The modern warehouse ecosystem is intelligently interconnected. It leverages complex connections between applications to ensure maximum productivity and full visibility across the enterprise. Seamless integrations and custom application programming interfaces (APIs) are all but essential for today’s warehouses; they represent the link between all necessary operational components, including warehouse management software (WMS), carrier systems, and e-commerce platforms.
But while integrations between WMS, carriers, and e-commerce platforms drive efficiency, their APIs are a primary target for cyberattacks. And when it comes to data breaches in the supply chain, the stakes are high. Without the right security protocols in place, facilities risk operational disruptions, financial loss, and data theft—just to name a few.. These threats to cybersecurity in warehousing make robust security measures critical to continuing operations.
In this article, our Datex® team offers expert insights for securing your warehouse ecosystem, demonstrating the crucial role of a strong cybersecurity strategy in defending against threats and malicious actors targeting susceptible APIs.
Why Traditional Warehouse Cybersecurity Is No Longer Enough
Supply chain cyberattacks surged by a startling 431 percent between 2021-2023. Why the spike? Ever-more-advanced technology and dynamic customer demands have ignited a shift from isolated warehouse systems to a hyperconnected network of cloud-based WMS, internet of things (IoT) devices, and third-party platforms, such as a transportation management system (TMS). This expanded digital footprint creates new entry points and vulnerabilities that traditional, perimeter-based security (such as firewalls alone) can’t fully protect.
Traditional approaches to cybersecurity in warehousing use perimeter-focused models based on static rules and lack the agility to adapt to today’s advanced cyberthreats. As a result, modern warehouses must employ more sophisticated cybersecurity measures that are capable of protecting sensitive data while maintaining operational efficiency, data access, and business continuity.
Today, supply chain management goes beyond just keeping a close eye on your products—it also means keeping critical systems and connected devices safe from unauthorized access and potential threats.
Top 3 API Vulnerabilities in Warehouse Data Flows
To maintain a single source of truth, you need all of your warehouse systems to connect seamlessly. But if not properly secured, these vital connections can introduce hazards to your ecosystem. In terms of logistics, some of the specific risks associated with API integrations are:
1. Insecure Endpoints & Lack of Authentication
Weak or nonexistent authentication on APIs connecting a WMS to a carrier’s system can allow unauthorized access to shipping data, customer information, and inventory levels. Lack of authentication increases the risk of man-in-the-middle attacks, when an attacker intercepts and disrupts communication between a customer and an unsecured API endpoint, leading to compromised data. Establishing and following authentication protocols (e.g., multifactor authentication for devices) can minimize these types of threats.
2. Data Exposure & Insufficient Encryption
Similarly, the sophistication of today’s cyberattacks makes transmitting sensitive data in plain text incredibly risky. This data can include pricing, order details, personally identifiable information, or other proprietary information related to clients and vendors. Safeguarding this vulnerability requires end-to-end encryption for data in transit between the e-commerce platform and the WMS. Data encryption for WMS APIs uses approved protocols and advanced algorithms to secure data both while in transit and at rest.
3. Poor API Key Management & Rate Limiting
Compromised API keys occur when cybercriminals manage to acquire the authorization credentials necessary to access APIs, effectively granting them full access to integrated systems. Additionally, a lack of rate limiting can lead to denial-of-service (DoS) attacks, causing operational disruptions and downtime. Enforcing adequate security practices, such as API key management and rate limiting, helps to protect APIs from overuse.
A Modern Framework for Warehouse Integration Security
Combating and mitigating the above risks requires a proactive cybersecurity strategy—one that’s capable of accounting for every component of your operations. Here are a few actionable best practices to get you started:
Implement a Zero Trust Architecture
No user or system should be trusted by default. This is the concept of zero trust warehousing, the prioritization of strict access control for every API call using warehouse network segmentation or microsegmentation. This approach, often summarized by the phrase “never trust; always verify,” applies stringent, granular access control to both physical hardware and virtual software, assuming no implicit trust in any user or device. This model aims to limit attack surface by sealing entry points from lateral movement within a network.
Adopt Robust WMS Security Best Practices
Robust security measures include implementing key practices, such as conducting regular security audits, training employees on phishing attacks, and creating a formal incident response plan. Meeting and maintaining compliance standards, such as ISO 27001, can assist in these efforts, but this should be considered the bare minimum when establishing best practices across the organization.
Prioritize Secure API Design & Management
APIs must be adequately secured at the time of implementation. Warehouses can build a comprehensive API cybersecurity strategy by:
- Using API gateways or an intermediary server between client applications and your services
- Implementing OAuth 2.0 for authorization
- Conducting regular vulnerability scanning
- Ensuring the secure configuration of all TMS and WMS integration security points
Partnering for a Secure, Integrated Future
By establishing a security-first approach to warehouse integration, you can help ensure that all company data is protected from cyberthreats. As your enterprise scales, your ecosystem is likely to grow more and more complex, which means employing increasingly robust security measures to safeguard vulnerable integrations.
As an expert partner with a capable WMS designed for complex integrations, Datex® helps warehouses maintain a sustainable cybersecurity strategy—one that can support and secure APIs for every part of your network. Ready to safeguard your warehouse data flows and enhance operational efficiency? Get a preview of Datex Footprint® WMS.
Cybersecurity in Warehousing FAQ
What are the biggest cybersecurity threats in a modern warehouse?
The biggest cybersecurity threats in modern warehouses include ransomware attacks that halt operations, data breaches through insecure APIs connecting WMS and partner systems, phishing scams targeting employees to gain network access, and threats to IoT devices and robotics (OT security) that can cause physical disruption.
How does API security impact warehouse operations?
Poor API security can directly impact warehouse operations by enabling unauthorized access to sensitive data, leading to theft of inventory or customer information. It can also cause significant downtime through DoS attacks or ransomware, bringing picking, packing, and shipping processes to a complete standstill and disrupting the entire supply chain.
What are WMS security best practices?
Key WMS security best practices include:
- Implementing strong access controls with multifactor authentication
- Ensuring all data transmitted via APIs is encrypted
- Conducting regular security audits and vulnerability scans
- Providing ongoing cybersecurity training for all employees
- Having a comprehensive incident response plan to manage and mitigate any security breaches quickly