Approximately a third of company executives report increase in online breaches on supply chains
Approximately 30% of company heads have reported a noticeable increase in digital intrusions targeting their logistics networks during the previous half-year, as recently reported security incidents on well-known companies have highlighted this increasing risk to contemporary enterprises.
Cyber threats move up concern rankings for procurement managers
Digital security concerns have moved up the ranking of concerns for procurement managers at hundreds businesses globally across diverse sectors including production, utilities and IT, according to current sector analysis carried out in September.
High-profile cyber incidents lead to significant monetary impacts
Current cyber attacks at various major businesses have resulted in losses of millions of money, shifting online protection from being mainly the focus of IT departments to becoming a primary concern for executive leadership and company directors.
The essence of global trade, the manner in which we consider international logistics networks and the technological distribution framework are ever more linked,
stated a senior professional association head.
International elements intensify supply chain worries
Earlier this year, purchasing directors were especially anxious about international tensions, including continuing tensions in various regions, along with commercial regulations that impacted worldwide business.
Nonetheless, cyber threats are now rivalling global tensions and tariff disputes as the primary risk for participants of worldwide commercial organizations.
Survey indicates broad impact
The research discovered that almost one-third of managers indicated that companies within their logistics networks had been attacked by digital attacks in previous months.
Major vehicle production impact
An important vehicle producer experienced factory closures and was found itself incapable to manufacture cars for a full month, following a digital breach that required the company to disable IT networks across various global facilities.
The economic impact of this month-long factory closure at Britain's largest vehicle producer has been calculated at approximately £120 million in lost profits, or one point seven billion pounds in lost revenues, according to expert assessment from a corporate finance academic.
Recent global examples
More recently, a well-known Japanese brewing group became the latest corporation to be forced to cease operations at its home country facilities following a security incident.
The corporation, which operates numerous industrial sites in Japan producing alcoholic beverages and other products, reported that its transaction handling functions, along with delivery systems and client support operations, had been halted following a technical failure caused by the digital intrusion.
Expanding interconnectedness produces risks
Organizations are progressively assisted by partner companies. Gone are the days of viewing an organization as an entity functioning in independence.
Current high-profile cyber-attacks have functioned as a strong reminder to companies to allocate resources to robust online protection systems, to secure their internal functions and retain client faith, prompting them to analyze how their supply chains could become likely focus points for cyber criminals.
