New research from Inverto, a BCG company, shows that 89% of European organizations now use digital risk management tools, with 67% doing so heavily – up 21% compared to 2025.  

They are in need of something to help; the survey of more than 400 senior executives in Europe found that 83% are experiencing ongoing supply shortages because they are experiencing multiple converging risks simultaneously.  These include lack of visibility, supplier capacity constraints, logistics bottlenecks and insolvencies. Indeed, it is currently such a blizzard of factors that no one frontrunner emerges as the main cause. U.K.-based Inverto concludes this highlights ”an increasingly fragmented and unpredictable risk landscape.” 

The procurement and supply chain consulting firm’s annual Risk & Resilience Study also shows businesses are moving away from low-cost globalization models in favor of more regional supply chains, with around a third pursuing nearshoring or reshoring strategies.  

On the other hand, 46% of businesses are consolidating suppliers, representing a marked shift from multi-sourcing strategies prompted by recent crises such as COVID, Russia’s war on Ukraine and the wild ride of U.S. trade tariffs, towards more concentrated and regionalized supply chains now. 

“Companies must continuously redesign their supply chain and risk strategies to remain competitive,” said Stéphane Crosnier, Managing Director at Inverto. “The greatest opportunity still lies in proactively strengthening procurement and supply chain resilience to reduce exposure to overlapping risks before they materialize.”  

Digital risk management tools are becoming increasingly essential, according to Crosnier. The most utilized digital tools are used by task forces for acute risk events as the most cited measure (27%), while proactive tools such as early risk detection systems (21%) and AI-based supplier monitoring (23%) are less frequently used.   

“The pivotal step is moving from reactive responses to predictive risk management, using data and AI to anticipate disruption before it occurs and invest on increasing supply chain resilience where it matters,” Crosnier explained.  

As for the 83% of companies experiencing supply shortages, this figure is up sharply from previous years, with disruptions driven by a broader mix of causes including supplier capacity constraints, logistics bottlenecks, insolvencies and continued conflicts across the globe.   

Lack of visibility in the extended supply chain remains a particular weak point, Inverto noted. Only a minority of companies have full transparency beyond their immediate suppliers, leaving them exposed to risks deeper within their supply chains.