Persistent disruption has become the defining characteristic of today's supply chain environment, requiring shippers to shift from reacting to volatility to designing operations that can continuously adapt.

This is the overarching message from the 2026 State of Logistics Report, released by the Council of Supply Chain Management Professionals (CSCMP) during a recent press briefing.

For food companies, this shift is especially significant because food chains must balance speed, freshness, food safety and cost amid constant uncertainty. Fluctuating commodity prices, weather-related disruptions, evolving trade policies, labor shortages and changing consumer demand can quickly ripple through sourcing, production and distribution networks.

As a result, leading food companies are investing in technologies such as end-to-end supply chain visibility, predictive analytics, AI-driven demand forecasting and warehouse automation to anticipate disruptions before they occur, optimize inventory levels, and maintain consistent product availability. Rather than viewing resilience as a contingency plan, many food companies now see continuous adaptation as a core competitive advantage that enables them to protect margins while meeting customer expectations in an increasingly unpredictable marketplace.

Authored annually by global consulting firm Kearney and presented by Penske Logistics, the report examines the state of the U.S. economy through the lens of the supply chain sector while identifying the forces reshaping transportation, warehousing and logistics strategy.

Logistics Costs Decline, Uncertainty Remains

The report found that U.S. business logistics costs totaled $2.4 trillion in 2026, representing 7.8% of the nation's gross domestic product. By comparison, logistics costs reached $2.6 trillion, or 8.7% of GDP, the previous year.

While those figures suggest some moderation in logistics spending, the report concludes that today's operating environment is being shaped less by cyclical market conditions and more by long-term structural changes.

According to the report, five macroeconomic forces continue to redefine supply chain strategy:

1. Uneven global economic growth
2. Tightening financial conditions driven by inflation and rising public debt
3. Accelerating trade flow realignment and geopolitical shifts
4. Labor shortages and productivity constraints
5. Energy price volatility

For food manufacturers, retailers and distributors, these forces are reshaping nearly every aspect of supply chain planning, from ingredient sourcing and transportation to inventory management and customer fulfillment. Geopolitical shifts and changing trade flows are prompting companies to diversify supplier networks and source more strategically, while inflation, labor shortages and energy costs continue to pressure margins in an industry where profitability is often measured in pennies per unit. At the same time, fluctuating consumer demand and the need to maintain product freshness require food companies to balance resilience with speed and efficiency.

As a result, leading food companies like Nestlé, General Mills, Campbell’s, Sysco and Hormel Foods are investing in greater end-to-end visibility, predictive analytics, automation and more agile transportation and warehousing strategies to ensure they can respond quickly to disruptions while maintaining product availability, food safety and service levels.

Rather than viewing these challenges as temporary disruptions, the report characterizes them as enduring realities that organizations must build into future network design and operating models.

AI Moves From Experimentation to Execution

One of the report's most notable findings is that artificial intelligence (AI) has reached a commercial inflection point.

Rather than serving as a technology companies are merely exploring, AI is now delivering measurable business value in targeted supply chain applications. The report identifies four primary ways AI is creating value across logistics operations:

1. Interpreting information
2. Predicting outcomes
3. Recommending decisions
4. Executing workflows

Despite this progress, adoption remains uneven across the industry. Organizations that have integrated AI into core business processes are beginning to create a competitive advantage over companies still relying on isolated pilot projects—or those that have yet to implement AI at all.

The report also notes that labor shortages continue to accelerate investments in automation and digital technologies as organizations seek productivity improvements and operational resilience.

Resilience Takes Priority Over Efficiency

Perhaps the report's most significant takeaway for food and beverage supply chains is the shift in strategic priorities.

Rather than optimizing exclusively for efficiency, organizations are increasingly designing supply chains around resilience and adaptability.

Among the report's recommended strategic priorities are:

• Designing supply chains for resilience rather than simply minimizing cost
• Prioritizing asset productivity over expanding physical footprints
• Strengthening end-to-end visibility and decision intelligence
• Accelerating returns on digital and automation investments
• Reassessing capital structures and investment pacing in a more volatile business climate

These recommendations reflect a broader shift toward creating supply chains capable of responding quickly to ongoing market, geopolitical and operational changes.

Volatility Becomes the New Normal

Korhan Acar, Partner with Kearney and lead author of this year’s report, says today's business environment demands fundamentally different operating strategies than in previous years.

"This year's report arrives at a moment when the forces reshaping global supply chains are no longer temporary disruptions, but enduring features of the operating environment," Acar says. "Rising costs driven by energy volatility, inflation and geopolitical instability are placing pressure on margins and forcing leaders to rethink traditional operating models."

Acar adds that AI, robotics and autonomous trucking are rapidly moving beyond pilot programs into scaled commercial deployment, making profitable growth dependent upon combining resilience, intelligent logistics and disciplined execution.

In addition, organizations are increasingly looking for technology-driven solutions to manage rising costs while improving supply chain performance, says Stacy Schlachter, Senior Vice President of Sales for Penske Logistics.

"The report captures the essence of how we are helping our customers meet the realities of rising cost pressures and ongoing supply chain turbulence with the technology and solutions they need to accelerate performance," Schlachter adds.

CSCMP President and CEO Mark Baxa summarized the report's findings by noting that supply chains have entered an era of continual change.

"The supply chain of right now is incredibly complex and requires a series of constant adjustments," Baxa says. "Last year's supply chain looks different than today's supply chain. I surmise that next year's logistics network will be hardly recognizable."

For food manufacturers, retailers and logistics providers, the report reinforces a growing consensus across the industry: competitive advantage will increasingly belong to organizations that can continuously adapt to changing market conditions rather than simply recover from disruption after it occurs.

Related Articles:

• Inside the Modern Supply Chain
• How Food Shippers Adapt to Permanent Volatility in Supply Chains
• Navigating Supply Chain Challenges
• Supply Chains Have Adapted to Drive Resilience After Two Years of Volatility 

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