PwC and SAP Examine Future of Supply Chain Management

Once viewed as a back-office function, procurement and supply chain is now seen as a critical driver of strategic value, with supply chain management has emerging as a tier-one business priority.

Amid geopolitical instability, fluctuating consumer expectations and regulatory pressures, supply chains are increasing in visibility and prominence. 

The current climate showcases the vulnerable underbelly of global supply networks, while highlighting the need for end-to-end resilience and transparency.

Enhanced supply chain decision-making

Today’s supply chain strategies are largely focused on enhancing agility, responsiveness and sustainability. Enterprises are redesigning the entire value chain to meet evolving business demands – from product development and planning to manufacturing and delivery.

According to PwC’s 2025 Digital Trends in Operations Survey, the vast majority (91%) of operations and supply chain leaders say they’ll significantly change supply chain strategies because of US trade policy changes.

Data has become a central element, with more businesses leveraging it for strategic advantage. Platforms such as SAP's Business Data Cloud are unifying supply chain data across systems and processes. This comprehensive approach enables real-time insights and informed decision-making.

PwC and SAP's partnership illustrates how technology and industry expertise can converge to address complex supply chain challenges, offering holistic solutions that support clients from strategy through execution.

In conversation with Sadi Fieldsend, SAP Principal (Partner) at PwC US, Valerie Blatt, SAP’s Chief Revenue Officer (CRO) for SAP Supply Chain Management, discussed how SAP and PwC are partnering to help companies navigate the future of supply chain management.

"Supply chain really is all about data for our customers," explained Valerie. "And in that data lies your ability to make decisions that affect not just your planning, but also your manufacturing, how you deliver to your customers – this whole value chain of processes.

"I’m very excited about our Business Data Cloud, which goes across our Business Data Suite and is powered by our AI innovations. This will truly help supply chain leaders, supply chain analysts and everyone in our organisation not only make better decisions, but also be able to clearly understand the outcome – the financial impact, both positive and negative – of the decisions made in the supply chain.”

PwC's strength lies in its ability to guide large, multifaceted organisations through transformation journeys. By integrating SAP technologies like RISE with SAP and ERP platforms, clients gain a connected, data-driven approach to managing their entire supply chain.

The joint capabilities span multiple industries, such as utilities, life sciences and manufacturing, ensuring relevance and scalability for diverse business needs.

Supply chain becomes 'centre of the universe'

AI, particularly Gen AI, is gaining importance as a vital tool within the supply chain, unlocking possibilities such as demand forecasting, production planning and scenario analysis.

These tools allow businesses to evaluate financial impacts, enhance accuracy and reduce reliance on manual processes. The result is a more insightful and adaptable supply chain capable of anticipating shifts in demand and supply.

PwC's 2025 Digital Trends in Operations Survey revealed that 57% of companies report fully- or partially-integrated AI into their business operations.

The urgency in supply chain innovation is driven by three key factors:

• Geopolitical disruptions such as trade tensions, pandemics and regulatory volatility.
• Global and consumer trends including demand for speed, sustainability and transparency.
• Strategic compliance with industry-specific and cross-border regulations.

Valerie adds: “All three things combined really make the supply chain at the forefront of transformations for companies because it can be a big cost driver for them if they don't figure those things out. But it also can be – if they do it right – a profit driver for them if they deliver to their customers on time, beat their competition and get that really needed or wanted product on the shelves.

"Over the last five years, supply chain has become the centre of the universe for a lot of companies.”

Converging pressures call for proactive investment in supply chain modernisation. When implemented effectively, a well-optimised supply chain not only reduces cost and risk but also provides a competitive advantage by enabling faster delivery, improved service and sustainable operations.

Organisations aiming to innovate in their supply chains should not wait for perfect conditions. The key is initiating actions, whether through small-scale automation pilots or broader digital initiatives and refining approaches based on measurable outcomes.

Businesses must recognise transformation as an ongoing journey, where leaders shape the market and those who lag risk falling behind. The evolution of the supply chain in today’s environment is not optional, but a strategic necessity.