Hexnode CEO: The supply chain still doesn’t know how to protect itself

Things have only gone from bad to worse for cybersecurity in the supply chain. Not only did the pandemic introduce global disruptions, but it also exposed the industry’s glaring vulnerability to digital threats.

According to our recent report, 77% of supply chain workers are concerned about cybersecurity risks, yet 42% of organizations don’t know how to respond effectively. This shows that, despite years of pandemic disruptions and increased hacker activity, the supply chain still doesn’t know how to protect itself.

This disconnect grows more alarming as supply chains increasingly rely on technology. Every digital touchpoint—from cloud platforms to inventory systems—creates a new entry point for hackers. And, when breaches occur, their impact ripples across the ecosystem to disrupt operations, expose data, and erode customer trust.

Despite recognizing the need for strong cybersecurity, supply chain companies face significant hurdles including resource constraints, skill gaps, and legacy systems. Therefore, addressing these challenges requires a multi-pronged approach. Let’s look at how the sector can fight back.

Start with a strong team

A strong logistics defense starts with investing in the workforce. This is because the human element is both an asset and a risk. While employees provide invaluable skills and adaptability, they can also unintentionally create vulnerabilities through a lack of cybersecurity awareness or improper practices. Stanford Research finds that about 9 in 10 (88%) data breaches occur due to human error and our sector is no different.

As 42% of companies plan significant tech investments, they face both integration hurdles and security challenges. The more connected we become, the more vulnerabilities we create.

Logistics companies must turn this challenge into a strength by empowering their workforce as a proactive defense. This is possible by implementing cybersecurity training programs tailored to the unique challenges of the supply chain industry. In doing so, this equips employees with the knowledge and skills to effectively identify and respond to potential threats.

Moreover, fostering a culture of cybersecurity vigilance across all levels ensures that safeguarding sensitive data becomes a shared responsibility rather than solely a function of IT.

Vet third-party vendors

Another critical vulnerability that supply chain companies can no longer afford to ignore is the risk posed by third-party vendors and partners. Today, supply chains rely on a complex network of external service providers. Unfortunately, each serves as its own potential entry point and hacks are ramping up. The 2023 MOVEit breach, which impacted major logistics providers through vulnerable file transfer software, showed how attackers can disrupt entire supply chains through a single compromised vendor.

Alarmingly, more than half (52%) of the organizations we surveyed encountered cybersecurity incidents from third-party vendors on at least one occasion. Threat actors actively exploit this weak link, targeting trusted partners and circumventing traditional defenses. As a result, they gain access to their intended targets through the backdoor.

The consequences of such attacks can disrupt operations, compromise data, and damage reputations. Yet nearly one in five (15%) businesses bypass critical third-party risk management processes altogether. To address this vulnerability, supply chain companies must properly vet third-party partners. This involves analyzing potential risks associated with each vendor, engaging them to assess their security posture, and remediating any identified vulnerabilities. 

And remember, this isn’t a “one-and-done” activity—companies must continuously monitor and reassess these partnerships over time.

The need for new technologies 

Finally, while emerging technologies promise revolution, they enter the logistics ecosystem with serious security implications. Artificial intelligence (AI) tools raise data privacy concerns, for example, and Internet of Things (IoT) devices demand constant vigilance around password management and software updates. Yes, real-time visibility and seamless collaboration are worthy goals, but there’s no denying they come with risks.

As 42% of companies plan significant tech investments, they face both integration hurdles and security challenges. The more connected we become, the more vulnerabilities we create. This requires a delicate balancing act—implementing necessary tools while maintaining checks and balances. Therefore, new tools and technology must integrate within a comprehensive security framework that aligns technology with business objectives, and advanced encryption, strong access controls, and continuous monitoring methods often assist this.

The supply chain must step up

Security awareness is one thing but action is another. Therefore, logistics companies are best advised to get the basics right in moving from understanding to implementation.

Leaders, point your efforts at the infrastructure by building a security-first culture, strengthening vendor oversight, and onboarding protected tech solutions. This will bring dual efficiency and scalability benefits. Need more convincing? Fail to do so and you’ll face vulnerabilities that could undermine your digital transformation and market leadership. The choice – and the future – is yours.

About the author

Apu Pavithran is CEO and founder of Hexnode, a unified endpoint management provider.

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