Key trends impacting supply chains in 2026

For supply chain leaders, 2026 is unlikely to offer respite from the continual challenges of recent years. We expect six trends to have the potential to dominate their experience, with some reshaping overarching strategies, others enhancing the use of technology and data, and a few addressing the relentless external pressures that impact all supply chains.

As global supply chains shift from resilience to value creation, Ireland is uniquely positioned to benefit. With our strong multinational ecosystem and growing digital capabilities, the trends highlighted in KPMG’s 2026 Supply Chain Insights show how AI, real‑time visibility and smarter operating models will shape competitiveness for Irish organisations in the year ahead.

Sustainability expectations, evolving regulations, and workforce transformation will redefine how businesses plan, source and deliver, creating opportunities for those ready to adapt.

We expect six trends to have the potential to dominate their experience, with some reshaping overarching strategies, others enhancing the use of technology and data, and a few addressing the relentless external pressures that impact all supply chains.

Here we take a closer look at what these trends are, and why supply chain leaders should embrace them to deliver a high-functioning, resilient, value-driven supply chain.

David O'Kelly

Partner, Corporate Finance, Head of Consumer, Retail & Manufacturing

KPMG in Ireland

mail
call

1. Total Value as a strategic imperative

During 2026, we expect that leading supply chain operations will move beyond a focus on resilience toward a focus on delivering ‘Total Value’. From a supply chain management perspective, Total Value shifts the organisational lens from merely navigating supply chain disruption to actively pursuing enterprise-wide value maximisation.

This strategic approach unites Total Experience and Total Performance to integrate critical business dimensions.

The strategic unification of customer, employee, partner, and digital interactions into one intelligent ecosystem. It’s not just about delighting customers; it’s about empowering every touchpoint to deliver value. Total Experience is built on five core principles:

Customer centricity, with the supply chain being reoriented to instantly respond to actual customer needs, values and goals
Data driven insights, with new metrics leveraged to predict supply and demand shifts and personalise customer experiences
Seamless integration, where leaders from Commercial, Finance, Operations, and Procurement work with shared KPIs and goals to achieve the highest customer experience and optimal operational and financial outcomes
Technology enablement, with teams leveraging automation and Artificial Intelligence (AI)-driven insights, and making the most of real-time visibility to exceed customer expectations – without negatively impacting operational performance or risk
Employee empowerment, with tools and platforms that support rapid decision making, and a culture of ownership and innovation, and allowing employees more time for value-adding activities and customer engagement.

Total Performance is about doing the right things, faster, smarter, more sustainably, aligned to the overarching objective of high-performing operational outcomes. Total Performance is the delivery of measurable outcomes across financial, operational, people, innovation and sustainability dimensions:

Financial performance, maximising profitability, optimising working capital and driving cost efficiencies whilst ensuring adequate risk mitigation
Operational excellence as the engine of Total Performance, focused on enhancing functional maturity through eliminating inefficiencies, standardising workflows and improving agility to accelerate decision-making and execution of operational outcomes
People performance, with people being not only a key element of achieving Total Experience, but also the driving force behind supply chain success
Innovation, not only understood as the adoption of new enabling technologies, but rather as a way of rethinking how value is delivered across all operations activities, for example through new fulfilment mindsets or the co-creation of new value drivers with trading partners and customers
Sustainability as a core performance driver by impacting energy efficiency, sourcing decisions, supplier selection, and regulatory compliance

Total Value is achieved by strategically connecting the disparate parts of the business, identifying synergistic improvement opportunities, and leveraging technology and data to elevate both customer experience and operational performance across the entire enterprise.

The ultimate outcome is not just stability in the face of adversity, but sustained growth, enhanced efficiency, and a distinct, enduring competitive advantage.

2. Supply chain as part of Global Business Services

The supply chain manages many transactions and reporting requirements, therefore is becoming the next function to be migrated within the Global Business Services (GBS) organisation. This follows the centralisation of other functions such as finance, HR, and IT. In the short term, this trend is playing out for major global operators, but it is likely to set the scene for others to follow.

Supply chains have many repeatable, transactional, and scalable activities, making the function ripe to bring under one roof. Centralised supply chains can help organisations to leverage cost efficiencies, scale, and to engage analytics, automation, and AI. Centralisation can also help to elevate global end-to-end supply chain visibility, enable faster and more informed decision making around warehousing and logistics requirements, and provide greater risk governance and resilience coverage.

A more mature supply chain function under GBS may also feature capabilities such as fully standardised supply and demand planning, dedicated and integrated logistics control towers, integrated primary and secondary logistics systems, e-commerce, and self-service capabilities.

3. AI Scaling beyond proof of value

Throughout 2026, we expect to see many of the recent promises of AI in the supply chain become realities. Supply chains are likely to move from engaging standpoint AI solutions to prove their value, through to having AI embedded in platforms such as Source-to-Pay, and in supply chain planning and risk management tools driving efficiency and governance.

The most mature supply chains should achieve ‘Connected Intelligence’, in which enterprise-wide AI links the supply chain with procurement, finance, ESG, HR, and CRM systems, forming an intelligent, autonomous ecosystem. Many supply chain leaders are increasingly ready for this step – with past investment in the right technology platforms, connected data, and leadership commitment in place.

4. Agentic procurement

Building on the advancing role of AI in the supply chain, procurement (either situated within or aligned to supply chain functions) will be increasingly powered by Agentic AI.

In 2026, three forces will converge to make this likely. The first is capability maturity, with agents not just producing insights, but actively performing tasks such as supplier evaluation, risk monitoring, and contract review. The second force is strategic pressure, with leaders focusing on embedding Agentic AI across the procurement lifecycle. The third force is operating model evolution, with digital procurement platforms evolving toward extreme automation, deep integration, and Agentic AI.

Agents are now operating across existing Source-to-Pay, Contract Lifecycle Management, and Third-Party Risk systems. The Agents are autonomously issuing and managing RFPs, evaluating supplier responses, triggering onboarding processes, monitoring supplier risk, escalating or remediating issues in real time, and identifying upcoming contract renewals. The agents can also generate negotiation scripts and execute pre-approved contract playbooks.

5. New metrics that matter

Supply chains are now critical strategic assets that underpin an organisation's competitiveness, resilience, and commitment to sustainability. The traditional metrics that once guided boardroom discussions, such as cost per unit, customer DIFOT (delivery in full on time), delivery lead times, and inventory turnover, are now being expanded to reflect today’s complexities and stakeholder expectations.

In the year ahead, supply chain leaders are expected to increasingly collect and engage with a number of new metrics across eight key areas. Some examples of these new supply chain measurement areas include:

Visibility and real-time data

Data from IoT sensors, ERP systems, and logistics partners, including metrics related to the time it takes to detect and respond to disruptions.
Resilience and Total Value

With a focus on both internal resilience and customer satisfaction, metrics include recovery time after disruptions, supplier diversification and sourcing agility, revenue growth from improved experiences, cost savings, and employee engagement.
AI and automation decision accuracy

Metrics around forecast accuracy, business value realisation, and automation rate of transactional and planning processes.
Digital twin utilisation

Metrics on scenario testing and simulation accuracy (how predictions align with real-world outcomes).
Human-machine collaboration

Tracking how effectively people and technology augment each other, such as human override frequency, trust and adoption rate of AI systems, and productivity ratio between human-led and machine-led tasks.
Cybersecurity and risk management

Metrics include incident frequency and severity, response and recovery times, supplier cybersecurity, compliance rate, and backup system maturity.
ESG

As more ESG related regulation aligns to the supply chain, metrics include carbon footprint (Scope 3), sustainable procurement rate, and supplier ESG compliance rate.
Multimodal supply chain orchestration

As multiple transport modes are engaged, metrics include on-time transfer rate, transit time variability, and modal agility score (the ability to switch modes based on disruption or cost).

These metrics reflect the inherent complexity of modern supply chains, and the pivotal strategic role supply chains play in business success.

6. More tariffs and trade disruption

As ongoing tariffs, non-tariff protectionism and subsequent trade disruption is likely to keep recurring in 2026, new duties might change landed costs overnight, causing teams to reconsider the sourcing of materials, shipping routes, and prices to customers.

To be prepared, supply chain leaders should be focusing on agility, such as expanding their supplier networks, relocating production closer to vital markets, or holding extra stock in selected key regions.

A digital approach is also key to managing tariff volatility. Tariff-management platforms and AI-powered scenario simulators can help supply chain leaders simulate alternative flows and test ‘what-ifs’ before policies are implemented. Meanwhile, procurement, finance, and tax departments all require access to integrated trade data to identify what the actual landed costs of products really are. AI and automation can amplify this visibility.

Rising above the chaos

After many years of chaos from the pandemic, global tensions, fluctuating tariffs, the disruption of AI, and more, it is understandable that supply chain leaders could be seeking a stable path forward.

The reality is that challenges will be constant, so it is advisable to take the necessary time to focus on strategy, technology and new data insights, to keep elevating the positive impact of the supply chain on business performance.

Connect with our local team of experts to see how we can support your supply chain journey.