Improving Distribution and Logistics with Critical Infrastructure
The distribution and logistics industry is booming now more than ever before as people purchase items that must be shipped to them from all over the world. While convenient for consumers, this expectation of immediate delivery requires advanced technology that can put a strain on the industry’s critical infrastructure.
Every industry relies on distribution and logistics to get the resources they need to operate. Without the proper systems like the Internet of Things (IoT) and the critical infrastructure to support it, the exchange of resources across locations would grind to a halt. That’s why we provide expert solutions aimed at optimizing how your business obtains and distributes resources.
The Role of Critical Infrastructure in Distribution and Logistics
Distribution and logistics are about more than moving goods from point A to point B. They involve managing how resources are acquired, stored, and transported to their destination. And as technology continues to evolve, this process has become both easier and more complex.
In order to distribute and receive goods in the modern world, your facility needs continuous, clean, and reliable power to support critical infrastructure and ensure 24/7 continuity. Power outages can cause expensive downtime and data loss, ruining reputations with clients and potential customers. The key to protecting your business starts with building your facility’s reliability through critical infrastructure to ensure you can adapt to any technological advancements or other changes that come your way.
Distribution and Logistics Critical Infrastructure Challenges
Everyone relies on the distribution and logistics industry to work efficiently, and critical infrastructure failures affect countless people. Understanding the challenges this industry faces is vital to preparing for the worst and ensuring continued operations.
Security Risks
As the Internet of Things and technology in general continues to advance, so too does the need for greater critical infrastructure security. The more distribution and logistics facilities rely on technology, the more they expose themselves to cyberthreats. These threats don’t just come from hackers, but also from ill-informed employees who don’t know how to keep sensitive data secure. In both instances, it’s important for everyone in your facility to be trained in cybersecurity and how to properly use any new technology. This will help prevent operator errors which could leave your critical infrastructure open to a cyberattack.
Regulatory Environment
The logistics and distribution industry can have significant impacts on consumers and the market in general. As a result, it is a very regulated industry to ensure that facilities have the critical infrastructure they need to do their work and protect consumer information. Noncompliance or lawsuits can be detrimental to a facility’s operations. Fines can often be in the millions after a data breach, and this is only if the facility isn’t forced to close. Improving the physical and virtual security of your logistics and distribution site doesn’t just keep your data safe, it protects your facility from disastrous consequences.
Decrease in Efficiency
As the distribution and logistics industry becomes more technologically sophisticated, new critical infrastructure must be used to ensure efficiency. For example, Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) can enhance speed, accuracy, and communication in your operations. However, warehouse wireless coverage can be problematic as blind spots interrupt communication between systems and slow down operations. Facilities’ critical infrastructure also struggles to keep up with growing IoT as they are taxed by the volume of incoming data, connected facilities, and individual devices. Since technology will only continue to expand, it is vital that operational efficiency be improved.
Power Quality and Costs
Low power quality, poor installation, or problems in your electrical grid can severely impact how smoothly and quickly your critical infrastructure operates. Power issues can cause overheating which leads to unplanned downtime or even system failure. That’s why distribution and logistics facilities need strong thermal management solutions as well as clean, reliable, and efficient power. This is accomplished by properly designing your facility for power delivery and selecting the right equipment. Investing in energy-efficient equipment won’t just improve power quality, but also power expenses. As power costs skyrocket, it is vital to make sure your critical infrastructure can operate effectively while also reducing power usage with efficient devices.
Benefits of IoT in the Distribution and Logistics Industry
Technology advances and consumer demand increases every day, forcing the distribution and logistics industry to expand its operations to keep up. The Internet of Things has become a vital part of this process, requiring strong, reliable, and secure critical infrastructure to run properly. As a result, the distribution and logistics industry is able to grow their own operations largely thanks to the following IoT benefits:
- Remote Monitoring: When problems arise in a distribution and logistics facility, countless people and organizations can suffer waiting for their resources. Remote monitoring can provide status updates and uptime reports for critical infrastructure so issues can be identified and solved quickly.
- Precision Recording and Reporting: IoT monitors, records, and reports on how every piece of connected equipment is operating in real time. This provides more information regularly on the health of your devices and alerts you as soon as something is off, reducing the risk of errors in data entry and unplanned downtime.
- Use of Smart Facilities:Distribution and logistics facilities use the IoT to connect devices, industrial equipment, tools, monitoring software, and many more technologies to collect, analyze, and transmit data. This data is then used to improve production workflow, as well as enhance the quality of services and response time.
- Cost and Time Savings:Like any upgrade, there is an initial investment of both money and time for IoT. However, this update to your critical infrastructure improves data recording and reporting which save the time and money you would have spent fixing inaccurate data records. In the long run, IoT is the next step toward efficiency, automation, and accuracy.
Interoperability and Secure Data Transfers
Distribution and logistics facilities rely on each other to deliver and store resources. To accomplish this, each organization needs reliable critical infrastructure to communicate well and send sensitive documents through the internet safely.
Benefits of Interoperability
- Fast Access to Data: Collaborating with other facilities allows distribution and logistics warehouse managers to get key data faster than ever before.
- Expanded Knowledge: Sharing information allows everyone to develop a complete knowledge base, expanding the possibilities of growth for every organization.
- Better Decisions: With more accurate data available, distribution and logistics managers will be better informed and make better decisions about their facilities.
- Improved Learning Experience: The goal of interoperability is to improve production for each facility. Sharing data empowers informed decision making and optimized services.
Challenges of Interoperability
- Risk of Hacks: Cyberattacks are a constant threat, with ransomware becoming an especially costly risk. Equipment downtime from ransomware can cause disruptions through the entire supply chain. Necessary resources will fail to reach their designated locations, resulting in disastrous shortages. And this could be prolonged if a facility’s critical infrastructure isn’t up to security standards and prevents equipment upgrades.
- Regulatory Compliance: Any kind of data breach can result in large fines, loss of trust, and even loss of funding. That’s why critical infrastructure needs to be able to protect your employees and your reputation before interoperability can begin.
- Data Security: The biggest source of data breaches isn’t hackers or faulty tech; it’s your facility’s staff. Employees need to be trained on proper usage of critical infrastructure and procedures to ensure that data isn’t compromised due to operator errors.
Distribution and Logistics Critical Infrastructure Solutions
The distribution and logistics industry is changing rapidly, presenting new challenges to saving time, money, and reputation. That’s why we provide the latest critical infrastructure solutions built to keep your facility performing in peak condition. Contact us today to speak to one of our experts about the needs of your facility and find the right solution.