IN Brief:
- KPMG found that 73% of executives plan to transform their supply chain operating model within one to three years.
- Risk management and resilience ranked as the leading transformation objective and investment priority.
- Talent shortages, data security, technology compatibility, and organisational resistance remain major barriers.
KPMG has found that risk management and resilience have become the leading priorities for US supply chain transformation, as companies prepare to reshape operating models over the next one to three years.
The KPMG US Supply Chain Survey polled 462 senior executives across industrial manufacturing, consumer and retail, life sciences, and healthcare. Nearly three-quarters of respondents, 73%, said they are planning to transform their supply chain operating model within one to three years.
Managing and mitigating risk was cited as the most important transformation objective by 51% of executives and the top area for near-term investment by 39%. KPMG also found that most companies now spend between 11% and 15% of revenue on supply chain, compared with 5% to 10% in 2024.
The findings show how resilience has moved from contingency planning into core operating strategy. Supply chains have faced repeated pressure from trade volatility, geopolitical disruption, inflation, labour constraints, regulatory change, and shifting customer demand. Companies are now looking for operating models that can absorb shocks without relying on emergency response each time conditions change.
Talent remains a major constraint. KPMG found that 77% of leaders see a significant talent shortage in procurement and supply chain functions. Logistics and transportation costs were identified as the largest source of value leakage, cited by 38% of respondents.
Digital investment is rising alongside those concerns. Half of the organisations surveyed plan to invest in automation and AI. That investment is likely to affect planning, procurement, warehouse execution, transport management, supplier risk, inventory optimisation, and analytics.
Implementation barriers remain substantial. Executives identified technology compatibility, data security, and organisational resistance as persistent obstacles. KPMG said companies are responding by upgrading or replacing enterprise resource planning systems, investing in training, and improving data management capabilities.
The emphasis on data foundations is important. AI and automation depend on accurate, accessible, and governed data. Many companies still operate with fragmented systems across procurement, transport, warehousing, planning, finance, and supplier management.
Logistics cost leakage shows how planning weaknesses become visible in execution. A poor forecast can create excess inventory, premium freight, warehouse congestion, or missed delivery windows. Supplier delays can increase transport cost and reduce customer service. Talent shortages can weaken demand planning, transport coordination, and exception management at the same time.
Supply chain transformation is now being shaped by risk, productivity, and decision speed. Efficiency remains important, but the larger priority is building networks that can keep moving when disruption affects suppliers, ports, transport capacity, labour, or technology.
