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Roughly one-third of corporate leaders have reported a significant increase in online breaches targeting their supply chains during the previous half-year, as recent cyber breaches on well-known companies have emphasized this growing risk to contemporary enterprises.

Digital risks rise concern rankings for supply chain executives

Digital security concerns have moved up the ranking of concerns for procurement managers at numerous organizations internationally across various business fields including industrial, power and IT, according to latest industry research performed in early autumn.

Prominent digital attacks cause considerable financial losses

Current security breaches at several well-known companies have cost them substantial sums of currency, shifting cyber resilience from being mainly the responsibility of technology teams to becoming a major preoccupation for senior management and company directors.

The essence of global trade, how we view global supply chains and the digital distribution framework are progressively connected,

remarked a senior professional association head.

Geopolitical considerations intensify logistics worries

Earlier this year, purchasing directors were especially worried about global conflicts, including ongoing disputes in multiple parts of the world, along with trade policies that impacted worldwide business.

Nevertheless, cyber threats are now rivalling international conflicts and tariff disputes as the primary risk for organizations of international trade associations.

Survey shows extensive consequences

The survey discovered that 29% of executives indicated that organizations within their logistics networks had been attacked by cyber incidents in recent months.

Substantial automotive consequences

One prominent automotive manufacturer experienced production shutdowns and was unable to build automobiles for a full month, following a security incident that required the organization to turn off digital infrastructure across various global facilities.

The financial consequences of this four-week factory closure at Britain's largest automotive employer has been projected at approximately £120 million in missed earnings, or £1.7 billion in lost revenues, according to expert assessment from a corporate finance professor.

Recent worldwide examples

More recently, a major international drinks manufacturer became the newest corporation to be required to cease operations at its home country facilities following a digital breach.

The corporation, which manages multiple production facilities in Japan producing drinks and various goods, stated that its sales management systems, along with shipping operations and customer service functions, had been halted following a systems outage caused by the security breach.

Growing connectivity produces vulnerabilities

Companies are progressively assisted by partner companies. No longer exist the era of considering an business as an entity operating in isolation.

Latest major cyber-attacks have functioned as a clear warning to businesses to devote funding to comprehensive digital defences, to safeguard their own operations and maintain consumer trust, leading them to investigate how their supply chains could become likely targets for hackers.