A KPMG U.S. Supply Chain Survey of 462 executives finds 73% plan to transform their operating model within 1–3 years, citing risk management as the top transformation objective (51%) and investment priority (39%). Supply chain spend has risen to 11–15% of revenue (up from 5–10% in 2024). A talent shortage affects 77% of firms, undermining visibility (38%) and demand planning (36%), while logistics costs remain the largest value leak (38%). Half plan AI/digital investments, with ERP upgrades (30%), training (28%), and data management (28%) as top enablers.
According to www.thescxchange.com, a KPMG U.S. Supply Chain Survey of 462 senior executives reveals accelerating transformation in global supply chain operations — driven by intensifying risk exposure and persistent disruptions.
New Urgency for Resilience and Risk Management
Risk management and resilience have long been priorities, but the survey shows leaders are now elevating them with unprecedented intensity. 51% of executives cited “managing and mitigating risks” as their most important transformation objective, while 39% identified it as the top area for near-term investment. This strategic shift is reflected in rising spend: most companies now allocate 11–15% of revenue to supply chain functions — up from 5–10% in 2024.
Widespread Operating Model Transformation
The scale of change is broad-based: 73% of supply chain executives plan to transform their operating model within the next one to three years. According to researchers, this urgency stems from a fast-changing environment and persistent global disruptions — including geopolitical volatility, infrastructure strain, and climate-related events that continue to test end-to-end continuity.
Talent Shortage as Critical Constraint
A significant structural challenge underpins these efforts: 77% of leaders report a major talent shortage in procurement and supply chain functions. This deficit impedes operational excellence across multiple domains — notably supply chain visibility (38%) and demand planning (36%). Logistics and transportation costs are cited as the greatest source of value leakage, at 38%.
Digital Investment and Implementation Barriers
To counter talent gaps and complexity, 50% of organizations plan to invest in automation, digitalization, and AI. Yet implementation remains uneven. Key strategies to overcome barriers include:
- Upgrading or replacing ERP systems for better integration (30%)
- Investing in employee training and development (28%)
- Enhancing data management capabilities (28%)
“Today, building a resilient, agile, and digitally-enabled supply chain is a business imperative essential for survival and growth. Leaders are no longer only asking, ‘How can we make it cheaper?’ They’re asking, ‘How can we make it stronger, smarter, and safer?’” — Chris McCarney, Principal, Supply Chain and Operations at KPMG
Source: www.thescxchange.com
Compiled from international media by the SCI.AI editorial team.
