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Almost a third of company heads have witnessed a significant increase in digital intrusions targeting their distribution systems during the last six-month period, as high-profile cyber breaches on prominent businesses have emphasized this expanding risk to modern businesses.

Cyber threats climb concern rankings for procurement managers

Online protection issues have climbed the hierarchy of worries for purchasing directors at hundreds businesses worldwide across various business fields including manufacturing, power and IT, according to recent industry research conducted in the ninth month.

Major digital attacks cause significant financial losses

Recent security breaches at several major companies have led to financial impacts of millions of pounds, moving cyber resilience from being mainly the focus of technology teams to becoming a major preoccupation for senior management and senior leaders.

The nature of worldwide business, how we look at worldwide distribution systems and the digital distribution framework are increasingly interconnected,

commented a leading professional association head.

Geopolitical factors compound distribution anxieties

During previous months, purchasing directors were especially anxious about geopolitical instability, including ongoing conflicts in several parts of the world, along with international tariff measures that affected global commerce.

Nevertheless, cyber threats are now competing with geopolitical shocks and commercial conflicts as the most significant threat for members of international trade associations.

Survey reveals widespread consequences

The research discovered that nearly 30% of executives stated that companies within their distribution systems had been attacked by digital attacks in recent months.

Major vehicle production impact

A notable vehicle producer experienced production shutdowns and was found itself incapable to build automobiles for an entire month, following a cyber-attack that required the company to disable digital infrastructure across several international locations.

The economic impact of this 30-day factory closure at the United Kingdom's primary vehicle producer has been calculated at approximately £120 million in lost profits, or one point seven billion pounds in foregone income, according to academic analysis from a corporate finance professor.

Current international incidents

More recently, a major international drinks manufacturer became the latest organization to be required to halt manufacturing at its local plants following a security incident.

The organization, which maintains numerous manufacturing plants in its home country producing beer and other products, reported that its transaction handling functions, along with delivery systems and client support services, had been disrupted following a technical failure resulting from the security breach.

Increasing connectivity generates weaknesses

Businesses are progressively assisted by external entities. Gone are the era of viewing an business as an entity functioning in separation.

Latest high-profile digital breaches have functioned as a strong reminder to companies to allocate resources to strong online protection systems, to secure their internal functions and preserve customer confidence, leading them to analyze how their logistics networks could become potential targets for cyber criminals.