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Almost a third of company heads have witnessed a noticeable surge in cyber-attacks targeting their distribution systems during the previous half-year, as recent security incidents on major corporations have underscored this expanding threat to contemporary enterprises.

Cyber threats rise concern rankings for supply chain executives

Digital security concerns have climbed the ranking of worries for purchasing directors at multiple organizations globally across diverse business fields including manufacturing, energy and technology, according to current industry research performed in September.

Major cyber incidents result in substantial financial losses

Current cyber attacks at several major corporations have cost them substantial sums of money, moving cyber resilience from being mostly the responsibility of technology teams to becoming a major preoccupation for senior management and top executives.

The essence of international commerce, the way we view global supply chains and the technological logistics landscape are ever more linked,

commented a leading industry executive.

Global elements intensify logistics concerns

In the first half, supply chain managers were especially worried about global conflicts, including ongoing disputes in multiple parts of the world, along with commercial regulations that impacted global commerce.

Nonetheless, cyber threats are now rivalling international conflicts and trade disagreements as the main risk for participants of international trade associations.

Research indicates extensive consequences

The survey revealed that 29% of managers reported that businesses within their supply chains had been compromised by cyber incidents in the past few months.

Substantial car manufacturing effects

One prominent car company experienced production shutdowns and was found itself incapable to manufacture cars for four weeks, following a cyber-attack that compelled the organization to turn off computer systems across multiple overseas operations.

The monetary effect of this four-week factory closure at the United Kingdom's primary automotive employer has been estimated at approximately £120 million in foregone income, or 1.7 billion pounds in lost revenues, according to expert assessment from a business economics professor.

Recent worldwide incidents

More recently, a well-known Japanese brewing group became the latest business to be forced to halt manufacturing at its domestic factories following a security incident.

The organization, which manages multiple manufacturing plants in its home country producing alcoholic beverages and other products, reported that its sales management systems, along with delivery systems and client support functions, had been interrupted following a technical failure resulting from the digital intrusion.

Expanding connectivity creates weaknesses

Organizations are increasingly enabled by other organizations. No longer exist the times of thinking an company as an unit working in isolation.

Recent prominent cyber-attacks have served as a strong reminder to companies to invest in strong digital defences, to protect their business activities and retain consumer trust, leading them to analyze how their distribution systems could become likely targets for hackers.