AI, Virtual Twins, Investing in Resilience & Climate Adaptation Dominate
Supply chains are in a new era where disruption is the norm and agility defines success. 2026 looks set to build on 2025’s trend of building a resilient supply chain that can withstand external pressures, while affording businesses the flexibility to change things at short notice.
While the future points to autonomous supply chains powered by AI, and next-generation connectivity, many organizations are already laying the groundwork today. From predictive planning to AI-based optimization, supply chain professionals are putting these innovations into practice—building resilience, agility, and efficiency step by step. The following examples highlight how companies are turning vision into reality, demonstrating tangible impact across industries.
Here’s my take on a few of the trends that are set to dominate supply chain and manufacturing over the next 12 months.
AI in the Supply Chain
AI has rightly dominated supply chain trends lists for the last few years. With more developments being made each year, it’s more important than ever to leverage AI to improve various aspects of your supply chain. Below are a few scenarios in which I expect AI and Machine Learning to have a big impact on in 2026:
Sales and Operations Planning
AI and Machine Learning (ML) will continue to be leveraged to enhance demand forecasting in sales and operations planning. By analyzing historical sales data, market trends, and external factors such as economic indicators or weather patterns, AI models predict future product demand with high accuracy helping to reduce errors and minimize downtime.
Production Optimization
AI will be utilized to optimize master production scheduling by analyzing production data, resource availability, supply and demand. This helps in creating efficient production schedules that align with business goals and customer demands, as well as offering improved flexibility and responsiveness for manufacturers.
Inventory Planning
Businesses will look to leverage AI to optimize inventory levels by analyzing sales patterns, lead times, and supplier performance. This will help to ensure that the right amount of stock is maintained to meet customer demand without overstocking. AI can play a key role in reduced holding costs for businesses, along with improved end user service thanks to a reduced risk of stockouts.
Agility & Adaptability to Respond to Market Volatility
If 2025 taught manufacturers around the world one thing, it’s to be prepared for the unexpected. With the tariffs imposed by the US around the world, the global supply chain network was shaken to its core – highlighting the need for supply chain managers to be in a position to change plans at the drop of a hat.
We’d anticipate that the focus for many manufacturers will be to continue the process of reshoring as much of their production, operations and supply chain as possible in 2026.
It’s no secret that there has been a push for reshoring several aspects of the supply chain in recent years, and this was only accelerated by the events of 2025, with tariffs being implemented and supply chain disruption worldwide. Forbes reported that 69% of US manufacturers have started the process of reshoring their supply chains, with 94% of those reporting that this has been a success – and this trend doesn’t look to be slowing down any time soon.
Manufacturers must continue to take steps to remain agile in an increasingly volatile market, and take steps to take control of as many aspects of their supply chain as feasibly possible.
Here are just a handful of the ways in which we believe that supply chain leaders will look to build out a resilient, visible and agile supply chain in 2026:
Model the End-to-end Supply Chain
Creating a virtual twin that makes the entire supply chain visible in one place, from suppliers to production to last mile delivery. This will help to manage exceptions, reveal constraints, and trace root causes, whilst also staying synchronized with enterprise and shop floor data for real-time visibility into risks and performance. In a recent study, 3DS found that cross-operations collaboration is the #1 factor Top Performers credit for positive business – citing that having visibility throughout the process helps to drive better product quality and higher customer satisfaction.
Connect Virtual Decisions with Real-World Operations
There will also be a push toward linking virtual plans to real operations through a continuous feedback loop. Integrating virtual twin technology will enable manufacturers to translate decisions into executable actions, monitor performance across capacity, quality, WIP, inventory, and orders, then update plans to close gaps, improving service, cost, and fulfilment.
Climate Adaptation with Virtual Twin Technology
In the context of the evolving business landscape, successful supply chain management holds significant economic value, but also a huge amount of environmental value. As sustainability becomes increasingly central to organizational strategies, efficient global supply chains are crucial for maintaining relevance, expanding into new markets, and preparing for the future workforce. 2026 looks set to see more businesses looking to leverage new technologies in the supply chain to ensure they’re not only more profitable, but also more sustainable for years to come.
Companies are increasingly turning to digital technologies such as virtual twins to optimize their supply chains. These innovations have demonstrated that they unlock substantial economic benefits, including an estimated USD $1.3 trillion in additional value and significant reductions in CO2 emissions by 2030.
Optimization and planning technology, including virtual twins, revolutionizes sustainable supply chain planning by enhancing visibility and operational efficiency. Virtual universes enable businesses to rapidly design, test, and optimize new products and processes, leading to waste elimination and the avoidance of physical prototypes.
With 80% of environmental impacts hidden in the value chain, real-time carbon footprint tracking becomes crucial. Virtual twins provide comprehensive insights, allowing for sustainable sourcing optimization and material recirculation, fostering a circular economy.
Integrating these technologies grants, companies’ operational transparency, significant cost savings, and reduced CO2 emissions through optimized logistics. This ensures a competitive edge and a positive societal impact, aligning business practices with sustainability goals for a greener future.
By leveraging supply chain solutions, businesses can accelerate sustainable operations throughout their supply chain management. Through enhanced transparency, visibility, and informed decision-making, companies can optimize operations, reimagine business models, and drive innovation without compromising real-world effectiveness. This integration of digital capabilities ensures that successful supply chains not only contribute to economic prosperity, but also align with sustainability objectives, fostering a more resilient and environmentally conscious business ecosystem.