Supply chains in a changing world: Top 3 trends to watch out for in 2026

Supply chains in a protectionist world

Supply chains are navigating a world that appears to be more protectionist than ever. In 2025, we saw how quickly things shift. Surprise policy changes-for instance, volatile tariff implications-and geopolitical tensions kept global networks on the edge. Tariffs and shifting trade measures are estimated to have affected USD2.6 trillion in global imports.¹

The result? Companies are rethinking their strategies, exploring nearshoring and even deeper vertical integration. An estimated 80 per cent of executives expect to enhance their nearshoring efforts in response to geopolitical instability and global supply chain risks.²  

Leaders today are far more focused on diversification. Multi-country supplier portfolios are becoming the norm to better manage unexpected geopolitical shifts, supported by digital tools that offer real-time visibility across the chain. Companies are also building modal flexibility, preparing to shift quickly between ocean, air and rail or even hybrid models depending on cost, risk and speed. Moreover, real-time risk mapping has also become a core priority. Businesses want to detect disruptions early, understand their spilling effects and act before the impact hits production or customers. 

For India, from a policy standpoint, the story ahead is equally important. The upcoming budget is expected to push harder on strengthening India’s trade position and help companies better navigate brittle supply chains. While trade with the US (one of India’s major trading partners) has been impacted, strategic policy amendments can help in long-term growth and stability. Expanding PLI schemes, advancing trade agreements with the US and other blocs and reducing non-tariff barriers can open new avenues. If executed well, India can become a more reliable and competitive partner in future global value chains. 

Customer-centric supply chains

The dynamic nature of customer expectations is driving customer-centric supply chains. In 2026, businesses are expected to increasingly rely on customer data to tailor services according to individual preferences. About 50 per cent supply chain leaders have identified customer-centric approaches as a key solution to improving customer experience.³ These strategies support not only reactive management but also proactive planning. 

Insights drawn from consumer data are helping leaders better understand how customer choices are shaping industries. Take, for instance, electronics. When buyers want specific models faster-often around peak spending periods such as festivals-a connected supply chain can adjust production timelines, component sourcing and inventory in advance. Similarly, if customers value responsibly sourced products, a customer-centric supply chain can respond quickly by sourcing ethically and ensuring transparency while delivering. This helps increase profit margins and build long-term brand loyalty.

The booming quick commerce market-projected to grow to USD40 billion by 2030-reflects this shift.⁴ Consumer demand has rapidly shifted from weekly deliveries to same-day and even 10-minute deliveries, extending beyond groceries to large product categories. Companies are investing heavily to cater to the growing hyperlocal and time-sensitive customer demands. For instance, a global e-commerce brand is set to pour billions to expand in the fast-growing quick commerce space, where competition is intensifying by the day. Today, with quick commerce, companies are closer to their customers. Its speed and direct access to demand data allow businesses to experiment with products, understand what works and use those learnings to plan production more efficiently, which is helping supply chains become more customer centric.  

Emerging tech and AI: The next big bets

While emerging tech has already become integral in supply chain management, 2026 will see businesses delve deeper into their applications. For instance, generative and agentic AI are expected to see growing use. GenAI can be used to turn complex data into simple, usable insights for faster decision-making. Agentic AI takes it further as it can go beyond traditional tools, offering autonomous solutions. For instance, it can continuously monitor supplier information, shipment timelines, inventory management and compliance updates, giving teams real-time output and intelligence without manual effort. It can also automate several processes, which traditional tools could not. Studies show that over 80 per cent of organisations plan to use some form of AI for applications such as demand forecasting, inventory management and supply chain network design.⁵ Further, over 76 per cent organisations believe that AI agents can be used to manage tasks such as automatic reordering and shipment rerouting.⁶

The year ahead

As we approach 2026, a few other shifts will increasingly shape supply chains. Sustainability will see more concrete execution, with a focus on green sourcing, packaging and logistics. Upskilling and reskilling will be central to organisations’ talent strategy. And collaboration across suppliers, partners and governments will be essential to build resilient networks. 

What remains to be seen is how quickly can organisations adapt. Can they manage unforeseen risks better and strengthen their supply chains? Will tariffs play further spoilsport? While no one knows what’s coming, one thing is certain: businesses must be agile to remain resilient.