What the Sony hack has to do with cyber security and logistics.

If the Sony cyber security meltdown has shown us anything at all, it is that for all of the triumphs of the modern era, we are yet plagued by one of the usual enemies, crime. To be certain, cyber crime is not just about money; that is, hacking into a retail organization for the sole purpose of stealing customer data such as names,credit card numbers and other information. However, this was different, because it was extortion, some would say terrorism.  It cuts at the heart of our liberty and attempts to dictate what content we will speak about, read or consume.

The logistics and supply chain industries have huge infrastructure and asset investments that must be protected, and so cyber security and logistics go hand-in-hand for people doing business internationally.

If you don’t think that hacking can’t happen, here’s a not-so-short list of companies who experienced some kind of breach in 2013 or 2014:

Target, Neiman Marcus, Michaels, Yahoo! Mail, Aaron Bros, AT&T, eBay, an unnamed Public Utility, Feedly, Evernote, P.F. Chang’s, U.S. Investigative Services, Community Health Services, UPS, Defense Industries, Home Depot, Google, Apple iCloud, Goodwill Industries, SUPERVALU, Bartell Hotels, U.S. Transportation Command, J.P. Morgan Chase, Dairy Queen, Snapsave and still more.

Supply chains are driven by proprietary processes and custom technology. For companies who produce an actual good and not just provide a service, schematics, formulae, tools, raw material sources and manufacturers are their lifeblood.

After a series of retail related hacks (K-mart, Albertson’s and Home Depot in September, 2014) we cannot simply shrug this off as “just another hack.” This had much more severe implications and greater reach than any previous attack.

The logistics community should be very concerned about the Sony problem. Any interruption to the supply chain creates significant ripples. What if ports could not operate cranes, or warehouses pick shipments or supply chain actors process payments? The scope of this effect could have devastating results.

It was only a year ago that the worst winter in decades left railcars stranded from the Pacific Northwest to the East Coast, creating major delays from Canada to Chicago. Little did we know that was a minor event in comparison to how 2014 would end. Companies involved in the importing or exporting of cargo to and from North American are facing West Coast labor shortages and slowdowns, uncontrollable vessel congestion in L.A. and Long Beach harbors and massive chassis shortages creating delays of up to three weeks.

That’s not a ripple, that’s a tsunami.