Technology

October 31, 2025 - 8 minutes read

Supply Chain Cybersecurity: Managing Risk in an Interconnected World

Supply chains are now deeply reliant on digital infrastructure, making cybersecurity a critical point of operational risk. In fact, a 2025 SecurityScorecard survey found that more than 70% of organizations reported at least one third-party cyber incident in the past year. These threats aren’t limited to direct attacks – they often enter through trusted systems and vendors already embedded in day-to-day operations.

Modern logistics now runs on an intricate web of platforms, APIs, and partner integrations linking procurement, transportation, and fulfillment systems. This digital connectivity drives efficiency but also creates new pathways for attackers, especially when third-party access isn’t continuously monitored or controlled.

This blog examines how cyber risk spreads across modern supply chain tech environments, why resilience requires more than internal controls, and what to consider when evaluating the security posture of your technology partners.

Why Supply Chain Tech Networks Are Prime Cyber Targets

Today’s supply chains are no longer linear operations. They’re digital ecosystems built on complex shared systems, real-time data exchange, and third-party platforms. From supplier portals to carrier APIs, every new integration expands the attack surface. And with hundreds, or even thousands, of partners connected across procurement, transportation, and fulfillment, a single weak link can expose the entire network.

That exposure is growing faster than many companies can manage. According to Kiteworks’ 2025 Annual Survey Report, organizations managing between 1,001 and 5,000 third-party relationships report a 46% increase in supply chain risk, the highest of any segment. These “danger zone” companies often fall into a critical gap: too large for manual oversight, but not yet equipped with automated tools to monitor third-party access at scale.

It’s a blind spot many teams don’t fully address. Most internal security investments still focus on in-house systems, while the real threats now often originate externally in overlooked vendors, legacy integrations, or unsecured data pathways. As a result, vulnerabilities are spreading deeper into supply chain environments and frequently go unnoticed until they disrupt operations or trigger costly consequences.

In this environment, cybersecurity supply chain risk management requires more than reactive policies. It calls for end-to-end visibility, accountability, and stronger expectations across every layer of the digital supply chain.

Common Attack Vectors in Modern Supply Chain Systems

Understanding the origins of supply chain cyber risk is key to closing security gaps across partner and vendor systems. Cyberattacks don’t always start with a direct target against an organization. In many cases, the path to compromise begins with a trusted vendor, unsecured integration, or overlooked connection deep within the supply chain. These weak points often sit outside the organization’s core systems, making them harder to detect and easier to exploit.

One of the most common entry points is compromised vendor credentials. Without multi-factor authentication or proper access controls, attackers can use these accounts to move laterally into connected systems. Software supply chain attacks are another rising threat, where malicious code or dependencies are inserted upstream into commonly used tools or platforms.

APIs also present a significant risk when left unsecured. Excessive permissions or poorly configured endpoints can expose sensitive data or allow unauthorized system access. Similarly, misconfigured data syncs between partners can leak shipment information, customer records, or financial details if encryption and role-based access aren’t enforced.

These are not hypothetical scenarios. As logistics networks continue to digitize and connect, the risk of real operational disruption grows, especially when security assumptions go unchallenged.

How to Build Cyber Resilience into Your Supply Chain

No system is entirely immune to cyber threats. But robust, structured supply chain data platforms can limit exposure, contain potential damage, and support fast recovery when incidents occur. In the context of technology, resilience isn’t just about protecting one system – it’s about protecting the network of systems, partners, and data flows that keep goods and information moving. 

To build meaningful resilience, companies should focus on supply chain security best practices across four core areas:

1. Visibility Across Vendor Connections

You can’t secure what you can’t see. Yet many organizations lack a complete picture of which vendors and systems have ongoing access to their supply chain data. This includes API-based integrations, shared platform modules, third-party applications, and inherited access permissions from previous partners or projects.

Establishing a secure and resilient network starts with creating an up-to-date inventory of all external connections – both active and dormant. This includes cataloging which systems each vendor touches, what data is shared, how it’s transmitted, and whether those connections are governed by current access policies. Tools that support API discovery, connection logging, or third-party risk mapping can help teams build this baseline.

Ongoing monitoring should be structured and repeatable. Set criteria for reviewing vendor access on a scheduled basis, whether quarterly, biannually, or tied to contract milestones. Audit logs, connection histories, and permission changes should be reviewed for anomalies, not just stored for compliance. When vendors are onboarded, offboarded, or change scope, access should be re-evaluated and adjusted accordingly. Continuous monitoring and structured vendor access management ensure that indirect exposure points don’t accumulate unnoticed.

2. Encryption and Secure Data Architecture

Encryption is a core requirement for protecting sensitive supply chain data as it moves across the network. Shipment details, invoice records, and customer information should be encrypted both in transit and at rest, using industry-standard protocols such as TLS 1.2+ and AES-256. These controls ensure that even if data is intercepted or accessed improperly, it remains unreadable and unusable.

But encryption alone isn’t enough to ensure resilience in supply chain technology. A secure architecture also involves isolating critical systems and segmenting network access based on function and risk. Flat network structures create unnecessary exposure, allowing a compromise in one area to propagate quickly. By contrast, compartmentalized environments with strict routing rules, access controls, and firewalls help contain breaches before they spread.

3. Identity and Access Controls

Authentication and access management are critical to preventing credential-based attacks. Multi-factor authentication (MFA) and single sign-on (SSO) reduce the risk of unauthorized access for both internal users and external partners, while also enforcing consistent security standards across the organization.

Access should be governed by the principle of least privilege. Role-based controls must be enforced at both the application and infrastructure levels, limiting users to only the systems and data required for their responsibilities. These controls should factor in role, location, device, and usage behavior, and include oversight of login activity, account provisioning, and permission changes to catch potential vulnerabilities early.

4. Proactive Testing and Recovery Readiness

Security measures must be actively tested to confirm they work as intended under real-world conditions. Regular vulnerability scans can surface exposed services, outdated libraries, and misconfigured settings across connected systems. Penetration tests go further by simulating attacker behavior to identify paths of escalation, privilege abuse, or lateral movement between systems that may not be obvious through static analysis.

Equally important is ensuring systems can be recovered quickly if controls fail. Resilience depends on tested backup procedures, clear ownership of response actions, and predefined priorities for restoring access and data. In a distributed supply chain environment, delays in response or communication can escalate a localized issue into a wider disruption.

Resilience isn’t just about withstanding a breach — it’s about reducing the likelihood of one happening in the first place. That starts with holding supply chain tech providers to higher standards. If a platform plays a central role in your operations, its security practices should be central to your evaluation process.

Questions to Ask Your Supply Chain Tech Providers

Every platform you rely on introduces potential risk. If it plays a role in your logistics operations, it should be subject to the same scrutiny as your internal systems. Organizations need to evaluate providers not just on features or functionality, but on how they protect the data that flows through their network.

Here are critical questions to ask when assessing a supply chain platform’s security posture:

  • Do they encrypt data at rest and in transit?
  • What visibility do you have into third-party system connections?
  • Do they offer MFA, SSO, and IP-level access control?
  • Is the platform regularly tested for vulnerabilities?
  • Do they segment infrastructure to contain breaches and limit lateral movement?
  • Do they support audit trails and reporting for user activity and system access?
  • How are backups handled, and how quickly can systems be restored?
  • Can they demonstrate a documented incident response and recovery plan?

Secure platforms won’t eliminate risk entirely, but they can reduce its impact. The right controls can prevent vulnerabilities from becoming operational failures and ensure that when issues do arise, they’re easier to contain.

How Agistix Supports Secure, Resilient Supply Chain Operations

Agistix is a supply chain execution and visibility platform that centralizes shipment data across transportation modes, regions, and trading partners. It allows organizations to track inbound, outbound, and third-party shipments in real time, streamline exception management, and improve freight performance through better data access and operational control.

But behind the visibility technology is a security architecture designed for today’s connected supply chains. Agistix supports encryption in transit and at rest, along with identity and access controls like MFA, SSO, and IP whitelisting. Automated testing and monitored backups further reduce exposure and support fast recovery should security issues arise.

For enterprises managing high volumes of shipments and third-party connections, platform security isn’t just a technical concern – it’s a business requirement. Agistix is built to support both.

See how Agistix can help protect your supply chain while improving visibility and control. Book a demo to learn more.

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Author
Trevor Read

Trevor Read is the founder and CEO of Agistix, with over two decades of experience in SaaS, global supply chain, and logistics technology. Trevor is a results-driven entrepreneur who is passionate about leveraging big data to create scalable, fast-deployment solutions that empower businesses to optimize operations and seize new opportunities in complex, ever-changing markets.

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