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Supply Chains Face Turning Point As Firms Race To Modernise, Loftware Finds

supply chain

Global supply chains are entering a decisive period of transformation as companies accelerate efforts to modernise in response to geopolitical volatility, regulatory pressure and rising costs, according to new research from Loftware.

The company’s 2026 Top 5 Trends Report, based on a survey of more than 400 supply chain professionals across 55 countries, finds businesses moving urgently towards connected supplier ecosystems, real-time packaging intelligence and AI-enabled automation. These technologies, the report argues, are increasingly seen not as optional upgrades but as core infrastructure for resilience and competitiveness.

Jim Bureau, president and chief executive of Loftware, said volatility had become a permanent feature of the operating environment. “Organisations adopting connected networks, cloud platforms and AI-driven insights are not just surviving disruption but turning it into opportunity,” he said, adding that real-time visibility was now critical to anticipating shocks and responding quickly.

The findings suggest many companies remain underprepared. Citing data from Gartner, the report notes that fewer than a third of organisations are considered ready for the next wave of supply chain disruption. Financial exposure is also rising sharply. Among companies with annual revenues above $1bn, half expect tariffs or trade restrictions to cost them more than $1m over the coming year, while almost one in five anticipate an impact exceeding $10m.

In response, businesses are prioritising investments that unify fragmented supplier networks and ensure consistent, compliant product data. Nearly 70 per cent of respondents said that sharing labelling data and standards with trading partners would help them react faster to disruption. Companies already operating in more connected environments reported tangible benefits, including quicker problem resolution and lower operating costs.

Geopolitical uncertainty is also forcing a rethink of compliance strategies. Almost two-thirds of large companies said adapting product data and labelling to new tariffs or regulatory changes was difficult. As firms adopt reshoring, nearshoring and multi-sourcing strategies, cloud-based labelling systems are emerging as a critical tool for maintaining accuracy and avoiding costly delays or penalties.

Consumer expectations are adding further momentum. Smart packaging — using dynamic QR codes and real-time product information — is increasingly viewed as a way to improve traceability, reduce waste and deepen customer engagement. Respondents highlighted enhanced transparency and stronger brand trust as key benefits.

The report concludes that autonomous supply chain technologies, underpinned by SaaS platforms and AI analytics, are gaining traction. As complexity increases, Loftware argues, intelligent and self-optimising systems will play a central role in shaping the next generation of global supply chains.

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