Digital Transformation Risks Every Warehousing Business Needs to Know About

As previously discussed in 7 Ways Technology is Revolutionizing Warehouse Management, major improvements to warehousing businesses can be made by upgrading and adapting to modern technology. For instance, mobile devices allow you to transition to a paperless workplace and sophisticated software can help you organize inventory much more efficiently. Improved scanners can also reduce instances of theft through more accurate tagging and tracking methods. However, despite the many advantages of adopting modern technology, there are still inherent risks and challenges you need to consider before doing so. This guide will explore these various issues when it comes to adopting and installing new technology for your warehousing business.

Social media issues and customer satisfaction

If you plan on integrating social media channels into your business, one thing you need to consider, according to this article by Forbes on customer satisfaction, is how this change will affect your team’s daily efforts. Although your initial goal might be to develop better relationships with your customers and foster stronger communication, slow responses to customer queries will have the opposite effect. Consider adding resources so that these departments will be available on a 24/7 basis. Another option is to have AI chatbots respond to your customers, but fully eliminating the human aspect might frustrate them when it comes to more complex demands. Lastly, keep in mind that “social media and cloud content lasts forever, and customers have the ability to verify and question them,” so it’s important for you and your employees to maintain an attitude of transparency and professionalism.

Outdated technology and cybersecurity

A guide to cybersecurity published by Marcus reiterates the need to keep your technology up to date. This is essential because protecting your digital environment from unauthorized access or cyber-attacks is vital. Viral attacks can compromise your whole system, causing an avalanche of unforeseen shipment delays and logistical issues. As a result, the system should be consistently monitored and updated to the latest versions as soon as they are available. Employees should also be educated on the risks of opening suspicious e-mail links or downloading any malicious programs onto the company system. In addition, employees tend to use their personal mobile phones to complete work tasks, which also need to be properly secured or monitored to prevent the likelihood of a data breach.

Financial costs and the future

It is highly likely that implementing digital transformations come with a substantial amount of initial investment. Although these changes may lead to better efficiency and savings in the long run, you should also be prepared for the potential for some losses due to technological failures, or having to upgrade outdated technology. These risks all have an impact on the functioning of your systems, people, and processes. In order to mitigate this risk, ensure that the technology that you’re planning to implement is compatible with your workplace goals, is scalable in terms of your vision, and has a high accuracy and reliability rate. That way, you’re doing your best to ensure that your technological investment is worth it in the future. Having trouble with securing funding? An article by IoT World Today suggests creating a video to communicate your future vision when you invest in a new gadget.

Third-party breaches and data privacy

Whenever you work with a third party, you run the risk of data breaches due to inappropriate controls in their operating environment. No matter what tech company you choose to work with, it’s always important to thoroughly research their reputation and background, and search for any similar projects they’ve already worked on. You’re essentially making your warehousing operations fully dependent on their technology; so read through your agreements carefully to make sure that you aren’t inadvertently sharing any personal data is a worthwhile precaution. Furthermore, you should also judge whether the company you plan on working with is resilient in the face of risks. If they go out of business, what will happen to the technology that you’ve integrated into your operations? At the very least, you’ll lose access to any tech support and security updates.

For more tips on improving your warehousing business, feel free to check out some of the solutions offered by PathGuide Technologies.

Article authored by Lauren Williams

The post Digital Transformation Risks Every Warehousing Business Needs to Know About appeared first on Read Our Blog.

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