BitSight: Effectively Managing Cyber Risk In Supply Chains
Organisations must begin the process of becoming more resilient and capable of defending themselves against unseen threats, with cybersecurity becoming such a prominent matter in all industries globally in the last few years. Supply chain risk management strategies must include cybersecurity now, or face losing significant amounts of money and business through damages.
Knowing what needs to be dealt with is key to success when creating a risk management strategy, but the issue throughout the industry tends to be a widespread failure to understand where to begin.
Achieving true transparency throughout an entire supply chain network is very difficult to achieve, with many different points of contact involved. Proprietary data restrictions and the scope and scale of risk also needs to be considered. It can be very easy to overwhelm and overwork IT or cybersecurity teams when creating and working to risk mitigation plans.
It is clearly very easy to make it impossible for teams to address, quantify and mitigate cyber risks, but without these insights that transparency can provide, supply chains will be under constant threat of attack.
Security ratings are significantly effective to organisations in their bid to identify risky vendors and vulnerabilities in the supply chain. The ratings provide the ability to effectively streamline contingency planning and helps to put procedures in place to protect organisations from attacks and breaches in their networks.
Security ratings work similarly for businesses as credit scores do for individuals. CISOs can use these ratings to quickly and effectively communicate the size and severity of the risks posed to supply chains to members of the C-suite, the boardroom, or with any vendors in question. The data provided by these can simplify conversations and drive easier decision making for everyone.
Rated on a scoring system that ranges between 250 and 900, the ranking is higher for vendors who pose less threat. discovered that vendors with a security rating of 500 are five times more likely to be breached by cyber attacks than those with a score that is 700 or higher.
59% of breaches currently take place with third-party vendors, managing supply chains and the risks that cybercrime can bring with speed and conviction is the key to not only success, but survival for global supply chain networks.
Pandora and IBM digitise jewellery supply chain
Pandora has overhauled its global supply chain in partnership with IBM amid an ecommerce sales boom for its hand-finished jewellery.
The company found international success offering customisable charm bracelets and other personalised jewellery though its chain of bricks and mortar retail destinations. But in 2020, as the COVID-19 outbreak forced physical stores to close, Pandora strengthened its omnichannel operations and doubled online sales.
A focus on customer experience included deploying IBM’s Sterling Order Management, increasing supply chain resiliency and safeguarding against disruption across the global value chain.
Pandora leverages IBM Sterling Order Management as the backbone it its omnichannel fulfilment, with Salesforce Commerce Cloud powering its ecommerce. Greater automation across its channels has boosted the jeweller’s sustainability credentials, IBM said, streamlining processes for more efficient delivery. It has also given in-store staff and virtual customer service representatives superior end-to-end visibility to better meet consumer needs.
Jim Cruickshank, VP of Digital Development & Retail Technology, Pandora, said the digital transformation journey has brought “digital and store technology closer together and closer to the customer”, highlighting how important the customer journey remains, even during unprecedented disruption.
"Our mission is about creating a personal experience and we've instituted massive platform changes with IBM Sterling and Salesforce to enable new digital-first capabilities that are much more individualised, localised and connected across channels and markets,” he added.
Pandora’s pivot to digital
The pandemic forced the doors closed at most of Pandora’s 2,700 retail locations. To remain competitive, it pivoted to online retail. Virtual queuing for stores and virtual product trials via augmented reality (AR) technology went someway to emulating the in-store experience and retail theatre that is the brand’s hallmark. Meanwhile digital investments in supply chain efficiency was central to delivering on consumer demand.
“Consumer behaviour has significantly shifted and will continue to evolve with businesses needing to quickly adapt to new preferences and needs,” said Kareem Yusuf, General Manager, AI Applications and Blockchain, IBM. “To address this shift, leading retailers like Pandora rely on innovation to increase their business agility by enabling and scaling sustainable supply chain operations using AI and cloud.”
Yusuf said Pandora’s success was indicative of how to remain competitive by “finding new ways to create differentiated customer experiences that protect their enterprises from disruptions to help mitigate risk and accelerate growth”.