If digital transformation had a poster child, it would be the supply chain management sector. Where insufficient data and unclear processes were the norm, digital tools such as cloud platforms and data analytics now provide a comprehensive view of the entire ecosystem.

However, this transformation has its share of hiccups. Integrating modern digital tools with legacy systems is a herculean task, accompanied by complexity and financial constraints. That said, the biggest concern is the cyber security aspect of this sector. like supply chains become more connected, they are increasingly vulnerable to cyber threats.

While this may seem like an uphill battle, addressing these challenges head-on can unlock the full potential of digitization within supply chains. Just as Rome wasn't built in a day, neither will a secure and fully digitized supply chain. But it's a start.

Overview of the supply chain landscape

At its core, the supply chain is a dynamic ecosystem consisting of suppliers, manufacturers, distributors, logistics, retailers and consumers. They all combine to create an interconnected network to facilitate a smooth flow of goods, information and capital across time zones and geographical boundaries.

While this interconnectedness offers opportunities for growth, innovation and efficiency, it also means that multiple endpoints are exposed to targeted cyber attacks.

This is compounded by a report that says at least 50% of businesses in the UK experienced some form of cyber attack in 2023. Now, what are the figures for businesses around the world with an active supply chain? This number lies in a amazing 33%.

It is not only businesses that are vulnerable, but also government organizations and their supply chains. This is evident in Solar Winds Cyber ​​Attack of 2020, which led to serious data breaches by US federal organizations. Solar Winds is a third-party vendor that handles supply chain aspects of federal organizations.

The worst part is that the attack started in September 2019, and it wasn't until December 2020 that a breach was discovered and acknowledged. Then we have 2021 Colonial Pipeline Attack. Unlike the Solar Winds attack, the pipeline cyber incident was not just a data breach, but a direct attack on critical infrastructure. It was bad enough for the United States government to declare a threat to national security.

Incidents like these only lead to questions about the overall integrity of supply chains' cybersecurity infrastructure.

Related: 3 reasons to step up your cybersecurity protocols in 2024

What are the weaknesses in the supply chain network?

If both examples are anything to go by, any organization or business is quite reactive rather than proactive. This is further reinforced by S&P Global report how only 42% of companies worldwide have a cyber incident response plan (CIRP). The remaining 58% do not have a plan in place, which puts them in an unenviable position where they are exposed to devastating cyber attacks that could completely cripple their system.

Then, at least 77% of employees expressed concerns about the cyber security measures implemented by their organization. If the report for 33% of organizations lack of endpoint policies is all there is to follow, then employee concerns are fully justified. It's not just the organizations' policies that need to be reviewed, but also those of third-party vendors. it report by Cynethia Institute and SecurityScorecard cites that approximately 98% of organizations worldwide have integrated with at least one third-party vendor whose security has been breached in the past two years. Attacks on supply chains are complicated by a complex web of relationships between businesses and their third-party service providers. Malicious attackers can exploit this network by exploiting a component within the supply chain, bypassing existing security measures.

Finally, we address the proverbial elephant in the room. While technology is closing the digital divide in many industries, it is also widening the skills gap for employees. According to a survey conducted by West Monroe Partners As for skills gaps, 56% of businesses believe they have a moderate to severe skills gap when it comes to new technologies. Only 6% of respondents believe they have no skills gap at all. Meanwhile, another report says that 41% of employees perceive themselves as skilled in using the tools within their organization. This skills gap could potentially delay the digital transformation of the supply chain industry. No matter how many they seem, problems always have their solution, bringing us to the next topic.

Related: 3 reasons why cyber security matters now more than ever

Solutions for cyber security vulnerabilities

Fortunately, we can all breathe a collective sigh of relief as many problems come with their own multiple solutions. Let's start by implementing a cyber incident response system. It goes without saying that every organization should have a CIRP in place. The time-tested idiom – “Prevention is better than cure” still rings true here.

A powerful CIRP, with an equally great UEM tool to complement it, can do wonders. Not only can the UEM tool close any vulnerable endpoint, but it also provides a single console for installation, administration in enterprise security. When it comes to third-party vendors, organizations can also implement a robust third-party management (TPRM) program. The program will consist of analyzing the potential risks that may arise during engagement with vendors. This assesses their security configuration and remediates any associated risks.

Finally, organizations must invest time and money in the skills and technology necessary to implement a robust cybersecurity policy. Even in the age of automated technology, your greatest asset will always be your people and the skills they bring.

The road ahead may not be easy. However, addressing cybersecurity vulnerabilities will be a start. Careful planning, investment and – above all – a commitment to improvement will enable organizations to build a supply chain that is not only resilient to cyber threats, but also future-proof.