Regulatory pressures push companies to prioritize stronger risk and visibility controls.
Achilles, a global leader in supply chain risk and performance management, has released new research highlighting major transparency gaps across global supply chains, as organisations face increasing regulatory scrutiny and rising operational disruption.
The annual Achilles Global Supplier Risk and Sustainability Survey, based on responses from 2,805 organisations across sectors including construction, energy, manufacturing, transport and the public sector, shows that while companies are placing greater emphasis on sustainability and supplier governance, visibility into extended supplier networks remains limited.
Only 6% of organizations report full visibility into Tier-2 and Tier-3 suppliers, while nearly half report limited or no visibility beyond their immediate supplier base. This lack of transparency comes as supply chains become increasingly complex and exposed to external pressures, including regulatory expansion, operational disruption and growing expectations around environmental and safety performance. A lack of transparency results in a lack of trust, with only 18% of organizations reporting that they are very confident in the accuracy of supplier-reported safety data.
The research shows that legislation and regulatory requirements have now emerged as the primary driver of sustainability initiatives, overtaking both carbon-reduction commitments and customer expectations. Inconsistent national regulations have at least some impact on maintaining consistent supplier requirements across borders, according to more than 75% of companies that participated. As regulatory expectations intensify across jurisdictions, organizations are increasingly required to demonstrate traceability, due diligence and consistent monitoring across extended supplier networks.
At the same time, the survey highlights growing concern around supplier readiness and capacity. Nearly 60% of organizations report concern about the long-term availability of specialized suppliers, reflecting mounting pressure on critical supply markets where skills shortages, regulatory demands and operational complexity are tightening supplier capacity.
Additionally, 64% of organisations say their suppliers are only moderately or mostly prepared to meet rising environmental and safety standards, with just 11% believing suppliers are fully prepared.
Commenting on the findings, Adam Whitfield, Head of Global Compliance and ESG at Achilles, said: “Supply chains today are more complex, more interconnected and more exposed to disruption than ever before. Organizations are facing growing pressure from regulators, investors and customers to demonstrate transparency and accountability across their supplier networks.
“Our research shows that while many companies recognize the importance of supplier risk management, visibility across extended supply chains remains limited. This creates uncertainty precisely where organizations need the greatest oversight, particularly as sustainability expectations and regulatory requirements continue to expand.
“Building resilience now requires more than periodic supplier assessments. Organizations need structured supplier data, consistent governance and continuous monitoring to identify emerging risks early and intervene before problems escalate.”
The research also highlights growing interest in the application of artificial intelligence within supplier risk management. Many organizations report exploring AI-driven insights to improve supplier monitoring and decision-making. However, adoption remains constrained by structural challenges including fragmented supplier data, legacy platforms and disconnected systems, which limit organizations’ ability to deploy AI at scale.
The findings suggest that organizations with more mature governance frameworks and structured supplier data are significantly better positioned to move from experimentation to operational deployment of advanced risk monitoring technologies.
Overall, the survey points to a widening gap between organizations with scalable, structured supplier risk management frameworks and those still relying on fragmented or manual processes. As supply chains continue to expand across borders and regulatory regimes, procurement leaders are increasingly being asked to deliver stronger oversight, deeper supplier transparency and greater operational resilience.
Achilles supports organizations operating in complex and high-risk environments by providing the data, insight and governance frameworks required to manage supplier risk at scale. By helping companies build trusted visibility across supplier networks and identify emerging vulnerabilities early, Achilles enables organizations to move from fragmented oversight to structured, proactive supply chain risk management.
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