A provider of supply chain software used by a raft of major supermarkets and fmcg suppliers has been hacked – and it’s already having an impact on supply ahead of the weekend.
Blue Yonder, which specialises in demand forecasting and replenishment, automated ordering, as well as warehouse and transportation software, admitted to The Grocer that “ransomware has been detected, which is currently impacting our private cloud”.
“A Blue Yonder task force is investigating and addressing this issue alongside external cybersecurity firms. We have notified our private cloud customers and will continue to communicate as appropriate.”
Customers include Asda, Morrisons, Sainsbury’s, Tesco and Waitrose, as well as 30 consumer goods suppliers including AB InBev, Carlsberg, Diageo, Dole, Philip Morris and Kimberly-Clark.
Among those known to have been affected are Morrisons and Sainsbury’s.
Morrisons, which uses Blue Yonder’s demand forecasting and replenishment solution software primarily for fresh produce and chilled foods, has reverted to a manual back-up system.
“Blue Yonder, the supplier of our warehouse management systems, has suffered a significant outage,” said a Morrisons spokesman. “We have reverted to a back-up process but the outage has caused the smooth flow of goods to our stores to be impacted. Blue Yonder are working very hard to get their system back up and running again as soon as possible.”
Morrisons suppliers have reported being unable to deliver stock to depots as a result.
”All of our chilled orders have been cancelled for the day and one ambient one,” one supplier told The Grocer. “The team are expecting it to carry on over the weekend for chilled orders and apparently it’s Blue Yonder that’s the problem.”
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Morrisons is also warning its wholesale and convenience customers that availability on some lines may drop as low as 60%.
Sainsbury’s is also understood to be impacted. It’s just completed the rollout of a comprehensive new ‘Supply Chain Transformation Programme’ to implement its demand forecasting, store ordering and fulfillment solutions across its fresh, frozen and ambient categories. And in an interview with The Grocer earlier this year, CEO Simon Roberts said it was already proving a “game-changer”.
However, the supermarket said it had procedures in place to mitigate the impact.
“We’re in close contact with Blue Yonder and can reassure our customers we have contingencies in place,” said a Sainsbury’s spokeswoman.
Asda and Waitrose also use Blue Yonder’s software, though both said they were not currently affected. Tesco did not respond to our enquiries.
Blue Yonder said it was continuing to communicate to its customers.
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