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The top supply chain priority is…

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Supply chain organizations are concerned about cost.

Supply chain organizations have had the same item at the top of their agenda for three consecutive years.

Cost efficiency is the number one priority of supply chain organizations surveyed for the “2026 Supply Chain Key Issues Study” from The Hackett Group. This is the third straight year respondents have cited cost as their top supply chain concern in the annual study. 

A recent survey of supply chain professionals released by Blue Yonder provided similar results, with respondents selecting improving efficiency and productivity as the number one supply chain strategic priority for 2026.

[READ MORE: The top supply chain strategic priority is…]

Rounding out the top five supply chain priorities in order are digital transformation, product availability, supply chain agility and resiliency, and sales & operations planning/integrated business planning (S&OP/IBP)

Respondents were also asked what supply chain initiatives their organizations are pursuing in 2026. Leading answers included:

  • Optimize manufacturing and/or distribution network design (67%).
  • Increase transactional automation level (66%).
  • Optimize inventory (59%).
  • Upgrade core supply chain technology platforms (57%).
  • Acquire or develop new skills and talent (57%).
  • Roll out emerging technologies (47%).

AI adoption trends

More than eight-in-10 (83%) respondents are piloting or implementing AI in supply chain intelligence/analytics and 79% in data visualization. Planning adoption is also strong, with 74% of enterprises reporting AI capabilities have been implemented or piloted in S&OP/IBP and 72% in advanced planning and scheduling.

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AI adoption barriers

The study reveals data is the primary barrier to AI adoption in supply chain with half of respondents citing data quality as a major concern, making it the top obstacle, followed closely by data integration concerns (47%), data privacy and regulatory compliance concerns (46%).

 Together, The Hackett Group advises these are three core challenges that enterprises should address before supply chain AI initiatives can truly scale. Other barriers to AI adoption in the supply chain include:

  • Lack of AI talent (45%).
  • Insufficient implementation skills and experience (37%).
  • Staff upskilling (36%).
  • Executive sponsorship (33%).
  • Investment (19%). 

Looking ahead, The Hackett Group advises that supply chain organizations are moving toward integrated, AI-enabled operating models that embed intelligence across supply chain activities.

"Cost has been the top supply chain priority three years running – and that pressure is not easing," said Kate Reilly, director, strategy and operations at The Hackett Group. "What has changed is how leaders intend to respond. More organizations now recognize that cost improvement cannot be sustained without modernizing the platforms, data and processes that enable the supply chain."

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