The evolution of global economy has positioned resilience to be the most critical aspect of supply chain operations. As businesses attempt to make their supply chains more streamlined, transparent, and resilient, Information Technology (IT) and Operational Technology (OT) convergence has found a new foothold in the industry.
As the industry embraces the Fourth Industrial Revolution, the advancements such as cyber-physical systems and the convergence of IT and OT systems have bridged the gap between the physical operations on the floor and the digital data businesses rely on for their operations.
Using IT-OT Convergence to Improve Supply Chain
IT-OT convergence has been a key focus in supply chain resilience. IT-OT systems hold a lot of data on performance and production metrics which are usually isolated. IT-OT convergence implemented rightly means enhanced visibility across the supply chain that can help in identifying and predicting any performance hurdles.
Enhancing Visibility through Performance Metrics
IT-OT convergence now allows us to monitor performance and look for or predict any anomaly in the system. Manufacturing processes especially greatly benefit from this. Vibration sensors, for example, can pick up anomalies in machine behavior and inform about any wear, or misalignment.
Inventory Optimization
GPS or RFID and BLE (Bluetooth Low Energy) tags are typically used to track deliveries and products in warehouses, helping with inventory management.
Smart Energy Optimization
IoT-enabled meters track energy usage of HVAC, lighting, and conveyors (OT). IT analytics platforms adjust settings automatically based on workload and occupancy predictions, reducing energy costs and equipment overloads.
Port Operations Synchronization
Cranes and yard vehicles provide OT telemetry on container movements. IT systems use this data to assign cranes, allocate yard slots, and sequence shipments.
Cyber-Physical Systems Enhancing Supply Chain Systems
Unlike IoT devices that are used for data collection and feedback, cyber-physical systems; mechanisms built from seamless integration of computing and physical components, take it one step further and automate, replicate, and control physical elements in a physical environment. In supply chains, Cyber-Physical Systems enable autonomous decision-making and adaptive control across manufacturing floors, distribution centers, fleets, and ports. Similarly, machine vision systems integrated with robotic arms optimize sorting and packaging. Predictive CPS algorithms dynamically coordinate with ERP systems to reroute shipments when upstream bottlenecks are detected. This fusion enhances supply chain agility and reduces operational downtime.
The Challenges of Integration: Security and Legacy Costs
IT-OT convergence, although beneficial, comes with its fair share of drawbacks. One of the major concerns regarding increased IoT or IT solutions used in the supply chain industry is that of security. While OT systems used to be isolated, cyberattacks did not pose much of a threat. However, as IT systems are integrated in the process, the risk of cyberattacks increases. According to a 2024 report by Cyble, cyberattacks on software supply chains have occurred at least one every two days in 2024. The majority of these attacks targeted the IT industry followed by defense and healthcare.
Another challenge faced in adapting IT solutions is legacy systems and processes. The global supply chain network spans over hundreds of industries, each consisting of a plethora of companies running their operations. Establishing new systems that allow the integration of IT and OT can be extremely costly and time-consuming. Another challenge is training workforce so that all employees understand the importance of the IT-OT convergence and how to employ it as a tool to assist them.
Securing Your Supply Chain Against Cyber Threats
As digitization increases, so does the risk that comes with it. The infamous SolarWinds cyberattack is another example of a typical supply chain attack that targeted and successfully compromised a number of high-profile targets, including the U.S. Department Of Homeland Security. The attack demonstrated how a single weak link in the supply chain can be compromised and used to infiltrate hundreds of organizations.
Following are some of the lessons to secure your supply chain form digital threats:
Network Segmentation
Network segmentation is the best practice to reduce collateral damage in case of an attack. Network segmentation done by employing VLANS, and Firewalls prevents lateral movement and reduces the scale of damage. An attacker might be able to exploit a compromised workstation but won’t be able to move towards critical infrastructure such as automation lines or SCADA servers.
Zero-Trust Policy for Third Party Vendors
Deploying a software solution from a third-party vendor always carries the potential of hidden risks. It is imperative to implement zero-trust policies and to verify software provenance and integrity to prevent any SolarWinds style attack.
Continuous Visibility And Threat Detection
Threat detection requires continued monitoring and anomaly detection. Implementing proper industrial protocols, such as Modbus and PROFINET, that allow secure communication between IT and OT systems, are crucial for filtering traffic and preventing suspicious activity.
The Future Is Convergence
As IT, OT and Cyber-Physical Systems evolve, the convergence across the supply chain may end-up being inevitable. Legacy systems will fade away as the new generation of talent brings in new knowledge. With the benefits of increased efficiency and reliability, companies must invest in IT-OT systems or risk losing the competitive advantage. However, with this evolution, comes also the shared responsibility of securing these systems. Thriving in the age of supply chain industry means, embracing innovation and adopting security measures at every possible step.