Blue Yonder, a major supply chain technology provider serving over 3,000 companies globally, is battling to recover from a ransomware attack that began Thursday, leaving many major retailers scrambling to maintain operations.
The Arizona-based company, acquired by Panasonic in 2021 for $8.5 billion, provides AI-driven supply chain platforms and tools for inventory management, fulfillment, and delivery services. The attack has disrupted Blue Yonder's managed services hosted environment, affecting numerous high-profile clients including Starbucks faces scheduling challenges, Morrisons, and Sainsbury's.
Starbucks reported challenges with employee payroll and scheduling across thousands of North American locations. Several UK-based grocery chains have been forced to implement backup processes to maintain operations.
The company has engaged external cybersecurity firms to investigate the incident and work on recovery efforts. In its latest update, Blue Yonder stated their team is "working around the clock" but could not provide a timeline for service restoration.
This attack marks the second major cyber incident affecting retailers ahead of the Thanksgiving shopping season. Dutch company Ahold Delhaize, parent company of Stop & Shop, Hannaford, Food Lion, and Giant Food, continues dealing with impacts from a separate cyberattack.
Blue Yonder has not disclosed whether the attackers have identified themselves or if ransom demands have been made. The company maintains that no suspicious activity has been detected in its public cloud environment.
The incident highlights growing cybersecurity challenges facing businesses. A recent Hiscox report revealed that 74% of Irish businesses experienced increased cyberattacks in 2023 alone, demonstrating the rising threat landscape across industries.