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Roughly one-third of corporate leaders have reported a noticeable increase in cyber-attacks targeting their supply chains during the previous half-year, as high-profile cyber breaches on well-known companies have highlighted this growing threat to modern businesses.

Online security issues rise worry scales for supply chain executives

Online protection issues have advanced the list of priorities for supply chain executives at hundreds organizations internationally across diverse business fields including production, power and tech, according to recent sector analysis performed in the ninth month.

Major digital attacks lead to considerable economic damage

Latest security breaches at multiple prominent businesses have cost them substantial sums of money, shifting cyber resilience from being primarily the concern of IT departments to becoming a primary preoccupation for executive leadership and senior leaders.

The nature of international commerce, the way we consider global supply chains and the digital distribution framework are increasingly linked,

commented a prominent sector leader.

Geopolitical considerations compound logistics concerns

Earlier this year, procurement executives were notably anxious about international tensions, including ongoing disputes in several regions, along with commercial regulations that weighed on global commerce.

Nonetheless, cyber threats are now rivalling geopolitical shocks and commercial conflicts as the most significant threat for organizations of international trade associations.

Research reveals extensive consequences

The research revealed that 29% of executives reported that companies within their supply chains had been targeted by cyber incidents in recent months.

Substantial vehicle production impact

A notable automotive manufacturer experienced manufacturing stoppages and was found itself incapable to produce vehicles for a full month, following a digital breach that required the company to turn off computer systems across various global facilities.

The financial consequences of this 30-day production shutdown at the United Kingdom's primary automotive employer has been projected at approximately £120 million in missed earnings, or 1.7 billion pounds in lost revenues, according to academic analysis from a corporate finance professor.

Current global examples

More recently, a well-known Japanese brewing group became the newest organization to be forced to cease operations at its local plants following a security incident.

The organization, which maintains multiple production facilities in its home country producing beer and various goods, announced that its sales management systems, along with distribution activities and call center functions, had been disrupted following a network disruption resulting from the digital intrusion.

Increasing connectivity generates risks

Businesses are more and more enabled by external entities. Gone are the days of considering an company as an entity functioning in separation.

Current prominent digital breaches have acted as a strong reminder to businesses to invest in strong digital defences, to safeguard their own operations and maintain consumer trust, prompting them to examine how their logistics networks could become likely targets for hackers.