Approximately one-third of company executives report rise in online breaches on supply chains
Almost one-third of company heads have observed a marked rise in online breaches targeting their supply chains during the past six months, as high-profile digital attacks on well-known companies have underscored this expanding risk to today's organizations.
Digital risks climb priority lists for purchasing directors
Digital security concerns have climbed the hierarchy of concerns for procurement managers at numerous organizations internationally across various business fields including manufacturing, power and technology, according to latest sector analysis carried out in the ninth month.
Major security breaches lead to substantial monetary impacts
Current cyber attacks at multiple major businesses have resulted in losses of tens of millions of currency, transitioning digital security from being primarily the concern of digital security units to becoming a major preoccupation for senior management and company directors.
The essence of global trade, how we view global supply chains and the technological logistics landscape are ever more linked,
commented a senior professional association head.
Geopolitical factors add to logistics concerns
Earlier this year, procurement executives were especially worried about geopolitical instability, including ongoing disputes in various regions, along with trade policies that affected worldwide business.
Nevertheless, digital security risks are now competing with international conflicts and commercial conflicts as the most significant danger for participants of international trade associations.
Research indicates widespread impact
The survey revealed that 29% of executives reported that businesses within their logistics networks had been compromised by security breaches in the past few months.
Major automotive impact
A notable car company experienced production shutdowns and was found itself incapable to build automobiles for a full month, following a digital breach that forced the organization to turn off computer systems across multiple international locations.
The monetary effect of this month-long production shutdown at the United Kingdom's primary automotive employer has been projected at approximately £120 million in lost profits, or 1.7 billion pounds in foregone income, according to expert assessment from a corporate finance academic.
Current worldwide cases
More recently, a well-known Asian beverage company became the most recent corporation to be forced to cease operations at its local plants following a digital breach.
The organization, which manages numerous manufacturing plants in its home country producing beer and additional items, announced that its sales management systems, along with distribution activities and client support operations, had been interrupted following a technical failure resulting from the cyber-attack.
Growing connectivity creates risks
Organizations are more and more assisted by partner companies. Have disappeared the era of considering an business as an unit functioning in separation.
Recent high-profile cyber-attacks have acted as a important lesson to businesses to allocate resources to comprehensive digital defences, to protect their own operations and retain consumer trust, prompting them to analyze how their supply chains could become likely targets for digital attackers.
