Why Cybersecurity is a Supply Chain Problem in 2023

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When discussing the security of a supply chain, the term “supply chain cybersecurity” is often used to describe the precautions taken to prevent cyberattacks. Protecting the supply chain from cyber threats such as hacking, data breaches, and other cyber incidents is critical to ensuring a safe supply chain for logistics and distribution purposes.

The security of a product or service is only as good as its weakest link, making supply chain cybersecurity an important component of the network. A lack of security at any point in the supply chain can jeopardize the safety of the final product. That’s why businesses must keep a close eye on their suppliers and partners, and make sure they all use robust cybersecurity measures.

why cybersecurity is a supply chain problem in 2023 logos logistics

Why is Cyber Security a Supply Chain Problem in 2023?

A supply chain’s security can be compromised by a threat that negatively impacts the integrity of sensitive data, making cyber security a real challenge in the logistics industry. This implies that the safety of the final product or service might be jeopardized if even a single link in the supply chain is vulnerable.

Think of a computer manufacturing company that buys parts from several different vendors. Manufacturers may be unknowingly exposed to computer vulnerabilities caused by vendors with weak cybersecurity policies. The best way for businesses to protect themselves against cyber-attacks of this kind is to maintain tight control over their supply chain and demand that all partners and suppliers implement rigorous cybersecurity controls and countermeasures.

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3PL warehousing, automotive logistics, trucking & transportation, e-commerce order fulfillment, contract logistics, and freight brokerage in Michigan

Cybersecurity Risks to Watch Out For in 2023

Supply chains expose businesses to a growing number of threats in the form of cybersecurity risks in the supply chain. Data, money, or company operations can be compromised or disrupted at any time for supply chain participants as a result of these cyber-attacks and data breaches. The effectiveness of your supply chain risk management plan will determine the extent to which these interruptions can impact your business.



The supply chain is a particularly vulnerable entry point for malware, or malicious software, into a company’s computer systems. Malicious code may take many forms, including viruses, Trojans, and other programs designed to harm computers and steal private information.


Breach of data

When sensitive information falls into the hands of a third party without permission, this is called a data breach. If a partner or supplier in the supply chain has poor cybersecurity policies and procedures, it might enable attackers to compromise the target company’s computer systems and data.



In a ransomware attack, hackers encrypt a company’s files and hold them hostage until a ransom is paid to unlock them. If a business is unable to retrieve its lost data, the resulting disruption in supply chain operations can have a significant financial impact on the business.


Intercompany threats

The supply chain of a corporation might be vulnerable to insider threats if workers or third-party contractors with administrative privileges compromise confidential information. These users may inadvertently or purposefully put the security of the system at risk by disclosing sensitive information, falling for phishing schemes, or acting irresponsibly.

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3PL warehousing, automotive logistics, trucking & transportation, e-commerce order fulfillment, contract logistics, and freight brokerage in Michigan

What Impacts Can Cybersecurity Incidents Have on Supply Chain Security?

Supply chain disruptions pose internal and external threats to just about any business. A supply chain could have a variety of adverse effects in the event of a cybersecurity breach, such as:


Loss of trust

Customers, business partners, and other stakeholders may lose faith in a company if they learn of a cybersecurity compromise. There is a risk that this may hurt the company’s image and lead to future difficulties in securing contracts.


Monetary loss

Financial losses as a consequence of cleanup work, legal expenditures, and lost revenue are all possible outcomes of a breach in cybersecurity.


Operational disruptions

Cybercrime can cause delays and inefficiencies in company processes. This could have repercussions down the line in the supply chain, creating further delays and interruptions for other businesses and customers.


Theft of intellectual property

Cyberattacks may lead to the loss of confidential information and trade secrets. If a competitor is able to obtain access to such information, businesses may lose clients and key accounts, but if it falls into the wrong hands, companies are at risk of major operational disruptions, reputational damage, and even financial losses.

Five Supply Chain Risk Management Tips

Strengthening your supply chain security risk management approach can help you reduce the probability of cyber-attacks on your supply chain network, and improve the response time when they do occur. The aforementioned cybersecurity risks in the supply chain can be mitigated by taking the following measures.


Perform in-depth research

Check each partner and supplier in the supply chain network to see whether they follow good cybersecurity procedures. On-site inspections and audits of their security policies, processes, and technology are essential.


Set clear security expectations

Companies should create clear cybersecurity standards for all partners and suppliers in the supply chain, and then hold them responsible for achieving those requirements. Such measures may include instructing management to conduct frequent security audits, installing controls, and educating staff.


Incorporate safety measures

Protecting the supply chain from cyber threats requires implementing security measures like encryption and two-factor authentication. The whole supply chain network, including all partners and suppliers, must have these safeguards in place.


Foster better interaction and teamwork

Cybersecurity concerns may be mitigated with the use of open lines of communication and cooperation amongst supply chain organizations. For example, you can consider creating a task force dedicated to cybersecurity or invest in the development of a network dedicated to the exchange of information on potential vulnerabilities and threats.


Establish formal procedures to handle cyberattacks

If a cybersecurity issue does occur, having a strategy in place to deal with it helps lessen the blow and speed up the company’s road to recovery. The incident response plan should contain a list of who has to be notified, who has specific tasks and responsibilities, and what needs to be done in the case of an incident or attack.

Best-In-Class 3PL in the Midwest
3PL warehousing, automotive logistics, trucking & transportation, e-commerce order fulfillment, contract logistics, and freight brokerage in Michigan


Companies must implement supply chain risk management strategies to lower their exposure to cybersecurity incidents, such as conducting thorough due diligence, laying out clear cybersecurity expectations, implementing tight security controls, improving communication and collaboration, and creating a cybersecurity incident response plan. This ensures the safety of the supply chain and the interests of stakeholders alike.

At Logos Logistics, we take the safety and security of your supply chain operations very seriously. Since most of your supply chain data reside with your business partners, supply chain visibility, transparency, and protection are major concerns. We help businesses relying on suppliers to deliver products, services, and systems protect their supply chain data and conduct safe operations, from order fulfillment to warehousing to final delivery.

For more information, please contact us today!

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