Utilizing new technologies is undoubtedly a great way to increase the efficiencies that today's competitive market demands. Wireless implementations and cloud computing are allowing companies to trim costs, increase productivity and offer new service channels. A study in the North American 3PL Market Report showed that 92% of United States third party logistics providers felt that providing better IT solutions was the key to new growth opportunities. However with the influx of new technologies and electronic capabilities, unfortunately, comes the threat of data compromise and information loss.
Across every industry, the emergence of cloud computing and mobile tools has created efficiencies that manual processes could never provide. It has also placed a new and higher importance on the role that data plays in day to day operations as well as the health of the business. The focus on new technology should be coupled with a strong commitment to data security by every business sector. A study by the Ponemon Institute shows that companies that report a data loss and/or security breach incur an average loss of $5 million associated with that incident. In addition to the direct monetary impact of the data breach that results in an IT overhaul and fines, there is the future cost of regaining consumer and client trust. According to the Disaster Recovery Planning Study, a company that experiences a network failure or data breach lasting 10 days or longer will never fully recover financially, and 50% of those companies will be out of business within 5 years.
When determining what the right 3PL provider will offer your company, in addition to order accuracy and the ideal logistics services that your industry commands, a focus on data security needs to be strongly considered. The recent news of the data breaches experienced by Target and Neiman Marcus are prime examples of how damaging and widespread a security violation can be. The most recent count had over 110 million customers impacted. This is a further testament of the threats that businesses and their networks face on a daily basis. When you consider the security implementations that large companies like these had in place, it also speaks to the strength and evolution of hackers and viruses.
The North American 3PL Market Report also showed that 65% of 3PLs ranked smooth integration of IT systems and data management as their biggest challenge in acquiring new customers. It is even more important to opt for a 3PL with a sound, proven blueprint in place for implementing the processes you customers demand, as well as the technology and data that is vital to your business. This makes opting for a 3PL with a sound, proven blueprint in place for implementing not only the processes your customers demand, but also the technology and data that is so vital to your business. Having a partner that creates supply chain solutions while securing your proprietary information should be an expectation, not an exception.
There is a variety of factors to weigh when seeking a 3PL partner. With data breaches on the rise, the security of your business data should be a top priority. When selecting a third party logistics company, you need to ensure that your data is as safe as the boxes that are being handled.
At Barrett Distribution, we put our customers first. Whether it is related to the accurate delivery of your product or the security of your business data, we deliver satisfaction. Take the first step towards a secure 3PL partnership today with Barrett Distribution.