Supply chain and procurement insights based on real market conversations between January 2026 and March 2026
This quarterly update brings together recent conversations across supply chain, procurement, operations, and manufacturing leaders. The focus is on how organisations are driving operational efficiency, strengthening resilience, and navigating a more complex risk environment across Europe and beyond.
Across sectors, supply chain and procurement functions remain central to organisational competitiveness. Businesses are prioritising cost optimisation, process simplification, and workforce efficiency as they respond to economic pressure, geopolitical uncertainty, and changing demand patterns.
At the same time, many organisations are shifting focus away from simply investing in new technologies and towards extracting greater value from existing capabilities, simplifying processes, improving visibility, and ensuring operations can respond to disruption in real time.
From what I’m seeing and hearing in the market, the way global businesses think about risk is evolving.
Organisations are reassessing exposure across supply chains, energy markets, and critical raw materials. Even with expectations that trade tensions may ease in some areas, regionalisation continues at pace, building on trends that accelerated through 2025. Nearshoring, supplier diversification, and regional manufacturing footprints remain central to resilience strategies.
Procurement is increasingly at the centre of this shift. As supplier consolidation and acquisition activity reshape supply markets, organisations are placing greater emphasis on supplier segmentation, risk visibility, and stronger commercial partnerships.
Technology continues to play a role, particularly through ERP upgrades, planning tools, and automation. However, the focus is increasingly on operational execution rather than technology adoption alone.
Manufacturing
Manufacturing organisations are undergoing significant operational change. Restructuring programmes are driving more project-based operating models, while distribution networks and manufacturing footprints are being rationalised to reduce costs and improve quality control. Nearshoring and supply chain optimisation remain key priorities, with procurement increasingly focused on supplier consolidation, strategic sourcing, and stronger supplier ecosystems. ERP modernisation and process mapping are unlocking efficiency gains across the end-to-end value chain.
Pharmaceutical operations
In pharmaceuticals, supply chain transformation continues to be driven by digitisation, outsourcing strategies, and talent development. Automation and AI are increasingly integrated into planning, forecasting, and logistics processes, with many organisations working towards more “touchless” operations. Translating investment into measurable outcomes remains a challenge: 56% report no tangible returns from AI investments, while only 12% report both cost and revenue benefits. Companies are strengthening leadership pipelines through cross-sector recruitment and strategic workforce planning to support complex global networks.
Engineering & industrial operations
Engineering and industrial businesses are reorganising operational structures to respond to fluctuating demand. Planning, logistics, and operational execution functions are increasingly separated to improve performance management. Digitisation and integrated planning tools enhance visibility across procurement, production, and distribution. Regionalisation is shaping talent and operational models, with flexibility, hybrid working, and lifestyle considerations helping attract critical leadership.
Battery materials & advanced manufacturing
The battery materials sector faces intense global competition and market volatility. Organisations are recalibrating investment strategies, right-sizing operations, and focusing on operational agility. Procurement plays a strategic role in securing critical raw materials, diversifying supplier bases, and meeting local content requirements. Automation, digitisation, and blended talent models help maintain competitiveness while managing cost pressures.
Several themes continue to shape procurement, supply chain, and operations priorities:
Digitisation & automation
ERP modernisation, advanced analytics, and automation are improving planning accuracy, streamlining procurement processes, and moving organisations closer to touchless operations.
Cost optimisation
Structural savings programmes, operational streamlining, and footprint rationalisation remain central to improving profitability in a challenging economic environment.
Procurement & supplier strategy
Supplier consolidation, segmentation, and strategic partnerships are increasingly important. Organisations are embedding risk management into procurement and supply chain strategy, addressing cyber threats, regulatory shifts, and market volatility to strengthen resilience and agility.
Talent & workforce efficiency
Strategic workforce planning and blended talent models, combining internal capability with external expertise, enable flexibility while strengthening leadership across procurement and supply chain.
Regionalisation & supply chain resilience
Nearshoring, regional manufacturing hubs, and diversified supplier networks continue to shape long-term strategy and improve operational robustness.
Integrated risk management
Cyber risk, regulatory change, and market disruption are now central to end-to-end supply chain and procurement strategies. 31% of CEOs cite cyber threats as a major concern, and organisations are aligning teams across procurement, supply chain, and operations to manage disruption and maintain performance.
Confidence across the market appears to be gradually improving, with cautious optimism for operational recovery and growth.
What stands out is the increasing need for leaders who can operate across the end-to-end value chain, combining procurement expertise, supply chain strategy, and operational execution. Technology will remain an enabler, but the differentiator is translating strategy into outcomes: managing risk, extracting value from technology investments, and building resilient supply ecosystems.
As global competition intensifies and regulatory uncertainty continues, organisations that align procurement, supply chain, and operations into a cohesive strategy will be best positioned to drive sustainable value.
Written by James Gherardi, Director and Gareth Paul, Senior Director in BIE’s Supply Chain & Procurement Leadership Team.
