The Supply Chain Pressures Keeping CEOs up at Night
Supply chains are no longer simply a back-office function – they are now central to corporate strategy.
From AI-driven automation to evolving trade policies, businesses are adapting at pace in a bid to maintain resilience and efficiency.
Fresh research from supply chain intelligence platform Zero100 – based on analysis of almost 1,000 earnings calls from 265 companies, as well as other data sets – highlights the major supply chain challenges shaping global trade, logistics and corporate survival in 2025.
It contends that there are four broad supply chain-related pressures keeping CEOs up at night.
Trade policies and tariff strategies
1. Boardrooms paying attention to tariffs – but not panicking yet
Mentions of tariffs in earnings calls rose from 2% to 20% in 2024, but 87% of those discussions remained neutral. It shows that, while companies are aware of trade shifts, widespread concern has not yet taken hold.
This rise in attention coincides with ongoing trade tensions between the US and China, new EU digital trade regulations and continued Brexit-related disruptions in UK-EU trade. However, unlike the tariff shocks of 2018-19, companies appear better prepared to navigate policy changes
2. Lobbying influences tariff exemptions
During US President Donald Trump’s first term, just 14.6% of tariff exemption requests were approved. However, companies that engaged in lobbying saw their approval rates increase by 2.15 percentage points – a 35% increase.
With trade policies having fluctuated ahead of the 2024 US election, businesses that invest in political influence stand to potentially avoid significant tariff costs, while those that do not may find themselves at a financial disadvantage.
AI and automation in supply chains
3. AI agents becoming mainstream faster than expected
Currently, 8.5% of companies have already deployed AI-powered agents in their supply chains, with online searches for “AI agents” increasing twelvefold year-on-year.
From Tesla’s self-optimising logistics to Amazon’s AI-driven warehouse robots, supply chains are rapidly transitioning from human-led decision-making to AI-driven automation. In the coming year, AI is expected to become a widely adopted tool in manufacturing, retail and logistics.
4. Efficiency, not cost-cutting, drives AI adoption
Only 5% of AI applications focus purely on cost reduction, while 32% aim to improve efficiency – a shift in corporate strategy toward sustainable productivity gains.
Rather than reducing headcount, companies are using AI to enhance workforce effectiveness. A prime example is Unilever, which has integrated AI into supply chain planning without cutting jobs.
5. Walmart’s AI-powered negotiation bots transform procurement
Walmart now employs AI negotiation bots to handle 2,000 supplier negotiations simultaneously, saving thousands of work hours and reducing costs by 3%.
AI is no longer confined to back-office functions; instead, it is directly engaging with suppliers, negotiating pricing and finalising contracts. If this approach scales, procurement teams may shrink significantly, reshaping the role of human buyers.
6. Data infrastructure remains biggest barrier to AI adoption
Despite the rise of AI, only 46% of companies have hired dedicated data managers for their supply chains, revealing a major gap in AI readiness.
AI is only as effective as the data it learns from. Many supply chains still rely on fragmented and incomplete datasets, limiting the full potential of automation. Companies that invest in AI without first addressing data quality may struggle to scale their initiatives.
Cost pressures and agile supply chains
7. Cost pressures dominate corporate agendas
Over the past three years, 97% of earnings calls have referenced cost pressures, with market competition (22%) and supply chain costs (16%) as key concerns.
Although inflation is stabilising, high supply chain costs continue to impact businesses. Companies must balance cost-cutting efforts with customer retention, as seen with Starbucks, which has warned that further price increases could drive away customers, forcing the company to absorb rising commodity costs.
8. Agile methodologies reshaping supply chain operations
A growing number of companies expect supply chain professionals to adopt agile working methods, with Nike, H&M and Deckers leading the way.
Today, 89% of companies are prioritising agile expertise in supply chain hiring. This shift reflects the increasing need for tech-driven, data-centric skills, as companies move toward faster, more flexible supply chain operations.
Summarising the findings, Lauren Acoba, VP of Research at Zero100, comments: "Supply chains are no longer just a cost centre – they’ve become a battleground for competitive advantage, where navigating geopolitical fault lines and harnessing AI-driven transformation can define a company’s bottom line and brand position.
"Businesses that adapt will gain resilience, efficiency and market leadership; those that don’t risk disruption, rising costs and eroding trust.”
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