The rapid integration of internet and technological advancements over the past two decades has reshaped the global landscape, leading to transformative changes in various sectors.The emergence of Industry 4.0, conceptualized in 2011, has particularly revolutionized manufacturing and logistics by advocating for systematic digitalization technology integration to enhance efficiency and reduce costs. However, this technological evolution, while fostering efficiency and process optimization, also introduces vulnerabilities to cyber threats. The logistics sector, heavily reliant on interconnected systems like internet of things, faces potential risks from cyberattacks that target sensitive data across the interconnected supply chain. This chapter aims to address the intricate relationship between digitalization and the logistics sector, emphasizing the crucial role of digital safeguards in navigating cyber dangers. Furthermore, the chapter delves into the significance of visibility in supply-chain operations and explores technologies and practices for enhancing supply-chain visibility.
Top1. Introduction
Internet and technological advancements have been widely adopted for the past two decades, and the world has been redefined as a result of technological advancements, which have allowed for the expansion of teleconferencing, telemedicine, and telemarketing, as well as altered the nature of human interactions. An idea for the increasing digitization of industrial processes called “Industry 4.0” emerged in 2011 from a German technological innovation initiative (Kagermann, 2014). Industry 4.0, the fourth industrial revolution, posits that businesses in the manufacturing and logistics sectors can achieve better efficiency and reduced costs by systematically integrating digitalization technology into their operations. Ultimately, this integration will help the business develop and maintain its competitive edge in the long run. Numerous enabling technologies associated with Industry 4.0 have also played a role in the dramatic shift in the corporate environment (Mubarak & Petraite, 2020). A significant technology in this context is the Internet of Things (IoT), which describes networks of networked, uniquely identifying devices that may communicate with each other dynamically and intelligently (Atzori et al., 2017). It is a network design that includes hardware components, software applications, and platforms that intelligently connect and share data amongst themselves; the term “Industrial Internet of Things” (IIoT) describes its common use in industrial settings like production and supply chains (Barreto et al., 2017). It is anticipated that by the year 2027, the global expenditure on the digital transformation of the logistics industry will amount to approximately $95 billion (Wolak et al., 2019). According to the digital industries barometer, the logistics and transport sector is positioned fifth globally out of eleven industries, with a digital transformation adoption score of 6.61 (Du et al., 2023).
Increased efficiency and process optimization are hallmarks of modern logistics, which depend highly on digital technologies and communication infrastructure (Lu et al., 2003). With the help of these innovations, online retailers can keep tabs on shipments, communicate with clients and business associates, and easily collect vital sales data (Cheung & Michael, 2021). On the other hand, growing dependence on technology makes systems more vulnerable to cyberattacks, which can negatively affect businesses and the services they provide to their customers. Cyberattacks can target sensitive data in several locations due to the interconnected nature of the logistics business (Alshurideh et al., 2023). The more connections there are in a supply chain, the more susceptible it is to attacks. Integrating systems allows for the exchange of information, and supply chains are a vital part of this complex global network. For example, fraudsters can break into a company’s network, steal sensitive information, and then demand payment to decrypt the data by using information about inventory, delivery and arrival timings, and locations (Zhang et al., 2023).
The importance of authoring this book chapter is to highlight the role of digitalisation in the logistics sector, followed by a discussion of the landscape of digital safeguards and how to navigate cyber dangers in the logistics industry. To that end, we established the following goals, which resulted in the following essential noteworthy contributions. It begins with an in-depth examination of the current cybersecurity scenario in the logistics sector. Furthermore, it offers a thorough understanding of the logistics business structure, as well as the ramifications of rising connection and technology use. Furthermore, it includes a thorough overview of digital safeguards for cybersecurity in logistics, as well as risk assessment, tactics, and communication patterns in logistics. Aside from that, this chapter discusses the importance of visibility in supply-chain operations, as well as the technology and methods for improving supply-chain visibility. This chapter also includes a full examination of incident response and recovery in logistics. Finally, toward the end, various open challenges and potential opportunities in the logistics sector are discussed.
The specific contributions of the chapter are as follows.