The 2020s have been tough on supply chain operations. Pandemic-driven disruptions receded early in the decade, only to be followed by climbing prices and recurring storms, strikes, shortages, and other stoppages. In response, businesses have restructured and digitized their supply chains for greater resilience, but they still face more of the same challenges—plus additional pressure on costs and sourcing caused by tariffs and shifting trade policies.
Key Takeaways
- The supply chain challenges of the 2020s are here to stay for the foreseeable future.
- Digital mitigation strategies could reach a tipping point.
- AI is a top trend in companies’ efforts to lessen disruption and uncertainty.
The Challenges Driving 2026’s Supply Chain Trends
With renewed conflicts in the Middle East, daily traffic through the Strait of Hormuz had fallen by nearly 95% by August, forcing shippers to reroute cargo. Those alternative ports and corridors brought new risks of their own, as attacks off Yemen threatened merchant ships in the Red Sea and Suez Canal. Those conflicts also cut Persian Gulf oil exports and pushed energy prices sharply higher, raising fuel costs for carriers and driving up prices for oil- and gas-based inputs, such as plastics and fertilizer. Meanwhile, extreme weather adds another layer of uncertainty. Forecasters expect a strong El Niño, which could bring drought and storms that disrupt shipping routes and production in many parts of the world. Falling water levels led the Panama Canal Authority to place restrictions on the weight of loaded ships in its largest locks, which reduces how much cargo each vessel can carry.
14 Supply Chain Trends to Watch in 2026
The 2025 Supply Chain Stability Index describes “continued volatility across trade policy, labor markets, and global sourcing.” Its authors at the Association for Supply Chain Management (ASCM) and KPMG identified new US tariffs and retaliatory trade measures, rising cybersecurity risks, and workforce displacement as major sources of disruption.
ASCM expects that pressure to persist. In an interview with Supply Chain Management Review, the association’s CEO Abe Eshkenazi described tariffs as a means “to rebalance or to reshift the supply chain footprint,” adding, “We’re not going to undo it in quarters.” In response, many companies continue to regionalize their sourcing. Here are 14 supply chain trends companies should be aware of moving forward.
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Restructuring for Resilience
Experts see a long-term realignment of supply chains in progress, driven by rising geopolitical tensions, volatile prices, transportation bottlenecks, and other disruptions. Many companies have responded by adding alternative suppliers through a multishoring strategy—combining near-shoring and onshoring with continued sourcing from regions such as Asia (far-shoring) to increase operational resilience. Tariffs have accelerated this trend: 39% of companies affected are pursuing multiple sources for components and raw materials, with 33% exploring near-shoring, according to McKinsey.
Expanding supplier networks is a significant undertaking, not only initially, but over the long term, because it requires ongoing management of more vendors. In other words, vendor diversification adds supply chain complexity in return for greater resilience. The value of this trade-off remains to be seen, with some companies recently reconsolidating supplier relationships to cut costs and simplify operations. Others have looked to technology, such as supplier relationship management (SRM) systems, to tilt the balance in their favor, leaning more heavily into digitally transforming their supply chains for greater resilience.
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Rebalancing Inventories
Companies have been recalibrating their inventory management strategies since 2020, when many began stockpiling goods during the pandemic. After a hiatus, however, they reprised the “just-in-time” approach of lowering costs by holding less inventory. In 2026, many have chosen to carry a balance of just-in-time and safety stocks—in what some are calling “just-right” inventories—while keeping an eye on potential disruptions, economic fluctuations, and uncertain consumer spending trends.
“Companies can’t respond to instability simply with buffer inventory … which adds an extra burden of working capital on their backs,” according to an article in the Harvard Business Review. “When the competitive race is this intense, companies shouldn’t handicap themselves.”
Instead, digital tools can provide much more visibility into what’s happening in supply chains to track supplier risk, provide real-time updates on inventory location en route from its source, and confirm its status in the warehouse, reducing the likelihood of stockouts. Digitization can also facilitate even leaner inventory management models, such as dropshipping, where retailers themselves don’t hold the inventory but trigger a shipment from a third party to the customer once a product is purchased. In another supply chain trend, AI-driven forecasting and replenishment tools are also being adopted to optimize inventory management.
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Digitizing Operations
Increasingly, the ability to harness the power of supply chain data determines a company’s ability to operate efficiently and compete successfully. Supply chain digitization promises to deliver benefits, including improvements in the customer experience, speed to market, higher profit margins, and faster response to disruptions and market changes.
As companies digitize their operations, many are focusing on AI-driven demand forecasting, cloud-based supply chain management, flexible transportation management, customer-centric order management, real-time inventory management, and collaborative supply chain networks. In fact, 56% of organizations have deployed new technology in response to recent supply chain disruptions, and 82% of leaders express optimism about their 2026 supply chain performance, according to the “Supply Chain Outlook Report” from Prologis and The Harris Poll.
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Deploying Cloud-Based Solutions
The cloud is firmly established as the standard platform for most supply chain software, according to an annual survey by Material Handling Industry (MHI), a leading trade association. MHI projects that cloud computing and storage will reach a 91% adoption rate in the next few years.
Pervasive cloud computing has laid the foundation for several supply chain innovations. For instance, so-called mesh technology allows the capture and combination of data from multiple supply chain systems to create a “digital twin,” meaning a virtual replica that can be used to facilitate decision-making and intelligent orchestration of operations. In another example, inventory data can be combined with readings from transport vehicles to confirm delivery schedules and avoid stockouts.
At the staff level, the cloud lets supply chain managers access critical information wherever they happen to be—not inconsequential in what is often a 24/7 operation. Companies can also benefit from a growing range of cloud-based software-as-a-service (SaaS) offerings, such as packaged solutions that let users compare freight forwarders and manage storage.
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IoT and Advanced Analytics
Companies today can collect and combine massive amounts of supply and demand data from myriad sources, including Internet of Things (IoT) devices throughout the supply chain, historical purchasing records in their ERP systems, weather reports, market research, and customer feedback. In polling by the American Productivity & Quality Center, 46% of supply chain managers said advanced analytics will have a major impact on supply chains through 2029.
The collection of big data in the supply chain is accelerating with the rollout of high-speed, low-latency wireless technologies, such as 5G mobile networks, which can operate inside factories and warehouses and also provide nationwide coverage of vehicles in transit. These networks connect IoT sensors and other devices for applications, including instantaneous tracking of inventory levels to avoid stockouts, the rerouting of goods in transit along the fastest route, and cold chain monitoring to verify the safety of perishable goods. They also lay the foundation for automating many of these tasks, with minimal staff intervention.
What’s more, analyzing big data delivers a boost to companies’ demand forecasting for better supply chain planning. In a case study of an electric vehicle manufacturer published by MHI, demand forecasting provided a 20% improvement in accuracy to inform planning. With a better understanding of demand for different car configurations from running analytics on cars sold, locations, pricing, promotions, and other data points, the company improved planning to achieve benefits, including faster processing, inventory replenishment, and order fulfillment.
As seen below, AI has arrived on the scene to supercharge the predictive modeling of big data on customer preferences, market changes, and other supply chain drivers.
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Continued Integration of AI and Machine Learning
The rapid uptake of AI since generative AI exploded onto the market in the late 2022 underscores its current ranking by Prologis and the Harris Poll as the top investment priority in supply chain management. That said, market observers say that most businesses are still working out how to operationalize AI at scale—particularly as adoption shifts from generative tools toward agentic systems that plan, execute, and adjust multistep tasks with little or no human intervention. Only 25% have moved 40% or more of their AI pilots into production, according to Deloitte.
Yet the shift toward autonomous, agentic capabilities is already underway in specific corners of the supply chain. According to PwC, 83% of operations and supply chain leaders agree that AI agents and automation will accelerate the breakdown of traditional functional silos. Still, only 37% say they’re comfortable with AI agents executing complete processes without human oversight.
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Automating Operations and Procurement
Automation and robotics rank among companies’ top investment priorities for 2026, cited by 37% of executives, according to the “Supply Chain Outlook Report.” Supply chains have many moving parts, and companies are determined to automate as many of them as possible. Increasingly, that means moving beyond rule-based automation—systems that follow a fixed script—to AI agents, which can reason through multistep tasks and adapt as conditions change. Where staff intervention was once required for any exception to standard operating procedures—sourcing and ordering raw materials and components, transporting them, producing goods for sale, delivering them to customers, and handling returns—agentic systems can now resolve many of these exceptions on their own, reserving human judgment for the cases that genuinely need it.
The technologies used to automate supply chains have evolved and proliferated over time, from barcodes and robotic arms in the mid-20th century to today’s AI-powered inventory management and drone deliveries. Benefits include the reduction of human error while inputting data, an increase in response times, and the alleviation of staffing issues amid the current labor shortage.
Picture a supply chain in which orders are automatically generated as sensors report dwindling stocks in inventory. An AI agent evaluates quotes from qualified suppliers against historical pricing and supplier performance data, recommending—or in some cases directly placing—the best option for approval. Once goods arrive, robotic process automation (RPA) can match invoices against purchase orders and receipts, spotting discrepancies for review. Progress reports on raw materials in transit are available at the stroke of a key, along with recommendations about how to handle any transport issues or production rescheduling.
Applications like these illustrate automation in cloud-based, end-to-end supply chains. They show what’s possible when supply chain tools are integrated with a company’s ERP or other production systems—and leveled up with AI analysis and prediction software—to optimize operations and sharpen decision-making.
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Gaining Visibility, Traceability, and Transparency
A lack of supply hinders operations and compounds the pressures that companies face to provide transparency to regulators, environmentally conscious customers, and other stakeholders. They can only provide partial insights, especially regarding the outer layers of their supplier networks, including the tier 2 suppliers from whom their own suppliers source.
Public pressure to increase traceability and transparency continues to build. Companies are preparing for regulations, such as the European Union’s digital product passports, which require detailed sustainability and ethical-sourcing data and will roll out for different products between 2026 and 2029. Meanwhile, other disclosure mandates remain in flux. In the United States, for example, the SEC’s climate-related disclosure rule has been stayed since 2024 and was formally proposed for rescission in 2026.
AI-powered supply chain transparency can help trace raw materials to their sources, identifying any unusual patterns as it checks for sustainable and ethical production in far-flung locales. Blockchain, with its centralized digital ledgers, can also improve compliance, for example, by providing a transparent, immutable record of the provenance of raw materials to maintain integrity in sourcing.
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Improving Risk Management
Economic volatility (51%) and tariff increases or trade barriers (48%) top executives’ list of concerns for disrupting 2026 operations, followed by geopolitical instability and cybersecurity threats (38% each), according to the “Supply Chain Outlook Report.” In response, half of organizations have already installed risk monitoring systems to guard against future disruptions.
In terms of regulatory risk, for instance, businesses face fines, reputational damage, and other consequences if they fail to comply with rules, including the California Transparency in Supply Chains Act, which addresses forced labor; the US Food Safety Modernization Act, which aims to prevent foodborne illnesses; and the EU’s Deforestation Regulation, which prohibits the sale of commodities linked to deforestation.
Traceability and transparency measures, such as those described in the previous section, can help improve regulatory compliance and reduce other types of risk. Yet preemptive scenario planning is also needed to avoid making urgent decisions with limited information or options in the heat of a supply chain incident.
NetSuite dashboards allow supply chain managers to track shipments and weigh the risks of late deliveries and other issues. -
Stepping Up Sustainability With Circular Supply Chains
The supply chain is responsible for the vast majority of greenhouse gas emissions produced by consumer goods companies. Facts like these are driving companies to step up their environmental sustainability efforts and implement “circular economy” supply chains.
Most companies can’t directly measure their emissions, so they apply accounting rules and emission factors to their transactions data to assess and address any significant shortcomings under compliance deadlines that will take effect in the coming years. And regulators aren’t just targeting emissions. For example, a California law is gradually requiring single-use packaging to be recyclable or compostable, with 100% compliance expected by 2032.
Fixing the problems associated with emissions, material waste, and water consumption is often a matter of adopting circular economy supply chain strategies. These include designing products for longevity; implementing systems for collecting, refurbishing, and reselling used products; and reducing and recycling packaging and other waste materials.
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Retooling for Customer-Centric Supply Chains
With an uncertain outlook for consumer spending, companies are moving customer-centricity up the list of supply chain management priorities to compete effectively for their business. Customer-centric supply chains focus on delivering a high degree of customer satisfaction and retention as well as profitability. But it’s not just about promising same-day delivery or letting customers track their purchases while in transit. Consider the farm-to-table movement in dining, with many in the restaurant business revamping their sourcing of ingredients, while also demanding detailed information from their suppliers to share with diners about the environmental or organic qualities of their products. Transparency is also driving change in fashion industry supply chains, due to consumer concerns about forced labor, carbon emissions, and more.
Technologies, such as IoT sensors and SRM software, underpin the visibility and traceability required in these scenarios. Other digital attributes of a customer-centric supply chain include accurate demand forecasting and personalization. AI comes into play in examples such as the use of customer segmentation tools for better targeting and automated in-stock alerts that notify customers when an item is back in stock.
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Providing Workforce Training
Labor shortages persist, so companies are focusing more on training and keeping the employees they already have. In MHI’s 2025 Annual Industry Report, 38% of supply chain leaders said they were focused on reskilling and retaining workers—up from 25% in 2024. But workforce training itself is changing shape, with companies increasingly embedding it directly into the flow of work through conversational AI tools. Instead of stopping mid-task to track down an answer, workers can query an AI assistant connected to a company’s documentation and historical records. This can shorten the learning curve for new hires and help experienced workers handle unfamiliar exceptions without waiting on a supervisor or digging through manuals. As AI agents and RPA systems take on more routine work, workforce training increasingly centers on judgment and exception handling.
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Increased Attention Toward Supplier Management
In a 2026 KPMG survey of supply chain leaders at companies with at least $1 billion in annual revenue, 47% named strengthening supplier relationships as a top investment priority over the next one to three years. Weak supplier management can erode margins through inefficient sourcing and unfavorable contract terms, so procurement teams are tracking performance more closely with scorecards that measure on-time delivery, quality, cost, and responsiveness. Many teams are also revisiting contract terms as tariffs and swings in freight and energy costs change the economics of existing agreements. In addition, companies increasingly share demand forecasts and production plans with key suppliers so both sides can plan capacity and spot shortages earlier.
A more structured approach, known as supplier lifecycle management, covers every stage of the relationship, including sourcing, onboarding, performance and risk management, and offboarding. Tracking real-time data on orders, deliveries, and performance throughout those stages helps managers identify and prevent problems while keeping their supply chains resilient.
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Enhancements in Cybersecurity
Every new system and device connected to a supply chain creates another potential entry point for attackers, and a breach at a single vendor can spread to many of its customers at once. Third parties were involved in 48% of confirmed data breaches in Verizon’s “2026 Data Breach Investigations Report”, up from 30% in its 2025 report. Common weak spots include weak passwords, excessive access permissions, and missing or misconfigured multifactor authentication.
In response, more procurement and security teams are evaluating a vendor’s cybersecurity practices during onboarding. They’re also writing security requirements and breach-notification terms into supplier contracts and monitoring vendor risk continuously. Internally, businesses are separating the systems that run factory equipment and warehouse machinery from corporate IT networks, so a breach in one is less likely to halt the other.
Stay Ahead of Supply Chain Trends With NetSuite
As the digital transformation of supply chains continues, success will hinge on data visibility and actionable, AI-powered insights. NetSuite supply chain management (SCM) solutions provide a comprehensive view of supplier networks and product journeys, from their source through production and on to the customer, with predictive analytics to optimize production strategies. Under the umbrella of NetSuite ERP, NetSuite SCM lets companies integrate demand planning, procurement, inventory management, and more. The result: more efficient processes, automated tasks, and real-time visibility for better decision-making that elevates business performance.
The challenges outlined in this article will continue to test the mettle of supply chain managers, with ongoing volatility liable to produce concurrent disruptions at many levels of supply and demand. The ability to respond, recover, and remain resilient in this environment will be determined by data and the decisions drawn from it.
Supply Chain Trends FAQs
What are supply chain trends?
Trends that are redefining supply chains today include a restructuring of supplier relationships, diversification of production locations, digitization, and AI.
What are future trends in supply chain management?
AI agents have emerged as a defining technology trend moving forward. The technology is expected to accelerate supply chain managers’ efforts to achieve resilience in an uncertain environment, converging with trends such as cloud computing, the Internet of Things, and automation.
How is the supply chain doing in 2026?
Companies’ supply chains continue to be challenged by high costs and recurring disruptions, such as storms, strikes, shortages, trade friction, and other local and global issues. Supply chain professionals have been restructuring and digitizing their supply chains for greater resilience to contend with such events.
What are the five biggest supply chain challenges?
High costs, uncertain consumer demand, labor shortages, disrupted logistics, and extreme weather are five of the biggest supply chain challenges.
What emerging trends should businesses watch for in supply chain software?
Emerging trends businesses should watch for in supply chain software are all about AI—agents that coordinate and automate complex processes, AI-powered simulations, and tools that govern and audits AI-made decisions.
How is technology influencing supply chain visibility?
Technology is influencing supply chain visibility through Internet of Things sensors, cloud platforms, and AI. These tools give companies immediate insights into inventory, shipments, production status, and supplier operations. Product provenance tools also help trace goods back to their origins.
