Supply Chains Are Playing Defense, Not Reinventing, according to West Monroe's Quarterly Supply Chain Poll

Q2 findings reveal a "tariff tap dance" of short-term, reversible moves in response to frequently changing policies and mounting costs

CHICAGO, June 25, 2025 /PRNewswire/ -- West Monroe, a global business and technology consulting firm, today released findings from the West Monroe Quarterly Supply Chain Poll, revealing that U.S.-based industry executives are reacting quickly to fluctuating trade policies and rising input costs, but not fundamentally rethinking their supply chains. This poll tracks how business leaders are adapting their supply chains to ongoing disruption.

In Q2 2025, 250 senior leaders shared how they're managing the pressure: making quick, flexible adjustments—what West Monroe is calling the "tariff tap dance"—to stay afloat amid policy shifts, pricing volatility, and operational strain.

"Most companies are responding to trade pressures with surface-level, defensive moves in their supply chains—not full-scale reinvention. The reality is, their changes have had to be flexible enough to reverse if the policy shifts—because it has and probably will again," said Jeremy Tancredi, a partner in West Monroe's supply chain practice and co-author of the poll.

Key findings from the Q2 2025 poll include:

• Tariffs and cost pressures rise to the top issues. Tariffs jumped 12 points in impact from Q1 to become the most-cited issue, overtaking cybersecurity. Cost of materials rose 6 points.
• Moves are reactive, not structural. Most respondents are making changes that can easily be undone: 56% adjusted their product and sourcing mix, and 50% changed their transportation mix. Less popular: passing along increased cost to customers (35%) or altering geographic presence (25%).
• Supplier diversification gains urgency. The number of leaders ranking it as their top priority nearly doubled to 14%—up three spots from Q1—reflecting the need for optionality. The top priority is now cost containment, tied with inventory management, at 20%.
• Companies act fast—but only to meet the moment. Nearly half (46%) say they adjust supply chain strategy within one week of a policy shift; 17% respond within 48 hours. The types of changes that can be made in this timeframe are not structural in nature, but surface-level—reflecting short-term responsiveness to the latest situation or policy shift.

"Leaders are optimizing operations and cutting costs to preserve whatever margin they can—because frequent pivots in sourcing, logistics, and the ongoing negotiations of tariff surcharges can quickly squeeze cash flow," said Brian Pacula, also a partner in West Monroe's supply chain practice and co-author of the poll.

The Q2 poll mirrors what West Monroe hears from clients: Leaders are acting quickly to meet immediate demands, but without long-term policy clarity, they're avoiding fundamental changes—favoring frequent, tactical optimizations instead.

The West Monroe Quarterly Supply Chain Poll was conducted online June 11–15, 2025, surveying 250 U.S.-based manufacturing, retail, and distribution executives from companies with at least $500 million in annual revenue. The survey was commissioned by West Monroe and fielded by RepData LLC.

West Monroe is a trusted partner to the manufacturing industry and supply chain leaders, helping organizations build agile, tech-enabled operations that can withstand disruption and drive growth. Our team brings deep industry and technology expertise to optimize sourcing, streamline planning, and enhance resilience across the supply chain.

Download the full results of the Q2 2025 Supply Chain Poll here: https://www.westmonroe.com/insights/q2-2025-supply-chain-poll 

About West Monroe

West Monroe is a global business and technology consulting firm passionate about creating value for our clients. We co-create solutions that accelerate results now and prepare industries to tackle what's next. We're excited by the possibilities that technology creates. We work with our clients to deliver on the possible, building on their goals, generating fresh insights and creating inspiring outcomes.

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SOURCE West Monroe