With the logistics and supply chain industry aggressively embracing digital technologies, cybersecurity assumes a greater significance, argues this CISO
In logistics and supply chain operations around the world, adoption of new-age data-driven technologies, automation and digital technologies is steadily increasing. The idea is to strengthen operational efficiency, flexibility, precision, accuracy, predictive quotient and consistency in service delivery.
Such vital operations are functioning in an inter-connected digital ecosystem in which organizations collaborate with multiple vendors and service providers. The geographical range of the supply chain now spreads across regions, both nationally and internationally, and involves the sharing of critical data and information.
Sensitive data such as financial transactions and client data, if not stored or shared in a safe and secure manner, make stakeholders vulnerable to cyberattacks. In 2023, there numerous instances of cyberattacks in which cybercriminals accessed key information and customer data unethically and illegally by exploiting the vulnerabilities in the IT set-up and software systems.
Awareness yet to take off
Organizations are gradually becoming aware of the adverse impact of cyber threats on operations and customer trust.
However, the awareness level has still not grown to the expected level.
The logistics and supply chain industry is majorly focusing on deploying digital technologies while a large number of companies have not shown seriousness investing in building strong cybersecurity systems.
According to a new joint annual paper by IANS Research and Artico Search that analyzes cybersecurity budget data, of 550 CISOs from different industries surveyed, the average increase in security budgets across verticals was 6%.
While still positive in general, this represents a significant decrease from the previous budget cycle, where the increase was 17%. Overall, cybersecurity budget increases had been cut by 65% among the respondents.
Realization and actions needed
It is about time that supply chain management teams fortify their cybersecurity mechanisms to foil cyberattacks.
Organizations must safeguard their operational insights, market and consumer insights. Losing them to cyberattacks is akin to throwing away their painstakingly-built competitive edge.
The age of antivirus, virtual private network or firewall, as a matter of fact, is long gone: attackers have become technologically advanced. Therefore, cybersecurity must be given its due importance in an organization’s risk portfolio.
Regular audits of security protocols and IT networks need to be tightened to alleviate cybersecurity risks. Confidentiality and data privacy will be in jeopardy if data exchange channels with the third party vendors or service providers are not equipped with cybersecurity shields.
Having said that, cybersecurity measures cannot be initiated on an ad hoc basis. They require a concerted approach integrating technology, human resources, and procedural protocols. With the logistics and supply chain industry aggressively embracing digital technologies, cybersecurity assumes a greater significance.
Implementing a comprehensive cybersecurity strategy enables logistics firms to shield their operations and secure a competitive advantage in an industry where operational reliability culminates into trust.
Thus, by prioritizing cybersecurity measures, organizations can safeguard their assets and enhance their position in an increasingly digitalized landscape, where maintaining operational integrity is crucial for growth.
Cybersecurity is not merely a technology issue: it is now a business imperative.
Every stakeholder within the organization, from the C-suite to frontline employees, plays a crucial role in safeguarding sensitive data and mitigating cyber risks.
