Risk fragmentation sees four-in-five companies facing supply shortages

Geopolitical tensions, cyber threats, tariffs, cost volatility, and supply shortages are no longer isolated challenges, they are occurring simultaneously – and it is putting supply chains under historic pressure. However, while the number of companies facing shortages has risen by almost a third in the last two years, professionals also show signs of adapting to this new normal, as Inverto research shows the severity of these shortages is falling.

A tumultuous last decade on the global stage has seen the procurement function face a myriad of complex challenges, that seem to grow by the day. In the wake of Britain’s departure from the EU, and the US’ punitive tariffs and aggressive foreign policy shattering the previous globalised order – among other major conflicts – supply chains have also had to contend with pandemic measures, heightened inflation, and cyber-security threats continuously.

In this context, it might not come as a surprise to learn that Inverto’s 2026 Risk & Resilience Study therefore finds bosses are feeling the pressure, when it comes to maintaining the necessary supply of key resources for their organisations. Polling 411 senior executives across Europe, Inverto – which is a Boston Consulting Group company – discovered supply shortages had affected 83% of respondents in the last six months; rising from an already-alarming 57% in 2024.

When asked what were the top causes of this disruption, the leaders painted a disjointed picture of the global procurement picture. A 30% portion of those polled said disruptions to the supply chain were the top cause for delays. That is actually less than the 49% who cited it as a top challenge in 2024 – when it was only second in the list to capacity bottlenecks at suppliers, cited by 51%.

Capacity bottlenecks might be even broader and more persistent now, but they have fallen significantly in the list of challenges – pointed to by 27% of respondents – in third place. Now, war disruption has risen starkly up the agenda – with 29% of respondents suggesting it is a main reason for supply chain shortages. Two years ago, it did not place in the top four – and has pushed climate-related impacts (which have certainly not lessened in the meantime) down the ranking.

Be prepared

Even so, though, professionals are far from defeated by the current trading environment. While the number saying they had encountered supply shortages has risen the impacts seem to have diminished. When comparing the impact of this year’s shortages with last, only 4% said things had become worse – while a majority of 61% said they felt that things were better, with recent shortages having ‘eased’.

What has made the difference, in this case? How is it that businesses can feel more exposed to supply shortages, and yet feel as though shortages have still eased? According to Inverto’s researchers, the adoption of digital tools has been key to weathering the storm, and adapting to challenges in an agile fashion.

The researchers found that 67% of procurement organisations have invested in digital tools – up from 46% in 2024. This includes 52% who have implemented early-warning systems – meaning they can respond to the next crisis in real-time, and plan accordingly – while just under half have also implemented a cross-functional risk management committee, and integrated AI into their existing system. There is still a danger here, however, that firms may develop a false sense of security. Many firms only mobilise after disruption hits – and have not built mindsets and capabilities to act before risks escalate. To that end, 84% firms systematically evaluate and assess risks – but that is actually a decline from 86% two years ago.

To combat this, Inverto recommends working to create a proactive, AI-powered early-warning system beyond current standards. To do this, it concludes firms should “consolidate fragmented activities into one risk control tower with named owners”; “deploy AI signal detection across geopolitics, supplier-financial, cyber and climate”; and finally “institutionalise scenario stress-testing for the top risk categories.”