This research is based on an actual case study for a major chain of medical facilities that implemented an ASP/SaaS cloud environment-based ERP system. The presentation demonstrates how cloud computing can enhance the whole supply chain, right-size stock levels by generating electronic Kanban signals, trigger replenishment orders, and automate delivery schedules. By managing inventory using digital Kanban, complex forecasting models were eliminated. Availability of accurate information improved product flow, increased clinician productivity, and reduced waste of expired products. ASP/SaaS cloud environments provided flexibility to users because of their availability across several platforms ranging from office PCs to mobile devices. Dramatic improvements in right order quantities, elimination of expired stock, and out of stockout situations were realized after full implementation—all with reduced inventory carrying costs and higher medical staff productivity.