A growing confidence gap is emerging between supply chain leaders and those who are lagging behind. According to the Blue Yonder Supply Chain Compass report, 34% of supply chain leaders now believe their systems are not prepared for the future, up from 27% the previous year. This decline in confidence is largely due to the increasing frequency and impact of disruptions—such as natural disasters, geopolitical issues, or pandemics—that traditional supply chain systems were not designed to handle. These systems were often built as isolated, function-specific tools for tasks like demand planning, transportation, or warehouse management, leading to slow decision-making, incomplete data, and a lack of understanding of how one part of the supply chain affects others. The report, based on a survey of 678 senior supply chain professionals, identifies a clear divide between two groups of leaders. Nearly half (46%) of the leaders are highly optimistic about their supply chain’s future. These leaders are distinguished by having integrated systems that provide full visibility across the entire supply chain. In contrast, those who are less optimistic are more likely to operate in isolated departments, or “silos,” and are four times more likely to describe their supply chains as disjointed. This lack of integration makes it harder to respond to disruptions or implement modern technologies effectively. The report also highlights that 82% of respondents believe outdated technology will hinder supply chain performance. Siloed systems and fragmented data sources can prevent AI from functioning properly, as AI requires complete, up-to-date data sets—including information from suppliers and partners—to provide meaningful insights. Without this data infrastructure, AI projects may fail or produce only limited benefits. This underlines the importance of modernizing supply chain systems to support advanced technologies like AI and automation. Leaders who are making progress are adopting three key strategies: first, building connectivity across their systems, then focusing on the most problematic processes, and finally treating transformation as a strategic priority rather than just a technological upgrade. These leaders are working to create a unified data foundation that enables real-time visibility and supports the integration of AI and automation. The report suggests that future supply chains will be built on a "cognitive platform," where planning and execution share a common data foundation. This will allow AI to quickly analyze trade-offs and take action to prevent or reduce the impact of crises. Those closing the confidence gap are already taking steps, gaining resilience, and achieving better results.