Geopolitical context and challenges facing the industrial supply chain

The industrial sector has faced unprecedented challenges in recent years, leading to profound transformations in global supply chains. Manufacturers are now engaged in a major transition, focused on cost control, sustainability and digitalisation.

In the face of disruptions to international flows, the relocation of supply chains and the cybersecurity of information systems have become strategic priorities. In an uncertain geopolitical context, supply chain management is emerging as a crucial issue for ensuring the sustainability and competitiveness of industrial companies.

The supply chain refers to all processes involved, from a customer's order to the delivery of a product or service.

It encompasses the procurement of raw materials, production and distribution, involving various specialised players at each stage.

To understand the major challenges of the supply chain, it is important to distinguish between three essential phases:

• Procurement: acquisition and management of raw materials.
• Production: transformation of raw materials into finished products.
• Distribution: delivery of finished products to the end customer.

When the supply chain relies on foreign suppliers, it becomes vulnerable to tensions. It is exposed to geopolitical uncertainties that can cause significant disruptions: longer delivery times, delays due to the redefinition of trade routes in the event of armed conflict, rising raw material costs, shortages, and increased protectionism.

Europe is particularly dependent on countries such as Taiwan and the United States for electronic components. Any restriction on supplies would have dramatic economic consequences, particularly in the defence and aerospace sectors.

Faced with increasing disruptions to global supply chains, manufacturers must adopt proactive strategies to strengthen their resilience. This involves:

• Optimising inventory to anticipate shortages.
• Digitising tools for real-time flow monitoring and anticipating variations.
• Integrating flexible contractual clauses adapted to market fluctuations.
• Reducing the number of suppliers for better risk management.

Using a local, controlled supply chain offers major strategic advantages:

• Supply security: reduction of risks linked to geopolitical, pandemic or natural crises.
• Responsiveness and proximity: improvement of delivery times and customer satisfaction.
• Cost control: reduction of transport and logistics expenses, customs duties and import taxes.
• Quality and compliance: facilitating quality controls and compliance with social and environmental standards.
• Environmental responsibility: reducing the carbon footprint associated with transport.
• Local economic development: supporting local suppliers and strengthening the company's image.
• Innovation and collaboration: stimulating synergies between local partners.
• Increased resilience: independence from global supply chains, ensuring business continuity in the event of a crisis.

All of these factors contribute directly to the sustainability and competitiveness of businesses.

Cybersecurity encompasses all technical measures and organisational resources aimed at protecting information systems and data against cyberattacks. In an industrial environment, securing local components and software is essential to prevent industrial espionage, sabotage and targeted attacks.

To prevent threats, manufacturers must adopt appropriate measures:

• Deployment of surveillance and protection devices adapted to technological developments.
• Training and awareness-raising for employees on cyber risks.
• Implementation of tools for detecting suspicious activity and monitoring threats.
• Securing Wi-Fi networks and removable media (USB keys), which are frequent vectors of attack.
• Use of hardened and secure consoles.
• Compliance with cybersecurity standards such as IEC 62443 (industrial automation system security) and ISO 27001 (information security management systems).
• Identification and protection of the company's infrastructure and information systems.
• Network segmentation to limit the spread of attacks.
• Regular system updates.
• Use of cybersecurity experts if internal skills are insufficient.

In order to guarantee the security of their systems, it is imperative for manufacturers to ensure that their components and software strictly comply with European cybersecurity standards. This approach requires the implementation of robust prevention strategies, including the identification and protection of sensitive assets. Network segmentation plays a crucial role in isolating critical areas, thereby limiting the spread of potential attacks.

In addition, regular system updates are essential to correct existing vulnerabilities and anticipate new emerging threats. If the company does not have the necessary skills in-house, it is strongly recommended that it call on the services of companies specialising in cybersecurity. By rigorously adopting these measures, manufacturers can significantly strengthen their cybersecurity posture and minimise the risk of incidents, thereby ensuring the sustainability of their operations.

As a French manufacturer and integrator, ECRIN Systems is a key player in the localisation and security of industrial components, focusing on:

• Local sourcing: priority given to European suppliers of components and electronic cards.
• Compliance with European cybersecurity standards: adherence to the most demanding standards imposed by European customers.
• Traceability and transparency: rigorous monitoring of the components and software integrated into its solutions.

ECRIN Systems offers secure electronic boards that comply with European standards, robust embedded systems that are resistant to cyberattacks and hazardous environments, as well as tailor-made solutions to secure its customers' infrastructures.

In an uncertain geopolitical context, securing the supply chain has become a strategic priority for manufacturers. Relocation and compliance with cybersecurity standards are essential to guarantee the sustainability of European industries.

With its expertise, ECRIN System supports companies in the integration of localised and secure electronic solutions.

For more information, please contact us.