Risk management and resilience have long been core supply chain priorities, but a KPMG study shows that leaders are now elevating them with new intensity.In the survey, executives cited “managing and mitigating risks” as the most important transformation objective (51%) and top area for investment (39%) in the near future. 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.And the trend is widespread, as nearly three-quarters of supply chain executives (73%) are planning to transform their operating model within the next one to three years. According to researchers, the urgency comes from a fast-changing environment and persistent global disruptions.The KPMG U.S. Supply Chain Survey, which polled 462 senior executives, also found that 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, digitalization, and AI. Slowing that process, many report persistent barriers to implementation. So they’re following strategies to overcome those hurdles, including: upgrading or replacing Enterprise Resource Planning systems for better integration (30%), investing in employee training and development (28%), and enhancing data management capabilities (28%).“Today, building a resilient, agile, and digitally-enabled supply chain is a business imperative…
