DIGITALIZATION IN THE SUPPLY CHAIN: AN ALLY OR A THREAT?

As digitization becomes present in most of the processes of logistics chains, this becomes more vulnerable to cyber attacks.

In a changing market, where users demand fast and reliable purchases and deliveries, the supply chain faces greater challenges, mainly physical and digital security in all its links.

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Digital security in the supply chain

As digitization becomes present in most of the processes of logistics chains, this becomes more vulnerable to cyber attacks, which is why companies should not only invest in the adoption of new technologies, but also in programs that protect user data.

Maintaining security in the database of companies is essential, since according to the annual study of Edelman Trust Barometer mentions that if consumers learn that a company has failures to physical or digital threats, 60% of them would not buy online at that store again. This allows us to observe how security is directly related to the trust of consumers and business partners, and therefore its importance in their online sales.

One of the main recommendations to avoid these cyber attacks is to conduct in-depth interviews and investigations with the personnel that make up the company, since often the information to achieve these cyber attacks is leaked from inside the company.

Additionally, invest in technological solutions such as:

Data encryption
Constant data backup
Access controls
Ensure that suppliers and partners also implement cybersecurity measures.
Implementation of robust firewalls

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Physical security in the supply chain

In Latin America, and speaking specifically of our country, Mexico, the increase in physical insecurity in supply chains has been on the rise, causing a lack of interest in foreign investment and great losses for the local market.

According to a report by Allianz, one out of every two security events suffered by supply chains represents losses in more of one million dollars. Another statistic provided by the Confederation of Industrial Chambers stated that in 2024, transportation companies recorded losses of 7 billion pesos.

These figures represent a 16% increase in public transportation theft in Mexico compared to the previous year (2023).

The consequences of the security events that occur are serious, since they not only affect the economy and reputation of the companies, but also endanger the lives of their workers in several situations.

These are the hours where most of the events are concentrated:

31% between 7:00 and 12:00 hrs of the day.
28% between 12:00 and 19:00 hrs of the day
22% between 19:00 and 00:00 hrs of the day
19% between 00:00 and 7:00 hrs of the day

Among the main recommendations are automotive armoring, which has become a great ally for the protection of goods and operators. This goes hand in hand with the beaconing of the auto transports, whose main objective is to improve the safety of land transportation.

The government's support in the implementation of more security elements that are watching the federal stretches is a crucial point in the reduction of thefts to cargo transportation.

Tracking and tracing routes in real time can stop a physical attack in the supply chain, and at the same time, a broad investigation of the employees who are part of the companies is still recommended, as it has been detected on several occasions that they are in collusion with criminals and provide them with the routes and the goods transported.

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Security is a crucial issue to combat in Mexico, as this will allow the country to have a greater economic development, take care of its citizens and the economy of its local market.

Just as digitalization and new technologies have caused supply chains to face new cybersecurity challenges, we can implement and leverage advances to grow security assets in our companies.

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