M&S and Co-op cyberattacks disrupting supply chains while smaller businesses struggle

Marks & Spencer (M&S) and the Co-op continue to face repercussions from major cyberattacks, leaving their supply chains strained and small businesses struggling to cope. The impact of these breaches has gone beyond empty supermarket shelves, demonstrating the wider fallout on suppliers both locally and globally.

Wilfred Emmanuel-Jones, founder of The Black Farmer, is one of many suppliers hit hard by the disruptions. The attacks forced his business to halt sausage production as its short shelf life rendered stock unsellable amidst the interruption. Emmanuel-Jones likened the situation to the pandemic, emphasising its severe blow to small companies. While M&S and Co-op work to manage the chaos, small firms in their supply chains have suffered significant financial losses.

Since the attacks, both retailers have faced challenges keeping store shelves stocked. Fresh products have been prioritised over ambient goods due to their shorter supply chain and quicker turnaround, but gaps remain visible in stores. M&S has implemented innovative measures, such as developing five bespoke mobile apps to assist shop and distribution centre staff in overcoming communication breakdowns caused by the breach. These apps allow staff to track shortages, report waste, and streamline operations while traditional IT systems remain offline.

The Co-op has taken equally drastic steps, including pausing deliveries and redirecting stock away from certain areas of the UK. While logistical solutions are slowly addressing shortages, the aftermath of these actions continues to ripple through supply chains. Many small suppliers, from food manufacturers to clothing vendors, have experienced interruptions in business, some being advised not to ship goods until notified otherwise.

For M&S, its Bradford-based ambient goods warehouse, which manages inventory for 1,000 stores, has been central to resolving the disruption. Ambient items with longer shelf lives faced delays while the business worked to prioritise distribution of chilled and perishable products. Despite loyal suppliers noting M&S’s strong communication and reassurance, the financial implications of delayed orders have not gone unnoticed.

The cyberattacks, which forced both supermarket chains to close parts of their IT infrastructure, show no company is immune to digital threats. While M&S’s new technological tools and the Co-op’s adjustments mark progress, experts predict a return to full normalcy may still take one to two weeks. Across the UK, retailers will need to revisit contingency strategies to protect themselves and minimise fallout for suppliers in the future.

Emmanuel-Jones highlighted a crucial takeaway from the situation, noting that cyberattacks on large corporations do not solely affect high-street businesses. The smaller suppliers within these vast networks are often the biggest casualties, underscoring the need for greater resilience throughout supply chains.