Invest in New Technology or Wait?
- Published: 31 Jul 2017
New technology, whether for a carrier, 3PL, or other business in the logistics industry, can be tempting to invest in. You keep hearing that you’ll fall by the wayside if you don’t upgrade. That isn’t necessarily true. There are some situations in which you should not invest in new technology.
If the investment is too steep, it probably isn’t a good idea to invest in new technology, no matter how many perceived efficiencies it will bring. You must be wise when it comes to such investments, especially since the investment won’t pay off immediately. Not to mention that there are hidden costs that you may not even think about, such as training all of your employees.
If you can’t afford it and it won’t save you enough money within an acceptable timeframe, don’t purchase new carrier technology.
Doesn’t affect performance
Another instance in which you shouldn’t invest in new technology is when the technology won’t bring you enough performance to warrant its purchase and implementation. Sometimes you can get swept up in believing that a piece of software will help address inefficiencies, but it won’t. This is why product research and internal analysis is paramount in making such an important investment.
When should you invest in new technology?
New laws or regulations
If a law or regulation requires that you upgrade technology, then you have no choice but to do so. If not, you face the risk of being penalized, usually by being charged fines.
If your company’s and its customer’s data is at risk, you must upgrade as soon as you possibly can. You are trusted to safeguard sensitive information and if you no longer can do this, you are risking the trust of your employees and customers.
If you discover a tool that can eliminate many time-consuming and/or mundane tasks, it may be a worthwhile investment. Especially if these tasks are done frequently throughout every day, as you save time 365 days a year per employee that used to perform those tasks.
Purchasing a new piece of technology can be a great way to boost efficiency and improve security, assuming that you can afford it or if it saves enough money to warrant the investment.
Enlist ADLI Logistics to manage your freight shipping, warehousing, and distribution needs. For more information fill out our contact form or call 1-877-363-728.