The report, “RELEX State of the Supply Chain 2026: Volatility, Trade-Offs & the Rise of AI,” draws on a January 2026 survey of 514 leaders in the retail, manufacturing, wholesale, and supply chain industries conducted by Researchscape.
According to the report preview, more than 51% of respondents have increased consumer prices to balance higher costs, while 18% have either restructured their supply chains or postponed planned investments.
Pricing adjustments are on the rise, with 31% of retailers increasing product prices in 2025 due to macroeconomic pressures, compared to just over half of supply chain leaders reporting similar actions in 2026.
Additionally, 24% of the respondents have reported shifting their sourcing away from nations directly impacted by policy adjustments.
Inflation is cited as the primary challenge by 34% of leaders, overtaking tariff and geopolitical concerns at 17% and labour shortages at 15%. The data suggests fluctuating costs have become a factor in long-term planning for many firms.
The report notes that companies are taking different approaches to risk management, with 28% building up inventory or maintaining strategic reserves to safeguard availability, while 27% are returning to leaner inventory models to manage expenses.
In a similar trend observed in the previous year’s survey, manufacturing executives were split between keeping inventories low (30%) and expanding safety stock (25%).
Within retail, margin pressure ranks as the top operational issue for 49% of respondents, and 47% have reported increasing promotional activity to attract cost-conscious shoppers.
Meanwhile, manufacturers are managing both pricing and operational adjustments, with 45% passing higher input costs on to customers, 43% modifying pack sizes or SKUs to address price sensitivity, and 26% diversifying their supplier base to handle geopolitical and cost fluctuations.
In response to ongoing pricing pressures and changes in sourcing, companies are prioritising resilience measures over expectations of a return to stability. The report finds that 59% are strengthening logistics partnerships, 37% are broadening their supplier bases, and 28% are increasing safety stock.
Despite ongoing challenges, 77% of respondents describe their outlook for the next 12 to 18 months as optimistic or cautiously optimistic, though only 20% are fully optimistic. This sentiment indicates confidence in their capacity to adapt pricing, sourcing, inventory, and supplier management strategies amid continued volatility.
Key implications for organisations managing ongoing volatility
- Ongoing margin pressure, extended and unpredictable lead times, and increased reliance on promotions are expected to persist through 2026.
- Companies are adopting varied strategies, with some focusing on stockpiling and price increases, while others emphasise lean inventories and promotion-driven approaches.
- The ability to respond to trade and cost uncertainty will depend on capabilities such as AI-powered scenario planning, flexible allocation, and expanding supplier options.
RELEX Solutions product strategy vice president Laurence Brenig-Jones said: “Whether tariffs are imposed, revised, or struck down, the reality for supply chain leaders is the same: trade policy shifts are happening quickly and often with limited lead time. Our data shows companies are already adjusting pricing, sourcing, and inventory strategies in response to that uncertainty.”
