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Net Cost Methodology

64% of supply chain organizations surveyed use a net cost methodology to offset cost-up impacts with cost-down strategies. Of those, 50% recognize cost avoidance as part of the net cost methodology. 

Level of Risk Severity

Across industries, 65 global companies increased the severity of future supplier risks for sustainability and climate change over the next three years, indicating a higher focus on environmental issues and their impact on supply chain disruptions.

Tracking and Managing Cost Changes

91% of companies use a cost baseline while 73% use variance reporting and monitor supplier and plant information for tracking and managing cost changes.

External Forces of Change

Changing customer requirements, government regulations, and tech advancements are top predicted forces driving change for 2026.

Top Business Strategies

Strengthening supply chain resilience is the top business strategy the supply management profession is expected to adopt between now and 2026.

Decreased Risk

81% of companies we surveyed don’t consider Transportation and Logistics Issues to be a high risk over the next three years.

Driving Business Partner Engagement

Engaging supply management with internal business partners can create value and alignment with business goals.

Business Partner Engagement

Aligning and integrating with the business can help supply management leaders drive value for their companies, especially at a strategic level.

Supplier Risk of the Future

71% of companies consider cyber security & data to be the highest risk for suppliers over the next 3 years.

The CEO’s Support of SRM

On average, CEOs spend just 6% of their time with suppliers, while 18% said their organization is considered a “customer of choice” by their suppliers. Increasing the time CEOs spend with suppliers could potentially improve supplier collaboration and innovation and improve savings over the long-run.

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