NEW research from consultancy Prological has revealed “a distinct divide” in the Australian supply chain sector between senior executives prioritising future growth and middle management struggling with rising costs and immediate economic pain.
The Prological Supply Chain Pulse Check Survey 2026 surveyed more than 200 professionals across supply chain, logistics, manufacturing, retail, and operations.
The survey documented almost 55% of respondents citing cost reduction as a top priority, but this dropped among the higher echelons (C-suite executives) and business owners who focused on enabling future growth.
According to the authors, the divergence exposed “the tension facing supply chain leaders”.
“Operations teams navigate constant pressure to control costs, while boards and executive leadership need to position for growth years ahead—often with limited visibility into the daily cost battles their teams are fighting,” the report stated.
Key findings included:
International trade and tariffs emerged as the largest challenge for 29% of respondents, displacing inventory management from the top three.
Staff shortages remained the second biggest challenge at 44%.
Supply chain visibility remained a critical weakness, with just 9% of organisations reporting high visibility across their operations.
Automation investment increased in 2025, with 43% of organisations boosting spending.
Some 54% said they planned to increase automation investment in 2026, with smaller organisations in the 51-100 employee segment keen to showing particular momentum as modular solutions become more accessible.
Prological managing director Peter Jones said they were seeing “a clear performance gap emerge between organisations that are building for adaptability and those still waiting for things to settle down”.
“The businesses pulling ahead aren't just managing costs – they're also investing in the capabilities and infrastructure that create competitive advantage in an environment where disruption is constant,” Mr Jones said.
“Our 2026 Pulse Check story shows that organisations are not waiting for things to return to ‘normal’ but are looking to create strategies to thrive in these conditions.”
Chief executive and managing director of the Australian Logistics Council, Hermione Parsons, said it was important to see the full context.
“Managing costs and enabling strategic business growth are inseparable priorities. CEOs have the complex task of aligning operational and executive functions around this dual focus," she said.
Dr Parsons said a perceived divergence between executive leadership prioritising growth and middle management and operational teams focusing on cost control did not reflect the reality of supply chain leadership.
"These are complementary responsibilities, not a disconnect," she said.
"C-suite executives are fully aware of rising costs, workforce shortages, and operational pressures. At the same time, they are responsible for ensuring long-term growth.
"Operational managers focus on cost efficiency, performance optimisation, and day-to-day resilience. Both functions are essential and mutually reinforcing : you cannot secure growth without managing costs, and cost management is ineffective without strategic investment."