In this Supply Chain Byte, Lisa Anderson shares why cyber threats are becoming one of the biggest risks to manufacturing and distribution operations, and what leaders can do to stay ahead. According to the RSM US Middle Market Business Index (MMBI) Special Report, 28% of mid-market manufacturers reported data breaches. This is up 20% from last year. In addition, multiple clients have experienced cyber-attacks and/or breaches. Manufacturers must stay vigilant.
There are also many high-profile examples in the news. For example, United National Foods Inc. (UNFI) experienced a cyber-attack. Since they supply Whole Foods, it took their systems offline and halted deliveries. This situation created shortages and disrupted the supply chain. Another high-profile cyber concern relates to ship to shore cranes. Unauthorized cellular modems were discovered embedded in Chinese made cranes and related equipment. Since this Chinese state‑owned crane manufacturer is responsible for approximately 80% of ship‑to‑shore cranes at U.S. ports, it is a concerning statistic.
What should companies do? Forward-thinking companies are mitigating cyber risks by protecting their end-to-end supply chains. Of course, this requires that you know your end-to-end supply chain players and make deliberate choices. It also requires understanding the IoT devices and other connections with customers and suppliers. Companies must also put protocols in place, safeguard intellectual property, build rapid response capabilities and recovery, and secure operational technologies. In addition, training and education is of paramount importance as it must be built into the culture, and it makes sense to leverage artificial intelligence and advanced technologies to find and resolve threats proactively.
From protecting connected devices to safeguarding partner networks, hear how a proactive approach can prevent disruptions and protect your business.
If you are interested in reading more on this topic:
Cyber & Geopolitical Risks Spurring Supply Chain Changes & Upgrades