Ransomware attack on Blue Yonder underscores the critical importance of securing supply chains

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The reported ransomware attack on Blue Yonder underscores the critical importance of securing supply chains, especially those reliant on third-party providers like software-as-a-service (SaaS) platforms. Supply chains today are deeply interconnected, with a single vulnerability capable of cascading disruptions across industries, as seen with Blue Yonder’s impact on major retailers like Starbucks and two of the top four grocery chains in the UK.

What can you do to help ensure the security of your supply chain? Attacks on centralised supply chain platforms, like Blue Yonder, affect hundreds of companies simultaneously. Organisations depend on the integrity of these platforms for essential functions such as logistics, employee scheduling, and inventory management. A breach in one system can disrupt entire ecosystems, as evidenced by reduced product availability at Morrisons and Sainsbury’s and the inability of Starbucks to track and manage its baristas’ schedules, forcing the coffee chain to shift to manual mode to ensure its employees get paid properly.

Here is what we know to be a consistent TPP (Tactics, Techniques, and Procedures) of threat actors — they are extremely opportunistic and often exploit periods of reduced staffing, such as holidays, to launch attacks. This highlights the need for continuous monitoring and resilient security measures, even during off-peak times. Reducing security staff by up to 50% on holidays, as many companies do, creates a huge window of opportunity for attackers.

Something that organisations don’t do enough is scrutinise the security protocols of their third-party providers. Vendors like Blue Yonder are often seen as trusted partners, but their vulnerabilities become the vulnerabilities of their customers. Comprehensive vendor risk assessments, including third-party risk monitoring and incident response evaluations, are crucial to identify and mitigate these risks.

A defensive practice that should be a consistent component of any holistic cybersecurity program is basic cyber hygiene. This includes frequent backups of critical data to minimise the impact of ransomware, efficient patch management, testing recovery plans to ensure quick restoration of operations and constant and continuous employee training on current attacks like phishing.

Building resilience into the supply chain such as diversifying providers, maintaining manual fail-safes, and ensuring redundancy can reduce dependence on any single platform. Blue Yonder’s attack serves as a reminder that contingency plans must be ready to activate when digital systems fail.

In the interconnected digital economy, securing the supply chain is not just a technology issue but a business-critical priority. Companies must balance efficiency and innovation with robust defences to withstand and recover from inevitable cyber threats.