The Chartered Institute of Procurement and Supply (CIPS) warned that the risks to global supply chains remain at high levels, despite the relative decline in concerns compared to previous months, stressing that companies are adapting to a long period of global instability instead of waiting for the trade situation to return to what it was before the Corona pandemic.
And the Pulse Supply Chain Survey for the second quarter of 2026 showed that short-term concerns about supply chain disruptions fell below the record levels recorded at the beginning of this year, but that, in addition to long-term risks, they are still among the highest levels monitored by the Institute since the start of these surveys.
Middle East at the forefront of risk
And the conflict in the Middle East is the biggest concern for procurement workers around the world, with 75% of respondents identifying it as the biggest threat to global supply chains.
And global geopolitical tensions came in second place with 67%, while 33% believed that the continuation of the war in Ukraine remains one of the most prominent risk factors.
And while these conflicts occur outside the South African region, they directly affect shipping routes, transport costs, energy markets and supplier availability, which is reflected in companies around the world.
Increased risks for import-dependent economies
And the economies of South Africa and neighboring countries face particular fragility as a result of their heavy reliance on imports of fuel, industrial equipment, chemicals, medicines and manufacturing inputs, at a time when key sectors such as mining, agriculture, the automotive industry and retail trade depend on the efficiency of global transport and logistics networks.
These results confirm that any disruption in global supply chains is directly reflected in the cost of production, commodity prices and the continuity of economic activity.
Cybersecurity is ahead of transportation crises
And the survey revealed a remarkable shift in the nature of risks, as cybersecurity has become one of the top three expected threats to supply chains over the next twelve months, surpassing for the first time logistics disruptions.
And procurement experts have warned that cyber attacks targeting suppliers, carriers or critical infrastructure could bring production lines to a halt and delay deliveries within a short period.
persistent inflationary pressures
And while inflationary pressures have eased in some sectors, procurement leaders expect input costs to continue to rise by more than 10% in a number of critical sectors, most notably:
Shipping and logistics.
oil, energy and mining.
Chemical and pharmaceutical industries.
Food and beverage industries.
metallurgical industries.
This is expected to lead to higher transport costs, higher prices for imported goods and production inputs, as well as higher food prices and increased cost of mining operations.
Flexibility rather than cost reduction
And companies are no longer focused on cutting costs, the report said, but strengthening supply chain resilience has become a strategic priority.
The most prominent measures currently adopted by institutions include:
Diversify the supplier network.
Extension of supply contracts.
Maintain additional stocks to ensure continuity of supplies.
The report argues that these policies give companies greater resilience to future shocks and reduce the effects of sudden crises.
A radical shift in the role of procurement
CIPS South Africa Regional Director Paul Voss said the survey results reflect the reality faced by procurement officials in the region.
He added that the business environment has become more volatile, and it is no longer possible to assume that global supply chains will automatically return to their previous nature.
He stressed that procurement departments are no longer just a tool for controlling expenses, but have become a strategic function that contributes to enhancing the competitiveness of enterprises by building broader networks of suppliers, increasing reliance on regional sources, and improving visibility across the various stages of the supply chain.
And institutions that invest in building more resilient supply chains will benefit most from the expansion of intra-African trade under the African Continental Free Trade Area (AfCFTA) agreement, and will be better able to weather future disruptions.
Global trade enters a new phase
Global CEO Ben Farrell said international trade is undergoing a radical transformation.
And he explained that the global trading system that companies have become accustomed to during the past decades has changed significantly, with the increasing trend towards regionalization and the reshaping of globalization, stressing that institutions that succeed in building strong regional partnerships will be the most able to grow in the next stage.
U.S. tariffs increase uncertainty
The survey also showed that a third of businesses are already being affected by the ongoing changes in US tariff policies, while 37% of companies are following those developments closely, with continued uncertainty casting a shadow over purchasing and investment decisions.
Anxiety levels are still high
And in closing the report, CIPS Chief Economist Dr. John Glenn cautioned that improved corporate confidence over the recent period does not mean the risk is gone, explaining that current levels of concern remain historically high, reflecting the continued exposure of the global economy to a combination of geopolitical risks, cyber attacks, and supply chain disruptions, which requires companies and governments to continue investing in building more resilient supply chains.
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