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Almost a third of company heads have reported a noticeable rise in online breaches targeting their logistics networks during the previous half-year, as recently reported cyber breaches on well-known companies have highlighted this growing threat to modern businesses.

Digital risks climb worry scales for supply chain executives

Online protection issues have moved up the ranking of concerns for procurement managers at hundreds companies globally across various industries including production, energy and technology, according to current industry research performed in early autumn.

Prominent digital attacks result in substantial financial losses

Current security breaches at several major companies have cost them tens of millions of pounds, shifting online protection from being mainly the focus of technology teams to becoming a major concern for executive leadership and senior leaders.

The character of international commerce, the way we look at international logistics networks and the technological supply environment are increasingly linked,

remarked a senior industry executive.

Geopolitical considerations compound distribution concerns

Earlier this year, purchasing directors were notably worried about geopolitical instability, including persistent disputes in multiple areas, along with trade policies that impacted international trade.

However, digital security risks are now competing with global tensions and commercial conflicts as the primary threat for participants of worldwide commercial organizations.

Research reveals broad impact

The study discovered that nearly 30% of directors stated that companies within their distribution systems had been targeted by cyber incidents in recent months.

Significant car manufacturing effects

A notable automotive manufacturer experienced factory closures and was could not to build automobiles for an entire month, following a security incident that required the organization to disable IT networks across several global facilities.

The monetary effect of this 30-day manufacturing halt at the United Kingdom's primary automotive employer has been projected at approximately £120 million in missed earnings, or £1.7 billion in missed sales, according to academic analysis from a business economics expert.

Recent international incidents

In late September, a major international drinks manufacturer became the most recent corporation to be required to stop production at its domestic factories following a security incident.

The company, which manages several manufacturing plants in the Asian nation producing drinks and various goods, announced that its sales management systems, along with delivery systems and call center functions, had been interrupted following a technical failure triggered by the digital intrusion.

Expanding interconnectedness creates vulnerabilities

Companies are increasingly supported by partner companies. No longer exist the era of thinking an business as an entity working in isolation.

Recent prominent digital breaches have functioned as a strong reminder to businesses to devote funding to comprehensive online protection systems, to protect their business activities and preserve client faith, leading them to investigate how their logistics networks could become potential objectives for hackers.