ISG's 2026 Provider Lens report finds enterprises using AI-powered control towers to turn supply chain transformation into a strategic imperative. The firm cites geopolitical instability, shifting trade policies, inflation and labor shortages as forces exposing weaknesses in traditional models. ISG partner Bob Krohn says years of function-level digitization have exposed the cost of siloed decision-making, while principal analyst Tarun Vaid argues control tower value now comes from coordinated response and clear ownership during disruptions, not simply tracking where goods are.
Enterprise companies under pressure from geopolitical instability, shifting trade policies, inflation and labor shortages are turning to AI-powered control towers to move supply chain transformation from an operational initiative to a strategic business imperative, according to a report from technology research and advisory firm Information Services Group (ISG).
The findings appear in ISG’s “2026 ISG Provider Lens global Supply Chain Services” report, published Oct 19, 2026, which states that traditional supply chain models are being exposed by a converging set of market forces. The firm said enterprises now face growing pressure to improve service levels, optimize inventory positions, reduce costs and respond quickly to market changes.
Organizations are also being asked to manage increasingly complex networks of suppliers, operations and distribution partners while meeting new sustainability expectations — a combination that ISG says is pushing modernization of core supply chain operations toward scalability and responsiveness.
Integrated planning replaces siloed digitization
To meet those demands, the report states that companies are building integrated planning environments that enable scenario-based decision-making and demand sensing, while deploying cloud-enabled platforms and hyperautomation to link workflows and cut manual work.
Bob Krohn, ISG partner for Manufacturing, said the shift reflects the cost of fragmented decision-making built up over years of function-by-function digitization.
“Companies have spent years digitizing individual supply chain functions, but multiple disruptions are exposing the cost of siloed decision-making. The priority is now to link risk signals, planning, and execution so leaders can act before a local problem becomes a network-wide problem.” — Bob Krohn, ISG partner, Manufacturing
At the center of that effort is the control tower, which ISG says is evolving from a monitoring platform into an AI-powered hub for intelligent orchestration. The new model combines real-time data with predictive intelligence, allowing teams to coordinate decisions across the ecosystem and respond when conditions change.
Visibility and risk sensing become foundational
ISG states that end-to-end visibility is critical for managing interconnected operations, because fragmented processes and disconnected systems undermine forecast reliability. The report positions risk management as integral to transformation as new regulations and recurring disruptions alter the operating environment.
Organizations are adopting risk sensing to identify threats before operations are affected, with proactive monitoring providing visibility into supplier exposure and support for strategic decisions. ISG describes resilience and governance as foundational to modern supply chain operations rather than add-on capabilities.
Tarun Vaid, ISG principal analyst and lead author of the report, said the value of a control tower has moved beyond location tracking.
“A control tower is no longer valuable simply because it shows where goods are. It delivers value by turning data about multiple supply-chain functions and partners into a coordinated response and establishing clear ownership when disruptions force trade-offs.” — Tarun Vaid, ISG principal analyst and lead author of the report
The report, released Oct 19, 2026, is the latest assessment from ISG on how enterprises are restructuring supply chain operations around AI-enabled orchestration rather than function-level monitoring.
Source: thescxchange.com
Compiled from international media by the SCI.AI editorial team.
