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Approximately one-third of company heads have reported a noticeable increase in digital intrusions targeting their distribution systems during the previous half-year, as high-profile cyber breaches on major corporations have emphasized this growing threat to contemporary enterprises.

Online security issues climb concern rankings for procurement managers

Cybersecurity threats have advanced the hierarchy of worries for supply chain executives at multiple organizations worldwide across diverse sectors including industrial, utilities and technology, according to current sector analysis performed in September.

High-profile cyber incidents cause significant monetary impacts

Recent cyber attacks at several well-known corporations have resulted in losses of millions of currency, transitioning cyber resilience from being mainly the concern of IT departments to becoming a major priority for executive leadership and company directors.

The essence of global trade, the way we look at global supply chains and the digital logistics landscape are progressively connected,

stated a senior industry executive.

International considerations intensify supply chain anxieties

Earlier this year, supply chain managers were notably concerned about global conflicts, including ongoing disputes in several parts of the world, along with international tariff measures that weighed on worldwide business.

However, online attacks are now matching geopolitical shocks and trade disagreements as the main risk for members of worldwide commercial organizations.

Study shows widespread consequences

The survey discovered that almost one-third of managers reported that organizations within their logistics networks had been targeted by cyber incidents in the past few months.

Significant vehicle production impact

An important car company experienced production shutdowns and was could not to produce vehicles for a full month, following a digital breach that forced the business to turn off computer systems across various overseas operations.

The monetary effect of this four-week production shutdown at the UK's biggest vehicle producer has been calculated at approximately £120 million in lost profits, or £1.7 billion in missed sales, according to academic analysis from a corporate finance professor.

Recent international cases

In late September, a prominent international drinks manufacturer became the most recent organization to be required to halt manufacturing at its local plants following a digital breach.

The organization, which maintains numerous manufacturing plants in its home country producing beer and additional items, stated that its order processing capabilities, along with shipping operations and client support operations, had been halted following a systems outage resulting from the security breach.

Expanding integration generates weaknesses

Businesses are more and more assisted by other organizations. Gone are the days of considering an business as an operation working in independence.

Current major digital breaches have functioned as a strong reminder to businesses to invest in comprehensive digital defences, to secure their business activities and preserve consumer trust, leading them to investigate how their supply chains could become likely targets for digital attackers.