Ivalua: How The Best Supply Chain Leaders Navigate Risk

A study by spend management firm Ivalua shows how many in the procurement and supply chain sector are handling increasing disruption by adapting their strategies, rather than abandoning them.

Supply chain leaders face a harsh operating environment. According to Ivalua’s US-based survey of 100 supply and procurement decision makers, 91% of respondents expect disruption from new trade policies, while 85% say international instability is affecting their decision-making.

It shows how these leaders are continuing to face mounting geopolitical disruption.

Disruption sharpens priorities

Rather than stepping back in the face of disruption, some organisations are doubling down on technology.

The research found 98% of businesses with fully deployed AI tools feel prepared for geopolitical risk, whilst nearly half describe themselves as “very prepared.”

This confidence, though, drops off sharply in companies still on the journey. Only 21% of those currently rolling out AI report feeling well-prepared, and just 11% of those considering it say the same. Notably, none of the companies with no plans to adopt AI feel ready to handle disruption.

For Alex Saric, Chief Marketing Officer at Ivalua, the implications are clear: "The desire for AI adoption across organisations is strong, but geopolitical instability and rising costs are pressuring organisations to shift priorities."

He adds: "There's a real risk that near-term disruption becomes a long-term excuse to pause innovation. However, risk is a constant in global supply chains, and the real differentiator is how leaders respond.

"The most resilient organisations adapt their strategies without abandoning them, acting decisively to innovate and strategically to become stronger and more competitive."

Does AI top the list?

AI continues to dominate procurement and supply chain discussions. According to the study, 77% of US organisations are actively rolling out AI tools for procurement and supplier management.

However, only 36% rank AI as their number-one supply chain priority. In practice, most leaders are more focused on controlling costs and managing risk.

Ivalua’s findings show that this emphasis on cost management does not rule out investment in technology. In fact, 73% of respondents say they must invest more in tech to identify and mitigate geopolitical risks.

Yet 65% admit that uncertainty around trade policy is forcing them to pause or reduce investment. Innovation remains a key interest, with 59% still listing it as a priority. The picture that emerges is one of cautious transformation – organisations are adjusting timelines but not shelving change altogether.

Cost concerns are high across the board, but responses vary. Among the companies that feel unprepared, 78% expect rising costs to hit profits. That number falls to 50% for those who report being well-prepared – showing that investment in digital tools may help limit financial impact.

Execution challenges

Ivalua's report also reveals disconnects between leadership levels. While 67% of business owners and 56% of C-level executives believe their organisations are “very prepared,” only 17% of senior managers and 10% of junior managers agree.

This gap in confidence suggests a difference in how strategy is understood or implemented across levels. While top leadership may set the direction, execution on the ground appears to lag behind.

The study's wider message is that innovation can itself act as a risk response. The most resilient organisations are not those who avoid change during uncertainty but those who reshape it into strength.

Even as some organisations pull back due to rising costs and political instability, others are pushing forward – finding new ways to reinforce their operations while improving long-term resilience.

Ivalua argues that halting progress is not the answer. Instead, staying on the front foot may be the best way to navigate what lies ahead.