You may ask, if Vertu’s own system wasn’t hacked then why did the JLR attack affect their profit? It’s all because of a connected supply chain. When JLR’s system was down Vertu’s supply chain got disrupted because JLR couldn’t process any of the orders and make any deliveries. It means in modern business, your security is not only about your premise and facility, even if a partner suffers from any such attack, you might have to take the brunt of it as well.
A company may invest millions in its own cybersecurity, but dependency on suppliers, vendors, manufacturers, and service providers, create hidden weak spots. From automotive to tech, it should be a wake-up call to reform these interconnected networks.
This loss should sober all the companies up to figure out a way to reform the external supply chain in a way that such third-party attacks shouldn’t affect them. This loss of vertu motor highlights the risk of third-party dependency.
First of all, business interruption insurance does not cover partner cyberattacks. Even if insurance is available, the recovery is so slow that it exposes companies like Vertu motors.
Modern businesses increasingly rely on networks and partnerships, which means that your profit can vanish due to someone else’s cybersecurity failure.
Vertu Motors has ten Jaguar Land Rover dealerships and all depend on a single manufacturer. When the JLR system went down, all the dealerships of Vertu felt the impact to bits.
If Vertu had represented multiple car brands, or designed their supply chain in a way that they have other manufacturing facilities of JLR onboard as well, a single attack wouldn’t have caused such a widespread disruption. Companies need to diversify partners or build contingency plans to protect against cascading cyber losses.
Vertu Motors recently saw an 82% jump in their electric vehicle sales, showing that they were running things well. Analysts even projected a £27.2 million annual profit. But a cyberattack on JLR turned the whole narrative into a supply chain victim from the market leader.
Hence, external cyber failures can eclipse your hard earned success. In supply chains, performance alone won’t cut it, protecting against partner vulnerabilities is just as critical as internal execution.
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