While the Internet of Things (IoT) opens up a wide range of opportunities for the supply chain, it is also vulnerable to cyberattacks. Using a threat model can help companies assess how secure their system is.
Internet of Things (IoT) solutions are becoming increasingly common for both consumers and businesses. While consumers explore Internet-connected refrigerators and webcams, in the business world IoT solutions include:
Asset tracking: IoT tools that help companies identify the location of key assets such as trucks or IT equipment;
Smart buildings: IoT tools that use distributed sensors to improve environmental quality and lower the costs of heating, ventilation, and air conditioning (HVAC) systems;
Supply chain monitoring: IoT tools that help managers predict and avoid delays and damages of in-transit goods;
Equipment monitoring: IoT tools that monitor capital equipment to enable preventative maintenance.
While these IoT solutions offer real benefits, they also introduce new security risks, like the risk of data being intercepted or compromised. Companies need to recognize these potential threats and make informed security decisions regarding an IoT solution for their organization. To accomplish this, it's helpful to think in terms of a "threat model." In security parlance, a threat model summarizes: 1) potential attack objectives, 2) the ways in which a system might be compromised, and 3) security countermeasures. Supply chain leaders need to take each of these considerations into account as they build an accurate threat model for their particular IoT solution and environment, since different IoT solutions and environments have different threat models.
Attack Objectives
As you begin to develop a threat model for your IoT application, start by identifying plausible attack objectives. An attacker may have many objectives, but the following are some of the most common worth considering:
Physical harm: If your IoT system controls the physical activity of piece of equipment (for example, an industrial automation system), an attack could take control of that activity and do damage to your equipment or the facility.
Data corruption: An attacker could send false data (or block data from being sent), causing you to make the wrong decision but without harming any equipment directly.
Data destruction: Removing data either directly from the device or from the data-recording or storage system could help an attacker cover up some other malicious activity.
Espionage: An attacker could tap into the monitoring capabilities of your IoT system to "snoop" on sensitive data, without tampering with it.
Once you have identified the objective for a potential attack, it is helpful to prioritize which ones you should focus on preventing. For each potential attack scenario, it is useful to ask yourself, "What are the consequences?" to determine the severity of the attack and prioritize concerns. For example, the threat of losing IoT data for one hour due to a bad actor jamming a communications signal is probably less serious than the risk of damage to a facility. Next, consider what reasons an attacker might have to pursue the potential attack goals you've outlined. A scenario with a clear benefit to the attacker is often a bigger concern than one without any clear motivation to act on it. Prioritize threats with a known or conceivable motivation.
Potential Weaknesses
Once you've considered what could happen, next ask, "How likely is it to occur?" Consider potential attack pathways and the security weaknesses that might enable them. IoT vulnerabilities might include configuration errors (for example, neglecting to change a default password) or misuse of access privileges (for example, if a user copies and exports data).
Another key consideration is the potential avenue of attack presented by your IoT device's communications network protocol. This will vary widely based on the network you use:
Wired: Wired solutions use a physical connection, such as Ethernet or DSL, to transmit data. These solutions tend to avoid many of the security risks of Wi-Fi and Bluetooth solutions, but they are severely limited in scalability and mobility. As this article explains, wired solutions are generally not a great fit for many common IoT applications because they require so much infrastructure.1Â It is often preferable to rely on a wireless technology for a modern IoT implementation.
Bluetooth: Bluetooth supports a number of security mechanisms for different versions of the protocol.2 While the simplest security setting offers little protection from nearby eavesdroppers, other settings offer authentication and encryption mechanisms that improve security. That said, these security mechanisms often come at the cost of ease of deployment and maintenance.
Wi-Fi: Security for Wi-Fi-connected IoT devices is best summarized by the article "Wi-Fi access for the Internet of Things can be complicated."3 While the original Wi-Fi protocol is not well-suited for mobile IoT devices, there are mechanisms being introduced that should improve security. However, as with most wireless protocols, security improvements often have negative repercussions on operational costs, ease of setup, and compatibility with other existing systems.
Cellular: IoT devices that use cellular communication come with a fair amount of built-in security, as outlined in this paper from the cellular standards group GSMA.4 Security researchers have demonstrated ways of intercepting a cell signal with specialized equipment, but these attacks generally require the attacker to be in close proximity to the targeted device. As such, security risks with cellular-based IoT solutions are generally fairly limited.
In addition to the potential attack pathway, there are a number of other factors that you need to take into account in order to determine whether or not your IoT solution is secure. Consider, for example, whether an attacker needs physical access to the IoT device, and if so, how secure those devices are. A device on the outside of a building in a remote area may be more of a risk than a device inside a locked container, for example. Also consider the device itself—what skill set, tools, and time are required to tamper with it, and would the ends justify the means? Finally, consider whether attackers might achieve their objectives by abusing access granted to an authorized individual. What capabilities would the attacker have in this scenario? What safeguards should be established to counter this risk?
Evaluating the ways in which different IoT systems can be compromised will help you to build an accurate threat model of your particular environment. In turn, this careful consideration and evaluation will help you to determine the appropriate IoT solution for a given application.
What countermeasures can you employ?
After identifying the potential attack scenarios, consider the countermeasures that are built in to protect the IoT solution. One level is physical countermeasures—things that prevent or mitigate direct access to the device. Is the device easily accessible? Does the device have ethernet or USB ports that can be used to access the firmware? Is the firmware secured? Consider options for "hardening" the IoT device itself.
Second, consider the communications network (as discussed above). Weigh the tradeoffs of cost, ease, and security to make sure the method you've chosen meets your needs. Make sure that you are employing the safeguards available with your chosen technology.
IoT systems can also employ active countermeasures, such as scanning for unauthorized or unusual access and alerting administrators or security staff, similar to other enterprise systems. Finally, user accounts can be restricted to limit misuse, and the system as a whole can be built to maintain security even if a specific sensor has been compromised.
Making the final call
IoT is creating amazing opportunities for organizations to process data and automate environmental interactions in new ways. But as with all advances, IoT comes with risks. By applying a threat model framework and analyzing the possible attack objectives, security weaknesses, and possible countermeasures, organizations can apply a familiar security framework to this new technology. Organizations that are clear-eyed about evaluating these risks will find and deploy IoT solutions to derive enormous value while maintaining appropriate security.
3. For greater detail on these complications, see Peter Thornycroft, "Wi-Fi Access for the Internet of Things Can Be Complicated," Network World (March 21, 2016),  https://www.networkworld.com/article/3046132/internet-of-things/wi-fi-access-for-the-internet-of-things-can-be-complicated.html
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Inclusive procurement practices can fuel economic growth and create jobs worldwide through increased partnerships with small and diverse suppliers, according to a study from the Illinois firm Supplier.io.
The firm’s “2024 Supplier Diversity Economic Impact Report” found that $168 billion spent directly with those suppliers generated a total economic impact of $303 billion. That analysis can help supplier diversity managers and chief procurement officers implement programs that grow diversity spend, improve supply chain competitiveness, and increase brand value, the firm said.
The companies featured in Supplier.io’s report collectively supported more than 710,000 direct jobs and contributed $60 billion in direct wages through their investments in small and diverse suppliers. According to the analysis, those purchases created a ripple effect, supporting over 1.4 million jobs and driving $105 billion in total income when factoring in direct, indirect, and induced economic impacts.
“At Supplier.io, we believe that empowering businesses with advanced supplier intelligence not only enhances their operational resilience but also significantly mitigates risks,” Aylin Basom, CEO of Supplier.io, said in a release. “Our platform provides critical insights that drive efficiency and innovation, enabling companies to find and invest in small and diverse suppliers. This approach helps build stronger, more reliable supply chains.”
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
As U.S. small and medium-sized enterprises (SMEs) face an uncertain business landscape in 2025, a substantial majority (67%) expect positive growth in the new year compared to 2024, according to a survey from DHL.
However, the survey also showed that businesses could face a rocky road to reach that goal, as they navigate a complex environment of regulatory/policy shifts and global market volatility. Both those issues were cited as top challenges by 36% of respondents, followed by staffing/talent retention (11%) and digital threats and cyber attacks (2%).
Against that backdrop, SMEs said that the biggest opportunity for growth in 2025 lies in expanding into new markets (40%), followed by economic improvements (31%) and implementing new technologies (14%).
As the U.S. prepares for a broad shift in political leadership in Washington after a contentious election, the SMEs in DHL’s survey were likely split evenly on their opinion about the impact of regulatory and policy changes. A plurality of 40% were on the fence (uncertain, still evaluating), followed by 24% who believe regulatory changes could negatively impact growth, 20% who see these changes as having a positive impact, and 16% predicting no impact on growth at all.
That uncertainty also triggered a split when respondents were asked how they planned to adjust their strategy in 2025 in response to changes in the policy or regulatory landscape. The largest portion (38%) of SMEs said they remained uncertain or still evaluating, followed by 30% who will make minor adjustments, 19% will maintain their current approach, and 13% who were willing to significantly adjust their approach.
Specifically, the two sides remain at odds over provisions related to the deployment of semi-automated technologies like rail-mounted gantry cranes, according to an analysis by the Kansas-based 3PL Noatum Logistics. The ILA has strongly opposed further automation, arguing it threatens dockworker protections, while the USMX contends that automation enhances productivity and can create long-term opportunities for labor.
In fact, U.S. importers are already taking action to prevent the impact of such a strike, “pulling forward” their container shipments by rushing imports to earlier dates on the calendar, according to analysis by supply chain visibility provider Project44. That strategy can help companies to build enough safety stock to dampen the damage of events like the strike and like the steep tariffs being threatened by the incoming Trump administration.
Likewise, some ocean carriers have already instituted January surcharges in pre-emption of possible labor action, which could support inbound ocean rates if a strike occurs, according to freight market analysts with TD Cowen. In the meantime, the outcome of the new negotiations are seen with “significant uncertainty,” due to the contentious history of the discussion and to the timing of the talks that overlap with a transition between two White House regimes, analysts said.