The Federal Reserve Bank of New York reports continued improvement in global supply chain reliability through its Global Supply Chain Pressure Index. While overall conditions have normalized, several cost pressures remain, including transportation expenses, commodity volatility, and supplier pricing adjustments.
For controllers and CFOs, this combination of stability and cost uncertainty creates new planning considerations for the year ahead.
Improved Reliability Supports Operational Continuity
Organizations are experiencing fewer delays, shorter production cycles, and more predictable lead times compared with the disruptions of recent years. This improvement enables more accurate inventory planning, production scheduling, and procurement coordination.
Improved reliability also strengthens forecasting accuracy, particularly for teams that model inventory turnover, seasonal demand, and cash conversion cycles.
Cost Pressures Require Continued Attention
While reliability has improved, cost volatility persists. Commodity prices, transportation surcharges, and supplier adjustments continue to influence margins. This makes cost monitoring and supplier negotiations critical components of 2026 planning.
Finance teams may also reassess pricing strategies or revise cost allocation models to reflect current market conditions. Linking cost analysis to broader operational plans helps identify areas where efficiency improvements can offset expected volatility.
Supplier Stability Should Still Be Monitored
Greater reliability in global supply chains does not eliminate financial instability among vendors or logistics partners. Finance teams should continue evaluating supplier financial health, contract terms, and potential substitution strategies.
These assessments also support scenario planning activities, especially when organizations depend heavily on a limited number of strategic suppliers.
Inventory Practices Are Evolving
Many organizations are transitioning away from the safety stock levels used during the peak disruption years. Controllers can gradually update inventory targets based on current reliability metrics while maintaining safeguards against sudden market shifts.
These adjustments support more efficient use of working capital and reflect the balanced approach many finance teams are taking toward 2026 planning.
Building Stable Operations in an Evolving Supply Landscape
Supply chain conditions are more stable, but cost volatility remains a meaningful variable. Finance leaders who monitor supplier health, evaluate cost trends, and adjust inventory practices will be better positioned to maintain margin stability and operational continuity.
