A major ransomware attack against US supply chain software firm Blue Yonder has hit warehouse and logistics operations for two UK supermarket chains.

US firm Blue Yonder provides software to over 3,000 customers, including Tesco, Morrisons, Sainsbury’s, ASDA, DHL, Proctor & Gamble, and Nestle.

The Arizona-based tech firm was hit by a ransomware attack last week and is still battling to resolve the issue.

Blue Yonder customer Morrisons has confirmed it has suffered significant disruption affecting supplies to its stores this week as a result of the cyber attack, which comes as the peak shopping season kicks in.

A Morrisons spokesperson said the firm had experienced a major outage and that it had reverted to a backup process.

The supermarket, which operates nearly 500 stores across the UK said it is working hard to minimise disruption to its fresh food and produce supply chains.

Sainsbury’s said it has also suffered disruption to its supply systems this week, due to the ransomware attack, which saw it activate contingency plans to manage the system-wide disruption. It has now confirmed that services have been restored at the company.

In the US Starbucks has also reported disruption resulting from the cyber hack.

Not all of Blue Yonder’s UK customers have been affected. Both Tesco and DHL Supply Chain said this week they have suffered no issues as a result of the incident.

Blue Yonder uses AI and machine learning algorithms to help retail customers model demand and respond to market changes by optimizing their inventory accordingly.

The attack targeted Blue Yonder’s managed services hosted environment, which could compromise inventory management and distribution systems used to maintain food supplies.

As yet Blue Yonder has not issued a deadline for system restoration.

 In a statement the company said: “Our investigation remains ongoing, but our priority is to ensure a safe and secure recovery.

“The company is collaborating with external cybersecurity experts to investigate and mitigate the attack’s impact.”

Yesterday (24 November) the company said in an update that its teams are “working around the clock” to respond to the incident, and were making progress.

 

 

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