This article was published in India Retailing.com on June 22 2026. Please click here to read the article.

      For years, consumer businesses were built for efficiency and optimised for cost, scale, and speed. That model is now under strain. Today’s environment is defined less by isolated disruptions and more by a steady build-up of volatility across the value chain. Geopolitical shifts are reshaping trade flows, climate events are introducing supply uncertainty, and consumer demand is becoming more fragmented and less predictable.

      The KPMG 2025 Global Consumer & Retail CEO Outlook reflects this shift. While 65 per cent of CEOs remain confident about economic growth, confidence in company and industry growth has moderated, pointing to a more complex operating context.

      Supply chains are central to this transition, not because they are the only challenge, but because they sit at the intersection of many of these forces. More than half of CEOs now identify supply chain challenges as a key driver of near-term decisions, underscoring how sharply their importance has risen. This is not a temporary phase; it signals a structural shift in how consumer businesses will need to operate.

      Volatility across the value chain

      In India, this complexity plays out with particular intensity. On the supply side, several categories remain exposed to global dependencies, making them sensitive to currency volatility, trade disruptions, and input cost fluctuations. Passing on these cost pressures is becoming increasingly difficult.

      At the consumer end, demand remains large but inherently uncertain. Premiumisation and value-seeking behaviours now coexist, intensifying competition for the consumer wallet. The result is a value chain where signals are constantly shifting and often in different directions. This creates a new requirement for organisations: not just to run efficient operations, but to continuously sense change and interpret its implications for the business.

      From reacting to being architected to respond

      Resilience is evolving from a response capability into a core design principle. The shift underway is from reacting to disruption, to being structurally architected to respond, with sensing, decision-making, and execution functioning as one integrated system.

      Three capabilities are central to this shift.

      • First is the ability to sense and interpret change at speed

        Organisations need end-to-end visibility across supply, demand, and operations, along with the ability to translate signals into actionable insight. Technology, particularly AI, is playing an increasingly important role. Companies now see AI as a top investment priority, driven by its ability to improve forecasting, enhance decision-making, and enable real-time visibility across complex value chains.

      • Second is decision agility

        As volatility becomes more frequent, decision cycles are compressing. Organisations must take decisions faster, often with incomplete information – and course-correct quickly. Technology again plays a critical role by enabling data-driven decision-making and supporting scenario analysis at scale.

      • Third is execution flexibility

        Whether it is shifting sourcing, rebalancing inventory, or adapting fulfilment, operating models must enable response without friction. The growing emphasis on diversified sourcing and more localised supply chains reflects this need for flexibility and responsiveness.

      Taken together, these capabilities define organisations that are not only efficient, but continuously adaptive.

      What needs to change

      For CEOs, resilience can no longer remain an operational concern – it must shape how the enterprise itself is designed.

      Three shifts stand out:

      Design for flexibility, not just efficiency

      Supply networks and sourcing models must be built for adaptability, not optimisation alone.

      Invest in sensing and decision systems

      Organisations need capabilities that combine real-time visibility with AI-driven analytics to enable faster, coordinated decisions.

      Reimagine the workforce and operating model

      As AI adoption accelerates, roles, skills, and career paths will need to be reshaped. This is not incremental change, but a fundamental rethink of how work gets done.

      From resilience to advantage

      Resilience is no longer just about protecting operations; it is increasingly tied to how businesses grow and compete. In a country like India, where opportunity is significant, but volatility is inherent, the ability to respond consistently and at speed becomes a source of differentiation.

      The companies that succeed will not necessarily be those that avoid disruption, but those that are architected to absorb, adapt, and move forward faster than others. That is where supply chain resilience begins to translate into competitive advantage.

      Author

      Nikhil Sethi

      National Leader Consumer Goods and Co-Lead Customer & Operations

      KPMG in India

      How can KPMG in India help

      Create long-term value from multiple facets including operations, procurement, service delivery, supply chain and more

      Consumer markets are changing dynamically in the face of continuous disruption

      Our Supply Chain Realignment solution is a specialised value-driven offering to help clients build greater resilience into their global supply chains


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