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Approximately a third of corporate leaders have observed a noticeable increase in online breaches targeting their logistics networks during the previous half-year, as recently reported digital attacks on well-known companies have highlighted this growing risk to modern businesses.

Cyber threats climb concern rankings for procurement managers

Online protection issues have moved up the ranking of worries for purchasing directors at numerous businesses globally across various industries including industrial, energy and tech, according to current sector analysis performed in the ninth month.

Prominent security breaches result in considerable financial losses

Recent cyber attacks at various major corporations have led to financial impacts of substantial sums of pounds, shifting online protection from being mainly the responsibility of digital security units to becoming a primary preoccupation for corporate boards and senior leaders.

The nature of global trade, the manner in which we view international logistics networks and the digital logistics landscape are ever more linked,

stated a senior professional association head.

Geopolitical factors intensify distribution concerns

Earlier this year, procurement executives were especially anxious about geopolitical instability, including ongoing conflicts in various parts of the world, along with international tariff measures that impacted global commerce.

Nonetheless, online attacks are now rivalling international conflicts and commercial conflicts as the primary risk for members of international trade associations.

Research reveals extensive consequences

The survey found that nearly 30% of directors reported that organizations within their supply chains had been compromised by digital attacks in recent months.

Significant automotive effects

An important vehicle producer experienced factory closures and was unable to manufacture cars for an entire month, following a cyber-attack that required the company to turn off computer systems across several global facilities.

The financial consequences of this four-week production shutdown at the UK's biggest automotive employer has been estimated at approximately one hundred twenty million pounds in missed earnings, or 1.7 billion pounds in foregone income, according to academic analysis from a corporate finance expert.

Latest international examples

During the autumn, a well-known Japanese brewing group became the most recent organization to be forced to cease operations at its local plants following a security incident.

The corporation, which manages multiple manufacturing plants in its home country producing drinks and other products, stated that its sales management systems, along with delivery systems and customer service operations, had been interrupted following a network disruption triggered by the cyber-attack.

Expanding interconnectedness produces weaknesses

Businesses are more and more supported by partner companies. Gone are the era of thinking an company as an operation working in independence.

Recent high-profile security incidents have served as a clear warning to organizations to devote funding to robust digital defences, to safeguard their internal functions and retain consumer trust, leading them to analyze how their distribution systems could become potential targets for cyber criminals.