WEF: Can Supply Chains Remain Resilient Amid Volatility?

Amid ongoing volatility, world leaders are gathering in Davos, discussing issues of geopolitical instability and supply chain operations.

As Davos kicked off, the World Economic Forum (WEF) published its Global Value Chains Outlook report, a multi-year collaboration with Kearney. 

It makes clear that global supply chains are undergoing persistent and disruptive volatility, with the need to build resilience growing every day.

The report also offers a practical guide for how leaders can best navigate these turbulent times, providing policy blueprints and data-driven tools to help business leaders adapt.

A need for resilience

Since 1971, WEF has been a platform connecting leaders in order to make global changes, championing collaboration in order to make the world more cooperative and innovative. WEF is an impartial platform, working to build trust between global leaders and address ongoing challenges.

Every year, WEF hosts its meeting in Davos, bringing together leaders across regions and sectors, offering them an opportunity to open an ongoing dialogue and turn ideas into action. 

Over the last five years, governments and companies alike have needed to re-examine and reprioritise investments and operations. In the 2026 Outlook report, 74% of business leaders reveal they are viewing resilience as a driver of growth, proving how priorities have shifted. 

The report stands as a multi-year collaboration project between WEF and Kearney, using insights from more than 300 global executives and is informed by more than 100 expert consultations.

“Volatility is no longer a temporary disruption; it is a structural condition leaders must plan for,” says Kiva Allgood, Managing Director, World Economic Forum.

“Competitive advantage now comes from foresight, optionality and ecosystem coordination. Companies and countries that build these capabilities together will be best positioned to attract investment, secure supply and sustain growth in an increasingly fragmented global economy.”

Redefining supply chains

WEF's report explains the way supply chains operate has shifted alongside this volatility. Legacy supply chains can no longer keep up with challenges driven by geopolitical tensions, policy interventions, rapid automation and ongoing climate issues. The goal is no longer to respond to shocks, but to rebuild systems that can be flexible amid the ongoing reshaping and disruption.

Global supply chains are being redefined by:

1. Subdued and uneven growth - as persistent inflation, tightening capital markets and slow growth reshapes profitability and investments, operations are now working to shape demand around supply.
2. Fragmented networks - economic fragmentation is becoming a more prevalent and deeper concern as tariffs, localisation and rising trade barriers become more impactful. Now, there is a stronger need for compliance agility, scenario modelling and policy foresight.
3. Geopolitical instability - persistent conflicts around the world are contributing to widespread volatility. To combat this, supply chain leaders need to have a wider network of sourcing options.
4. Technological acceleration - there are wider productivity gaps between nations, as early adopters see increased operations due to AI, automation and quantum computing.
5. Trust as new currency - transparency, data sharing and corporate accountability have become strategic assets as scrutiny becomes more widespread across customers and investors.

“Supply chain disruption in 2026 will be constant and structural. Geopolitical fragmentation, shifting trade rules and labour shortages are all redefining how value is created and moved,” explains Per Kristian Hong, Partner at Kearney.

“For supply leaders, the priority is no longer forecasting disruption, but redesigning operating models to function under permanent uncertainty. That means moving away from efficiency-driven supply chains and towards adaptive networks that can be reconfigured with optionality as conditions change.”

All supply chain, sustainability, Scope 3 and net zero leaders should attend:

• Procurement and Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5

• Procurement and Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Sustainability LIVE, these events brings together CSCOs, CSOs and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.
Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Shifting strategy 

In 2025, more than US$400bn in global trade flows was reshuffled by tariff escalations, with major shipping route disruptions resulting in a 40% year-on-year rise of container shipping costs. More than 3,000 new trade and industry policy measures were implemented around the world, alongside the slowest manufacturing output growth since 2009. 

Organisations now need to be able to predict disruption and adapt their operations before it has the chance to take hold. With this comes the launch of the 'Manufacturing and Supply Chain Readiness Navigator', a new digital tool which turns global insights into actionable intelligence. 

Various nations are creating region-specific approaches to building resilience, competitiveness and readiness. China has been investing in digital infrastructure in order to lead real-time industrial connectivity and Ireland has been focusing on upskilling with training on digitalisation, sustainability, leadership and innovation. 

Singapore has been working on a nationwide sustainability roadmap in the form of Green Plan 2030, meanwhile Morocco has been developing itself to become a regional manufacturing hub.

These strategy adoptions mark a widescale shift into a different style of supply chain operations. The focus on agility, resilience and foresight are proving to work across scale and transform how supply chains work alongside ongoing global volatility.