In an age of rapid supply chain digitization and global connectivity, the same technologies that enable just-in-time deliveries, end-to-end visibility, and cloud-based coordination also introduce new risks.
No company is immune. Here's some key threats and how to prepare for them.
Key cyber risks facing supply chains today
- Ransomware attacks: Ransomware remains a major threat to logistics operations. Attackers infiltrate a company’s network, encrypt critical data or systems, and demand payment to restore access. This can grind shipping and warehousing operations to a halt. In early 2022, a global freight forwarder had to shut down most of its operational systems after a cyberattack, leaving it with limited ability to arrange shipments or manage customs. Such downtime not only affects revenues and customer service but can also cause disruptions down the supply chain, delaying deliveries for many businesses. The damage can be severe – 60% of small companies go out of business within six months after a major cyberattack.
- Third-party and supplier breaches: Supply chains naturally involve many third-party relationships – freight brokers, suppliers, technology vendors, logistics partners – and attackers often target the weakest link. A breach in a smaller vendor or service provider connected to a larger company can act as a Trojan horse, granting access to the primary target.
Many organizations still struggle to maintain full visibility and control over their partners' cybersecurity practices, creating additional gaps that cybercriminals are quick to exploit. For instance, an IT vendor with poor security could be hacked as a steppingstone to a shipper’s core systems, or an accounting partner’s compromised credentials could lead to the theft of supply chain data.
- Software supply chain attacks: Beyond breaching known suppliers, attackers also embed themselves deeper in the digital supply chain, tampering with the software and IT services logistics companies depend on. In a software supply chain attack, hackers sabotage a trusted software update or component to spread malware widely. The SolarWinds Orion breach in 2020 demonstrated this threat: unknown attackers infiltrated a routine software update, compromising thousands of organizations downstream once they installed the infected update. These attacks exploit the trust companies place in enterprise software and cloud providers.
As logistics operations increasingly rely on third-party SaaS applications, tracking systems, and open-source code, they become more vulnerable to this type of hidden infiltration. Even a minor coding flaw in a warehouse management system or a compromised API integration can serve as an entry point for a breach that spreads across many supply chain partners.
- IoT and operational technology (OT) vulnerabilities: Modern logistics networks are filled with connected devices – from IoT sensors tracking shipments and telematics in trucks, to automated sorting systems and industrial controls in smart warehouses and ports. This Internet of Things (IoT) revolution offers incredible efficiency and real-time visibility, but it also increases the attack surface. In one notable case, a casino was breached through an internet-connected thermometer in a fish tank, a warning for any business connecting unconventional devices to its network.
In logistics, operational technology systems such as port cranes, pipeline controls, or rail switching systems are also targets for cyber sabotage. Securing IoT endpoints and isolating them from core IT systems is therefore an urgent priority.
Best practices for securing digital logistics networks
Facing these evolving threats, what can supply chain executives do to strengthen their organizations’ cyber defenses? A comprehensive approach is necessary – one that combines technology safeguards, process improvements, and people-centered measures.
· Institute rigorous supplier risk management: Your cyber defenses are only as strong as the weakest vendor with network access to your business. Because third-party exposures pose a major vulnerability, companies should formally audit, manage, and enforce the cybersecurity standards of their suppliers and logistics providers. For critical vendors, consider requiring certifications or adherence to frameworks like ISO 27001 or NIST guidelines. Limit partners' access to your systems and data by applying the principle of least privilege for any digital connections.
- Segment networks and strengthen access controls: A key way to limit damage from cyber intrusions is to prevent attackers from moving freely across your network. Logistics IT environments should be designed with strong access controls and network segmentation. In practice, this means separating critical systems, such as warehouse control systems, ERP, and customer data, from less sensitive zones like office IT or guest networks, then furthermore, restricting access between them. Adopting a zero-trust approach can greatly reduce risk: never automatically trust any device or user, even inside the perimeter, without verification.
These measures create internal barriers that confine an intruder, similar to watertight compartments in a ship. Practical steps include implementing multi-factor authentication (MFA) for all remote or privileged access (to prevent stolen passwords from being enough for entry), using modern identity and access management tools, and deploying next-generation firewalls to monitor traffic between network segments.
· Educate and train employees at all levels: Human error remains one of the biggest cybersecurity risks across all industries, including logistics. Phishing emails, spoofed messages, and social engineering schemes target employees to steal credentials or trick them into unwittingly opening the door to attackers. Creating a cybersecurity-aware culture is therefore crucial. Provide ongoing cybersecurity training for staff that keeps up with evolving threats. Employees should learn how to identify suspicious emails or links, use strong passwords and multi-factor authentication, and follow data handling policies. Frontline workers in warehouses and drivers using mobile devices also need guidance on secure practices. In short, invest in your human firewall: well-trained, vigilant employees who can act as eyes and ears to detect and prevent attacks before they escalate.
· Develop and drill an incident response plan: Even with the best prevention, some attacks may still get through. A strong incident response (IR) plan is critical – it’s your playbook for limiting damage and recovering quickly when a cyber crisis occurs. Develop a clear IR plan that specifies:
o Who takes charge during an incident
o What steps to follow (from investigation and containment to communication and recovery)
o How to keep the business running
o How to address scenarios relevant to supply chain operations (how to respond to a ransomware attack that disables your transport management system or a data breach exposing customer shipping records)
o Backup procedures (can you temporarily switch to manual processes or alternate systems?) and how to easily access and isolate from the network so they cannot be compromised by an attacker
It’s not enough to have a plan on paper – you must also test it regularly through drills and tabletop exercises. This will identify gaps in your readiness and build muscle memory so that if a real incident occurs, everyone knows their role. Time is critical during a breach, and a practiced response can mean the difference between a minor hiccup and a major supply chain disruption.
· Maintain up-to-date systems and layered defenses: Cybersecurity is an ongoing process, not a one-time project. Many attacks (including some ransomware and breaches) succeed by exploiting known vulnerabilities that could have been patched. Create an inventory of your critical applications – from warehouse management and routing software to IoT device firmware – and stay alert with updates. Use automated tools if possible to manage patches. Also, implement a defense-in-depth strategy, which involves multiple layers of security controls that support each other. This might include using encryption for sensitive data (both in transit and at rest) so that even if attackers intercept or steal data, it remains unreadable. Use intrusion detection and continuous network monitoring to spot unusual activity early. Regularly back up important data offline.
By combining preventive technology (like MFA, encryption, anti-malware), detective measures (monitoring, alerts), and responsive capabilities (IR plans, backups), you build a resilient posture that can endure attacks without catastrophic failure. In a rapidly evolving threat landscape, remaining proactive and adaptable in your security strategy is crucial. By implementing these best practices, supply chain leaders can significantly cut the risk of cyber incidents and lessen their impact if they happen.
