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Approximately one-third of corporate leaders have witnessed a noticeable rise in digital intrusions targeting their supply chains during the past six months, as recently reported digital attacks on major corporations have highlighted this growing threat to contemporary enterprises.

Digital risks move up priority lists for procurement managers

Online protection issues have moved up the hierarchy of concerns for purchasing directors at multiple businesses worldwide across various sectors including manufacturing, utilities and technology, according to latest professional survey performed in the ninth month.

Prominent cyber incidents lead to significant financial losses

Recent digital intrusions at various well-known corporations have led to financial impacts of millions of money, shifting online protection from being primarily the focus of IT departments to becoming a major concern for executive leadership and company directors.

The nature of global trade, the way we view worldwide distribution systems and the digital logistics landscape are ever more interconnected,

commented a leading professional association head.

International factors add to logistics concerns

In the first half, procurement executives were notably anxious about global conflicts, including continuing tensions in several areas, along with trade policies that affected global commerce.

Nevertheless, digital security risks are now rivalling geopolitical shocks and trade disagreements as the main danger for members of international trade associations.

Research shows widespread consequences

The survey discovered that 29% of directors reported that businesses within their supply chains had been targeted by cyber incidents in previous months.

Significant automotive consequences

One prominent automotive manufacturer experienced manufacturing stoppages and was could not to build automobiles for an entire month, following a digital breach that required the organization to disable computer systems across multiple global facilities.

The monetary effect of this four-week factory closure at Britain's largest vehicle producer has been estimated at approximately £120 million in foregone income, or £1.7 billion in foregone income, according to academic analysis from a commercial economics expert.

Recent worldwide examples

In late September, a prominent Japanese brewing group became the latest corporation to be forced to cease operations at its domestic factories following a cyber-attack.

The corporation, which manages several production facilities in Japan producing alcoholic beverages and other products, reported that its transaction handling functions, along with delivery systems and customer service operations, had been disrupted following a systems outage caused by the digital intrusion.

Growing interconnectedness generates weaknesses

Organizations are more and more enabled by other organizations. Gone are the times of thinking an organization as an operation functioning in independence.

Current major digital breaches have functioned as a clear warning to organizations to invest in strong online protection systems, to secure their internal functions and preserve consumer trust, prompting them to examine how their supply chains could become potential focus points for hackers.