Supply chains are increasingly shifting from operational backbones to strategic growth enablers, but they continue to be underutilised and often lack recognition at the executive level, according to a new PwC India report. The study notes that recent shifts in the global trade and tariff environment have created both a stress test and a strategic inflection point for companies.
The report highlights that geopolitical uncertainty and changing tariffs are driving the need for adaptive and compliant supply chains. While short-term disruptions are unavoidable, PwC says these developments offer businesses an opportunity to reassess their value chains and strengthen agility, sustainability and foresight.
PwC has proposed an eight-step framework for global trade strategy, centred on diversification, localisation and digital trade intelligence, to help companies navigate rising tariff and taxation pressures.
The survey, which covered 156 respondents including CEOs and senior supply chain leaders, found that despite the growing strategic importance of supply chains, 32 per cent believe these functions remain underleveraged in enterprise decision-making.
On preparedness for supply chain shocks, only 16 per cent of respondents said their organisations were well equipped to withstand disruptions and thrive through them. In contrast, 35 per cent said their supply chains remain fragile and vulnerable.
PwC India Partner and Leader (Clients and Industries) Arnab Basu said that future supply chains will be deeply integrated across industries. “The day is fast approaching when a healthcare company will partner with a mobility provider and a technology firm to deliver personalised care at scale, enabled by a supply chain that integrates patient data, logistics and AI-driven diagnostics,” he said.
The survey also found that adoption of advanced technologies remains limited. Only 13 per cent of organisations have implemented AI use cases that deliver measurable value, and just 1 per cent have deployed generative AI. Current applications largely focus on monitoring supply chain risks and managing stakeholder communication.
Interest in digital twin technology is on the rise, with 58 per cent of business leaders planning investments in virtual replicas of supply chains within the next one to two years. These tools enable companies to simulate “what-if” scenarios and stress-test their networks.
The report identifies multiple disruptions confronting global supply chains, including geopolitical conflicts, natural disasters, pandemics and cyber security risks—all contributing to delays and rising operational costs. Meanwhile, environmental scrutiny is intensifying, with 50 per cent of global business leaders expecting ESG compliance requirements to have significant impact on their operations by 2030.
PwC concludes that supply chains are steadily moving “from backroom to boardroom.” As they evolve into regenerative, alliance-driven systems that blend sustainability, technology and customer-centricity, they are expected to become core engines of reinvention, resilience and trust for enterprises.
