DC Velocity - December 2012

Supply chain IT systems seen as
vulnerable to attack

By 2016, a single information technology (IT) incident in the supply chain could cost companies millions of dollars in data loss and remediation, according to a report issued in October by two Gartner analysts, Neil MacDonald and Ray Valdes.

The report, Living in a World Without Trust: When IT’s Supply Chain Integrity and Online Infrastructure Get Pwned, says supply chains are increasingly vulnerable to hacker attacks because they require information to be exchanged between multiple partners. “Pwned,” a slang term that originated in the hacker and online gaming cultures, means “owned” or badly beaten by an opponent.

While companies can shield internal data from hackers, they often cannot protect the information once it flows beyond their firewalls to and from their partners. Hackers are able to exploit weaknesses in those links to successfully penetrate security systems, according to the report.

The report recommends that companies be careful in their use of “open source” information systems and take steps to encrypt all sensitive data. In addition, because online purchasing portals can be especially vulnerable to hackers, it urges companies to strengthen security around IT procurement processes. ;

—James Cooke

ground breakers

Exel, part of the supply chain division of DHL, has opened a 250,000-square-foot distribution center in Laredo, Texas, in support of the company’s Logistics Without Borders supply chain solution. … Regal Logistics has expanded its operations in Los Angeles with a 120,000- square-foot distribution center. … Urban Outfitters Inc. has opened a 463,000- square-foot West Coast Internet fulfillment center in Reno, Nev. The LEED Silver-certified facility includes a state-of-the-art automated material handling system designed and built by Vanderlande Industries. … Third-party logistics service provider Averitt Express has built a new facility in Fort Smith, Ark., that includes expanded operations for customized warehousing and distribution.