Sage Survey Finds Gaps in Supply Chain Preparedness for 2026

 Sage, a global leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses, released its 2026 State of Supply Chain Report, finding that many supply chain operators remain unevenly prepared to respond to supply chain disruption heading into 2026. 

The past year placed renewed strain on global supply chains, driven by shifting tariff policies, cost volatility, transportation delays, and geopolitical uncertainty. The research shows that readiness to respond varies widely, with only half of consumer brands reporting strong confidence in their ability to respond effectively to supply chain disruptions in 2026.

Key findings from the report include:

• Confidence gaps persist. Fifty percent of supply chain teams lack strong confidence heading into 2026, with preparedness closely tied to visibility and system maturity rather than awareness of risk alone.
• Nearshoring is driven by quality, not cost alone. While nearly half of operators plan to shift sourcing closer to home, quality and compliance rank as the top drivers, underscoring the importance of execution discipline and supplier oversight.
• AI adoption remains early stage. Only 10% of brands have AI live in supply chain workflows today, with adoption closely linked to data readiness and visibility maturity rather than interest or experimentation.
• Cost pressure constrains transformation. Even highly optimized supply chain teams continue to prioritize cost reduction over largescale modernization, reinforcing the need for investments that deliver near-term operational impact.

“Many supply chain operators are facing the same disruptions, but not with the same level of preparedness,” said Rodney Manzo, Senior Director of Supply Chain Intelligence at Sage. “The research shows that gaps in visibility and execution become more exposed as cost pressure and volatility persist. When disruption hits, those gaps translate into delayed decisions and higher operational risk.”

Report Takeaways:

• Capability builds confidence: Brands with strong first-mile visibility, connected systems, and structured supplier oversight are significantly more confident in responding to disruption — and are better positioned to operationalize AI as a result.

• Structure enables scalable sourcing: As supplier networks expand and nearshoring accelerates, formal systems drive consistency, comparison, compliance, and execution reliability — especially for quality-driven brands prioritizing control over cost alone.

• Visibility determines risk awareness: Limited upstream visibility reduces a brand’s ability to identify cost and transportation exposure, creating blind spots that delay response and weaken resilience.

• Execution focus defines the current moment: Even high-performing brands are prioritizing near-term efficiency over large-scale transformation, making disciplined, execution-oriented investments more critical than ever.

The data points to a clear pattern...Confidence follows capability; operators with strong first-mile visibility and more formal supplier management practices are significantly more likely to feel prepared, identify risk earlier, and operationalize AI in meaningful ways. By contrast, teams with limited visibility are far more reactive and less able to anticipate cost and sourcing exposure.

The 2026 State of Supply Chain Report is based on a January 2026 survey of more than 200 operators across retail and wholesale, with annual revenues ranging from under $1 million to more than $500 million.

Click here to access the full report.

About the survey:

Conducted in January 2026 by Sage, the State of Supply Chain survey incudes responses from more than 200 supply chain operators across retail and wholesale, with annual revenues ranging from under $1 million to more than 500 million. 

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Editor's note: A relatively minor change was made in the content within this feature at the request of Sage to reflect a "revision in messaging" from the original press announcement, submitted approximately 3 hours post our original publication.