The majority of supply chain leaders (86%) reported that trade policy changes or tariffs have already impacted their operations, forcing companies into difficult trade-offs across pricing, sourcing and inventory management.
According to the preview of the third annual RELEX 2026 State of the Supply Chain report, 51% of companies raised consumer prices to offset higher costs, while 18% reported restructuring supply chains or delayed investments.
In 2025, 31% of retailers reported increasing product pricing in response to macroeconomic pressures, compared with just over half of supply chain leaders in 2026. Nearly a quarter (24%) shifted sourcing away from countries directly affected by trade policy changes.
Inflation remains the dominant operational strain as 34% of leaders cited inflation and rising input costs as the single greatest pressure on their supply chain, ahead of tariff and geopolitical pressures (17%) and labor shortages (15%).
Retail and Manufacturing Take Divergent Paths
The report added that 28% of companies increased inventory or built strategic stockpiles to protect availability, while 27% returned to leaner models to control costs. In the 2025 survey, 30% kept inventories lean and 25% built safety stock amid inflation and recession fears.
Among retailers, 49% cited margin pressure as their biggest operational challenge and 47% increased promotions to address price-sensitive consumers. Over a quarter (28%) relied on promotions as their primary lever to protect performance, while 25% expanded private labels or value-focused product lines to meet shifting demand.
Meanwhile, 45% of manufacturers reported passing rising input costs to customers, while 43% adjusted pack sizes or SKUs and 26% diversified suppliers.
Resilience Becomes a Strategic Priority
Nearly six in 10 (59%) strengthened logistics partnerships, 37% expanded supplier bases and 28% increased safety stock. Half of respondents expect global events and disruptions to remain the biggest challenge to supply chain performance over the next three years.
Even so, 77% described themselves as optimistic or cautiously optimistic about the next 12 to 18 months, though only 20% admitted outright optimism.
The findings highlighted three practical implications for organizations navigating continued volatility.
Persistent pressure points: Margin pressure, longer and less predictable lead times and heightened promotional intensity are likely to remain through 2026.
Diverging strategic responses: Some companies are building stock and raising prices, while others are prioritizing leaner inventories and promotion-led volume strategies.
Capabilities that matter: AI-led scenario planning, dynamic allocation and supplier optionality will play a critical role in determining how effectively companies respond to ongoing trade and cost uncertainty.
RELEX will make the full 2026 State of the Supply Chain report available in late March, which will provide deeper analysis into investment priorities, technology adoption and how organizations are preparing for the next three to five years.
The report is based on a January 2026 survey of 514 retail, manufacturing, wholesale and supply chain leaders conducted by Researchscape. Results were weighted proportionally to countries’ nominal gross domestic product.
