Modeling Cloud Computing Integration with E-
Supply Chain Management
Ahsan Chaudhri, Anita Ajmiri, and Jaishree Asarpota
Email: {ac
Abstract—This paper proposes a conceptual framework
model for integration of cloud computing with the e-supply
chain network. This integration can potentially allow firms
to leverage the benefits inherent in a cloud computing
environment and thus, enable organizations to optimize
their cost and operational efficiency of management of their
electronic supply chain. A cloud based environment can
greatly enhance e-SCM success by creating information
visibility along the entire supply chain; improving speed,
cost, quality, customer service, and amalgamation of all e-
SCM activities into a unified, accessible and virtualized
platform. The e-SCM activities can be modeled after the
cyclic view in order to improve the conceptualization of
integration of e-SCM with cloud computing
Index Terms—
(ICT)
I. INTRODUCTION
Supply Chain Management (SCM) is the ‘design,
planning, execution, control and monitoring of supply
chain activities with the intention of creating value,
building a competitive infrastructure, leveraging world-
wide logistics, synchronizing supply with demand and
measuring performance globally’ [1]. By extension, e-
SCM involves managing all supply chain electronically.
The e-SCM processes can be identified as activities
associated with the flow of materials, information and
services from suppliers of raw materials to the end
customer via product and service processing and
warehousing [2] managed electronically. In order to
effectively manage the complexity of supply chain, many
firms have adopted a strategy of utilizing sophisticated IT
for the purpose of facilitating large information flow and
thus, creating greater competitive advantage [3]. This
development has led to the era of e-SCM.
Cloud computing is estimated to become a $150 billion
business by 2014 end, projects Gartner Research, and will
potentially grow to more than $24 billion by 2020. Cloud
computing is defined as ‘a type of parallel and
distributed system of… interconnected and virtualized
computers that are dynamically presented as one or more
unified computing resources’ [4]. A cloud consists of
several components such as clients, data centres, and
distributed servers with a high capacity for fault-tolerance,
Manuscript received July 25, 2014; revised July 12, 2015.
availability, accessibility, scalability, and reduced over-
heads [5].
II. CYCLE VIEW OF E-SCM
Cycle view of SCM proposes a series of cycles:
customer, replenishment, manufacturing and procurement
cycles, wherein, activities are performed at the interface
illustrates the stages in electronic supply chain
management (e-SCM) as conceptualized in this paper.
Activities like collaborative product design and
development (both inter and intra-firm), scheduling,
service options and contacts could be placed in a cloud
based environment and managed electronically.
Furthermore, all stages of the product development
process can be shared over a secured cloud-based
network including product specific information,
marketing information, test results and customers
feedback etc. This allows for real-time online access to
these data for all supply chain partners. We have thus
extended the cycle view of SCM to the management of
electronic supply chain management (e-SCM). Various
stages of e-SCM have been described below.
Figure 1. Stages of e-supply chain cycles (adapted from Gibson, &
Edwards, 2004) [2]
A. E-Customer Order Cycle
The customer order cycle sits at the interface between
the customer and the retailer. This is the first stage in e-
56
Lecture Notes on Information Theory Vol. 3, No. 1, June 2015
©2015 Lecture Notes on Information Theory
doi: 10.18178/lnit.3.1.56-59
Business Department, Higher Colleges of Technology, Dubai, United Arab Emirates
haudhri, aajmiri, jasarpota}@hct.ac.ae
e-Supply Chain Management (eSCM), cloud
computing, Information and Communication Technology
of two successive stages of each cycle [6], [2]. Fig. 1