Approximately one-third of company executives note increase in cyber-attacks on logistics networks
Almost 30% of business executives have witnessed a noticeable increase in cyber-attacks targeting their distribution systems during the past six months, as recent security incidents on prominent businesses have highlighted this expanding risk to modern businesses.
Online security issues rise concern rankings for procurement managers
Cybersecurity threats have moved up the hierarchy of concerns for procurement managers at hundreds companies internationally across various business fields including production, energy and IT, according to current industry research carried out in September.
Major digital attacks result in significant economic damage
Current security breaches at various major corporations have resulted in losses of substantial sums of money, shifting digital security from being primarily the concern of IT departments to becoming a significant priority for senior management and top executives.
The character of global trade, how we consider global supply chains and the digital distribution framework are increasingly connected,
commented a prominent industry executive.
Global considerations add to logistics worries
In the first half, supply chain managers were notably anxious about geopolitical instability, including ongoing disputes in various regions, along with trade policies that impacted international trade.
Nevertheless, online attacks are now rivalling international conflicts and tariff disputes as the most significant threat for participants of international trade associations.
Study indicates extensive consequences
The research revealed that nearly 30% of managers reported that businesses within their distribution systems had been targeted by digital attacks in previous months.
Major vehicle production effects
An important automotive manufacturer experienced factory closures and was found itself incapable to build automobiles for a full month, following a security incident that compelled the business to disable digital infrastructure across multiple international locations.
The monetary effect of this 30-day production shutdown at the United Kingdom's primary vehicle producer has been estimated at approximately £120 million in missed earnings, or £1.7 billion in foregone income, according to university research from a corporate finance academic.
Current international cases
More recently, a major Asian beverage company became the newest business to be forced to stop production at its local plants following a digital breach.
The company, which operates multiple production facilities in Japan producing drinks and additional items, announced that its order processing capabilities, along with distribution activities and call center services, had been interrupted following a network disruption caused by the digital intrusion.
Increasing integration creates risks
Companies are more and more enabled by other organizations. Gone are the times of considering an company as an operation working in independence.
Current major cyber-attacks have served as a strong reminder to organizations to allocate resources to comprehensive online protection systems, to secure their internal functions and retain customer confidence, encouraging them to investigate how their logistics networks could become potential objectives for cyber criminals.
