May 7, 2026 Stop Waiting for Stability. Volatility Is Here to Stay

The 25% of revenue most CFOs are still ignoring, and why that has to change.

By Michael Braunschweiger, Chief Procurement and Value Officer at LogicSource

For a long time, volatility was something companies planned around. It came in waves—economic downturns, commodity swings, geopolitical events—and there was always an expectation, explicit or not, that conditions would normalize and that the business could return to a more predictable operating environment.

That expectation no longer reflects reality.

Over the past six years, most organizations have operated in a near-continuous state of disruption. The pandemic and subsequent labor shortages exposed structural weaknesses in supply chains. Inflation reset cost baselines across labor, materials, distribution, freight, and services. Labor markets tightened, then shifted again. Now, with very little lead time, policy and trade dynamics are introducing another layer of uncertainty and shifting market dynamics.  While each of these events has been different in nature, the pattern is consistent: costs move quickly, visibility declines, and decisions have to be made with less time and certainty than before.

The current conflict in the Mideast could take supply chain disruption to another level.

Volatility has become embedded in the system.

Rethinking the Baseline

For leadership teams, this shift matters. Many operating models, particularly on the cost side, were built on the assumption that variability would be the exception rather than the norm. Contracts were structured for stability. Supplier relationships were optimized for efficiency and the status quo — not flexibility. Planning processes assumed a level of predictability that is now harder to achieve.

As a result, organizations often find themselves reacting to changes after they have already impacted the P&L, rather than anticipating and proactively managing them to anticipate disruptions in the supply chain.

One of the more visible symptoms of this shift is how quickly cost dynamics are now changing. Suppliers are holding pricing for shorter periods. Categories that were once relatively stable—transportation, IT hardware, certain services—are now subject to more frequent adjustments. Policy changes, particularly around tariffs, can alter cost structures within a single planning cycle. At the same time, financial processes—budgeting, forecasting, performance tracking—still operate on a cadence that assumes greater stability.

This mismatch is becoming harder to manage.

Flexibility as a Financial Discipline

In this environment, flexibility starts to take on a different role. It is no longer simply an operational advantage.  In order to remain competitive, flexibility must become a core component of any successful procurement strategy.

The ability to revisit the supplier ecosystem and contract terms, to introduce competition where it has lapsed, to shift volume or specifications, or to challenge cost increases with current market data—these are no longer periodic exercises. They must be baked into all contractual agreements between businesses and suppliers.

This is where many organizations are beginning to refocus on areas that have historically received less attention, particularly indirect spend. Across most industries, these categories—marketing, IT, logistics, facilities, professional services—represent a meaningful portion of total cost, often in the range of 20%-25% of revenue. Yet they are frequently decentralized, inconsistently managed, and supported by limited category expertise…in short, they are lacking the focus – and flexibility — they require.

In stable conditions, many inefficiencies can be adequately managed, but in a volatile environment, it becomes one of the most immediate sources of both risk and opportunity. Not putting proper focus on indirect spend becomes a substantial liability.

An Underutilized Lever

What is often overlooked is how responsive these categories can be when approached with the needed level of effort and expertise. Unlike direct materials or core production inputs, changes in indirect spend rarely disrupt the business model. Supplier bases can be rationalized, pricing can be benchmarked and renegotiated, demand can be adjusted, and contract structures can be improved without adversely affecting revenue generation.

The impact is significant, and in many cases, relatively fast.

Organizations that treat this as a continuous discipline rather than a one-time initiative tend to see consistent results. More importantly, they gain something more valuable than the savings themselves: the ability to create financial capacity when it is needed. In an environment where cost pressures can emerge quickly, that capacity allows leadership teams to absorb shocks, protect margins, and continue investing in priority areas without having to resort to more disruptive measures.

Building for What Comes Next

If market and industry volatility are not going away, then how exactly are you planning? Can you provide more active supplier management?  Can you author a tighter alignment between procurement and finance?  Do you have the ability to move quickly when conditions change?

There is a natural tendency to wait for a more stable environment before making structural changes. The assumption is that once conditions settle, it will be easier to reset and move forward with more clarity.

The risk is that the stability may not arrive.  By staying put, leverage is lost, and financial loss increases.

The organizations that are performing best right now are not those who have avoided disruption; they are the ones who’ve made the necessary adjustments.  They’ve quietly built the capability to respond faster, make more informed decisions, and manage costs with a level of discipline that does not depend on favorable conditions.

At some point, the question shifts from “when will things stabilize?” to “how do we operate effectively if they don’t?”…” and how do we immediately find ways to address those issues now!”

For many leadership teams, that shift is already underway.

About the Author:
Michael Braunschweiger is Managing Partner and Chief Client Value Officer at LogicSource. In his role, Michael has general oversight of all aspects of value creation and delivery across the entire lifecycle of our client engagements and embeds value creation as a strategic asset across our organization and across our clients. This includes savings targets, including operational and technical process optimizations, we identify for our new clients during the Mutual Value Assessment, as well as value delivery across our entire client portfolio. Michael is also closely involved in our contract renewals and same-account-growth opportunities.

Michael has more than 25 years of experience as a change catalyst for value and growth with a variety of companies including The Reader’s Digest Association, Novitex Enterprise Solutions and Joshua Morris Publishing. A recognized business process and savings expert, Michael understands how to lead teams and partners through critical change management initiatives and build strong coalitions based on collaboration, transparency and trust.

Prior to joining LogicSource as an original team member, Michael held a range of executive operations positions, leading diverse global teams and strategic partners to strong results through successful business process redesign initiatives and strategic supplier alliances, to maximize value and savings potential.

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