The majority of supply chain leaders (86%) say trade policy changes or tariffs have already impacted their operations, forcing companies into difficult trade-offs across pricing, sourcing and inventory management as inflation and geopolitical disruption persist into 2026.
According to the preview of the third annual report, “Relex State of the Supply Chain 2026: Volatility, Trade-Offs and the Rise of AI,” organizations are responding in markedly different ways.
More than half (51%) have raised consumer prices to offset higher costs, while 18% report restructuring supply chains or delaying investments. Pricing adjustments appear to be accelerating: in 2025, 31% of retailers reported increasing product pricing in response to macroeconomic pressures, compared with just over half of supply chain leaders in 2026. Nearly a quarter (24%) have shifted sourcing away from countries directly affected by trade policy changes.
Inflation remains the dominant operational strain. Thirty-four percent of leaders cite inflation and rising input costs as the single greatest pressure on their supply chain, ahead of tariff and geopolitical pressures (17%) and labor shortages (15%). The data suggests cost volatility is now embedded in long-term planning.
Retail and Manufacturing Take Divergent Paths
The report also reveals a strategic split in how companies are managing risk. Twenty-eight percent are increasing inventory or building strategic stockpiles to protect availability, while 27% are returning to leaner models to control costs. The divide suggests firms are optimizing for different failure modes: out-of-stocks on one side and cash flow and markdown risk on the other. In the 2025 survey, manufacturing leaders were also divided: 30% kept inventories lean, while 25% built safety stock amid inflation and recession fears.
Among retailers, 49% cite margin pressure as their biggest operational challenge and 47% are increasing promotions to address price-sensitive consumers. Over a quarter (28%) rely on promotions as their primary lever to protect performance, while 25% are expanding private labels or value-focused product lines to meet shifting demand.
Meanwhile, manufacturers are balancing pricing power with structural change. Nearly half (45%) report passing rising input costs to customers, 43% are adjusting pack sizes or stock-keeping units (SKUs) in response to price sensitivity and 26% are diversifying suppliers to manage geopolitical and cost volatility.
Resilience Becomes a Strategic Priority
Against this backdrop of pricing pressure and sourcing shifts, companies are increasingly investing in resilience rather than assuming stability will return. Nearly 6 in 10 (59%) are strengthening logistics partnerships, 37% are expanding supplier bases and 28% are increasing safety stock. Half of respondents expect global events and disruptions to remain the biggest challenge to supply chain performance over the next three years.
Even so, 77% describe themselves as optimistic or cautiously optimistic about the next 12 to 18 months, though only 20% say they are outright optimistic, which suggests confidence in companies’ ability to adjust pricing, sourcing, inventory and supplier strategies in response to continued volatility.
Taken together, the findings highlight three practical implications for organizations navigating continued volatility:
- Persistent pressure points: Margin pressure, longer and less predictable lead times, and heightened promotional intensity are likely to remain through 2026.
- Diverging strategic responses: Some companies are building stock and raising prices, while others are prioritizing leaner inventories and promotion-led volume strategies.
- Capabilities that matter: AI-led scenario planning, dynamic allocation and supplier optionality will play a critical role in determining how effectively companies respond to ongoing trade and cost uncertainty.
“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,” said Laurence Brenig-Jones, VP of product strategy, Relex Solutions. “Our data shows companies are already adjusting pricing, sourcing and inventory strategies in response to that uncertainty.”
