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Roughly one-third of company heads have witnessed a significant surge in digital intrusions targeting their logistics networks during the past six months, as recent security incidents on prominent businesses have emphasized this expanding risk to contemporary enterprises.

Digital risks climb concern rankings for procurement managers

Cybersecurity threats have climbed the list of concerns for supply chain executives at numerous companies globally across multiple sectors including industrial, utilities and technology, according to latest industry research conducted in September.

Major digital attacks cause considerable economic damage

Current cyber attacks at multiple prominent corporations have led to financial impacts of substantial sums of money, moving digital security from being mostly the responsibility of technology teams to becoming a significant preoccupation for executive leadership and company directors.

The essence of global trade, the way we view worldwide distribution systems and the digital distribution framework are progressively interconnected,

commented a senior industry executive.

Global considerations compound logistics worries

During previous months, purchasing directors were particularly worried about geopolitical instability, including continuing tensions in various areas, along with commercial regulations that affected international trade.

However, cyber threats are now matching geopolitical shocks and commercial conflicts as the main risk for members of worldwide commercial organizations.

Study shows broad effect

The research discovered that almost one-third of executives stated that businesses within their logistics networks had been compromised by security breaches in previous months.

Significant car manufacturing consequences

A notable vehicle producer experienced production shutdowns and was unable to build automobiles for an entire month, following a security incident that forced the organization to shut down digital infrastructure across various international locations.

The monetary effect of this 30-day factory closure at Britain's largest automotive employer has been calculated at approximately £120 million in lost profits, or 1.7 billion pounds in foregone income, according to university research from a commercial economics professor.

Latest international incidents

In late September, a well-known international drinks manufacturer became the newest business to be required to halt manufacturing at its home country facilities following a security incident.

The organization, which maintains numerous manufacturing plants in its home country producing beer and other products, announced that its order processing capabilities, along with distribution activities and call center services, had been disrupted following a network disruption triggered by the security breach.

Increasing interconnectedness creates weaknesses

Organizations are more and more supported by external entities. Gone are the days of thinking an organization as an entity functioning in separation.

Recent prominent security incidents have served as a clear warning to organizations to devote funding to comprehensive online protection systems, to safeguard their own operations and maintain consumer trust, leading them to investigate how their distribution systems could become possible targets for cyber criminals.