The Supply Chain Gets Even More Wireless—and Dangerous

Wireless technologies will continue to influence the future of the supply chain. At the forefront and gathering much of the attention is RFID, which, while still nascent, will continue to expand in 2008, say analysts.

But it is other advances in the supply chain, such as increased use of wireless technologies for data transmissions and operational transactions in distribution centers, that have made supply chains even more efficient.

Analysts point out, however, that wire-free does not mean risk-free. A recent report from Retail Systems Research (RSR) details the growing dependence on wireless technologies and monumental risks posed by the new breed of devices in the supply chain and beyond.

RSR analyst Steve Rowen describes the current situation as this: Wireless attackers, who now have motive and technological savvy, have identified companies' "lackadaisical treatment of data flow as a viable opportunity, extending well within the reach of highly organized crime factions," Rowen writes. "Theft of retailers' customer data is no longer just for 'hacks;' it has become very big business."

Rowenâ¬"s first piece of advice for 2008: Elevate the conversation. "The most successful security programs are those which gain the interest of C-level executives—early on," he writes. "This process will slightly vary from one retailer to another, but is commonly bound by a joint presentation of the company's current—and needed—security status to the board of directors."