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We live in a world where technology takes a much larger role than ever before. But this also brings certain risks. We’ve seen the cyberattacks in the past year that impacted the logistics industry. On Friday, CrowdStrike’s update-related outage affected Microsoft systems worldwide, which brought flights and other modes of transportation to a complete halt. Planes have been grounded in the U.S. and trains in the U.K. are impacted, as are boarding scanners at Edinburgh Airport in Scotland. The past months we have had major impacts of weather events such as the recent storm in Houston creating power outages and disruption in the airline networks. But where everyone’s expecting the weather to create havoc on the supply chain, the CyberStrike incident comes as a rather surprise shock – but one with huge consequences.
The outage serves as a stark reminder of the interconnectedness and vulnerability of modern supply chains reliant on digital infrastructure. It underscores several critical lessons for companies. It highlights the risk of overreliance on a single vendor or technology platform. Even a minor glitch in a critical component like CrowdStrike’s security software can trigger a cascade of disruptions across multiple industries and geographies. Companies must prioritize redundancy in their technology infrastructure and have robust contingency plans in place to mitigate the impact of outages. This includes having backup systems, alternative communication channels and well-defined protocols for handling disruptions.
Routine testing and maintenance of critical systems are essential to identify and address potential vulnerabilities before they lead to major outages. This includes patching software, updating security protocols and conducting stress tests to ensure systems can handle peak loads. Companies should thoroughly vet their technology vendors, assess their security practices and have clear service level agreements in place. Regular communication and collaboration with vendors can mitigate risks and ensure prompt response in case of an outage.
Real-time visibility into supply chain operations remains crucial for identifying and responding to disruptions quickly. Companies should invest in technology solutions that provide end-to-end visibility into their supply chains, enabling them to track shipments, monitor inventory levels and anticipate potential bottlenecks. Effective communication and collaboration across the supply chain are essential during a crisis. Companies should have clear communication channels with their suppliers, partners and customers to keep them informed of the situation and coordinate responses.
To harness their technology platforms and minimize the impact of future disruptions, companies should avoid relying on a single vendor or platform for critical functions. They should rather consider using multiple vendors or cloud-based solutions to spread the risk. They should also ensure that critical systems have backups and failover mechanisms in place to maintain continuity of operations during an outage. Companies should also focus on scenarios where they outline detailed procedures for responding to different types of disruptions, including cyberattacks, natural disasters and vendor outages.
The CrowdStrike outage of July 19, 2024, while disruptive and concerning, should not deter us from using technology going forward. Technology has become an integral part of modern life and business operations. It drives efficiency, productivity, innovation and global connectivity. Abandoning technology would be akin to stepping back in time, with significant negative consequences for economic growth and societal progress. Every technological failure, while unfortunate, presents an opportunity for learning and improvement. The CrowdStrike outage will undoubtedly lead to a thorough investigation and analysis, resulting in better practices, stronger safeguards and more robust systems in the future.
Technology providers and users are constantly working to build more resilient systems with redundancies and fail-safes to prevent or minimize the impact of future outages. The lessons learned from this incident will likely drive further innovation in this area. The benefits of technology, even with the occasional outage, far outweigh the risks. Technology has revolutionized industries, improved health care, enhanced communication and made our lives easier and more connected. It is also important to remember that most technological failures are ultimately caused by human error or oversight. This underscores the importance of investing in training, education and continuous improvement of cybersecurity practices and system maintenance.
Technology is not static. It is constantly evolving and improving. New solutions and innovations will continue to address challenges and mitigate risks, making technology more reliable and secure over time.
So, while the CrowdStrike outage serves as a cautionary tale, it should not deter us from embracing technology’s potential. Instead, it should motivate us to learn from the incident, implement stronger safeguards and continue to harness the power of technology to drive progress and innovation while mitigating the risks associated with its use.
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About the author
Bart De Muynck is an industry thought leader with over 30 years of supply chain and logistics experience. He has worked for major international companies, including EY, GE Capital, Penske Logistics and PepsiCo, as well as several tech companies. He also spent eight years as a vice president of research at Gartner and, most recently, served as chief industry officer at project44. He is a member of the Forbes Technology Council and CSCMP’s Executive Inner Circle.