CIPS: Global Supply Chain Leaders are Redefining Strategy

Supply chain professionals are navigating unprecedented operational challenges across global networks.

Geopolitical volatility, increasing supply disruptions and artificial intelligence (AI) accountability are redefining how goods move through the global market. Supply chain leaders have to adapt their operations under constant pressure.

The Chartered Institute of Procurement & Supply (CIPS), in association with GEP, has released its 2026 edition of the Global State of Procurement and Supply. The report explores how supply chain management is changing and how it is redefining strategic operations.

Building operational resilience strategies

This era is one marked by constant supply chain shifts, redefined logistics goals and a state of constant operational reaction.

Geopolitical volatility, closure of key trade routes, the Covid-19 pandemic and tariff pressures have all contributed to growing supply chain disruption. These factors have driven a fundamental shift in operational strategy.

The rise of AI and the further push for environmental, social and governance (ESG) considerations have both unlocked value for supply chain leaders. These leaders are finding themselves at the centre of organisational resilience strategies.

Supply chain decisions are now taking on an increasingly collaborative nature.

Fragmented logistics networks and siloed data points are being seen as a risk to operational excellence. The leading organisations have supply chain leaders offering insights into developing network resilience and cost-savings.

Rising prices and growing demand means leaders need to do more with less through their distribution operations.

The value of these once back-office logistics functions has been realised, with new potential being unlocked every day. The supply chain industry is changing, with new developments in risk management tools and technology showing how sustainability, operational resilience and cost savings can be aligned in order to develop business excellence.

"In a world wrestling with multiple shocks and crises, the perspectives of the CEO and the procurement and supply chain leader are increasingly aligned," says Ben Farrell, Global Chief Executive of CIPS.

"Fundamentally, both have a responsibility for resilience and competitiveness.

"This is a unique moment for the procurement and supply chain profession. The stars are aligned for the profession to realise its full potential. Now it's time to lead."

Growing strategic influence

Since 2020, supply chain resilience has demonstrated its critical importance. The ability to anticipate large-scale disruptions, rather than merely react to them, has become essential. Businesses have unlocked value through predictive analytics and digital twins. More supply chain teams are implementing digitalisation and AI in order to drive operational efficiency and network resilience.

Through this, supply chain professionals have found themselves central to much of the new strategic planning around logistics operations and distribution networks. The CIPS report has found that more supply chain leaders now have a direct communication line with business leaders. This has risen from 15% in 2025 to 33% in 2026.

This demonstrates that their voices are becoming increasingly louder and more valued when it comes to ensuring operational excellence across distribution networks.

"Procurement has moved closer to the centre of the organisation, and this year's findings reflect that continued shift," says Jonathan Kinghan, Senior Director of Consulting at GEP.

"This broader divergence is reflected in how procurement operates day-to-day. While procurement is more involved in decision-making than ever, the ability to consistently translate those decisions into outcomes remains uneven.

"The constraint is no longer visibility or insights. Organisations can see risks, understand trade-offs and identify opportunities in real time. The challenge lies in turning that insight into action."

Supply chain operations are becoming increasingly centre-led. Gains in strategic influence and investments in technology and people are becoming a core driver. The increasing number of centre-led functions is helping organisations reduce operational costs and increase supply chain transparency. This means they can develop stronger supplier relations and more resilient logistics networks.

Transforming supply chain operations

New strategies which are leading the development of supply chain operations include AI adoption and the implementation of ESG.

AI, automation and data analytics are transforming how supply chains operate, but some leaders remain cautious. Highest levels of automation occur in Australia and New Zealand, according to CIPS, while the UK and Ireland have adopted it the least.

Larger organisations are adopting this technology more. IT and telecoms companies reveal the most automation, with 71% being at least partially automated. Direct spend is increasingly managed by procurement and supply chain leaders. Two-thirds of leaders say they are responsible for 60% or more of spending.

According to the survey, approximately 29% state they are responsible for more than 90% of their company's spend on direct goods. This demonstrates the growing level of operational responsibility these teams are having within their organisations.

Sustainability is also becoming a core driver of supply chain opportunity. Leaders are finding themselves increasingly responsible for this across their networks. ESG is being seen as a valuable asset to have, not just as an ambition to reach. As a result, it is growing in priority, ranking in the top five metrics when it comes to supplier operations.

Supply chain teams are increasingly picking up the mantle for the implementation of net-zero or science-based climate targets. There is a shift towards it becoming a core deliverer of sustainable business transformation. Now, supply chain operations are balancing cost, resilience, risk and sustainability into a comprehensive metric of operational value.

The CIPS report highlights how supply chain roles can change through ongoing global conflict. Risk mitigation and operational resilience has moved to the forefront of business strategy. As such, supply chain professionals are finding themselves with increasing levels of power and more opportunities to unlock value through AI-driven logistics and sustainability initiatives across their networks.