Test
Supply Chain Security, Resilience & Industry Trends
Executive Summary
Supply chains have become a strategic risk area for utilities and critical infrastructure operators. Globally sourced hardware, software, and connected technologies introduce cybersecurity, operational, and geopolitical risks that can impact reliability and business operations.
At the same time, organizations are investing in advanced visibility and risk management capabilities using Artificial Intelligence (AI), Supply Chain Control Towers, Digital Twins, and supplier monitoring programs.
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Key Priorities
- Supply Chain Cybersecurity
- Supplier Risk Management
- End-to-End Visibility
- AI-Enabled Decision Support
- Supply Chain Resilience
- Secure Procurement
Why It Matters
Modern utility supply chains are increasingly:
- Globally distributed
- Digitally connected
- Dependent on third-party suppliers
- Exposed to cyber and geopolitical risks
Disruptions involving suppliers, software providers, logistics partners, or manufacturers can directly impact reliability, operations, and security.
For utilities, supply chain risk extends beyond procurement and can affect generation assets, transmission systems, distributed energy resources, battery storage systems, and critical operational technology environments.
Key Risks
Hardware & Communications Risks
Recent EPRI assessments highlight the importance of understanding communications pathways, undocumented functionality, third-party connectivity, and remote access capabilities within modern energy technologies.[2]
Examples include:
- Cellular communications
- Wi-Fi connectivity
- Bluetooth interfaces
- Vendor remote access capabilities
- Undocumented communications pathways
Utility Impact
- Reduced visibility into deployed technologies
- Expanded attack surface
- Challenges validating asset configurations
- Increased monitoring and incident response complexity
Software Supply Chain Risks
Modern energy infrastructure depends heavily on firmware, embedded software, cloud platforms, and third-party applications.
Examples include:
- Compromised software updates
- Vulnerable third-party components
- Unauthorized firmware modifications
- Software supply chain attacks
Utility Impact
A compromise affecting a software vendor, service provider, or technology integrator may impact multiple organizations simultaneously.
Geopolitical & Supplier Risks
Global supply chains remain vulnerable to:
- Trade restrictions
- Export controls
- Semiconductor shortages
- Critical mineral dependencies
- Transportation disruptions
Utility Impact
Supply disruptions can delay:
- Grid modernization initiatives
- Renewable energy projects
- Battery storage deployments
- Equipment replacement programs
- Capital improvement projects
Supply Chain Cybersecurity
Digital transformation has expanded the attack surface across the supply chain ecosystem.
Common Threats
- Third-party compromise
- Ransomware
- Software supply chain attacks
- Vendor remote access
- Connected IoT device vulnerabilities
- Operational Technology (OT) targeting
Industry Response
Leading organizations increasingly implement:
- Supplier cybersecurity assessments
- Multi-Factor Authentication (MFA)
- Network segmentation
- Continuous supplier monitoring
- Software Bills of Materials (SBOMs)
- Hardware Bills of Materials (HBOMs)
Artificial Intelligence in Supply Chains
AI is helping organizations move from reactive to predictive supply chain management.
Current Applications
- Demand forecasting
- Inventory optimization
- Supplier risk monitoring
- Predictive maintenance
- Transportation optimization
- Procurement analytics
Emerging Trend: Agentic AI
Organizations are evaluating AI systems capable of performing approved supply chain actions, including:
- Supplier identification
- Inventory rebalancing
- Logistics rerouting
- Risk investigation
- Scenario planning support
Supply Chain Visibility
Supply Chain Control Towers and Digital Twins are becoming key technologies for improving visibility and resilience.
Benefits
- Real-time visibility
- Supply disruption monitoring
- Supplier performance tracking
- Inventory awareness
- Scenario planning
- Risk analysis
Key Question
Can we identify and respond to supply chain disruptions before they impact operations?
Recommendations
Procurement
- Require SBOMs and HBOMs
- Assess supplier cybersecurity practices
- Review third-party connectivity
- Validate vendor security programs
Visibility
- Maintain supplier and asset inventories
- Identify critical dependencies
- Conduct wireless assessments
- Improve component traceability
Security
- Eliminate default credentials
- Restrict unnecessary remote access
- Implement MFA
- Segment operational networks
- Validate firmware integrity
Emerging Trends (2026-2027)
High Priority
- Agentic AI
- Supply Chain Control Towers
- Digital Twins
- Software Supply Chain Security
- Third-Party Risk Monitoring
Emerging Topics
- Autonomous logistics
- Robotics
- IoT asset tracking
- Digital Product Passports (DPPs)
Digital Product Passports (DPPs)
An emerging traceability capability driven primarily by international regulatory initiatives that may influence future supply chain transparency, procurement processes, and asset lifecycle management.
References
- ↑ https://www.epri.com/research/programs/112046/results/3002012753
- ↑ EPRI Security Design Architecture Review: Solar Inverters (3002029720).
Additional Resources
- EPRI Supply Chain Assessment Research Program (112046)
- EPRI Security Design Architecture Review: Solar Inverters (3002029720)
- EPRI Technical Assessment Methodology (3002012752)
- EPRI Defensible Network Architectures: Criteria for Secure OT Deployment in Power Systems (3002027430)
- EPRI Inverter-Based Resources and Grid Interconnection Research
- DOE Energy Sector Supply Chain Risk Management Resources
- NERC Supply Chain Risk Management Guidance
- CISA Supply Chain Risk Management Resources