ISM® and Amazon Business research finds most organizations unprepared for supply chain disruption despite strategic shift

Study shows companies are balancing cost and risk, but gaps in preparedness, data and execution persist

TEMPE, Ariz., July 14, 2026 /PRNewswire/ -- New research from Institute for Supply Management^® (ISM^®) and Amazon Business reveals that while organizations are shifting toward balancing cost efficiency and supply chain resilience, most remain unprepared to manage ongoing disruption.

While 71 percent of organizations report balancing cost and risk now drives procurement strategy, only 45 percent say they are prepared for supply chain disruptions, and 65 percent still rely on manual reporting to gather supply chain data, highlighting a widening gap between strategy and execution.

The findings, based on a survey of 425 global supply chain professionals, detailed in the white paper Balancing Cost and Risk: An Operating Model for Supply Chains, highlight this strategic gap as organizations face continued geopolitical, economic and operational volatility.

"Organizations today are operating in an environment where disruption is no longer an exception. It is an ongoing reality," said Debbie Fogel-Monnissen, ISM Interim CEO. "Leaders recognize the need to balance cost with resilience, but our research shows many are still building the capabilities to act on that insight. Closing that gap is essential to protecting performance and ensuring continuity."

Preparedness gap persists as risk environment intensifies

Despite this strategic shift, the research underscores a significant lack of readiness.

Only 45 percent of respondents say their organization is prepared for supply chain disruptions, pointing to persistent vulnerabilities across industries.

At the same time, nearly two-thirds (65 percent) of organizations rely on manual reporting to gather supply chain data, limiting speed and visibility when responding to change.

Technology adoption and risk management maturity vary

The study shows uneven adoption of procurement technologies and risk evaluation practices.

While most organizations use e-procurement platforms (58 percent) and supplier portals (51 percent), more advanced tools such as predictive analytics and risk monitoring remain less widely implemented.

Specifically, 64 percent of organizations use business impact analysis, fewer report employing more advanced methods such as risk matrices (49 percent) and scenario planning (46 percent), underscoring gaps in capability maturity.

Risk assessment continues to rely heavily on traditional measures such as financial health and quality performance, although broader risks such as cybersecurity and regulatory disruption are gaining importance.

Cybersecurity emerged as the leading risk concern among respondents, signaling the expanding scope of supply chain vulnerability.

Resilience priorities evolve, but cost strategies remain consistent

Organizations are prioritizing cost optimization, supplier diversification and risk management capabilities as they work to strengthen resilience.

However, many continue to rely on familiar cost management tactics. Long-term contracts, cited by 71 percent of respondents, remain the most common approach to managing costs during uncertainty, with larger organizations also adopting pricing and hedging strategies.

A new operating model takes shape

The research points to an emerging supply chain operating model centered on risk-adjusted decision-making.

Organizations are moving toward a broader total cost of ownership approach that incorporates service performance, process efficiency and disruption exposure alongside price.

This model is supported by four key practices:

• Diversifying supply sources
• Improving visibility across supply networks
• Accelerating decision-making cycles
• Expanding scenario planning capabilities

The research highlights that recognizing the importance of resilience is only the first step.

Organizations that succeed will be those that align strategy with execution by improving data visibility, adopting advanced technologies and enabling faster, more coordinated decision-making across the enterprise.

To explore the full findings and recommendations: download the white paper.

About Institute for Supply Management^®
Institute for Supply Management^® (ISM^®) empowers supply chain professionals at every stage of their career through world-class education, globally recognized certifications, a vibrant professional community, and the market-moving ISM^® PMI^® Reports. Founded in 1915, ISM serves a community of over 200,000 practitioners in more than 100 countries. Learn more at ismworld.org.

About Amazon Business
Amazon Business helps millions of customers worldwide—from small businesses, schools, hospitals, nonprofits, and government agencies to large enterprises with global operations—improve their purchasing processes by saving time and money, increasing productivity, and gaining deeper purchasing analytics. Purchasing managers and businesses enjoy convenient shipping options for hundreds of millions of supplies in categories such as office supplies, IT, cleaning, food, and professional medical supplies. Customers also have access to a variety of business-focused features and benefits, including a curated web experience, Business Prime, exclusive business pricing and selection, single- and multi-user business accounts, streamlined approval workflows, purchasing system integrations, payment solutions, tax breaks, and dedicated customer support. Amazon Business is currently available in the United States, Mexico, Canada, the United Kingdom, Germany, France, Italy, Spain, Japan, and India. For more information, visit the Amazon Business Storefront , the Amazon Business Blog , and @AmazonBusiness.

Contact: Jessica Boyd, 480.752.6276, ext. 3085
[email protected] 

SOURCE Institute for Supply Management