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Approximately one-third of corporate leaders have reported a significant increase in cyber-attacks targeting their distribution systems during the last six-month period, as high-profile security incidents on well-known companies have underscored this growing danger to modern businesses.

Digital risks rise priority lists for supply chain executives

Cybersecurity threats have advanced the ranking of concerns for purchasing directors at multiple companies internationally across diverse sectors including manufacturing, utilities and technology, according to recent industry research performed in early autumn.

Major security breaches result in substantial monetary impacts

Latest cyber attacks at multiple major businesses have cost them millions of currency, shifting cyber resilience from being mainly the responsibility of digital security units to becoming a primary priority for senior management and company directors.

The essence of global trade, how we look at global supply chains and the online supply environment are increasingly linked,

commented a senior professional association head.

Global factors add to distribution anxieties

Earlier this year, procurement executives were particularly anxious about geopolitical instability, including continuing conflicts in multiple parts of the world, along with trade policies that affected international trade.

Nevertheless, online attacks are now rivalling global tensions and tariff disputes as the most significant risk for participants of international trade associations.

Survey shows broad consequences

The research found that nearly 30% of directors indicated that companies within their supply chains had been targeted by cyber incidents in recent months.

Significant vehicle production consequences

A notable vehicle producer experienced production shutdowns and was unable to build automobiles for four weeks, following a security incident that compelled the company to disable digital infrastructure across various global facilities.

The economic impact of this four-week factory closure at Britain's largest vehicle producer has been estimated at approximately 120 million pounds in lost profits, or £1.7 billion in foregone income, according to university research from a corporate finance professor.

Latest global examples

More recently, a well-known international drinks manufacturer became the newest corporation to be required to cease operations at its home country facilities following a security incident.

The corporation, which maintains numerous production facilities in the Asian nation producing alcoholic beverages and additional items, stated that its order processing capabilities, along with distribution activities and client support operations, had been disrupted following a technical failure resulting from the cyber-attack.

Expanding integration generates risks

Organizations are more and more enabled by external entities. Have disappeared the times of viewing an business as an operation working in separation.

Current prominent security incidents have served as a clear warning to companies to invest in comprehensive cybersecurity measures, to protect their own operations and preserve customer confidence, encouraging them to analyze how their supply chains could become possible targets for digital attackers.