A KPMG U.S. Supply Chain Survey of 462 executives shows 73% plan to transform their operating model by 2029. Managing and mitigating risks is the top transformation objective (51%) and investment priority (39%). Supply chain spending rose to 11–15% of revenue (from 5–10% in 2024). A 77% talent shortage impedes visibility (38%) and demand planning (36%), prompting 50% to invest in automation and AI. Key implementation strategies include ERP upgrades (30%), employee training (28%), and data management enhancements (28%).
According to www.dcvelocity.com, a KPMG U.S. Supply Chain Survey of 462 senior executives reveals accelerating strategic shifts in response to persistent global disruptions and operational constraints.
Risk Management Now Top Transformation Priority
Supply chain leaders are elevating risk management and resilience beyond baseline compliance into the core of corporate strategy. The survey identifies “managing and mitigating risks” as the most important transformation objective, cited by 51% of respondents. It is also the top area for near-term investment, selected by 39% of executives. This prioritization aligns with measurable budget reallocation: most companies now spend 11–15% of their revenue on supply chain functions—up from 5–10% in 2024.
Widespread Operating Model Overhaul Underway
A majority of supply chain leaders are actively restructuring how they operate. 73% of surveyed executives report plans to transform their operating model within the next one to three years—i.e., by 2029. This effort is driven not by theoretical concerns but by tangible pressures: 77% confirm a significant talent shortage in procurement and supply chain functions. That deficit directly impairs performance across critical domains—38% cite supply chain visibility as compromised, and 36% identify demand planning as weakened.
Cost Leakage and Automation Investment
Logistics and transportation costs represent the greatest source of value leakage, flagged by 38% of respondents. To counteract this—and address the talent gap—50% of organizations plan targeted investments in automation, digitalization, and AI. However, implementation faces consistent roadblocks. To overcome them, companies are pursuing three primary strategies: upgrading or replacing Enterprise Resource Planning (ERP) systems for better integration (30%), investing in employee training and development (28%), and enhancing data management capabilities (28%).
Leadership Perspective: Strength, Smarts, Safety
Chris McCarney, Principal, Supply Chain and Operations at KPMG, emphasized the paradigm shift in strategic framing:
“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?’ Today’s environment requires the right balance across all three to ensure a high-performing supply chain.” — Chris McCarney, Principal, Supply Chain and Operations at KPMG
Industry Context and Practical Implications
This KPMG finding reflects broader sectoral trends. In early April 2026, Honeywell sold its Intelligrated division—a major material handling automation provider—to private equity, signaling continued capital flow into supply chain technology infrastructure. Concurrently, Accenture launched a humanoid robot warehouse pilot in Germany, and Amazon formally entered the third-party logistics market—both moves reinforcing the industry-wide acceleration toward automation and service diversification. For supply chain professionals, these developments mean that ERP modernization and data literacy are no longer optional competencies; 30% and 28% adoption rates respectively indicate these are now mainstream operational requirements—not pilot initiatives. Moreover, the 77% talent shortage figure underscores that workforce development must be embedded in every digital investment—not treated as a parallel HR program.
Source: DC Velocity
Compiled from international media by the SCI.AI editorial team.
