Around the world, a large and growing number of logistics firms – of all shapes and sizes – are finding a significant benefit in upgrading their ERP systems to modern standards that help them become more agile and efficient. With this in mind, it’s vital for decision-makers at these companies to make sure they’re doing all they can to ensure the transition from a legacy platform to a newer option goes as smoothly as possible in all ways, and that should include taking a careful look at the new security issues that arise with such adoption.

After all, one of the most prominent features of legacy ERP is typically that the data it relies upon is stored in-house, usually on a single computer or server accessible only within the facility itself. But as more companies adopt cloud-based ERP – for reasons of greater mobility and easier access – and it becomes not only common, but the industry standard, that creates a litany of new challenges for which recent adopters must be prepared, according to CIO. The good news is that many modern ERP offerings are designed with smaller operations in mind, and therefore even companies that aren’t major industry players will be able to hit the ground running in short order.

Why security is an issue
When adopting modern ERP, companies will often have to place a priority on improving their security posture, and that might be especially true for smaller firms in particular, according to Information Age. As more warehouse data is transferred to the cloud – where it can be safer in a number of ways – it does fundamentally change the way that information has to be protect. Having ERP that is only accessible on-site is more convenient for companies in terms of keeping sensitive data safe, insofar as it’s more difficult to access from the outside. There are still security challenges, of course, but they’re relatively limited.

Conversely, moving to the cloud adds convenience because pertinent information can be accessed from anywhere, and can therefore be utilized on the shop floor, and in real time, the report said. However, that might also make ERP systems more vulnerable to certain kinds of security risks – such as hacking or viruses – for which companies have to prepare thoroughly.

Off on the right foot
Fortunately, companies that are conscientious in their efforts to make the modern ERP adoption process will typically find plenty of success, especially after laying a strong groundwork of employee training so everyone knows how to effectively and safely work within the new platform, according to Plant Engineer. This may be particularly important as companies grow, because if they need to move to new, more accommodating facilities, next-gen ERP can be a significant benefit. That won’t change their security needs, but companies will have more flexibility overall thanks to cloud ERP.

The more companies can do to investigate their current security issues before adopting modern ERP, the more smoothly the transition to the new platform will probably be. With that in mind, executives would be wise to carefully assess every aspect of their security posture to determine what will need to be done.