As supply chains expand and become increasingly more complex, so does the information gathered and dispersed among stakeholders and platforms. The logistics industry handles immense amounts of sensitive data, such as financial details, customer information and shipment tracking information. Supply chain operators and their customers rely on real-time information flow to keep operations efficient and evolving. Any disruption to the transferring of information can cause ripple effects leading to delays, lost shipments and financial losses.
As the cascade of information inundates the logistics industry, organizations are increasingly vulnerable to data breaches and cybersecurity attacks. Fortifying cloud-based software ecosystems to protect from potential security threats is critical to ensure that supply chain and logistic performance continues uninterrupted. Taking proactive steps to prevent cyberattacks and strengthen cloud-based integrations to ensure that data exchanges do not lead to information leakage is essential in supporting successful enterprises in the supply chains and logistics industries.
Current Landscape of Cloud-Based Integrations and Security Risks
In our current digital age, the transferring of data and information is a critical and essential aspect of business operations. The information exchanged between organizations facilitates communication between parties, and frequently contains sensitive customer records, intellectual property, and financial details. Now organizations are presented with the increasing threat of cyber security attacks on software applications and integrations used to pass information between enterprises. Consequently, cloud-based integrations are no longer considered tools to solely increase efficiency, but rather must serve as an additional layer of protection as the security threat landscape continues to expand.
The absence of effective, secure cloud-based software integrations not only leads to operational inefficiencies and financial drawbacks but holds the potential for significant security risks. In fact, a recent study found that 39% of businesses experienced a data breach in their cloud software last year, an increase of four percentage points from the previous year. Additionally, organizations have recently experienced an increase in supply chain attacks on software vendors and their partners, with an estimated 61% of businesses reportedly affected by software supply chain threats over the past year. As organizations continue to migrate sensitive information to the cloud, it is critical that organizations prioritize robust security integrations that protect processes and applications across the ecosystem.
Detrimental Effect of Security Vulnerabilities
Increasing amounts of data stored and sorted through cloud software leaves companies vulnerable to data breaches, malware attacks and “denial of service” attacks. The risk of cybersecurity attacks not only disrupts operations, but damages internal infrastructure, violates compliance agreements and can have a detrimental effect on customer and partner relationships. Therefore, it is critical that organizations prioritize security aspects of software just as much as operational efficiency, reduced expenses or advanced capabilities.
Miscalculating the importance of security considerations in enterprise-wide cloud solutions exposes customer and partner data to the risks of cyberattacks. Failing to ensure secure information exchange can lead to severe consequences. Not only do organizations risk financial losses, potentially affecting share prices and valuation, but investing in new security measures following a security breach can incur unexpected legal fees and expenses.
For logistics organizations, cyber security breaches can lead to interruptions of operations, delaying orders and shipments and potentially increasing costs and depreciating customer satisfaction. Ensuring a secure cloud-based integration requires data connectivity, authorization and authentication, encryption, and secure identity management:
- Data Connectivity: Control software interaction during data transmission and exchange by requiring secure connections, customizing connection timeouts and mandating complex passwords and password expiration.
- Authorization: Implement a multi-layered authorization strategy which utilizes access tokens and secure credential storage in order to safeguard sensitive platforms and mitigate security risks.
- Authentication: Wherever possible, require the use of multi-factor authentication (MFA) and identity verification platforms to validate users and protect sensitive information from unauthorized access.
- Encryption: Transform data into a secure format to protect it from unauthorized parties during transit and storage. Tokenization further enhances protection by substituting sensitive information to reduce the likelihood of accidental exposure.
- Secure Identity Management: Protect sensitive information with centralized identity management, securing permissions, guarding against vulnerabilities and enabling safe onboarding and offboarding practices.
A comprehensive cloud-based platform with key security considerations, such as data validation, authorization, authentication, encryption, and secure identity management provides protection of sensitive information from unwanted threats or security breaches. Prioritizing security in cloud-based integrations reduces the risk of compliance violations and unwanted disruptions while providing peace of mind to customers and partners alike.
Without question today’s logistics industry demands a shift in security strategy. The expanding web of information and increased cloud reliance call for improved security measures. While digital transformation opens new doors for communication and integration, it also exposes vulnerabilities across applications. Prioritizing security is now a crucial aspect of software adoption, embracing proactive measures to secure cloud integrations aids in protecting critical information. The risks of damaged business reputations, exposed sensitive information, drastic disruptions and destroyed customer relationships is too grave a danger to ignore.
