Nearly one-third of corporate bosses report increase in cyber-attacks on logistics networks
Approximately a third of company heads have reported a significant rise in digital intrusions targeting their distribution systems during the previous half-year, as recently reported cyber breaches on prominent businesses have highlighted this expanding danger to modern businesses.
Online security issues move up priority lists for procurement managers
Online protection issues have climbed the hierarchy of concerns for supply chain executives at hundreds companies worldwide across multiple sectors including production, utilities and IT, according to recent professional survey performed in early autumn.
Major cyber incidents cause significant monetary impacts
Current cyber attacks at various major businesses have resulted in losses of tens of millions of money, transitioning cyber resilience from being primarily the responsibility of digital security units to becoming a primary priority for corporate boards and company directors.
The essence of global trade, how we look at international logistics networks and the digital logistics landscape are ever more linked,
commented a senior sector leader.
Global factors compound distribution worries
In the first half, procurement executives were notably anxious about geopolitical instability, including persistent tensions in various parts of the world, along with trade policies that affected international trade.
Nonetheless, cyber threats are now matching global tensions and commercial conflicts as the primary threat for members of international trade associations.
Research reveals extensive consequences
The study revealed that 29% of executives reported that businesses within their logistics networks had been compromised by security breaches in previous months.
Substantial automotive consequences
A notable automotive manufacturer experienced production shutdowns and was could not to produce vehicles for four weeks, following a digital breach that required the business to disable IT networks across several overseas operations.
The financial consequences of this 30-day manufacturing halt at the United Kingdom's primary automotive employer has been estimated at approximately £120 million in lost profits, or 1.7 billion pounds in missed sales, according to expert assessment from a commercial economics academic.
Recent worldwide incidents
More recently, a prominent Asian beverage company became the most recent corporation to be compelled to halt manufacturing at its local plants following a cyber-attack.
The corporation, which maintains multiple manufacturing plants in its home country producing drinks and other products, announced that its order processing capabilities, along with shipping operations and client support services, had been disrupted following a systems outage triggered by the security breach.
Growing interconnectedness creates weaknesses
Organizations are increasingly assisted by external entities. No longer exist the times of thinking an company as an entity operating in independence.
Current prominent security incidents have functioned as a strong reminder to organizations to devote funding to strong online protection systems, to secure their own operations and maintain client faith, prompting them to examine how their supply chains could become potential focus points for hackers.