Q2 Poll: Why Most Companies Aren’t Rethinking Their Supply Chains—Yet

Tariffs and input costs became the top two supply chain issues for leaders this quarter—overtaking cybersecurity from Q1. As these pressures intensified, companies scrambled to respond. But so far, they’re not fundamentally rewriting global supply chains or trade—just making surface-level shifts to buy time.

Why? In just one quarter, companies had to adapt to a cascade of policy shifts—some of which reversed previous ones. From “Liberation Day” on April 2 through the end of Q2 on June 30, 2025, the number of policy shifts and swings have been nearly impossible to keep up with. And long-term certainty remains elusive.

It may appear that companies are making significant supply chain shifts. But behind the scenes, the actions they're taking are meant to be reversed. That’s the primary takeaway from the 250 U.S.-based industry leaders polled in Q2 across manufacturing, retail, and distribution.

“You can’t blame them—they’re using the tools they have to make the changes required in the moment,” said Jeremy Tancredi, a partner and leader in West Monroe’s supply chain practice.

Tariffs Drive Major Shift in Focus—Emphasizing Cost Efficiency and Control

This quarter’s data shows a clear shakeup in what supply chain leaders are focused on. Tariffs surged 12 percentage points to become the most-cited issue, overtaking cybersecurity, which held the top spot in Q1. Input costs also rose 6 points, reinforcing the shift toward cost containment. In fact, cost containment jumped from the bottom of the priority list in Q1 to tie for the top spot in Q2 alongside inventory management.

We’re calling it the Tariff Tap Dance—a moment where companies are shifting strategies not to transform but to tactically respond to fast-changing policy pressures. It’s choreography designed to adapt today and reverse tomorrow if necessary.

Axios reported on this on May 30, noting that the global trade system can be upended at any moment from a variety of factors—a court ruling, a new tariff announcement, or even a social media post.

More Tactical Moves and Less Transformation in Supply Chains

To address the rising pressures from tariffs, leaders are leaning on two primary tactics:

• 56% adjusted their product and sourcing mix
• 50% altered their transportation mix

These actions mirror Q1 behavior, but the motivation has changed—tariffs, not fundamental supply chain optimization, are now driving decision-making

“Most companies aren’t reinventing their supply chains—they’re making tactical shifts to navigate tariff pressures,” Tancredi said. “But even tactical moves require exceptional data, agility, and best-in-class inventory management to stay one step ahead.”

To make more frequent adjustments, supplier diversification is becoming increasingly important. That’s likely why it’s gaining momentum: the number of leaders ranking it as their top supply chain priority nearly doubled from last quarter to 14%, pushing it up three spots on the list.

Rapid movement—without real progress

Speed remains a hallmark of modern supply chain strategy. According to our Q2 poll, 46% of leaders say they respond to new policy within a week—and 17% react within just 24 to 48 hours. But fast doesn’t always mean forward. In fact, many leaders are moving quickly just to stand still.

Consider this: While inventory increases slowed slightly in Q2, 3x as many companies reduced inventory compared to Q1. That suggests growing divergence in strategies—and more reactive behavior in response to tariff-driven uncertainty.

The real risk here isn’t just strategic stagnation—it’s financial. When companies shuffle sourcing strategies and transportation modes every time a new tariff hits, the impact goes straight to the balance sheet.

“Executives may be split on whether tariffs are helping or hurting, but one thing is clear: the volatility is real,” said Brian Pacula, a partner in West Monroe’s supply chain practice.

More evidence: Around half of exporters anticipate longer payment terms and increased non-payment risk, according to another recent study, the Allianz Trade Global Survey, from May 2025.

What’s next: From tap dance to transformation

Industry leaders are doing what they need to do to stay in motion. But motion is not momentum. What’s missing is a clear pivot from cost-hedging to long-term value creation. Our Q2 data suggests that while companies are doubling down on sourcing agility, they’re still not restructuring supply chains at a foundational level.

Case in point: More companies are planning to expand their global sourcing and supply chain operations than reduce them—yet few are making structural changes to how those systems operate. This signals optionality, not reinvention.

Pivoting toward reinvention over optionality would mean:

• Strengthening supplier relationships beyond diversification
• Investing in real-time analytics to support faster decision-making
• Treating AI as a transformation tool, not just an optimization layer

About the West Monroe Quarterly Supply Chain Poll

The West Monroe Quarterly Supply Chain Poll surveys 250 industry leaders across manufacturing, retail, and distribution to track how they’re responding to disruption in real time. The survey is commissioned by West Monroe and fielded online by RepData LLC. Only director+ titles in U.S.-based companies with at least $500 million in annual revenue qualify.

West Monroe’s supply chain team is a group of experienced operators and technologists who help clients build smarter, more resilient, and data-driven supply chains. For questions about the poll, please reach out to the firm’s External Communication Director Christina Galoozis.

*The Q2 poll was taken June 11-15, 2025.

*The Q1 poll was taken March 18-24, 2025.

Click here to download the full Q2 results.