Cyber Security Impacts on Logistics and Supply Chain Management

Abstract

Cyber Security is a major binding force in most buyer-supplier transactions in today e-commerce business. It is significant when uncertainty and asymmetric product information are present in the transaction across the supply chain. One of the important characteristics of cyber security is developing trust among trading partners of a supply chain. E-commerce provides opportunity for cost cutting while improving the quality of goods and services. It also helps in increasing the speed of service delivery and corporate decision-making. It helps in reducing traditional operating costs. The transaction cost through e-commerce is minimum as network of communication reduces the cost of installing a virtual store on web. Internet is primary carrier of trading along the supply chain. Trading partners of supply chain fear insecure transactions as web sites can be counterfeited, identities can be forged and the nature of transactions can be altered. There is lack of personal interaction between buyer and supplier. Geographic dispersion of trading partners creates new and unprecedented opportunities for consumer abuse through fraud and deception.