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Almost a third of company heads have reported a marked increase in digital intrusions targeting their supply chains during the past six months, as recent cyber breaches on well-known companies have highlighted this expanding danger to modern businesses.

Cyber threats climb concern rankings for supply chain executives

Digital security concerns have moved up the ranking of priorities for purchasing directors at numerous companies globally across multiple sectors including manufacturing, power and IT, according to latest professional survey performed in September.

Prominent cyber incidents cause significant economic damage

Latest security breaches at multiple major companies have led to financial impacts of tens of millions of currency, transitioning digital security from being mostly the responsibility of IT departments to becoming a major concern for corporate boards and top executives.

The nature of global trade, the way we view international logistics networks and the digital distribution framework are increasingly interconnected,

commented a leading sector leader.

International elements add to supply chain anxieties

Earlier this year, procurement executives were notably anxious about international tensions, including continuing tensions in various regions, along with commercial regulations that affected international trade.

Nevertheless, online attacks are now competing with global tensions and commercial conflicts as the primary risk for members of worldwide commercial organizations.

Research reveals extensive consequences

The survey discovered that nearly 30% of managers reported that companies within their logistics networks had been compromised by security breaches in the past few months.

Substantial vehicle production impact

A notable vehicle producer experienced production shutdowns and was unable to manufacture cars for four weeks, following a cyber-attack that compelled the business to disable IT networks across several international locations.

The monetary effect of this month-long manufacturing halt at the United Kingdom's primary automotive employer has been estimated at approximately 120 million pounds in foregone income, or one point seven billion pounds in missed sales, according to university research from a business economics professor.

Recent worldwide cases

During the autumn, a major Asian beverage company became the latest organization to be compelled to stop production at its home country facilities following a security incident.

The company, which manages numerous production facilities in Japan producing drinks and other products, announced that its sales management systems, along with shipping operations and client support services, had been interrupted following a network disruption resulting from the cyber-attack.

Expanding interconnectedness produces weaknesses

Businesses are progressively supported by external entities. Gone are the times of viewing an business as an entity working in isolation.

Latest high-profile digital breaches have functioned as a clear warning to companies to allocate resources to robust online protection systems, to secure their business activities and maintain customer confidence, prompting them to analyze how their distribution systems could become likely targets for hackers.