In the intricate supply chains of modern manufacturing, each link in the chain is potentially vulnerable to hackers determined to exploit weak security. From raw materials sourced across continents to the humming machinery shaping them into finished products, each step relies on a complex ecosystem of interconnected players. But this also means that each step in the supply chain needs to mitigate cybersecurity risk. Otherwise, a single cyberattack on any part of the supply chain can wreak havoc on manufacturers’ operations and reputations.

What Are the Risks to the Supply Chain?

Imagine this: a seemingly innocuous software update from a critical equipment vendor harbors a malicious payload. Hackers, having infiltrated the vendor’s systems, use this update as a Trojan horse, gaining access to your entire production network. Suddenly, your assembly lines grind to a halt, sensitive data is compromised, and your brand is tarnished by a data breach.

This isn’t a dystopian fantasy; it’s a chilling reality playing out across the manufacturing landscape. Insecure vendors, with lax cybersecurity practices or outdated software, become easy targets for attackers. These vulnerabilities can then be exploited to launch a range of cyberattacks, including:

Data breaches: Hackers steal sensitive customer information, intellectual property, or trade secrets; leading to financial losses, reputational damage, and legal repercussions.
Ransomware attacks: Attackers lock down production systems, crippling operations, and demand hefty ransoms to regain control.
Disruptions and sabotage: Criminals compromise critical infrastructure, causing physical damage, production delays, and safety hazards.

Hackers Exploit Supply-Chain Bottlenecks

The current global climate, characterized by ongoing supply chain disruptions and chip shortages, further amplifies these risks. Manufacturers, desperate to keep production lines running, may be more inclined to overlook security vulnerabilities in their haste to secure vital components or software updates. This creates supply-chain vulnerabilities that hackers and cybercriminals can exploit for their own gain.

Risks Extend Beyond the Factory Floor

The consequences of a successful cyberattack on a manufacturer extend far beyond the factory floor. Consumers face the risk of compromised data, product recalls due to safety concerns, and even physical harm if critical infrastructure is targeted. The ripple effect can also disrupt entire industries, impacting jobs, economic growth, and national security.

Customer Pressure for Secure Supply Chains

Another crucial factor is emerging—customer demand for secure supply chains.

Customers are increasingly aware of the vulnerabilities inherent in interconnected production networks. Data breaches, ransomware attacks, and product tampering due to cyber incidents can expose personal information, disrupt product availability, and erode trust in brands. Recognizing this, customers are now actively seeking manufacturers who prioritize cybersecurity throughout their supply chains.

How Customer Demands Affect Manufacturers

Here’s how this trend is impacting manufacturers:

Increased customer scrutiny: Customers are asking detailed questions about manufacturers’ cybersecurity practices, requesting evidence of vulnerability assessments, penetration testing, and adherence to best practices.
Contractual stipulations: Forward-thinking companies are inserting clauses into contracts requiring their suppliers to demonstrate robust cybersecurity measures as a prerequisite for doing business.
Competitive advantage: Manufacturers who demonstrably prioritize supply chain security gain a competitive edge by offering greater assurance to customers.

Building a Secure Supply Chain Ecosystem

So, how can manufacturers navigate this treacherous landscape and build resilience against cyber threats lurking in their supply chains? Here are some key steps:

Vet vendors with a fine-tooth comb: Conduct thorough security audits of potential vendors—assessing their cybersecurity posture, data protection practices, and incident response plans.
Implement robust security protocols: Employ layered security measures across the entire supply chain, including data encryption, access controls, and vulnerability management.
Foster open communication and collaboration with vendors: Promote information sharing and joint efforts to mitigate risks.
Invest in cybersecurity expertise: Build a strong internal cybersecurity team or partner with experienced cybersecurity professionals to stay ahead of evolving threats.

How Manufacturers Can Respond to Customers

This customer-driven shift necessitates a strategic response from manufacturers:

Proactive implementation of best practices: Manufacturers must actively prioritize cybersecurity across their entire supply chain, from vendor selection to product delivery. This includes vulnerability management, access control, encryption, and incident response preparedness.
Transparency and communication: Open communication with customers about cybersecurity protocols builds trust and demonstrates commitment to risk reduction. Sharing audits and test results can offer valuable reassurance.
Collaborative partnerships: Fostering close collaboration with vendors in supply chain security efforts strengthens the overall ecosystem and minimizes vulnerabilities.

In conclusion, addressing cyber threats in supply chains is no longer just a matter of internal risk management; it’s becoming a critical factor in customer relations and market competitiveness. By embracing a proactive, transparent, and collaborative approach to supply chain cybersecurity, manufacturers can not only mitigate risks but also gain a valuable competitive edge and build stronger relationships with their customers.

Build a More Secure Supply Chain

Remember, customer demand for secure supply chains presents both a challenge and an opportunity for manufacturers. By taking action and demonstrating their commitment to cybersecurity, manufacturers can not only protect their own operations but also build trust and win customers’ loyalty in the increasingly connected world of commerce.

By taking proactive measures and fostering a culture of cybersecurity awareness throughout the supply chain, manufacturers can transform their security vulnerabilities into stronger business partnerships. Remember, a secure supply chain is not just a technical challenge; it’s a strategic imperative for the future of manufacturing in a world increasingly defined by digital threats.

Take a Standards Approach

In the special report from Sagacent Technologies, Manufacturers: Are You Safe To Do Business With?, we examined how standard cybersecurity frameworks can help build more secure supply chains.

In it, we noted that one of the most reliable ways to guard against cyberattacks is to adopt and adhere to a recognized and established security framework. A standards-based framework demonstrates supply-chain compliance to an agreed-upon set of best practices that will satisfy your stakeholders and insurers. It assures your customers that a security lapse won’t impact their business too, and demonstrates a professional security posture to prospects, suppliers, and insurers.

Though industry surveys show more than 98% of companies have implemented security standards they believe to be best practices, they typically have not. Cybersecurity frameworks allow everybody in your supply chain to agree on what good security really is, and to verify it.

As the National Institute of Standards and Technology (NIST) notes, “Most manufacturers are required to follow some cybersecurity and privacy standards, laws, regulations, or requirements. These may come from federal, state, local, or tribal governments, be industry-mandated, or voluntary.”

NIST itself has several cybersecurity frameworks that government agencies require for manufacturers and subcontractors that sell to the federal government, they’re complicated and expensive to comply with. The most popular framework, 800.171, has over 1,000 recommendations!

If you don’t sell to the federal government, the Center of Internet Security’s (CIS) has a single framework that is easier for smaller unregulated businesses to use with only 153 security controls. Their benchmarks and controls are available for download on their website.

The CIS benchmarks are mapped to the CIS controls to help businesses harden technologies against cyberattacks. And, as CIS says, “They also help organizations demonstrate compliance with components of various industry regulations and frameworks.”

However, both CIS and NIST note that implementing a framework is not a one-time effort. CIS notes that, “Modern systems and software are dynamic in nature. By enacting the CIS Controls, you support your assets’ evolving needs in a meaningful way.” NIST agrees, “This is not a one-time process, but a continual, ongoing set of activities.”

Stay Vigilant, Stay Secure

The ever-evolving landscape of cyber threats demands constant vigilance from manufacturers. By understanding the dangers posed by insecure vendors and supply chain vulnerabilities, investing in robust security measures, and fostering a collaborative approach, manufacturers can build a more secure and resilient future for themselves and the industries they serve.

Let’s work together to ensure that the intricate tapestry of modern manufacturing remains vibrant and unmarred by the shadows of cybercrime.

Start with an Assessment of Your Cybersecurity Risks

If implementing and maintaining a cybersecurity framework seems daunting, don’t despair. You don’t have to be a cybersecurity expert. You can get contractors to identify and implement the cybersecurity measures your business needs for you.

Sagacent Technologies can not only help you identify your vulnerabilities, buy can develop risk mitigation strategies that can reduce them—no matter what you manufacture, or where you sit in the supply chain,

Our cybersecurity experts can help you complete an assessment and develop a security plan based on the security framework appropriate for your business. A partnership with Sagacent gives you peace of mind as you raise your business to the next level and position it for long-term success.

Contact us today to schedule an assessment of your business, determine your security needs, and learn more about the benefits of managed cybersecurity services from Sagacent.

Additional Resources

To learn more about cybersecurity measures for manufacturing, visit these organizations: