Report highlights
1. Building supply chain resilience and managing disruptions
While geopolitical tensions and climate change dominate headlines, our findings indicate that inflation and price fluctuations are the most immediate threats to supply chain stability.
Inflation and price fluctuations rank as the top concern for supply chain leaders over the next one to three years. A shortage of human talent and domestic supply chain disruptions come in tied as a distant second.
- 51% of decision makers say that recent supply chain disruptions have had at least a moderate impact on their ability to meet customer demand; of these, about half say it was a “significant” or “severe” impact.
- Survey respondents report they’ve implemented more conventional diversification strategies recently, ahead of nearshoring: including new relationships with alternative suppliers, more sourcing from domestic suppliers, and dual sourcing with suppliers who are geographically dispersed.
- 77% of supply chain decision makers expect the outcome of the U.S. presidential election to have an impact on global supply chains. Of this group, more than half think it will have a "major impact."
- Past performance during disruptions is a top indicator of a potential supplier’s ability to manage supply chain disruptions.
- 77% of top performing companies (those that exceeded 2023 revenue targets) utilize moderate to extensive collaboration with key suppliers on forecasting and demand planning.
- Nearly half (48%) of respondents “Constantly” update their formal evaluation of supply chain risk.
Looking to the future,
93% of our respondents are at least somewhat confident in their supply chain’s ability to withstand future disruptions — with the majority (66%) feeling very confident.
Expert take: "Building a resilient supply chain requires a proactive and well-rounded approach. In today’s world of global tensions, economic fluctuations, and rising costs, organizations need to focus on risk mitigation, strategic partnerships, and continuous improvement.
By working closely with suppliers, investing in strong forecasting models, and diversifying supply sources, businesses can not only weather the challenges, but also seize opportunities and come out stronger and more confident.”
![John Pecaric]()
John Pecaric, RRD’s Chief Operating Officer
2. Harnessing technology and innovation to drive success
Technology has evolved from a luxury to a necessity for supply chain success. While AI is gaining momentum, real-time visibility, scanning codes, and predictive analytics are currently attracting the most significant investments from organizations focused on driving growth.
Top five investment commitments to supply chain technologies:
- Real time visibility
- Scanning codes
- Internet of things
- Predictive analytics
- AI-driven applications
For 2025,
57% of respondents are considering the use of AI for demand forecasting to enhance kitting.
- Nearly two-thirds of the top performing companies (those that exceeded 2023 revenue targets) responding to our survey are committed to investing in real-time visibility and scanning codes. Organizations that fell short of revenue expectations are less likely to be committed to the same technologies.
- The majority of respondents are using AI in their supply chain activities for supply forecasting (59%), visibility and tracking (56%), and optimizing operations (56%). These are also the same areas companies anticipate AI having the biggest impact on their business over the next two years.
- The top three focus areas for companies regarding sustainability included logistics, sourcing of components or raw materials and supplier relationships.
Expert take: "Sustained supply chain excellence really comes down to a smart mix of human creativity and technological know-how. While AI has huge potential, it's the foundational technologies like real-time visibility and advanced data capture that truly drive transformation. Focusing on these investments and leveraging predictive analytics give organizations a real opportunity to reach new levels of agility and responsiveness, giving them a competitive edge.”
![Lisa Pruett]()
Lisa Pruett, President, RRD Packaging, Labels and Supply Chain Segment
3. Transforming supply chains through strategic re-engineering
According to the research, a significant overhaul is widely acknowledged as both imminent and essential, with nearly all organizations gearing up to revamp their supply chains. This drive for improvement is fueled by rising costs, escalating customer demands, and the need for tighter control. However, high upfront costs, operational disruptions, and integration challenges remain substantial hurdles.
Nearly all supply chain decision makers who responded to our survey (97%) say they are planning at least some re-engineering of their supply chains in the next 2 years.
of respondents are looking to make major adjustments to their supply chains within the next two years. While 30% are looking to perform a total and complete re-engineering of their supply chain.
The top five factors behind our respondents' consideration of a supply chain re-engineering:
- Customer demand for a wider range of products
- Rising transportation costs
- Enhanced supply chain visibility and control
- Customer demand for faster delivery
- Better risk mitigation and resilience
The top three challenges companies face in re-engineering their supply chain:
- High upfront costs
- Potential disruption to ongoing operations
- Integration challenges with existing systems.
Expert take: "Supply chain re-engineering isn't just an option anymore — it's a strategic must. To succeed in today’s unpredictable environment, businesses need to rethink their networks, embracing digital transformation and flexible operations. The journey might be challenging, but the benefits of better visibility, cost efficiency, and customer satisfaction are huge. Simply put, the future belongs to those who dare to reimagine their supply chain.”
![John Marrow]()
John Marrow, President, RRD Supply Chain Solutions
4. Maximizing efficiency with strategic outsourcing and partnerships
Outsourcing is increasingly recognized as a powerful strategy for organizations to accelerate speed, scale operations, and elevate quality. Yet, the rise in material costs and the complexity of quality control present challenges that, when managed effectively, can enhance the benefits of outsourcing even further.
of underperforming companies (those who fell short of 2023 revenue targets) expect to increase outsourcing for their production processes over the next two years.
Companies that outsource their kitting processes report significantly higher satisfaction with their kitting processes than companies that handle it themselves.
- Rising material costs and quality control issues are the biggest challenges companies face when sourcing materials and components.
- The top four reasons high-performing companies (those that exceeded revenue targets) outsource their production processes:
- Greater speed
- Greater scale
- Better quality
- Reduced overhead
- Over the next two years, 62% of all respondents expect their organization to outsource more of its production processes.
- For those companies that handle kitting in-house, forecasting demand for kit components is the biggest challenge.
- To improve the responsiveness of their fulfillment operations, 52% of respondents plan to expand warehouse capacity or utilize multiple fulfillment centers over the next two years.
Expert take: "The future of supply chain success is all about strategic partnerships and streamlined operations. By smartly outsourcing non-core functions, businesses can achieve new levels of speed, scale, and quality. As the landscape shifts, those who focus on agility, risk mitigation, and cost-efficiency through strategic alliances won't just unlock growth — they’ll also lead the industry.”
![Liz Leo]()
Liz Leo, Director of Market Development, RRD Supply Chain Solutions