This article will cover:
Findings from the 2026 MHI Annual Industry Report, including the top supply chain challenges and the most disruptive technologies.
Key investment areas to improve supply chain orchestration.
How SPS Commerce helps supply chain leaders orchestrate data, decisions, and relationships.
The role MAX plays in reducing supply chain friction and saving time and money.
From geopolitical volatility to technology changes, supply chain organizations can rely on one thing: unpredictability. With so much disruption and uncertainty, supply chain leaders are trying to figure out how to use innovation investments to tackle top supply chain challenges and achieve long-term supply chain performance gains.
The recently released 2026 MHI Annual Industry Report identified the following top five supply chain challenges:
- Talent acquisition and workforce challenges
- Accurate forecasting and inventory management
- Meeting evolving customer demands
- Managing cyber risks and competitive pressures
- Supply chain synchronization and visibility
In the midst of these challenges, more than half of supply chain leaders plan to increase their investments in technology innovations, with 52% spending over $1 million and 17% investing more than $10 million.
Unsurprisingly, AI is considered to be the most disruptive technology for the next decade. Nearly half (48%) of respondents categorized AI’s disruptive impact as “significant” or “transformational,” an increase of 25 percentage points since last year's survey. And a whopping 88% of companies are either currently using AI or plan to within the next five years.
The report outlined current and predicted uses of AI within the next two years, including:
Enhancing demand/inventory optimization
Automating decision-making in operations
Streamlining supplier and procurement processes
Detecting and mitigating risks in real time
Personalizing customer experiences/order fulfillment
Accelerating design/prototyping with digital twins
But simply adopting AI, robotics or automation (the close runner-up for the position of top disruptive technology), or any other technology won’t magically create coordinated workflows. Instead, the report names the need for “disciplined operational assessment, intelligent coordination of decisions, and scalable execution across people, processes, and systems.”
In other words, supply chain leaders must shift their focus to supply chain orchestration, bringing together top technology, clean data, and expert support to improve resilience, speed, and decision-making.
Related Reading: AI In Retail: How Artificial Intelligence is Reforming the Supply Chain
Supply Chain Orchestration
If supply chain orchestration is the goal, assessing and addressing the biggest friction points (manual data entry, disconnected systems, data delays, etc.) in your order management process is a great place to start. You may have systems in place to help with elements of your supply chain, but if those don’t communicate with each other, you’re losing valuable time switching between platforms and reconciling data manually.
These gaps in your process present opportunities for greater efficiency. But where should you concentrate your investment? Each business is unique, and it may take some close inspection to identify your biggest opportunities for growth.
Related Reading: Risk Audits for Your Retail Business
Key Areas for Supply Chain Investment
Embrace an Omnichannel Strategy
As the third challenge named by MHI hints, today’s shoppers have set the bar high. Customers expect a consistent experience across every channel, whether they’re buying online, in store, or through a retail partner. Investing in an omnichannel strategy ensures customers can always find what they want, where they want it.
Brands that use integrated systems to manage multiple channels build stronger relationships with both retailers and customers, leading to repeat business and faster fulfillment.
Related Reading: What Is an Omnichannel Strategy and Why Do I Need One?
Connect and Optimize Your Systems
Disconnected systems create blind spots. Without shared data across your platforms, you can’t see the full picture of your operations, making it harder to spot trends or respond to disruptions.
The 2026 MHI report highlights that 85% of companies are either currently using cloud computing or plan to within the next five years. Centralized, secure data allows for improved visibility, better forecasting, faster response times, and smarter business decisions.
Maintain Consistent Item Data
Accurate, comprehensive item data gives consumers the confidence they need to make a purchase in a digital aisle. When product details are missing or inaccurate, consumers lose confidence and will likely turn elsewhere to get what they need. Up-to-date item data also helps ensure your products are launched online and in stores when your retail partners need them.
Invest the time and resources needed to do a thorough evaluation of your item data. Where is it stored? Who manages and maintains the data? What technology is being used, and could it be improved? Clean, connected data not only improves sales but also strengthens trust across your network.
Manage Your Inventory
Accurate forecasting and inventory management is a top challenge faced by supply chain leaders. Inventory mistakes lead to lost sales, frustrated customers, and damage to your brand. Staying ahead of shifting demand while preventing overstocks and stockouts is a constant challenge.
You need real-time metrics and sales data to help inform your inventory decisions. If the logistics of collecting, verifying, and displaying this kind of data isn’t within your wheelhouse, consider investing in a tool to help you monitor sales trends. You’ll be in good company, as the MHI report noted that 86% of companies are either currently using advanced analytics or plan to within the next five years.
Real-time insights into sales, demand, and replenishment allow you to balance supply with customer needs, minimizing waste, and improving margins.
Related Reading: Smart Moves: Key Inventory Management Strategies
Streamline Fulfillment
You’ll also want to consider your fulfillment and warehousing processes. How complicated are your shipping and warehousing operations? Are orders accurate and on time?
Complex fulfillment processes can slow growth and increase costs. The MHI report found that the adoption of automation and robotics continues to be important, with 73% of respondents either currently using automation and robotics or planning to within the next five years.
Whether you’re a brand or a retailer, automated fulfillment and shipping solutions reduce manual errors and accelerate delivery.
Automate Revenue Recovery
Revenue recovery automation helps brands find and fix leaks caused by inaccurate invoices, chargebacks, or missed deductions. By auditing transactions and resolving errors automatically, companies protect margins and improve transparency with retail partners.
Related Reading: The Impact of Retailer Deductions
Tap Into a Complete Suite of Supply Chain Solutions
It takes money to invest in new technology, but choosing to proceed with business as usual comes with its own costs. Addressing the top supply chain challenges named by MHI cannot happen without taking steps to improve supply chain orchestration. And in a competitive market, inaction can be the most expensive choice.
SPS Commerce offers solutions that help businesses orchestrate the data, decisions, and relationships needed to get the right product to the right place at the right time. We can help you:
Build an AI-ready data foundation.
Automate workflows with intelligent coordination.
Turn network intelligence into predictive insights.
SPS MAX
Partnering with SPS also gives you access to MAX, a new set of AI capabilities embedded into the SPS agentic supply chain network. Unlike standalone tools, MAX works inside the workflows customers already use each day. By combining decades of supply chain expertise, proprietary network intelligence, 300,000 trading connections, and billions of transactions, MAX helps customers:
Reduce friction across trading partner relationships by spotting risks early, guiding next steps, and automating routine work.
Avoid costly issues like chargebacks, rejected shipments, and missed requirements.
Save time and improve operational performance by continuously monitoring activity and surfacing what matters most.
Let SPS take the heavy lifting out of supply chain orchestration. We’re ready to help.
