Supply chain disruptions continue to erode revenue despite growing automation, report finds

A new report from supply chain software provider Cleo suggests many organizations are overestimating the effectiveness of their supply chains, even as disruptions continue to affect revenue and operations.

The 2026 Global Supply Chain Executive Report found that 63 per cent of companies believe their supply chains are operating as intended, yet 73 per cent reported losing revenue because of supply chain issues.

The report, commissioned by Cleo and conducted by Dimensional Research, found that technology-related problems contribute to revenue losses for 51 per cent of respondents. Among those affected, 65 per cent cited service-level agreement violations, chargebacks, penalties and deductions as consequences.

Supply chain issues were most commonly reported to affect between two and five per cent of total revenue.

The survey also found that 84 per cent of organizations lack end-to-end, real-time visibility across their supply chains, while 32 per cent experience supply chain software issues on a weekly basis. Ninety per cent said they are already affected by geopolitical issues or expect to be.

Artificial intelligence adoption continues to grow, with 97 per cent of respondents saying they are comfortable with AI-based recommendations. However, 69 per cent prefer AI systems that include human oversight.

“As volatility becomes a permanent operating condition, companies can no longer rely on fragmented systems, periodic fixes, or automation alone,” said Tushar Patel, CMO at Cleo. “This year’s research shows that the problem is not just disruption itself. It is the inability to coordinate data, decisions and execution quickly enough to prevent revenue loss from these disruptions.”

The report found that implementing fixes, determining root causes and identifying solutions remain the most time-consuming aspects of resolving supply chain issues, highlighting the ongoing need for manual coordination.

While automation use is increasing at 88 per cent of organizations surveyed, more than half of respondents said automation is also adding operational complexity.

The research was conducted in the first quarter of 2026 and examined supply chain operations, technology adoption, artificial intelligence and geopolitical challenges facing businesses.