The recent global IT outage, caused by a security incident involving Crowdstrike, a leading cybersecurity provider, has sent shockwaves through the freight shipping and supply chain industries. What was supposed to protect companies from cybersecurity outages caused one of the most widespread outages in systems across the globe because of an error in the coding of its latest updates.
The outage is a reminder of how critical system uptime is to logistics and supply chains, as many came to a standstill.
What are the key steps to recover swiftly from supply chain disruptions?
1. Rapid Assessment: Immediately assess the extent of the disruption and identify critical areas that need urgent attention.
2. Clear Communication: Maintain transparent communication with all stakeholders, including customers, suppliers, and logistics partners, to manage expectations and provide updates.
3. Leverage Technology: Utilize advanced technologies like IoT, AI, and blockchain to gain real-time visibility into the supply chain and streamline recovery efforts.
4. Collaborate with Partners: Work closely with logistics providers and other partners to coordinate efforts and share resources for a faster recovery.
What proactive steps can shippers take to safeguard their supply chains against future IT outages?
1. Invest in Cybersecurity: Partnering with top-tier cybersecurity firms like Crowdstrike is crucial. While Crowdstrike was at the center of this disaster, it is far riskier to not have a partner like Crowdstrike on your side. The outage, though significant, is a rare occurrence and highlights the importance of having robust defenses against cyberattacks. Crowdstrike and similar firms provide advanced threat detection and response capabilities, continuous monitoring, and rapid incident response, which are essential for protecting against increasingly sophisticated cyber threats. The benefits of having a dedicated cybersecurity partner far outweigh the risks of operating without one.
2. Diversify IT Infrastructure: Use a combination of cloud-based and on-premises systems to ensure redundancy. While cloud applications offer several advantages over on-premises systems, there are considerations for both:
o Advantages of Cloud Applications:
▪ Scalability: Cloud services can easily scale up or down based on demand, providing flexibility during disruptions.
▪ Accessibility: Cloud-based systems can be accessed from anywhere with an internet connection, ensuring continuity even if physical locations are affected.
▪ Cost-Effectiveness: Cloud solutions often have lower upfront costs and reduce the need for expensive hardware and maintenance.
▪ Automatic Updates: Cloud providers handle updates and security patches, reducing the burden on in-house IT teams and ensuring systems are always up-to-date. When there is an issue like the Crowdstrike incident, you’ll also be the first to get back online with patches and the knowledge that your security and functionality is their priority as well.
o Considerations for On-Premises Systems:
▪ Control: On-premises systems offer more control over data and infrastructure, which can be important for sensitive information.
▪ Customization: These systems can be highly customized to meet specific business needs.
▪ Dependence on Internet Connectivity: Unlike cloud systems, on-premises systems do not rely on internet connectivity, which can be a significant advantage in case of internet outages.
3. Develop Contingency Plans: Create and regularly update disaster recovery and business continuity plans. Conduct simulations and drills to ensure preparedness.
What advantages do outsourced logistics services offer in responding to IT disasters?
1. Expertise and Resources: Outsourced logistics providers have dedicated IT and logistics experts who are well-versed in managing crises. Their extensive resources enable them to quickly deploy solutions and maintain operational continuity.
2. Scalable Solutions: These providers can scale operations up or down based on the situation, ensuring that capacity and resources are optimally used during disruptions.
3. Redundancy and Backup Systems: Logistics providers often have multiple IT systems and data centers, providing redundancy. If one system fails, others can take over, minimizing downtime and maintaining service levels.
4. Global Network: With a global network of partners and facilities, outsourced logistics providers can reroute shipments and adjust supply chain operations to avoid affected areas, ensuring minimal disruption.
5. Proactive Monitoring and Response: Continuous monitoring of systems and proactive response strategies help in early detection and mitigation of potential issues, reducing the impact of disruptions.
6. Thinking Beyond Technology: Fully automated freight and logistics solutions with no human-touch are more vulnerable to issues such as the Crowdstrike incident, whereas outsourced freight providers with a mix of the latest technology and experienced professionals handling day-to-day operations are far better equipped to avoid service disruptions, as those individuals can take the reins and temporarily shift back to a more analog approach, making direct contact with carriers and other partners to keep freight moving.
Conclusion
The recent IT outage serves as a stark reminder of the vulnerabilities in our interconnected world. However, it also highlights the critical role of cybersecurity and the need for agile logistics solutions. By investing in cybersecurity, diversifying IT infrastructure, and developing robust contingency plans, shippers can better protect their supply chains and ensure swift recovery from future disruptions. Despite the risks, partnering with cybersecurity experts like Crowdstrike remains essential to safeguard against the ever-evolving threat of cyberattacks.
