86% of supply chain leaders report impact from policy shifts, tariffs
Global supply chains face growing pressure as tariffs and trade policy changes affect businesses, says RELEX report
Global supply chains are facing mounting pressure as tariffs, inflation, and geopolitical disruptions continue to impact businesses. Around 86% of supply chain leaders believe that trade policy changes or tariffs have affected their operations. More than half of the surveyed leaders said their organisations have raised consumer prices to offset higher operating costs. At the same time, 18% of companies reported restructuring their supply chains or delaying certain investments, while 24% have shifted sourcing away from countries directly affected by trade policy changes.
New findings from RELEX Solutions, a global software-as-a-service (SaaS) provider specializing in unified supply chain and retail planning revealed from the third annual State of the Supply Chain 2026: Volatility, Trade-Offs & the Rise of AI report, based on a January 2026 survey of 514 retail, manufacturing, wholesale, and supply chain leaders conducted by Researchscape. According to the Report, 86% of supply chain leaders say trade policy changes or tariffs have already affected their operations. The report highlights how organisations are responding by adjusting pricing, sourcing strategies, and inventory management as they attempt to navigate rising costs and economic uncertainty. It has been observed that pricing adjustments appear to be accelerating, with significantly more companies raising prices in 2026 compared to previous years as economic pressures persist.
Although inflation remains the biggest operational challenge across supply chains. Around 34% of leaders surveyed identified rising input costs and inflation as the single greatest pressure on their operations. Tariffs and geopolitical tensions follow at 17%, while labour shortages account for 15% of the challenges. These findings suggest that cost volatility has become a long-term concern, forcing companies to rethink how they plan their production, sourcing, and distribution strategies in an unpredictable global environment.
The report also highlights a divide in how businesses are managing inventory risk. About 28% of companies are increasing inventory levels or building strategic stockpiles to ensure product availability in case of disruptions. In contrast, 27% are moving toward leaner inventory models to reduce operational costs and protect cash flow. This split indicates that businesses are prioritising different risks, with some focusing on avoiding product shortages while others concentrate on controlling financial exposure and minimising excess stock.
Retailers and manufacturers are responding differently to these pressures. Among retailers, nearly 49% say margin pressure is their biggest operational challenge, and 47% are increasing promotions to attract price-sensitive consumers. More than a quarter rely heavily on promotional campaigns to maintain performance, while others are expanding private label or value-focused product lines to meet changing customer demand. Manufacturers, meanwhile, are focusing on structural adjustments. About 45% have passed rising input costs on to customers, 43% have modified pack sizes or product offerings, and 26% are diversifying their supplier networks to reduce dependence on specific regions.
As uncertainty continues, companies are placing greater emphasis on building more resilient supply chains. Nearly six in ten organisations are strengthening logistics partnerships, while 37% are expanding their supplier base and 28% are increasing safety stock to manage disruptions. Half of the respondents expect global events and disruptions to remain the biggest challenge to supply chain performance over the next three years. Despite these concerns, 77% of leaders say they are optimistic or cautiously optimistic about the next 12 to 18 months, reflecting confidence in their ability to adapt strategies as conditions evolve.
Commenting on the findings, RELEX Solutions, VP of Product Strategy, Laurence Brenig-Jones, said that trade policy changes are occurring rapidly and often with limited warning, forcing companies to stay agile in their decision-making. He mentioned that organisations are already adjusting pricing, sourcing, and inventory strategies to respond to the uncertainty surrounding tariffs and broader economic shifts.
As supply chains continue to evolve amid global volatility, the report suggests that companies capable of balancing cost control, resilience, and technological innovation will be better positioned to navigate the challenges ahead.
