Tariff volatility, global disruption, supply chain cost pressures, and rapidly advancing AI are reshaping how manufacturers think about modernization. For many organizations, the next phase of manufacturing transformation may require more than isolated technology investments or one-time supplier reviews. Organizations seeking to continue manufacturing transformation will require a coordinated strategy that connects tax, customs, procurement, operations, finance, IT, and data governance.
The third webinar in our 2026 Manufacturing Modernization series, Supply Chain Transformation, explored how manufacturers can better understand tariff exposure, prepare supply chains for continued disruption, use data and automation more effectively, and develop practical road maps aligned with resilience. This article explores the results from the four polling questions, along with themes and considerations manufacturers may want to explore as they modernize supply chain operations.
An Overview
Polling responses suggest many manufacturers are still determining how tariff-related refund opportunities and mitigation strategies apply to their businesses, highlighting the complexity of tariff classification, importer-of-record status, country of origin, valuation, and refund eligibility.
Supply chain redesign also appears to remain an evolving area of focus, with respondents indicating they were still evaluating options or did not have a formal supply chain redesign strategy. These results may suggest a gap between awareness of disruption and the development of structured, cross-functional plans designed to address it.
At the same time, respondents showed meaningful interest in AI and automation. The largest individual response was identifying use cases while building the data, systems, or governance foundation, and the discussion highlighted that roughly 35% of respondents were either running active pilots or scaling AI, analytics, or automation.
The final poll reinforced the importance of alignment across the functions that influence supply chain modernization. In this context, alignment means connecting supply chain priorities with tax, customs, finance, operations, IT, data governance, and compliance to make decisions related to cost pressures, AI investment, supplier diversification, tariff exposure, and trade strategy in a broader business context (rather than separately).
Tariff Volatility Creates a Data Challenge
How is your company currently responding to tariff volatility and potential refund opportunities?
The leading response, at approximately 30%, was that respondents were unsure how tariffs or refund opportunities applied to their business. That uncertainty is logical, as understanding exposure may require organizations to review harmonized tariff classifications, country-of-origin determinations, customs valuation, tariff stacking, importer-of-record status, and supplier contract terms.
For importers of record, a starting point is often access to customs data. Organizations should review ACE reports to identify duties paid, determine which entries remain unliquidated, and explore whether refund claims may be available. For companies that are not the importer of record but have incurred tariff costs through supplier invoices, the analysis may require a different approach, including invoice reviews, contract reviews, and discussions with vendors regarding how tariff costs were passed through. The bottom line is to know what the supplier strategies and vision are for your organization.
Manufacturers that have not yet reviewed their tariff data may benefit from considering several practical questions:
- Who is the importer of record?
- What tariff classifications are being used?
- Are country-of-origin determinations documented?
- Are freight, insurance, services, or other nondutiable amounts embedded in customs value?
- Are broker or freight forwarder invoices being reviewed with the same discipline applied to other supplier invoices?
Supply Chain Redesign Is Still Emerging
Which approach best describes how your company is preparing its supply chain for continued global disruption?
In this poll, 24% of respondents said they were still evaluating options, while 31% indicated they did not have a formal supply chain redesign strategy. These responses suggest that many companies recognize the need to respond to disruption but may not have translated that awareness into a structured plan of action.
Supply chain redesign can include nearshoring or reshoring, supplier diversification, scenario planning, transportation and route analysis, Incoterms reviews, bonded warehouse or foreign trade zone considerations, and documentation readiness. Organizations may not need to revisit every supplier relationship at once. Rather, they may benefit from developing a clearer view of supplier concentration, landed cost, quality, lead times, customs exposure, and operational risk so leadership teams have greater visibility into potential tradeoffs and opportunities.
For many manufacturers, the first step is creating visibility. If supplier data, purchase orders, freight invoices, contracts, bills of lading, packing slips, and customs documentation reside in disconnected systems, then it can be challenging to consistently and accurately evaluate cost, risk, and compliance. A modern supply chain strategy can help connect these data points, providing greater visibility into options and the potential financial and operational implications of different approaches.
Whether viewed simply as three-way matching or through a broader data-validation process, this level of master data management is an important foundation for using AI effectively. Once the underlying data is accurate and connected, organizations are more able to use AI and automation to support more informed mid-level and strategic supply chain decisions.
AI Adoption Is Moving From Curiosity to Use Cases
Where is your organization today in using AI or automation?
These results show that AI adoption remains spread across several stages. The largest share, 23%, said they had identified use cases but were still building the data, systems, or governance foundation. Another 22% said they were interested in AI but unsure where it would create the most value. Together, those two groups represent roughly 45% of respondents that remain in an exploratory or foundational stage.
Meanwhile, 17% reported active pilots, and 18% said they were scaling AI or analytics across multiple supply chain functions or sites, representing a combined 35% that are already piloting or expanding the use of AI, analytics, or automation.
Potential use cases discussed included inventory policy analysis, integrated business planning, contract intelligence, supplier risk awareness, AI-powered supplier discovery, landed cost modeling, margin leakage analysis, quality monitoring, defect identification, automated entry preparation, and trade compliance monitoring.
Still, the value that organizations can achieve from AI initiatives is often influenced by the quality of underlying data and the alignment of existing technology platforms. Highly customized enterprise resource planning (ERP) environments, inconsistent master data, and fragmented documentation can limit the usefulness of AI-generated outputs. Before expanding automation efforts, manufacturers may benefit from understanding where data resides, reviewing data quality considerations, and evaluating whether processes such as three-way or four-way matching are being performed consistently.
Resilience Requires a Cross-Functional Road Map
What is your company’s top priority for building a more resilient and modern supply chain over the next 12 to 18 months?
Poll 4 showed that respondents’ priorities were distributed across several interconnected areas: 22% selected building a cross-functional road map, 21% selected reducing cost and margin pressure, 20% selected strengthening supplier diversification, 19% selected investing in AI, automation, or data analytics, and 18% selected improving tariff, customs, and trade compliance visibility. The relatively even distribution suggests that manufacturers appear focused on a broader collection of modernization initiatives that may be more effective when aligned across functions.
A practical road map may help organizations identify high-value opportunities, evaluate initiatives based on impact and feasibility, and outline data, process, and governance considerations that support ongoing improvement. It may also help with establishing a cadence for reviewing suppliers, freight brokers, customs classifications, tariff exposure, insurance strategy, and operational performance.
Looking Ahead
Tariffs, global market and social volatility, and supply chain disruption are likely to remain part of the manufacturing operating environment for the foreseeable future. Thus, manufacturers may be better positioned to respond to these dynamic conditions and margin pressures if they increase data visibility, explore tariff refund and mitigation opportunities, modernize supplier and logistics strategies, and apply AI to targeted use cases.
Modernization does not happen overnight: it begins with understanding where risks and costs exist today, developing a cross-functional plan, and using data to support more informed decision making. For manufacturers facing continued uncertainty, supply chain resilience is often supported by connecting people, processes, technology, and compliance into a coordinated strategy.
A best practice for manufacturers is to maintain a connected reporting dashboard, bringing together key performance indicators (KPIs) across functional teams. Integrating data from supply chain, finance, operations, IT, tax, customs, and compliance can help organizations improve visibility into risks, costs, and performance trends; support faster, more informed decision making; and create a clearer management record of actions taken. This type of dashboard can also provide a stronger foundation for applying AI, automation, and advanced analytics to identify issues earlier, prioritize responses, and deploy the right teams more effectively.
How Forvis Mazars Can Help
Our Manufacturing team has extensive experience delivering tailored services to help meet your unique needs in the areas of assurance, tax, AI strategy & integration, incident response, and business technology consulting. If you would like more information on how we can help your organization move forward, please reach out to a professional at Forvis Mazars.
Watch the recording of “Supply Chain Transformation” on demand anytime for additional insights.
Data was collected from approximately 300 individuals who attended our “Supply Chain Transformation” webinar on August 25, 2026, and answered several polling questions. Most middle-market companies represented were manufacturing organizations, but others spanned various industries with an interest in the state of the manufacturing industry. Participants were nearly evenly split between associate/manager/supervisor level and participants holding higher positions, listing themselves as directors, assistant controllers/controllers, C-suite, and VP/executive directors. Only people who responded were included in the results shown.