No one wants to believe that a data breach is a possibility for their organization, but in today’s landscape such a breach is a very real threat. Even companies like Facebook, Amazon, and T-Mobile have dealt with hacking recently. No matter the size of your company, if you have customers that enter a payment method, then you have sensitive data to manage. While partnering with a 3PL can help you to streamline your supply chain, it does open up another channel for exposing data. Fortunately, a strong 3PL will have measures in place to protect you.
Here is what to look for in a 3PL that prioritizes cyber security measures.
- A lack of financial data being passed back and forth. Most data breaches involve third parties scraping financial data from payment systems, usually using malware. This means that personal and financial information (such as credit card numbers) are stolen in one large batch. With a 3PL, that danger is significantly less. That’s because of the process used by a 3PL: as an order is accepted through a shopping cart, the vendor receives all the information so the payment can be processed and the order begun. When this data flows to the 3PL for fulfillment, only the recipient’s personal information gets passed (things like name, address, etc.) Even if a hacker can intercept the data somehow, no financial information would get through and be stolen.
- Discretion about their security measures. Keep in mind that if the company shares too many details about how they protect privacy and security, that’s a risk in itself! You’re unlikely to get the exact details on each of the measures your 3PL partner will take, but they should be able to put your mind at ease. Specifically, you can ask these questions to get a better feel for their tactics:
- Does your company follow best practices for upgrading software, installing patches, and keeping anti-virus and anti-malware software up-to-date?
- How often do you audit security procedures? Do you include operational steps in that audit?
- How many people in your organization have access to the entire database of customer information?
- What training do those with visibility into sensitive data receive?
- Is the 3PL PCI compliant (if credit card payments are processed)?
- A plan for when things go wrong. If a data breach were to happen, what then? Your 3PL partner should be ready for the worst, particularly when it comes to data that your customers care about. The 3PL should have a written plan for not only how they protect data but what they are prepared to do if a breach does occur. Though the exact steps of the plan might be confidential, knowing that such a plan is in place is essential. Furthermore, they should be able to advise you on your role in the process.
Your 3PL should have a cyber security plan – but they can’t be the only one. Make sure your own team is up to speed on the latest security and privacy regulations, and has the tools available to support their efforts. In such a digital world, data sensitivity has never been more important. Look for a qualified 3PL that can partner with you in these efforts and keep your company and customer data safe.
