Supply chain leaders (93%) are at least somewhat confident in their supply chain’s resilience against future disruptions, according to a new survey, Future-Ready Supply Chain Report by R.R. Donnelley & Sons Company. And the majority (66%) are feeling very confident.
To ensure future resiliency, the report discovered that 97% of supply chain leaders plan to re-engineer their supply chains within the next two years, with 30% planning a “total and complete re-engineering.”
The report highlights four key areas where organizations are focusing their efforts: risk management, technology adoption and innovation, supply chain re-engineering, and outsourcing partnerships.
Risk Management
While a talent shortage and domestic supply chain disruptions are prominent concerns, the report found that inflation and price fluctuations stand out as what managers consider their biggest challenges for the near future.
Supply chain leaders are responding to risk by implementing more conventional diversification strategies, including:
- Developing new relationships with alternative suppliers (69%)
- Increasing sourcing from domestic suppliers (67%)
- Dual sourcing with suppliers who are geographically dispersed (52%)
To proactively manage risks, nearly half (48%) of respondents report that they are contnually updating their formal evaluation of supply chain risk.
Technology Adoption
Artificial Intelligence (AI) is gaining traction, but leaders are also investing more in other technologies, including real-time visibility, scanning codes, the Internet of Things, and predictive analytics.
To improve the responsiveness of their fulfillment operations, the majority of respondents (60%) plan to implement advanced order management systems as their top strategy over the next two years.
For 2025, 57% of respondents also reported considering the use of AI for demand forecasting to enhance kitting.
When leveraging AI, decision-makers reported using the technology in their supply chain activities for purposes including:
- Supply forecasting (59% of respondents using AI)
- Visibility and tracking (56%)
- Optimizing operations (56%)
Sustainability continues as respondents listed sustainability as an activity their organization is pursuing in the future, the top three focus areas included logistics (50%), sourcing of components (41%) and/or raw materials, and supplier relationships (41%).
Supply Chain Re-Engineering
Amidst a variety of challenges including rising costs and escalating customer demand the majority of leaders are looking to overhaul their supply chain. The data showed top reasons for re-engineering included customer demand for a wider range of products (43% of those re-engineering), rising transportation costs (42%), and enhanced supply chain visibility and control (42%).
Supply chain leaders also shared that their top obstacles to supply chain re-engineering include high upfront costs, potential disruption to their current operations, and integration challenges with existing systems.
Outsourcing Partnership
The report found that outsourcing is becoming a strategic tool for organizations seeking to increase speed, scale, and better quality. Over the next two years, 63% of respondents expect their organization to outsource more of its production processes. The report highlights that speed is the primary reason top-performing companies outsource, though concerns over rising material costs and quality control remain prominent.
