It’s the stuff of summer blockbusters and paperback novels: One small cybersecurity glitch sets off a chain reaction of computer failures, flight delays and medical emergencies, not to mention freight disruptions and manufacturing outages. This isn’t a fictional plot point in the latest thriller; it's all too real.
Last week, a software update from cybersecurity firm CrowdStrike went horribly awry, crashing Microsoft operating systems and causing the largest information technology (IT) outage in history, CNN reports. “Because CrowdStrike’s security software is running on countless individual computers all around the globe, the update that got pushed to those devices caused them all to shut down, virtually simultaneously.” The networks are so interconnected that one outage creates a domino effect. Ironically, many of the servers that contain information needed to get these systems working again were themselves caught in a cycle of crashing and rebooting, the CNN story continues. And each computer affected by the error had to be manually rebooted before the software could be deleted.
The CrowdStrike malfunction caused disruptions at U.S. and global ports, with highly complex air freight systems suffering the heaviest hit, CNBC adds. Thousands of flights were grounded around the world. Unfortunately, this latest hindrance is occurring during a time of increased demand, with shipments up 13% year-over-year in June. UPS and FedEx warned consumers of delayed package deliveries for the first few days after the disruption, CBSNews reports, as the malfunction forced them to enact contingency plans for their businesses.
Even now, when most devices have been fixed, the effects linger: “Delta is still digging out of the backlog,” notes Freightwaves, and may not be fully recovered for a few more days. Tesla shut down two of its manufacturing lines in response to the outage, Manufacturing Dive reports, and there’s been no update as to whether they’re back to business.
Still, automakers aren’t concerned enough about cybersecurity threats, cautions Arun Kumar, partner and managing director in the automotive and industrial practice at AlixPartners. “This latest IT failure is yet another reminder of how fragile our supply chain system is. We got our first wakeup call during Covid, a reminder with the Red Sea diversions and now CrowdStrike. The world of trade still needs to build in redundancies.” This outage wasn’t a cybersecurity attack, but the scale of the problem does emphasize how interconnected — and delicate — our networks can be.
Another case for building resilience
If there’s one thing supply chain professionals have learned over the past five years, it’s the necessity of resilience — and certainly not just when it comes to cyberthreats. PBS reports on widespread shortages of children's medications and the ongoing baby formula shortage, as parents call pharmacy after pharmacy to find these essential products. Factors include reliance on foreign suppliers, transportation challenges and coordination failures in distribution. These disruptions highlight vulnerabilities in the pharmaceutical supply chain and the critical need for more resilient systems.
There’s always more to learn when it comes to the latest threat to our supply chains. That’s why we just hosted the webinar Planning for Resilience: Navigating Global Supply Chain Disruptions. Learn how to make your networks stronger by better understanding the correlation between disruptions and external factors, exploring mitigation strategies, and learning from real-world experiences. ASCM members can watch the on-demand version anytime. Not a member? It’s just $10 a month to join. Not only will you have access to this necessary discussion about resilience, but you’ll also save $200 on ASCM's Supply Chain Resilience Certificate. Join us today!
