Companies lately have been dealing with numerous challenges: cost pressures, regulatory changes, new tariffs, geopolitical uncertainty — and the outlook for 2026 indicates continued change and instability. The simple truth is that the “way things were” isn’t coming back.
So how can companies effectively deal with all of this? One useful approach is to view today’s environment through the lens of the Five Stages of Grief — Denial, Anger, Bargaining, Depression, and Acceptance. It may sound unusual, but it can help explain where many companies are emotionally and strategically as they navigate disruption. I discussed this framework with Mike Regan, Co-Founder and Chief of Relationship Development at TranzAct Technologies, on a recent episode of Talking Logistics.
Hot Topics for 2026
Before diving into the five stages, I asked Mike what topics he’s hearing most often from executives as they look ahead to 2026. He summed it up in one word: uncertainty.
Executives are asking, “What game are we playing? What are the rules of the game? And how do I do well in this game?” Mike explained. “When you don’t know the answers, you tend to become conservative, pull in your horns, and keep your powder dry. We’re seeing that behavior today in reduced business investment.”
A big part of the challenge, Mike noted, is that executives often lack visibility into what’s really happening on the ground. He referenced the “iceberg of ignorance,” where:
- C-suite leaders see only about 4% of the issues
- VPs and directors see about 8–10%
- Middle managers see maybe 30%
- But people on the front lines see nearly 100%, because they live the problems every day
This lack of visibility often leads straight into the first stage of grief: denial.
Denial
Whether in personal loss or business stress, the first reaction is often denial. I asked Mike how denial manifests in supply chain management and what it costs companies.
He began with the cost: denial puts the business at risk. “Not just the bottom line, but the balance sheet as well.”
He added that denial is ultimately a choice: “Denial isn’t just a river in Egypt — it’s a willingness to ignore what’s really going on.” People ignore the facts because confronting them would require difficult decisions.
Mike offered a simple but powerful example. When speaking to large groups of CEOs, he asks everyone who believes their supply chain is important to their success to stand up. Almost everyone does. Then he asks those who believe their supply chain ranks three or higher on a five-point scale to remain standing.
“Ninety percent of the audience sits down,” he says. “That’s denial.”
To illustrate the opposite mindset, Mike shared what Jeff Wilke, former Amazon executive, once told him: “We’re going to use our supply chain to create capabilities and customer expectations that our competitors will not be able to match within the same cost framework as us. So we win.”
This is how Amazon treats its supply chain — as a strategic asset.
Mike pointed out that COVID exposed numerous weaknesses in supply chains, and tariffs are now doing the same. Yet, “less than ten percent of companies have a plan for how to deal with it,” he said. “If you don’t have a plan, you’re winging it.”
Acceptance
The stages of anger, bargaining, and depression look different for every company, so Mike and I moved directly to Acceptance. I asked him what acceptance looks like in supply chain management today.
He said acceptance begins with having a written plan that looks across silos: operations, finance, procurement, logistics, and more. The plan should address how the organization will handle external shocks (like tariffs or tariff refunds) and internal disruptions.
“Acceptance means I have a plan, and it’s a written plan,” he emphasized. “It’s being proactive, acknowledging the problem isn’t temporary, distinguishing what will cause real damage, and spelling out the steps to deal with it.”
Acceptance also means being willing to reach outside the organization for help. “Asking for help doesn’t mean you’re incompetent,” Mike said. “It means you’re committed to doing whatever it takes to solve the problem.”
Finally, Mike noted that acceptance requires acknowledging that 2026 will bring risks and surprises companies haven’t yet identified. He calls these “predictable surprises” — emerging regulations, insurance pressures, emissions rules, and other factors that could significantly impact costs and operations. Companies must define potential areas of exposure and develop frameworks for responding.
Getting to Acceptance
For companies not yet at the acceptance stage, I asked Mike what the most important step is to get there. His answer was simple: “Have a plan.”
He pointed out that most companies have written business plans, cybersecurity plans, disaster recovery plans, and sales plans — yet most do not have a written supply chain plan.
“If you don’t have a written supply chain plan,” Mike said, “if you’re not willing to dedicate the time and resources to creating one, don’t tell me your supply chain is important to your business.”
He closed with a memorable perspective: “When people tell me what’s important in their life, I ask for two things: their calendar and their checkbook. Where people spend their time and where they spend their money is a reflection of what’s truly important to them.”
Mike had many more insights in our conversation that I don’t have space to cover here — including the role of optionality, how LTL pricing is shifting, and the challenges that 2026 may bring. I encourage you to watch the full episode to hear his additional perspectives, then continue the discussion with your own comments and questions.
Editor’s Note: Join Mike Regan on Wednesday, December 10 at 12:00 pm ET for the webcast “Is your supply chain an asset or an anchor?” This session is designed for business leaders, logistics professionals, and anyone eager to optimize their operations. Register today via this link.
