FleishmanHillard HighRoad for RSM Canada, fhr.rsm@FHhighroad.com, 416.508.8430
for media use only
FleishmanHillard HighRoad for RSM Canada, fhr.rsm@FHhighroad.com, 416.508.8430
for media use only
TORONTO, ON – (May 8, 2025) – A new special report from RSM finds that supply chain decision makers at middle market companies are prioritizing technology investments, compliance and outsourced services to optimize supply chains and adapt to changing regulations as they navigate the evolving trade and tariffs landscape.
The sample comprised 309 supply chain decision makers and influencers (50 from Canada and 259 from the United States) across a variety of industries, working in organizations with annual revenue between $10 million and $1 billion. The survey was conducted by Big Village insights and fielded March 5-14, 2025.
The survey results follow years of supply chain disruptions sparked in 2020. While larger businesses typically have more resources and capital to quickly adjust supply chains or operations, midsize companies are less likely to be able to pivot effectively. RSM notes that using technology to improve supply chains is increasingly important with new factors including tariff disruptions driving some uncertainty for global supply networks.
“The pandemic forced businesses to improve supply chain data and have better information overall about where goods were coming from,” said Dr. Tu Nguyen, economist with RSM Canada. "While things seem to be a lot better now, the current uncertainty in the trade environment could be another wake-up call for businesses that still don’t have the best transparency or visibility into their supply chain.”
Sixty-two per cent of respondents said their organization was very effective at managing inventory levels to minimize costs, and another 33 per cent said their organization was somewhat effective at doing so. Most respondents (85 per cent) said in March—before the U.S. administration’s April 2 announcement of sweeping new tariffs on all countries and its subsequent partial rollback and an announcement of a 145 per cent tariff on China—that they were very prepared or somewhat prepared to handle the rollout of potential new trade and tariff stances in the next six to 12 months.
Respondents reported that the items most important to their supply chain efforts over the next 12 to 24 months are sustainability (broadly referring to supply chain resilience) and keeping up with compliance, with 56 per cent rating each a 9 or 10 on a 10-point importance scale. These were followed by inventory management, profit visibility and risk management, each at 51 per cent. Automation and cost reduction were at the bottom of the list, with 44 per cent of respondents saying those are highly important to supply chain efforts.
The Regulatory Landscape
Along with adjusting to a shifting trade outlook, companies are also navigating a growing list of regulations and reporting requirements. In the past 18 months, several new regulations have emerged within the sustainability/compliance space. Three-quarters (74 per cent) of respondents said their organization has taken steps to prepare for some new or pending compliance regulations. Canadian firms were significantly less likely than U.S. firms to have done so (58 per cent vs. 78 per cent).
Of the survey respondents who reported their organization has taken steps to prepare for compliance with the regulations cited in the survey, the top actions taken were:
While the pandemic may have forced companies to optimize their supply chains and re-examine the focus on just-in-time inventory management, these survey results might indicate a priority shift since then, said Jon Caforio, principal and sustainability consulting leader with RSM US LLP.
“Now your supply chain might need to be more resilient than optimized,” Caforio said.
Supply Chain Implications for the Tax Function
Supply chain decisions will continue to have implications for organizations’ tax functions, and 82 per cent of respondents said their organization has taken action to handle potential changes in tax laws. Nearly half (49 per cent) said their primary focus of tax optimization is operational efficiency, followed by compliance (25 per cent), minimizing tax liability (16 per cent) and treasury management (9 per cent).
Seventy-six per cent of respondents also said their organization has a formal process in place to assess and mitigate tax risks associated with their global supply chain.
Of those respondents with formal processes, their methods for assessing/mitigating risk were:
Check out the full report for a U.S.-Canada comparison of the survey findings, a sector-specific breakdown of the findings, and much more.
About the Survey Respondents
Sixty-five per cent of respondents described themselves as the sole supply chain decision maker within their organization, 29 per cent said they are part of a decision-making group or committee, and the remainder had considerable influence on decision making. More than half (55 per cent) of respondents were from organizations with $50 million to less than $500 million in annual revenue, 24 per cent came from organizations with $10 million to less than $50 million in revenue and 21 per cent were from organizations with $500 million or more in revenue.
About RSM Canada
RSM empowers middle market companies worldwide to take charge of change. The clients we serve are the engine of global commerce and economic growth. Our unique middle market perspective makes RSM the natural choice for growth-oriented, internationally active organizations seeking relevant insights and tailored, innovative solutions for a complex and changing world. With a global reach spanning more than 120 countries, we instill confidence in a world of change by bringing the full power of RSM to make a lasting impact on our clients, colleagues and communities.
RSM Canada LLP provides public accounting services and is the Canadian member firm of RSM International, a global network of independent assurance, tax and consulting firms. RSM Canada Consulting LP provides consulting services and is an affiliate of RSM US LLP, a member firm of RSM International. For more information visit rsmcanada.com, like us on Facebook, follow us on X and/or connect with us on LinkedIn.