Nearly a third of company executives note rise in digital threats on supply chains
Almost 30% of corporate leaders have witnessed a noticeable increase in digital intrusions targeting their supply chains during the previous half-year, as high-profile cyber breaches on major corporations have underscored this increasing risk to today's organizations.
Online security issues climb concern rankings for supply chain executives
Online protection issues have advanced the ranking of priorities for purchasing directors at numerous companies worldwide across multiple industries including industrial, energy and technology, according to current industry research conducted in the ninth month.
High-profile digital attacks cause considerable financial losses
Latest security breaches at several well-known companies have resulted in losses of millions of money, transitioning online protection from being mostly the responsibility of technology teams to becoming a significant priority for senior management and senior leaders.
The nature of international commerce, how we look at global supply chains and the technological supply environment are ever more interconnected,
commented a leading industry executive.
Geopolitical considerations add to logistics anxieties
Earlier this year, procurement executives were especially worried about geopolitical instability, including persistent disputes in various areas, along with international tariff measures that impacted international trade.
However, digital security risks are now rivalling geopolitical shocks and commercial conflicts as the most significant danger for participants of international trade associations.
Research reveals widespread effect
The research revealed that nearly 30% of directors indicated that organizations within their distribution systems had been attacked by digital attacks in recent months.
Major vehicle production consequences
One prominent vehicle producer experienced manufacturing stoppages and was found itself incapable to build automobiles for a full month, following a digital breach that required the organization to turn off computer systems across several international locations.
The financial consequences of this 30-day factory closure at Britain's largest car manufacturer has been projected at approximately ÂŁ120 million in lost profits, or ÂŁ1.7 billion in missed sales, according to academic analysis from a commercial economics professor.
Recent worldwide examples
More recently, a prominent Japanese brewing group became the most recent organization to be compelled to stop production at its domestic factories following a security incident.
The corporation, which maintains numerous manufacturing plants in the Asian nation producing beer and other products, reported that its transaction handling functions, along with delivery systems and client support operations, had been halted following a technical failure triggered by the cyber-attack.
Increasing interconnectedness creates risks
Businesses are progressively supported by partner companies. Gone are the days of thinking an company as an unit functioning in independence.
Recent major cyber-attacks have served as a strong reminder to organizations to devote funding to strong digital defences, to safeguard their business activities and preserve client faith, prompting them to analyze how their logistics networks could become possible objectives for cyber criminals.
