Supply Chain

Supply Chain Leaders Boost Budgets to Prepare for Disruptions

Author: Sedat Onat
KPMG office building supply chain executives risk management meeting
Supply Chain Leaders Boost Budgets to Prepare for Disruptions
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A KPMG survey released in May 2026 reveals that nearly three-quarters (73%) of supply chain executives are planning to transform their operating model within the next one to three years. This transformation is driven by the need to enhance agility, flexibility, and resilience in response to a fast-changing environment and persistent global disruptions. Executives cited "managing and mitigating risks" as the most important transformation objective (51%) and top area for investment (39%) in the near future. This commitment is evidenced by rising budgets, with most companies now spending 11-15% of their revenue on supply chain, up from 5-10% in 2024.

The KPMG U.S. Supply Chain Survey, which polled 462 senior executives, also highlights a critical talent shortage: an overwhelming 77% of leaders agree there is a significant talent shortage in their procurement and supply chain functions. This deficit is seen as a major impediment to operational excellence, with logistics and transportation costs identified as the greatest source of value leakage (38%). The talent shortage impacts everything from supply chain visibility (38%) to demand planning (36%). To combat this, 50% of organizations plan to invest in automation and AI.

According to MHI's 2025 Annual Industry Report, 74% of supply chain leaders are increasing their technology and innovation investments, with 90% planning to spend over $1 million—an increase of 24% over last year. Thirty-six percent plan to spend over $10 million, up 19%. These investments include solutions for improved supply chain resiliency, transparency, and sustainability, as well as solutions for the ongoing workforce shortage. Deloitte's 2025 research indicates that 55% of supply chain leaders are increasing their overall technology innovation spending, with 60% planning to invest over $1 million.

According to a survey by Accenture of 3,650 C-suite leaders and 3,350 supply chain employees, 58% are planning to improve forecasting and risk management in 2026, while another 59% are seeking ways to adapt existing resources to withstand market shifts. A third of supply chain leaders said that building resilience is their top priority, while nearly 70% are investing in AI and digital tools in service of that strategy. Roughly 85% of executives are planning to increase their spending on AI in 2026, with one in five expecting their AI spend to rise by 20% or more.

Note: This summary draws on SupplyChain247.com's publicly visible headline + subhead information and on sector background on supply chain risk management and talent shortages.


Key Takeaways:
1. KPMG survey reveals 73% of supply chain executives plan to transform operating models within 1-3 years
2. Companies increased supply chain budgets from 5-10% of revenue in 2024 to 11-15% in 2026
3. 77% of executives acknowledge significant talent shortage in procurement and supply chain functions
4. 50% of organizations plan to invest in automation and AI to combat talent gaps
5. 74% of supply chain leaders are increasing technology investments, with 90% spending over $1 million