Most Companies Can’t See Past Their First Supplier. That’s a Problem.

Key Takeaways

• 95% see tier‑one, only 42% see tier‑two or deeper
• Visibility into deeper tiers fell from 2022 to 2026
• 188 KPIs examined across 100 global supply‑chain leaders
• Pandemic‑driven mapping efforts have largely dissipated
• Geopolitical tensions heighten need for broader supplier insight

Pulse Analysis

Supply‑chain visibility has become a strategic imperative as companies grapple with volatile trade policies and shifting geopolitical alliances. While tier‑one transparency remains high, the deeper layers of the supplier network—where raw materials and critical components often reside—are increasingly opaque. This blind spot limits a firm’s ability to anticipate bottlenecks, assess concentration risk, and respond swiftly to regulatory changes, ultimately eroding competitive advantage.

McKinsey’s January 2026 study underscores a worrying regression: visibility into tier‑two and beyond dropped from its 2022 peak, even as global tensions intensified. The research, which parsed 188 performance indicators, suggests that many firms treated pandemic‑era risk mapping as a one‑off exercise rather than embedding it into continuous monitoring. As a result, executives now face a paradox—greater external pressure to diversify footprints but insufficient internal data to guide those decisions.

To close the visibility gap, firms must invest in end‑to‑end mapping platforms that integrate data from suppliers, logistics providers, and regulatory feeds. Leveraging AI‑driven analytics can surface hidden dependencies and simulate scenario outcomes, enabling proactive footprint redesign. Companies that institutionalize deep‑tier monitoring will be better positioned to negotiate tariffs, shift production, and safeguard continuity in an increasingly fragmented global manufacturing landscape.