Almost one-third of business leaders note increase in cyber-attacks on distribution systems
Approximately one-third of corporate leaders have witnessed a marked surge in cyber-attacks targeting their logistics networks during the previous half-year, as high-profile security incidents on well-known companies have emphasized this expanding threat to today's organizations.
Digital risks rise worry scales for supply chain executives
Online protection issues have moved up the ranking of concerns for procurement managers at hundreds organizations internationally across various industries including industrial, utilities and tech, according to current industry research carried out in September.
Major digital attacks lead to substantial economic damage
Latest digital intrusions at various major corporations have led to financial impacts of tens of millions of currency, transitioning cyber resilience from being primarily the concern of digital security units to becoming a significant concern for executive leadership and top executives.
The nature of global trade, how we look at international logistics networks and the online supply environment are ever more interconnected,
commented a prominent industry executive.
Geopolitical factors add to logistics worries
Earlier this year, supply chain managers were especially anxious about geopolitical instability, including ongoing disputes in several regions, along with international tariff measures that weighed on international trade.
However, digital security risks are now rivalling geopolitical shocks and commercial conflicts as the primary risk for organizations of global business groups.
Study shows broad impact
The research discovered that nearly 30% of executives reported that businesses within their supply chains had been targeted by security breaches in recent months.
Significant automotive impact
An important vehicle producer experienced factory closures and was found itself incapable to produce vehicles for a full month, following a digital breach that required the company to shut down IT networks across various overseas operations.
The financial consequences of this month-long production shutdown at the UK's biggest car manufacturer has been calculated at approximately one hundred twenty million pounds in foregone income, or 1.7 billion pounds in foregone income, according to university research from a business economics professor.
Current worldwide incidents
More recently, a prominent international drinks manufacturer became the most recent organization to be forced to stop production at its home country facilities following a digital breach.
The corporation, which operates several production facilities in the Asian nation producing drinks and various goods, reported that its transaction handling functions, along with distribution activities and client support services, had been halted following a technical failure resulting from the cyber-attack.
Increasing integration creates vulnerabilities
Companies are more and more assisted by external entities. Gone are the era of viewing an business as an entity operating in separation.
Latest prominent security incidents have acted as a clear warning to businesses to allocate resources to strong cybersecurity measures, to safeguard their internal functions and maintain client faith, leading them to investigate how their distribution systems could become potential focus points for hackers.
