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Almost 30% of corporate leaders have witnessed a noticeable surge in digital intrusions targeting their logistics networks during the last six-month period, as recently reported security incidents on prominent businesses have underscored this increasing risk to today's organizations.

Digital risks move up worry scales for procurement managers

Cybersecurity threats have moved up the ranking of worries for purchasing directors at hundreds organizations worldwide across diverse industries including manufacturing, power and IT, according to latest industry research performed in early autumn.

High-profile security breaches lead to substantial economic damage

Current digital intrusions at several major businesses have resulted in losses of tens of millions of pounds, transitioning digital security from being primarily the focus of technology teams to becoming a significant concern for corporate boards and senior leaders.

The character of worldwide business, the way we consider worldwide distribution systems and the digital supply environment are ever more linked,

stated a prominent industry executive.

Global factors add to distribution concerns

During previous months, procurement executives were notably worried about geopolitical instability, including persistent conflicts in multiple areas, along with trade policies that affected global commerce.

Nonetheless, digital security risks are now rivalling geopolitical shocks and commercial conflicts as the primary threat for members of worldwide commercial organizations.

Study shows extensive effect

The research found that almost one-third of directors reported that organizations within their logistics networks had been attacked by cyber incidents in previous months.

Major automotive consequences

One prominent car company experienced factory closures and was unable to produce vehicles for an entire month, following a cyber-attack that required the company to turn off digital infrastructure across several international locations.

The financial consequences of this 30-day manufacturing halt at the UK's biggest vehicle producer has been estimated at approximately 120 million pounds in foregone income, or 1.7 billion pounds in lost revenues, according to university research from a business economics expert.

Current global examples

In late September, a well-known Japanese brewing group became the most recent organization to be forced to cease operations at its local plants following a cyber-attack.

The company, which maintains multiple production facilities in its home country producing alcoholic beverages and various goods, reported that its transaction handling functions, along with distribution activities and client support services, had been interrupted following a technical failure caused by the cyber-attack.

Growing integration creates vulnerabilities

Companies are increasingly assisted by other organizations. Gone are the times of considering an organization as an operation working in separation.

Recent major cyber-attacks have acted as a clear warning to companies to allocate resources to strong online protection systems, to secure their internal functions and retain client faith, leading them to analyze how their supply chains could become possible focus points for digital attackers.