Nearly three-quarters of supply chain executives (73%) are planning to transform their operating model within the next one to three years, according to the recent KPMG 2026 US Supply Chain Survey.

The driver behind this transformation is a need to further increase agility and flexibility due to a fast-changing environment and persistent global disruptions.

Executives cited "managing and mitigating risks" as the most important transformation objective (51%) and top area for investment (39%) in the near future.

“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?” said Chris McCarney, principal, Supply Chain and Operations at KPMG. “Today’s environment requires the right balance across all three to ensure a high-performing supply chain.”

This commitment is further evidenced by rising budgets, with most companies now spending 11-15% of their revenue on supply chain, up from 5-10% in 2024.

Talent Shortage

The KPMG U.S. Supply Chain Survey, which polled 462 senior executives, also highlights a critical talent shortage. An overwhelming 77% of leaders agree there is a significant talent shortage in their procurement and supply chain functions.

This deficit is seen as a major impediment to operational excellence, with logistics and transportation costs as the greatest source of value leakage (38%). The talent shortage impacts everything from supply chain visibility (38%) to demand planning (36%). To combat this, 50% of organizations plan to invest in automation and AI.

AI Investment

Even as organizations invest in digitalization and AI, many report persistent barriers to implementation, including technological compatibility, data security, and organizational resistance. However, leaders are proactively addressing these challenges.

According to the survey, their top strategies to overcome these hurdles include upgrading or replacing Enterprise Resource Planning systems for better integration (30%), investing in employee training and development (28%), and enhancing data management capabilities (28%).