THE LETTER FROM FRANCE SUPPLY CHAIN #16 - May 2022
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By François Martin-Festa VP End to End Offer Data of Schneider Electric Group and Head of Digital & Technologies Lab
Let's be more prepared for cyber risk
The Supply Chain is becoming more and more digital and the cyber risk is increasing. The white paper, published at the end of April by France Supply Chain in partnership with Wavestone, explains the role of supply chain managers to better protect themselves with concrete case studies and a mapping of service providers.
Only 24% of supply chain companies see cybersecurity as a priority. This concern comes in 7th place behind the search for agility to develop the ability to adapt to unforeseen events or the use of AI to meet customer expectations.
But the risk is real, with threats coming from a variety of sources: from the internal negligence of the careless employee to warring states, mafia groups or enlightened amateurs. Two examples: a hacker can infiltrate the management system and create false orders, while the loss of confidentiality of the itinerary of parcels and trucks can lead to theft.
Logistics and Supply have a multitude of exchanges with many partners, which creates real potential breach areas. Cybersecurity must therefore be part of any business continuity plan.
A Supply Chain Director has a major role to play in identifying the threat and its impacts, knowing all the players in an extended Supply Chain (subcontractors, service providers, etc.), raising the awareness of the teams and interacting with the IT Department, for example, in order to adapt the solutions to the business.
The Cybersecurity white paper presents two use cases: that of a leader in the cosmetics industry with a centralised Supply Chain (planning, production, purchasing, logistics, etc.) wishing to gain in agility to respond more quickly to changes in customer demands while increasing the digitalisation of its processes. In order to secure the Supply Chain IS, it has drawn up a map of Supply Chain risks and assets and formalised project governance during the design phase and over time. Another use case is that of a food retailer. Following an incident on its data, it succeeded in deploying an action plan securing access to supply chain data by involving its suppliers and subcontractors.
This white paper is a good illustration of the Digital and Technology Lab's approach: to set out the issues at stake and draw up a checklist of risks and points to be dealt with. The white paper illustrates the subject with concrete use cases while providing a "radar" of service providers of all sizes, including startups, such as cybersecurity solutions for supply chain IT. This makes it possible to identify which player is relevant for a specific use.
The same pragmatic approach applies to all our publications, such as the white paper on RPA published in April.
"This latest work allows us to enlighten manufacturers on the opportunities, risk areas and threats that we have identified for many supply chains. They are part of our desire to advance the awareness, knowledge and experience sharing of our members, by providing them with insights that are highly focused on the complex technological issues they face.
 France Supply Chain Wavestone 2020 survey
French logisticians perform well internationally
The major French logistics service providers (3PLs) are multiplying their successes on the international scene. For example, FM Logistic has just inaugurated its fifth multi-client warehouse in India at Farrukhnagar, near the Kundli-Manesar-Palwal motorway (Delhi). The inauguration of this 70,000 m² building comes at a time when FM Logistic has just announced the opening of a new 20,000 m² urban distribution centre in Di An, Binh Duong in Vietnam. One of the first customers is a FMCG player that has entrusted the service provider with its omnichannel logistics to deliver nearly 10,000 traditional grocery shops in Ho Chi Minh City. This distribution centre echoes the 50,000 m² centre at VSIP Bac Ninh, which already handles the last mile in Hanoi. Almost simultaneously, Geodis acquired Keppel Logistics. This acquisition is intended to significantly increase its activities, particularly in e-commerce, throughout South-East Asia and in particular in Singapore. Keppel Logistics has over 200,000 m2 of warehouse space in Singapore, Malaysia and Australia. In this geographical area, the French service provider currently employs 3,700 people spread over 76 sites. Finally, ID Logistics has just taken over Kane Logistics in the United States, a fast-growing pure player in contract logistics. This American company has seen its turnover increase by 20% per year since 2019 to reach 235 million dollars in 2021. Kane Logistics now operates 20 hubs across the country, representing 725,000 m². Two years after its entry into the US through the takeover of Nespresso's logistics operations, ID Logistics is acquiring new resources in a high-potential area.
This information, like all that concerning the successes of these French companies on the international scene, will remain (alas!) unknown to the general public. This is all the more regrettable as it would be an opportunity to highlight the very real know-how of our logisticians and perhaps to awaken new vocations.
NOT TO BE MISSED
Review of the two white papers Cybersecurity and RPA
Between February and March, France Supply Chain and Wavestone published two white papers dedicated to two major Supply Chain issues: process automation and digital risk. These publications are useful for companies to better understand the digital transformation but also for all those who are interested in the subject.
Find all the events around the Supply Chain.