The majority of supply chain leaders (86%) say trade policy changes or tariffs have already impacted their operations, forcing companies into difficult trade-offs across pricing, sourcing, and inventory management as inflation and geopolitical disruption persist into 2026, according to third annual RELEX "State of the Supply Chain 2026: Volatility, Trade-Offs & the Rise of AI" report.
More than half (51%) have raised consumer prices to offset higher costs, while 18% report restructuring supply chains or delaying investments.
Pricing adjustments appear to be accelerating: 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 one-quarter (24%) have shifted sourcing away from countries directly affected by trade policy changes.
“Whether tariffs are imposed, revised, or struck down, the reality for supply chain leaders is the same: trade policy shifts are happening quickly and often with limited lead time,” says Laurence Brenig-Jones, VP, product strategy, RELEX Solutions. “Our data shows companies are already adjusting pricing, sourcing, and inventory strategies in response to that uncertainty.”
Key takeaways:
· Inflation remains the dominant operational strain. Nearly 34% of leaders cite 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%). The data suggests cost volatility is now embedded in long-term planning.
· 28% are increasing inventory or building strategic stockpiles to protect availability, while 27% are returning to leaner models to control costs. The divide suggests firms are optimizing for different failure modes: out-of-stocks on one side and cash flow and markdown risk on the other. In our 2025 survey, manufacturing leaders were also divided: 30% kept inventories lean, while 25% built safety stock amid inflation and recession fears.
· Among retailers, 49% cite margin pressure as their biggest operational challenge and 47% are increasing promotions to address price-sensitive consumers. Over a quarter (28%) rely on promotions as their primary lever to protect performance, while 25% are expanding private labels or value-focused product lines to meet shifting demand.
· Nearly half (45%) report passing rising input costs to customers, 43% are adjusting pack sizes or SKUs in response to price sensitivity, and 26% are diversifying suppliers to manage geopolitical and cost volatility.
· Nearly six in 10 (59%) are strengthening logistics partnerships, 37% are expanding supplier bases, and 28% are increasing 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% describe themselves as optimistic or cautiously optimistic about the next 12–18 months, though only 20% say they are outright optimistic, which suggests confidence in companies’ ability to adjust pricing, sourcing, inventory and supplier strategies in response to continued volatility.
· Margin pressure, longer and less predictable lead times, and heightened promotional intensity are likely to remain through 2026.
- Some companies are building stock and raising prices, while others are prioritizing leaner inventories and promotion-led volume strategies.
- 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.
