The logistics industry is comprised of companies—individually known as a logistics firm—that coordinate and monitor how goods and services move between various points throughout supply chains. The sector’s value within North America is astronomical, predicted to reach $1.59 trillion by 2027.
With the large amounts of data and information a single logistics firm can gather throughout its operations, all companies must have an information security strategy that protects digital assets, tools, and process-essential workers.
What is an information security strategy?
An information security strategy (ISS) is a formal plan that outlines an organization’s security initiatives surrounding its IT systems and the data stored within them. An ISS prioritizes data security and company objectives, ensuring that both are aligned and are realistically achievable for the organization.
An ISS includes:
- Your company's goals surrounding data availability, confidentiality, and integrity.
- Policies relating to data management and storage.
- The type and quantity of data that needs to be protected.
- Key players in the strategy, such as employees and departments.
- Specific solutions to ensure regulatory compliance and safety. For example, whether or not a company invests in managed cybersecurity services or other security programs.
The health of a business’s supply chain is paramount to its success in delivering value to customers and building its credibility within its niche. A logistics firm can serve as the lifeline that keeps these organizations afloat by providing them with the solutions they need to connect with their audience and uphold high standards of customer satisfaction.
A well-developed information security strategy can reduce the chances of a logistics firm encountering cyberattacks and other threats.
3 reasons why a logistics firm should implement an information security strategy into its processes
From first-party logistics companies to a fifth-party logistics firm, the organizations in the logistics industry streamline inventory management, speed up product deliveries, and optimize their clients’ supply chains for greater customer service and business efficiency.
57% of companies believe that supply chain management gives them a competitive edge. Still, without an ISS crafted to suit your logistics firm and its specific needs, you may find yourself slipping and experiencing more setbacks than necessary.
The three primary reasons why a logistics firm should adopt an information security strategy are:
1. Maintain a positive reputation
Logistics solutions are expected to be able to deliver products quickly and efficiently. While a degree of flexibility is always expected from logistics companies, egregious wait times, lack of communication, and the mishandling of sensitive products within the warehouse (especially for third-party logistics companies) can damage your reputation.
An information security strategy allows a logistics firm to consider the threats that can impact its operations and business partnerships. By creating policies around digital security best practices—incident response, managed security monitoring for networks, cloud-based data storage, etc.—a logistics firm can ensure that the data and information contained within its IT infrastructure and transport solutions are protected while stationary and in transit.
This shows stakeholders and customers that you take your data security strategies seriously and are committed to the well-being of your customers.
2. Guarantee compliance to avoid paying fines
Consider how you monitor the position of individual vehicles in your fleet to the databases in your warehouses. You are constantly managing data, and it is a no-brainer that applying data security strategies to your company’s operations can help you avoid the risks of succumbing to legal and financial ramifications.
But if you are a logistics firm that deals with medical equipment and personal health information (PHI), the need for you to be HIPAA compliant is even greater. An information security strategy can help your company avoid fines and lawsuits by ensuring that any PHI, medical tools, and software you use or transport is compliant with HIPAA guidelines.
3. Protect from cyber threats
Supply chains consist of warehouses, a logistics firm, suppliers, manufacturers… An entire web of organizations and individuals working to create and deliver products to customers.
With all the equipment and tools they use to carry data and goods between numerous points, the logistics sector is a prime target for cyber threats.
Logistics services and supply chains are at risk of being impacted by:
- Freight forwarding: When a malicious entity copies a legitimate company's website to intercept cargo.
- A Bill of Lading (BOL) ransom: When a criminal poses as a freight forwarder on a website to extort money from a company by holding its BOL for ransom.
- Ransomware: A type of malware that encrypts files and documents, effectively holding them for ransom until the business pays for a decryption key.
- Phishing scams: Cyberattacks that trick victims into handing over sensitive information (passwords, credit card numbers, etc.) to a malicious entity.
With a solid information security strategy implemented into the operations of your logistics firm, supply chain users can feel confident knowing that your security controls are fully optimized to safeguard their company’s information assets and your operating systems.
Managed cybersecurity services from logistics IT professionals
The logistics industry keeps the world’s economy moving. A logistics firm can be crucial in helping clients maintain strong relationships with their customers, a fact not lost on cybercriminals looking to take advantage of the industry’s vast amounts of sensitive information.
Having served as a security operations center for logistics organizations for years, the cybersecurity experts at IT Gurus can assist your logistics firm in avoiding costly data breaches while shoring up your cyber defenses with a high-quality information security strategy.
Talk to the team today to develop a dynamic information security strategy, strengthen your hold on your supply chain, and secure your data for more productive operations.
