Technology is a key part of third-party logistics and warehouse industry. In an effort to identify the primary categories that offer the greatest benefit from improvement, Supply Chain 247 offered the following five assessments designed to figure out what your warehouse technology needs are.
1. Analyze Your Current Degree of Cost-Efficiency
Before anything else, new technology should cut down on your costs over time and create opportunity for greater profitability. One of the most effective methods to gauge cost efficiency is to assess your profitability per customer account.
If you find that a given tech item could reduce your current costs, it may be worth investing in it. Your ROI would increase once the cost is amortized.
2. Figure Out Your Customers’ Business Requirements
Maintaining an open rapport with your customers will create the opportunity to gain better insight into their goals and obstacles. Do they like their existing tech solutions? Does it serve their needs in the present day and going forward into the future? If the latest tech isn’t ready for B2B and B2C and e-commerce fulfillment, there may be space for improvement.
3. Calculate the Total Cost of your Existing Solutions
New tech may seem to have a barrier cost that is too high at first. However, they still might be lower than the maintenance and replacement costs on your current tech. If your software is slow, buggy, and offers poor security, the lost time and risks may be a worse expense than the better tech.
4. See What Your Competition is Doing
Warehouses differ, but most offer similar services in the broad sense. If your peers have found success or failure from a given tech solution, you can learn from their mistakes, which is less costly than learning from your own.
5. Clarify Your Long-Term Business Goals
Are you satisfied with your area of expertise and base of customers? Do you want to expand? New tech can often make that happen. Even if you’re satisfied with your current track, you can be ready for change and adaptable to new customer expectations if you maintain awareness of those.