Ever since the coronavirus pandemic began, people have been talking about how businesses have been moving online more and more. However, this development only accelerated and brought attention to a dynamic that was already occurring. One sign of this is the growth of the market for digital supply chains, an industry expected to be worth more than $13 billion by 2030!
Of course, not everybody is familiar with what exactly the digital supply chain is. However, it is becoming a more important part of the business world. As a result, digital supply chain security is also becoming more important.
As the supply chain and other parts of the world of business become digital they all become more susceptible to cyber-attacks. That makes cyber security more important than ever.
So what exactly is the digital supply chain and why is security for it so important? Read on to learn all about the most important things to understand about digital supply chain security!
What Is Digital Supply Chain Management All About?
Traditionally, supply chains track how raw materials flow. They flow through processing and design stages to generate a finished product and deliver it to consumers.
A huge part of supply chain management is based on the understanding that knowledge is power. The fact that there exist operations capable of acquiring resources or processing or delivering them would be meaningless if it were not for the knowledge that allows these operations to coordinate with high levels of efficiency.
People have long observed how digital processes have accelerated information analysis and application. As a result, it should come as no surprise that these digital tools are starting to revolutionize supply chains as well.
In the past, people had to live with supply chain delays. If any single chain link in the chain of production had a delay, it would delay every other link in the chain that came after it.
Unfortunately, these delays often came out of nowhere, surprising people. As a result, customers were also surprised and disappointed.
Digital supply chains exist to solve some of these problems. They allow for the rapid transfer of information so that every link in the supply chain understands what is going on. This allows them to react quickly to developments.
The end result is an increase in speed and greater responsiveness to changing circumstances.
Understanding Digital Supply Chain Solutions
Many supply chains developed over the decades and became extremely complicated. Turning them into digital supply chains can be extremely difficult.
In many cases, instruments are set up to collect data on the operations at links in the supply chain. Alternatively, employees have to be hired or trained who can manually enter important data into computers.
But merely acquiring data is only the first part of creating a functional digital supply chain. This data then needs to be aggregated and organized such that it effectively informs good business decisions.
Often, this process has a lot of trial and error. It is a little bit like computer programming. However, instead of being able to change how a computer program works by simply changing a line of code, updating this computer program requires you to redesign a whole operation occurring in a link of the supply chain.
However, once the system is set up, it provides unparalleled efficiency. Although it can be costly, businesses that do not start building a digital supply chain will probably lose to their competitors who do.
The Risks That Necessitate Supply Chain Cyber Security
Digitizing traditional supply chains has disadvantages that come along with its advantages. In particular, digital supply chains are ultimately accessible through the Internet. That makes them accessible to sufficiently skilled cybercriminals.
On top of that, cybercrime is becoming more popular. Not only are people adjusting to a digital world, but technology is progressing and allowing for more effective cybercrime.
As a result, enjoying the benefits of a digital supply chain requires cyber security.
On top of that, sensors and computers do exactly what you tell them rather than exactly what you wish they would do. That makes them vulnerable to collecting inaccurate or misleading data. When this happens, it can be hard to know whether it is the result of a faulty system or the result of cybercrime.
Sufficiently powerful cyber security practices can reduce the chance that it is the result of cybercrime. That can allow business leaders to lean on the assumption that it is a simple error that needs correcting.
Evolving Cyber Crime Requires Greater Digital Supply Chain Security
The more that a business depends on data, the more vulnerable it is to cybercrimes like ransomware. Ransomware is a type of malware that steals the essential data of a company.
It then copies that data somewhere else so that only the cybercriminal has access to it. Creating a digital supply chain can mean becoming extremely vulnerable to this kind of crime.
The right cyber security can protect companies from ransomware. They can open the door to digital supply chains. That can translate to increases in efficiency, productivity, and profits!
Understand the Importance of Supply Chain Security
We hope you appreciate a little more about the importance of supply chain security. As the world of business continues to become more digital, cyber security will need to become more and more common. Business leaders will need to be savvy about the risks of cybercrime and how to prevent it.
That makes learning a little bit more about digital supply chain security an investment in the future success of your ventures. To learn more about digital supply chains and how to protect them or to speak with experts in digital supply chain security, feel free to reach out to and get in touch with us here at any time!