73% of companies lose revenue from supply chain issues despite 63% saying operations are working as intended

New research reveals execution failures, rising complexity, and mounting revenue loss are accelerating the shift to AI-native supply chain orchestration

Cleo, the global leader in AI-native supply chain orchestration solutions through its Cleo Integration Cloud (CIC) platform, today released its 2026 Global Supply Chain Executive Report, revealing a major disconnect between how companies perceive supply chain performance and what they are actually delivering operationally. While 63% of companies say their supply chain operates as intended, 73% report losing revenue due to supply chain issues. The findings point to a growing gap between supply chain design and day-to-day operations, driven by persistent disruptions in execution.

Titled, “Beneath the Paradigm Shift: Why Supply Chain Orchestration Is the Next Frontier,” the report was conducted by Dimensional Research® and commissioned by Cleo. Core findings show supply chain disruptions are not just causing delays, they are creating measurable financial consequences. More than half (51%) of respondents say technology-related issues contribute to revenue loss, and among those affected, 65% cite SLA violations, chargebacks, penalties, and deductions as a result. Supply chain issues are typically reported to impact 2–5% of total revenue, making them a major driver of margin erosion.

Additional findings from the report include:

- 32% say supply chain software issues occur weekly

- 84% don’t have end-to-end, real-time visibility from order through return

- 90% of organizations are already affected by geopolitical issues or expect to be

- 97% are comfortable with AI-based recommendations, 69% want AI with human oversight (“human-in-the-loop”)

“As volatility becomes a permanent operating condition, companies can no longer rely on fragmented systems, periodic fixes, or automation alone,” said Tushar Patel, CMO at Cleo. “This year’s research shows that the problem is not just disruption itself. It is the inability to coordinate data, decisions, and execution quickly enough to prevent revenue loss from these disruptions. That is why supply chain orchestration, accelerated by AI, is gaining momentum. Businesses need a more connected, real-time operating model that transforms disparate transactions into intelligence that drives smarter, proactive actions.”

The report also found that even when companies can detect supply chain issues, resolving them remains a major challenge. Respondents say the most time-consuming parts of issue resolution are implementing fixes (60%), determining root causes (58%), and identifying possible solutions (55%), underscoring how much manual coordination is still required to keep disruptions from turning into revenue loss.

While external pressures remain a factor, the research suggests the more immediate challenge for many organizations is internal coordination. Automation adoption continues to rise, with 88% of respondents saying automation use is increasing, yet 55% say automation is also increasing operational complexity. In other words, companies are adding more technology, but it’s not necessarily making execution easier. Real-time visibility remains limited, even as automation expands.

As organizations look ahead, the findings point to a broader operating model shift. Companies are moving beyond isolated automation and traditional integration toward a more coordinated, real-time approach that can connect systems, standardize data, improve decision-making, and reduce the financial impact of supply chain disruptions. In that environment, supply chain orchestration is emerging as the mechanism that helps turn fragmented workflows into intelligent action.