“Don’t buy the cow because you want a drink of milk”!

An astute comment by Subrah Iyar, the founder and CEO of WebEx. He was referring to the fact that Software as a Service (SaaS) solutions are available now including for Supply Chain and Logistics management. Apart from the major business benefits of real time supply chain event management, these offer very significant financial benefits. There is no capital expenditure involved, because these services are available on a pay-for-what-you-use basis; there are no on-going or hidden charges for upgrades and maintenance; there is seamless integration with legacy systems; and they are more tax efficient. The usual problem of buying over-capacity in business software does not exist – the service provider makes the additional capacity available – and only charges for it – as and when it is needed.

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