As companies have started to lean more on digital tools to manage their supply chains, it's becoming increasingly challenging to protect those systems from cyberattacks.

Threats like ransomware and data breaches can cripple shipping, manufacturing and logistics operations, yet many organizations are still struggling to prepare, warned Gartner analysts in a September 29 release. It can also often be unclear which department should pay for and manage cyber defenses, and the sheer breadth of partners and vendors in a global supply chain has made it that much harder to monitor risks.

“The large number of multi-tier partners in an organization’s supply chain has made managing third-party cyber risk a daunting task," said Gartner managing vice-president Mark Atwood.

That's been exacerbated by the fact that generative AI has increased the risk of data breaches and intellectual property leaks, as GenAI itself is entering what Gartner calls the “trough of disillusionment,” where early excitement for a new technology gives way to frustrations over limits, costs and risks. Once hyped as a cure-all, GenAI is now proving harder to scale in practice, and many firms face roadblocks in blending AI with older systems, safeguarding sensitive data, and building guardrails against inaccurate or biased training models.

This also comes in the wake of several recent high-profile cyberattacks, including one on August 31, where carmaker Jaguar Land Rover was forced to halt work at three of its U.K. factories. Japan's larger brewer, Asahi, was also hit by a cyberattack that shut down all order and shipment operations in Japan on September 29, while dairy food giant Arla Foods and German brewer Oettinger were both hit in May.

To address these issues, Gartner recommends that supply chain leaders partner closely with their cybersecurity teams to establish clear security standards for top suppliers, and then bake those expectations into contracts to address potential weak spots across the network.