Supply Chain Leaders Focus on Flexibility in 2026

With tariffs, climate events and regional conflict having kept supply chain leaders on constant alert in 2025, the next year is shaping up to be one where global instability will be accepted as the norm.

According to a survey of 250 manufacturing, retail and distribution leaders from consultancy West Monroe, the majority of respondents said that they have been reacting in real time to every economic policy change and tariff announcement in 2025, all while testing out a wide range of new AI tools.

"It wasn't strategy — it was survival," West Monroe said.

Nearly half of companies say that they responded to trade policy changes within one business week in 2025. However, West Monroe noted that the speed at which businesses responded often outpaced their ability to get accurate data, making it difficult to determine whether the right course of action was taken until long after the fact. Moving forward, manufacturers are hoping to shift from reacting fast, to reacting "fast and right," by focusing on better visibility into orders, costs, and supplier conditions to ensure that quick decisions won’t create new problems.

With that shift underway, a quarter of leaders flagged improved inventory management as their top supply chain priority in 2026, followed by enhanced customer fulfillment speed at 17%, and cost containment in the face of economic uncertainty at 15%. Businesses also highlighted a willingness to invest in artificial intelligence and automation, with 91% of middle-market firms now using generative AI in some form. Nearly two-thirds of respondents who have implemented AI said that they've already seen improved workforce efficiency from automating more tasks, while 56% sped up their cycle times, and 49% saved on costs.

Taken together, West Monroe's findings point to a manufacturing landscape that’s recalibrating its expectations in the new year.

"2025 was a year of constant reaction to tariffs and policy changes. In 2026, that reactivity is giving way to acceptance — and action — as manufacturers design supply networks built for permanent flexibility, proactive scenario planning and resilience at scale." - West Monroe

Source: Supply Chain Brain

Image Source: GEP