Heightened Supply Chain Vulnerabilities Amid Rising Cyberattacks

With recent high-profile attacks on critical U.S. infrastructure and consumer devices by China-linked hackers, the risks facing interconnected supply chains have become more pronounced than ever. "Supply chains today are deeply interconnected through ERP systems, IoT devices and extensive networks of suppliers, contractors and service providers," says Lisa Anderson, President of LMA Consulting Group Inc. "A single weak link can expose the entire supply chain to significant risks, which is why it’s crucial for companies to proactively assess and secure their end-to-end operations." The recent "Salt Typhoon" hacking campaign, targeting U.S. internet providers and consumer devices, is the latest reminder of how bad actors can infiltrate valuable networks and disrupt operations. 

Vulnerabilities within the supply chain are not limited to direct suppliers but extend to secondary and tertiary suppliers, third-party logistics providers and even trusted advisors. A proactive approach is essential to identifying weak links and mitigating potential threats. "Executives must understand not only their own suppliers but also their suppliers' suppliers, related security protocols, and any geographic or political risks," she explains. "By prioritizing risks and proactively addressing them, companies can better protect their operations, ensure business continuity and focus on profitable growth."

In addition to assessments, LMA Consulting recommends strategic actions to build supply chain resilience, including expanding manufacturing, reshoring, friendshoring, vertical integration and implementing a robust Sales, Inventory and Operations Planning (SIOP) process. "The smart money is on taking control of your supply chain," says Ms. Anderson. "We’re seeing proactive clients move manufacturing closer to home, improve process efficiencies and formalize partnerships with key suppliers to maintain stability in an unpredictable landscape."

One of the most effective strategies to navigate these risks is the SIOP process, which provides companies with a proactive framework to address supply chain vulnerabilities. "SIOP keeps a close watch on demand, supply, and associated risks, allowing companies to adapt quickly to changing conditions," Ms. Anderson adds. LMA Consulting’s recent special report, FutureScape: Crafting Tomorrow’s Supply Chain Today, delves deeper into these strategies, offering businesses actionable insights for building resilient, responsive supply chains amid today’s challenges.

Source: LMA Consulting Group Inc.