The Benefits of Moving Global Trade and Transportation Operations to the Cloud

Businesses around the world have increasingly moved their enterprise applications, platforms and infrastructure to the cloud. In the latest Precision Report we look at the benefits of moving to the cloud, and the advantages of leveraging cloud-based processing for global trade, transportation and logistics operations.

Blockchain, the Internet of Things, machine learning and data lakes… These are the technologies that have garnered the most headlines in recent years. But the headlines don’t reflect the fact that many enterprises are not rushing to be early adopters. This is understandable. Change simply for the sake of change is disruptive. More importantly, technological innovations must first prove to be worthwhile in terms of both ROI and improved operational processes.

Cloud computing is one innovation that has proven its value. Although the cloud has been with us almost two decades, widespread migration has been slow. That has changed — and is continuing to change. Gartner forecasts that the worldwide public cloud services market will grow 17.3 percent this year to total US $206.2 billion. This is up from $175.8 billion in 2018. Furthermore, Gartner predicts that this will increase to US $278.3 billion in 2021.

In the last five years or so, businesses around the world have increasingly moved their enterprise applications, platforms and infrastructure to the cloud. The change to cloud-based processing is not simply to keep up with technology — there are tangible benefits too. Let’s take a brief look at these.

Why Move to the Cloud?


The first most important benefit is revenue and profit growth. IBM looked at over 800 IT leader surveys across 24 industries in 13 countries. Despite the different challenges posed by their varying industries and economies, strategic cloud adopters had one important thing in common: growth. These companies exhibited twice the revenue growth and achieved 2.5 times the profit growth of companies working in traditional IT environments.


One of the major reasons cloud solutions offer such great opportunity for revenue and profit growth is scalability. That’s also the biggest advantage of the cloud, and the one that drove its development.

A cloud-based system offers dynamic allocation of resources. In other words, if you need more processing power, storage, memory and so forth, the cloud allocates it.


Another great advantage is that cloud deployment is faster. Instead of upgrading individual users or groups one at a time, cloud deployment and updates happen at a centralized application or platform level.


Would you rather have your IT staff working on improving your business performance and developing strategic advancements or on routine IT maintenance? The answer is obvious. With the cloud, your service provider looks after that. Better still, they’ll often resolve issues long before you even encounter them.

In addition, your provider is responsible for hardware maintenance and upgrades too. As a result, when infrastructure is eventually updated, it’s invisible to your IT organization and your finance department.


If you use a cloud solution built on virtualized hardware resources that are geographically and systematically independent, you have a built-in disaster recovery plan. In the event of a disaster, all you need to do is find an alternative access to your cloud solution.


Replacing or upgrading your systems is a huge capital expense. However, a subscription or recurring licensing fee is a predictable operational expense. This means you know exactly how much your IT needs will cost, which in turn, helps you to manage your cash flow.

Global Trade, Transportation and Logistics in the Cloud

We have had a look at the general benefits of the cloud, but there are also specific advantages for global trade, transportation and logistics. Let’s have a look at these.


The major advantage to using the cloud means you have ongoing and real time updates with trade compliance regulations. This is vital. A cloud-based shipping logistics platform is also a matter of risk management, and one that helps you avoid costly penalties.

Lee Specialties Ltd. of Red Deer, Canada is a cautionary tale. The company was fined $90,000 for inadvertently shipping $15 in Viton® o-rings to a country for which export of such products was prohibited. Penalties up to 6,000 times the value of shipped goods might be an extreme, increasing compliance enforcement is a reality for shippers.


For large shippers with multiple distribution centers and warehouses platform rollouts are time-consuming and complicated. With a cloud deployment, however, all your facilities and teams receive features and updates simultaneously. That means no communications downtime between facilities and no intricate planning.


With a cloud based solution, changing to meet adapting business needs is quick and easy. Adding new applications, scaling back capacity or even adding or subtracting users is quick and easy.


Cloud deployments for logistics solutions create a competitive advantage. If you always have the newest application features and up-to-date data, you have an edge over competitors in terms of delivery, customer service, and cost savings.


If you use a cloud-based solution, you no longer need a team of in-house software experts to make your systems work. If you have a small team, or indeed an individual expert, who knows and understands your home grown systems, there’s an ever-present risk to your business.


Last but not least is return on investment. Because deployment of cloud architecture is much faster than on-premise, ROI is realized much quicker —  in some cases in as little as 10-12 weeks.

Precision Premium Private Cloud

Cloud services provide growth-minded organizations with the ability to move capital expenses to operational expenses, while requiring less maintenance and automatic upgrades. Customers moving to cloud technology eliminate the need for IT and hardware resources while moving their information to a secure, private cloud environment. Our integrated cloud service provides your organization with the newest application features, propelling you forward past your competitors and giving your logistics solutions a competitive advantage.


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About QAD Precision – Trusted Global Trade and Transportation Execution

QAD Precision (Precision Software), a division of QAD Inc., provides industry-leading global trade management, transportation execution and multi carrier shipping software solutions from a single, integrated platform. Preeminent industry leaders in every region of the world rely on QAD Precision’s global support centers to leverage thousands of carriers and manage millions of shipping transactions every day. Our open architecture easily integrates with Enterprise Resource Planning, Warehouse Management Systems and legacy solutions. An ISO-certified company, QAD Precision assists companies to minimize shipping costs, optimize first mile and last mile deliveries, automate free trade agreement compliance, avoid customs delays and mitigate the risks associated with dynamic trading environments to maximize their competitive advantage. QAD Precision’s customers span multiple industries including banking and finance, life sciences, high technology, retail, industrial, automotive, higher education and public sector as well as logistics providers. For more information about Precision Software, visit


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