A new study by R.R. Donnelley & Sons Company (RRD) reveals that nearly all supply chain leaders (97%) plan to re-engineer their supply chains within the next two years, with 30% planning a ‘total and complete re-engineering’.
The study showed that the top reasons for supply chain re-engineering included customer demand for a wider range of products (43% of those re-engineering), rising transportation costs (42%), and enhanced supply chain visibility and control (42%). Supply chain leaders also shared that their top obstacles to supply chain re-engineering include high upfront costs, potential disruption to their current operations, and integration challenges with existing systems.
Although supply chain leaders are planning changes to future-proof their supply chains, 93% are at least somewhat confident in their current supply chain’s resilience against future disruptions, with the majority (66%) feeling very confident.
The study, ‘Future-Ready Supply Chain Report’, compares how over 300 surveyed supply chain decision-makers are approaching developing supply chain challenges. Today, supply chain leaders are under immense pressure to build resilient operations capable of weathering various disruptions. The report highlights four key areas where organizations are focusing their efforts: risk management, technology adoption and innovation, supply chain re-engineering, and outsourcing partnerships.
Supply chain leaders are not just adapting, they are completely transforming their approaches to secure a more stable future. Our report shows that while challenges remain, the right mix of innovation, risk management, and proactive re-engineering can turn these challenges into opportunities for growth and resilience.
John Marrow, president, Supply Chain Solutions, RRD
Other key findings include:
Risk is top of mind for supply chain leaders
While a shortage in human talent and domestic supply chain disruptions are prominent concerns, the Future-Ready Supply Chain Report found that inflation and price fluctuations stand out as what managers consider their biggest challenges for the near future. Supply chain leaders are responding to risk by implementing more conventional diversification strategies, including:
- Developing new relationships with alternative suppliers (69% of respondents)
- Increasing sourcing from domestic suppliers (67%)
- Dual sourcing with suppliers who are geographically dispersed (52%)
To proactively manage risks, nearly half (48%) of respondents report that they are “constantly” updating their formal evaluation of supply chain risk.
Future investment
Artificial intelligence is undoubtedly gaining traction, but RRD’s report finds that supply chain leaders are investing more in other technologies, including real-time visibility, scanning codes, the Internet of Things, and predictive analytics. When leveraging AI, decision-makers reported using the technology in their supply chain activities for purposes including:
- Supply forecasting (59% of respondents using AI)
- Visibility and tracking (56%)
- Optimizing operations (56%).
For 2025, 57% of respondents also reported considering the use of AI for demand forecasting to enhance kitting. To improve the responsiveness of their fulfillment operations, the majority of respondents (60%) plan to implement advanced order management systems as their top strategy over the next two years.
As supply chain leaders work to innovate their supply chains, sustainability continues to be a point of focus for many. Among respondents listing sustainability as an activity their organization is pursuing in the future, the top three focus areas included logistics (50%), sourcing of components (41%) and/or raw materials, and supplier relationships (41%).
