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Approximately a third of company heads have observed a marked surge in online breaches targeting their logistics networks during the previous half-year, as recently reported cyber breaches on major corporations have highlighted this increasing danger to contemporary enterprises.

Online security issues rise concern rankings for procurement managers

Digital security concerns have climbed the list of worries for supply chain executives at numerous businesses globally across multiple business fields including manufacturing, power and tech, according to recent professional survey carried out in early autumn.

Prominent digital attacks cause substantial financial losses

Current security breaches at several prominent corporations have cost them tens of millions of money, shifting digital security from being primarily the focus of IT departments to becoming a significant preoccupation for senior management and senior leaders.

The essence of worldwide business, how we look at worldwide distribution systems and the digital supply environment are ever more interconnected,

stated a prominent industry executive.

Global factors intensify supply chain concerns

Earlier this year, procurement executives were notably worried about international tensions, including ongoing tensions in several areas, along with trade policies that impacted international trade.

However, online attacks are now competing with geopolitical shocks and commercial conflicts as the most significant threat for organizations of global business groups.

Study indicates broad consequences

The study revealed that nearly 30% of directors stated that businesses within their supply chains had been targeted by security breaches in recent months.

Substantial automotive consequences

One prominent car company experienced factory closures and was could not to manufacture cars for an entire month, following a cyber-attack that required the business to shut down IT networks across various overseas operations.

The economic impact of this 30-day factory closure at Britain's largest vehicle producer has been estimated at approximately 120 million pounds in missed earnings, or £1.7 billion in missed sales, according to expert assessment from a commercial economics expert.

Current international cases

In late September, a well-known Japanese brewing group became the newest corporation to be required to stop production at its domestic factories following a digital breach.

The company, which maintains multiple production facilities in the Asian nation producing alcoholic beverages and other products, announced that its order processing capabilities, along with shipping operations and call center services, had been halted following a systems outage caused by the digital intrusion.

Increasing interconnectedness creates weaknesses

Organizations are more and more enabled by other organizations. Gone are the times of thinking an company as an operation working in separation.

Current major cyber-attacks have served as a clear warning to organizations to invest in strong online protection systems, to secure their internal functions and retain client faith, leading them to examine how their supply chains could become potential objectives for cyber criminals.