Security Benefits Of Cloud-Based VMI

You know that with supply chain management, whether it involves operations at the production, distribution, or in-store level, actionable information is the key to streamlined activity and lowered costs. However, the gains that can be realized through real-time, point-of-sale data transfers and accurate forecasting in a vendor managed inventory (VMI) program, can be obliterated without adequate network protections in place.

Although there are many security myths surrounding “as-a-service” solutions, next-generation cloud-based VMI actually offers heightened data protection for companies when managing their inventory. Because the software framework is particularly designed to coordinate advanced replenishment information within a cooperative relationship, you can orchestrate supply chain improvements that energize your performance indicators and your margins, regardless of your place along the product stream. All conducted within a very safe network environment. Here’s why:

Superior ISO Standards

In a cloud based VMI platform, the virtual network is held to a higher standard of security than traditional designs. The International Organization for Standardization (ISO) simply requires stricter protocols for cloud computing. Moreover, providers are subject to regular security audits to ensure integrity, confidentiality, and accuracy. This type of enhanced network diagnostics (that is seldom performed in-house) ensures that your data remains secure.

Error Elimination

The automation involved in cloud-based platforms helps eliminate human error. This improves security by reducing the number of inaccuracies involved in the management of your supply chain. Point-of-sale data and other reports are transferred automatically, eliminating both the time required to re-enter critical information, and the possibility of costly errors.

Concentrated and Scaled Resources

Cloud based VMI platforms utilize state-of-the-art filtering, traffic allocation, encryption and verification standards. Because it operates with advanced scalability, cloud data has superior protection against security threats. In addition, lost or stolen devices can be immediately disabled, without a loss of information. Cloud computing employs a variety of storage methods, so you don’t have to worry about possible breaches caused by lost, stolen, or damaged devices.

Cloud based VMI offers the layered protection so crucial in today’s business network. Combining the elements of key management, advanced encryption, rigid access controls, and heightened intelligence, with improved inventory performance creates a forward-thinking solution that secures and improves your supply chain communications, while reducing costs. And by understanding the security benefits of cloud-based VMI, companies can make a worry-free switch to the increased reliability, convenience and productivity that is available through the cloud.

Download our retail supply chain collaboration white paper to learn the seven most important criteria in selecting a new supply chain platform.