Supply chains today face an ever-evolving set of cybersecurity threats that require proactive efforts to mitigate risks. As digital transformation accelerates and supply chains become more complex, vulnerabilities are increasing across global networks. Recent years have seen major breaches impacting businesses worldwide.
According to Verizon‘s 2021 Data Breach Investigations Report, manufacturing was the second most breached industry sector in 2020. Clearly, supply chain cybersecurity needs to be a top priority for leaders across sectors.
As a data extraction expert with over 15 years of experience helping companies optimize web scraping and data analysis, I‘ve seen firsthand how even minor gaps in supply chain security can expose massive vulnerabilities. In this article, I‘ll share key recommendations on how supply chain managers can improve their cybersecurity practices and posture in 2024 based on leading frameworks and my own expertise.
Set a Rigorous Minimum Security Baseline
With supply chains relying on a dizzying array of third-party software and vendor relationships, setting a rigorous security baseline is critical. However, creating and enforcing baseline standards across all vendors can be an arduous process.
I advise supply chain managers to leverage resources like the Minimum Viable Secure Product (MVSP) framework – a checklist created by Google, Salesforce, Okta and other tech leaders for vetting SaaS vendors and outsourced services. The MVSP framework provides clear, actionable guidelines on security practices covering areas like encryption, access controls, logging, compliance certifications, and more.
Regularly reviewing and upgrading the MVSP baseline as new threats emerge is key. I‘ve seen companies fall behind by failing to refresh their standards over time as technology and techniques evolve. Cybersecurity experts also advise patching vulnerabilities and updating third-party software frequently to stay ahead of hackers.
Supply chain managers need to set regular check-ins, at least monthly, with IT teams to discuss security and risk management approaches. Keep communication flowing. IT leaders can outline new solutions available and managers can share upcoming projects that may introduce new vendors or integrations.
As this RSA Conference panel describes, taking basic steps like multi-factor authentication and limiting access can go a long way:
Tools like vendor security and privacy assessment software can further streamline keeping track of third-party cybersecurity practices. These platforms provide continuously updated risk ratings based on factors like leaked credentials, malware infections, and compliance status. I recommend managers invest in solutions like these that simplify managing a large vendor ecosystem.
Assess the Full Supply Chain for Risks
When supply chains encompass networks of offshore suppliers, vendors, outsourced service providers and more, getting full visibility into risks can be difficult. Supply chain managers need to take both internal and collaborative approaches to cyber risk assessment.
Conduct In-Depth Internal Assessments
Within their own organizations, supply chain managers should encourage regular cyber risk audits, ideally conducted by specialized third party firms. Larger companies must consider appointing a dedicated individual or team to focus on third-party vendor risk management.
Internal assessments should scrutinize the full inventory of third-party software and vendors in use across departments. With frequent additions and changes, keeping an updated list can be a challenge. But understanding what solutions are integrated where is necessary to evaluate vulnerabilities.
I helped one manufacturing client build a pipeline to continuously scan their systems and identify any new third-party domains added. This automated asset inventory streamlined the risk assessment process greatly.
Assessments should probe into key areas like:
- Data security – How is sensitive data handled? Is encryption sufficient?
- Access controls – Who has access to what systems? Are permissions overly broad?
- Incident response – Are vendors prepared to handle a breach professionally?
- Business continuity – What backup systems and redundancies are in place?
Collaborate Closely with Partners
With multiple external partners in the mix, supply chain managers need open communication channels to assess and address cybersecurity weak points across the broader network.
Some best practices I recommend include:
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Holding regular security working sessions with key suppliers to jointly discuss cybersecurity strategies. Meeting quarterly ensures vulnerabilities that arise on their end don‘t lead to a downstream breach.
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Analyzing the supply chain network models to identify critical failure points based on their potential downstream impact. Then prioritizing those high-risk vendors or junctions for intensive security reviews.
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Exploring emerging technologies like blockchain that can provide greater transparency and data security across far-flung supply chain relationships. While only 3% of supply chains use blockchain today, adoption is projected to reach 60% by 2025 according to this Gartner survey.
| Year | % Supply Chains Using Blockchain |
|---|---|
| 2022 | 3% |
| 2025 (projected) | 60% |
While complex networks create risks, they also allow pooling knowledge and resources to uncover and mitigate vulnerabilities early. Working collectively across the supply chain is key.
[image src="https://www.marketingscoop.com/wp-content/uploads/2022/06/supply-chain-cybersecurity.jpg" alt="Concept image representing links in a supply chain network."]
Make Security Training a Priority
Improving supply chain cybersecurity requires both technological and cultural change. While managers focus on assessing risks and hardening infrastructure, educating staff is equally vital. A 2022 report found that 95% of cybersecurity breaches are due to human error. Employees often represent the weakest link.
Get Buy-In from Leadership First
Gaining buy-in from senior leadership is crucial for allocating the resources – both financial and time – needed to support company-wide training initiatives. I recommend appointing an executive-level Chief Information Security Officer or similar role focused solely on cybersecurity strategy to drive this focus from the top.
Outline an Effective Awareness Curriculum
Well-designed training programs can significantly reduce breach risks. Supply chain managers should advocate for:
Annual cybersecurity training – Set aside a few hours each year for employees to take updated video courses on company security protocols, common threats like phishing, and their role in protecting data.
Simulated phishing attacks – Running mock scam emails and links to test how many staff fall prey and need remediation. Studies show these programs can decrease susceptibility by up to 70%.
Lunch & learn sessions – Short informal gatherings focused on cybersecurity best practices, best for smaller organizations.
Guest speakers – Invite CISOs from partner organizations or cybersecurity experts to present real-world examples that make threats feel imminent.
Role-specific training – Tailor programs to different job functions and vulnerability levels rather than a one-size-fits-all approach.
The majority of cyber breaches originate with phishing or other social engineering designed to exploit untrained employees. Instilling a culture of security awareness from the top down is well worth the investment.
The Road Ahead
Improving supply chain cybersecurity requires an ongoing, proactive approach. As threats and technology continue advancing rapidly, vigilant assessment, updating defenses and education will remain imperative.
Supply chain managers have an essential role to play in driving this cycle of continuous security improvement in 2024 and beyond. I hope these tips and best practices provide a useful starting point to securing your ecosystem against ever-evolving threats. Don‘t hesitate to reach out if I can help advise or collaborate on your cybersecurity journey.