Supply chains coping with “managed volatility” as new year nears

As they prepare to enter 2026, many supply chains are still operating in a state of “managed volatility” rather than true stability, according to a market insight paper from systems integrator Dematic.That turbulence is driven by tariff regimes, energy and transportation costs, and climate-related disruption. Despite the rising risk, most operators are responding with targeted moves —such as sourcing shifts, inventory timing, and brownfield upgrades — rather than wholesale network overhauls, Dematic says.At the same time, productivity and supply chain efficiency are being elevated as core profit levers, with automation and digital tools increasingly framed as structural, not discretionary, investments. Against that backdrop, large capital programs in sectors such as pharmaceuticals are building end-to-end capacity at an unprecedented scale. In contrast, retailers and consumer brands are rationalizing legacy nodes in favor of more flexible, multi-use facilities.The Dematic report says the signal is clear for warehouse and logistics professionals: the winners in 2026 will be those who can flex capacity, move inventory with intent, and extract more throughput from both people and assets without sacrificing resilience.According to the report, those lessons apply over five specific areas:Automation Is Reshaping Warehouse Jobs. Data shows that warehousing ranks among the lowest-quality job categories in the U.S., with just 26% of employees in quality jobs, compared with 53% in professional services and 49% in wholesale trade.Inventory Once Again Serves as the First Line of Defense. Companies are actively using inventory as a shock absorber against tariffs and demand uncertainty, pulling pulling shipments forward into key…

Continue reading →