any delays due to the cloud system’s malfunction can be proved fatal.
Users worry about their access to the cloud to poor internet connection in
different geographic regions.
D. Lack of customization

 Most of the times cloud computing systems offer standardized services that do
not fit exactly to their specific supply chain operations. More specifically, lack
of customization would lead to slow market response or even worse loss of the
company’s competitive advantage.