Global supply chains continue to face significant visibility challenges, even as organisations step up efforts around sustainability and supplier governance, according to new research released by Achilles.
The findings, part of the Achilles Global Supplier Risk and Sustainability Survey, are based on responses from 2,805 organisations across sectors including construction, energy, manufacturing, transport and the public sector.
The report highlights that only 6% of organisations have full visibility into Tier-2 and Tier-3 suppliers, while nearly half report limited or no visibility beyond their immediate supplier base. This lack of transparency is emerging as a critical risk as supply chains grow more complex and increasingly exposed to regulatory, operational and environmental pressures.
Trust in supplier-reported data also remains low, with just 18% of organisations expressing strong confidence in the accuracy of safety data provided by suppliers.
Regulation emerges as key driver
The survey finds that regulatory and legislative requirements have overtaken carbon reduction goals and customer expectations as the primary driver of sustainability initiatives. However, more than 75% of respondents said inconsistent national regulations are impacting their ability to maintain uniform supplier standards across borders.
With governments tightening compliance frameworks, organisations are under increasing pressure to demonstrate traceability, due diligence and continuous monitoring across extended supplier networks.
Concerns over supplier capacity and readiness
The report also points to growing concerns around supplier availability and preparedness. Nearly 60% of organisations cited risks related to the long-term availability of specialised suppliers, reflecting mounting strain in critical supply markets.
At the same time, 64% of respondents believe their suppliers are only moderately or mostly prepared to meet rising environmental and safety standards, while just 11% consider them fully prepared.
Need for structured risk management frameworks
Commenting on the findings, Adam Whitfield, Head of Global Compliance and ESG at Achilles, said supply chains are becoming “more complex, more interconnected and more exposed to disruption,” increasing pressure on organisations to ensure transparency and accountability.
He emphasised that limited visibility across extended supplier networks creates uncertainty at a time when organisations require greater oversight to manage evolving risks.
The report underscores the need for structured supplier data, consistent governance frameworks and continuous monitoring systems to enable early identification and mitigation of risks.
AI adoption gaining traction, but challenges persist
The survey also highlights growing interest in the use of artificial intelligence for supplier risk management. While many organisations are exploring AI-driven tools to enhance monitoring and decision-making, adoption remains constrained by fragmented data systems, legacy platforms and lack of integration.
According to the report, organisations with more mature governance structures and well-organised supplier data are better positioned to scale AI-driven risk management solutions.
Overall, the findings point to a widening gap between companies with advanced, scalable supplier risk frameworks and those still relying on fragmented or manual processes. As supply chains expand across jurisdictions and regulatory regimes, procurement leaders are being pushed to deliver greater transparency, stronger oversight and improved resilience.
