Global supply chains becoming more connected, AI ready

Connected supplier networks, real-time packaging intelligence and AI-enabled automation are driving change in the supply chain, professionals said in a recent survey.  

Loftware, a global product identification company, found in its Top Five Trends in Supply Chain and Product Identification report for 2026 that geopolitical shifts, regulatory pressures and evolving customer expectations are causing supply chain networks to modernize to improve connectivity in anticipation of challenges. More than 400 supply chain leaders from 55 countries participated in the study. 

See also: State of Initiative: Mixed signals on AI in investment plans, production systems, survey shows 

As a result, companies are investing in strategies that unify supplier networks, ensure consistent and compliant product data and reduce the operational friction caused by siloed processes.  

Businesses reported changes like smart packaging to increase sustainability, traceability to ensure regulatory compliance, and the use of AI-driven connected systems and insights. 

For example, 69% of respondents said sharing label data and standards with trading partners would help them respond faster to disruptions, indicating that the industry is embracing more collaborative and connected networks.

Organizations that have already adopted such models reported improvements, with 48% of respondents citing faster problem resolution and 37% citing reduced operational costs.  

See also: How can manufacturing survive and thrive in the tariff era? 

Geopolitical shifts like tariffs, trade wars and stricter regulations that disrupt supply chains are driving most of the adaptations, as external events force companies to rethink how they manage costs and compliance, according to Loftware.  

Organizations continue to struggle to adapt product data and labeling processes to new tariffs or regulatory changes, with 63% of companies worth over $1 billion calling these adjustments “very” or “somewhat difficult.”  

This echoes findings in Smart Industry’s State of Initiative survey, conducted late last year. 

For example, almost 75% of respondents in the Smart Industry survey saw drastic challenges with their incoming supply chains—the kind most effected by tariffs—while 54% responded that they saw at least “some” challenges with their incoming supply chains.   

Last year, 69% of respondents reported drastic challenges while an almost identical number to this year, 56%, reported some challenges. Interestingly, this year 62% reported no changes or challenges to their incoming supply chains, while 51% said the same thing last year.  

See also: How manufacturers can unlock new supply chains through localization  

At the same time, almost 26% saw drastic challenges with their outgoing supply chains compared to 31% last year, but almost 50% in the latest State of Initiative survey saw “some” level of chaos with their outgoing supply chains whereas 44% said the same thing last year.  

According to Loftware, these challenges make shifts like multi-sourcing and cloud-based labeling more essential for accuracy and compliance across shifting supplier networks as supply chains reshore, helping companies avoid costly delays, border holds and penalties. 

Through embracing connected networks, for example, manufacturers and OEMs can quickly adjust production processes, distributors can reconcile discrepancies without manual intervention and retailers receive their desired specific products.

Features like real-time visibility and collaboration result in accelerated problem-solving while maintaining supply chain integrity, Loftware found.