Cyber Risk In Logistics

a. Cyber Risks

With the implementation of globalization in today’s society, the transportation and logistics industry are likely to get involved with digitalized business transactions. Therefore, higher efficiency and digitalization of supply chains has enabled the industry’s logistics network to grow to be a huge network.

This means that the transports and logistics industry is more prone to being targeted by cyber-crimes, hence the industry faces the possibility of being impacted by the occurrence of cyber risks. Due to the existence of numerous connections in the logistics chain as well as a large number of small players handling goods on behalf of third parties, it makes the industry more vulnerable to the threats of cyber risks. For

These risk could affect DHL’s market share in the logistics industry as new competitors comes out with more innovative alternatives. As technology rapidly changes with time, DHL’s traditional postal services could be impacted by new technologies offered by competitors such as on-demand deliveries, as this service follows a growing trend. (The Guardian, 2016)

On demand deliveries are deliveries that relies on ordinary people to deliver goods instructed by the user via a network connection rather than from the company itself. This type of service is similar to ride hailing services whereby the user calls for someone on the spot to help deliver their goods to their intended destination. This has proven to be of a much efficient and economical way. Examples of competitors that may post a threat to DHL will be the emerging UberRUSH service provided by Uber. (The Guardian, 2016)

With these innovative companies emerging, DHL will face the risk of losing out to its competitors as people will switch to more convenient and efficient alternatives. This will then lead DHL to being vulnerable to decrease in market share and thus being forced out of the market. (The Guardian, 2016)

c. Environmental

As such, within the global supply chains, the transportation sector plays a significant part in the guidance of the global climate change mitigation approaches. Climate change causes physical impacts such as warmer temperatures, increased frequencies of extreme weather events and reduced availability of natural resources. Due to the harmful effects of climate change, logistics providers faces more pressure. Thus, the logistics providers had the need to adjust to changing regulations, as well as client concerns. The vulnerability of the industry towards climate change can disturb the destinations and operations of the logistics providers (Business for Social Responsibility ,