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Future of supply chain: The rise of the enterprise decision engine

Build a supply chain that delivers not just efficiency, but enterprise-wide performance and resilience.

From functional execution to enterprise decision-making

The next wave of competitive advantage won’t come from a more efficient supply chain, but a more intelligent one. Our latest report provides a detailed roadmap for how supply chain leaders are redesigning their operating models to improve decision quality, anticipate change, and outperform in a volatile world.

Download the full report

Key takeaways

01
Transformation activity is outpacing performance

Organizations are investing heavily in supply chain modernization, but our research reveals their efforts are not translating into superior performance. This suggests technology alone is not the answer.

02
The new source of advantage is decision quality, not just visibility

Competitive advantage is shifting from what organizations can see to how quickly they can act. The most successful leaders are orchestrating decisions across the enterprise, not just optimizing individual functions.

03
AI’s value is constrained by fragmented operating models

Most organizations are embedding AI in functional silos, preventing them from realizing enterprise-wide value. Their underlying operating models need to be redesigned.

04
Trust is a foundational—and overlooked—enabler of automation

As supply chains become more intelligent, scaling autonomous execution depends on trust in the data and the system’s recommendations. Many organizations fail to measure and cultivate this trust, creating a significant barrier to progress.

Source: KPMG International Limited, "Transforming the enterprise" (June 2026)

The future of supply chain is no longer about optimizing the flow of goods. It’s about orchestrating the flow of decisions.

Supply chains have become the front line of enterprise transformation.

Organizations today have more visibility than ever before. But as volatility accelerates and business environments become increasingly interconnected, success depends less on what organizations can see, and more on how effectively they can turn insight into action. The next frontier is decision intelligence: the ability to anticipate outcomes, evaluate trade-offs, and coordinate decisions across the enterprise with greater speed and confidence.

Our latest research, based on a global survey of more than 1,750 transformation leaders and dedicated insights from supply chain executives worldwide, explores how leading organizations are rethinking supply chain’s role as the enterprise decision engine that connects planning, execution, and business performance.

Ready to transform your supply chain?

Find out how KPMG helps organizations move from ambition to operational reality across the supply chain lifecycle. 

Six priorities for a decision-driven supply chain

To improve supply chain performance and gain a competitive advantage, leaders must shift their focus from cost cutting to value creation. These six priorities outline the essential changes needed to build a modern supply chain that is both resilient and responsive.

1

Move from functional optimization to decision orchestration
A major disconnect persists between planning and execution: Just 38 percent of supply chain leaders say their processes are strongly or fully integrated with enterprise-wide planning and analysis. Yet more than 90 percent believe improvement is needed to achieve future ambitions. Organizations that connect planning, execution, and decision-making across functions will be better positioned to respond to disruption and create value at scale.

Learn how to build the capabilities needed for connected decision-making from The CSCO’s roadmap to a decision-ready supply chain.

2

Establish scenario planning as a core capability
Only 14 percent of organizations consider themselves top performers compared to their peers. What sets them apart is the ability to anticipate disruption rather than just react to it. By using dynamic simulation to model different scenarios, these leaders evaluate trade-offs and make confident decisions before conditions deteriorate.

Explore how leading organizations are creating faster, more agile decision environments. Download the full report.

3

Scale AI beyond isolated use cases
AI adoption is accelerating, with 44 percent of organizations embedding AI in logistics, 43 percent in inventory management, and 41 percent in demand planning. Yet, value remains trapped in functional silos because most deployments are only partially integrated. The next phase of AI transformation involves redesigning workflows so that data and intelligence can connect across the full supply chain environment, from procurement to fulfillment.

See how KPMG Supply Chain Operations services can help you discover how to operationalize AI across connected workflows.

4

Build trust as a foundation for intelligent operations
As supply chains become more autonomous, speed and scale are impossible without trust. While only 35 percent of organizations measure it, leading firms are actively building trust by treating it as an operational capability. They are establishing clear governance, ensuring data quality and transparency, and creating accountability for AI-driven decisions, turning trust from a barrier into an accelerator for confident action.

5

Invest in adaptability, not just efficiency
Traditional supply chains focused on cost and scale within the enterprise. However, with just 24 percent of organizations improving key agility metrics like supplier lead times, it’s clear that true resilience comes from the outside in. Future leaders can gain a competitive advantage by coordinating intelligence, decisions, and execution across their broader network of suppliers, logistics providers, and manufacturing partners.

See how organizations are scaling supply chain AI beyond pilots. Read Supply chain AI strategy: Scaling AI beyond pilots.

6

Prepare the human-AI workforce
While 77 percent of organizations report leadership actively promoting AI integration and 75 percent say their culture is open to AI-driven processes, only 47 percent believe they have sufficient internal AI expertise. Success will depend on effectively combining human judgment, intelligent systems, and automated workflows.

Modern supply chain FAQs

How can supply chain leaders build true resilience against ongoing disruption?

Building resilience requires moving beyond static forecasting to dynamic scenario planning and simulation. By modeling potential disruptions before they happen, leaders can evaluate trade-offs in real time and coordinate actions across their entire ecosystem of suppliers and partners, rather than just reacting to crises.

What is the next step after achieving end-to-end supply chain visibility?

While end-to-end visibility is a critical baseline, seeing the flow of goods is no longer enough for a competitive advantage. The next frontier is “decision intelligence.” Organizations must turn near-real-time insights into action by orchestrating decisions across the enterprise with greater speed and confidence.

How can organizations scale AI in the supply chain effectively?

To maximize ROI, leaders should stop deploying AI in isolated functional silos like logistics or inventory management. Successfully scaling AI requires redesigning the operating model to create connected workflows. This helps ensure data and intelligence flow seamlessly from procurement to fulfillment, driving enterprise-wide performance.

Why do many supply chain transformation initiatives fail to increase agility?

Many transformations fail because they focus on optimizing individual functions (like cutting costs in warehousing) rather than improving the overall system. To achieve true agility, organizations must shift away from siloed functional optimization and redesign their operating models around decision orchestration—aligning planning, execution, and business goals.

How is the future role of the supply chain changing within the broader enterprise?

The supply chain is no longer just a back-office operational function focused on cost and scale. It is evolving into the enterprise decision engine. In this new role, the supply chain acts as the central hub that connects strategic planning with execution, directly driving overall business performance and competitive advantage.

Meet our team

Supply chain leaders are being asked to make faster decisions while managing cost pressure, supplier risk, AI scale, and network volatility. KPMG can help you identify where planning and execution are breaking down, redesign the operating model around decisions, and build the capabilities needed to sustain performance as conditions change.

Image of Chris McCarney
Chris McCarney
Principal, Supply Chain & Procurement Leader, KPMG LLP
Image of Sean M Cassidy
Sean M Cassidy
Principal, Life Sciences, Procurement & Supply Chain, KPMG LLP

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