Consulting has long been the go-to solution for complex business challenges, with large teams, hefty budgets, and multi-year transformation roadmaps. But the industry is hitting a crossroads—particularly in supply chain consulting—and the signals are hard to ignore. Recent layoffs at major firms like EY, Deloitte, Accenture and McKinsey, even at senior levels, reveal that the old consulting model is under intense pressure.
Recent Layoffs at Major Firms
- McKinsey: Earlier this year, news outlets including Bloomberg reported that McKinsey was planning its largest round of layoffs—around 2,000 positions—as part of a broader cost-cutting program. While these cuts spanned multiple practice areas, many industry watchers note that the supply chain domain was not immune.
- Deloitte: In the U.S., Deloitte made headlines with approximately 1,200 job cuts, citing a slowdown in consulting demand. Again, the reductions included roles focused on operational and supply chain consulting.
- EY: Following the high-profile collapse of its plan to split its consulting and audit operations, EY confirmed smaller-scale layoffs in certain regions. Although exact numbers for supply chain specialists aren’t always disclosed, employees in strategic operations and supply chain groups have been affected.
These layoffs underscore a broader question: Why are top-tier consultancies scaling back now, and what does it mean for supply chain consulting?
Cracks in the Traditional Model
For years, the “big pyramid” approach in consulting—large teams billing high fees over extended timelines—thrived. But multiple factors are converging to disrupt that model:
- AI is Automating Manual Tasks
Processes that once took weeks of on-site data crunching and manual modeling can now be handled by advanced AI tools in a fraction of the time. - Clients Are Building Their Own Analytics Teams
Many companies, especially in manufacturing and retail, are forming in-house centers of excellence for supply chain analytics. They’re also investing in data science talent, reducing the need for external consultants to run the numbers. - SaaS Tools Decrease Implementation Complexity
Cloud-based supply chain management (SCM) and enterprise resource planning (ERP) solutions are simpler to deploy than ever. There are also much more new best-of-breed SaaS and apps from supply chain startups that are easy to implement. This shift makes heavy, months-long implementation projects less critical—and less profitable for consultants. - Basic Analysis Is Becoming Commodity Work
With off-the-shelf AI models and readily available data streams, the value of baseline analytics is dropping. Clients now pay a premium only for specialized, high-impact insights rather than standard operational recommendations.
The Net Impact
Firms are discovering they can’t staff the same armies of analysts and junior consultants for tasks that AI or SaaS platforms can handle more efficiently. Traditional consulting revenue streams—like extended design phases or large-scale system integrations—are shrinking.
What’s Next for Supply Chain Consulting?
- Lean, Specialized Teams
We can expect consulting firms (both large and boutique) to shift toward smaller, highly skilled groups. These teams will focus on strategic problems that can’t be easily automated: network optimization under high uncertainty, cross-border regulatory risks, and sustainability-driven transformations. - Flexible, On-Demand Talent
More consultants will work in shorter “sprint” engagements rather than multi-year projects. Think of it as a gig economy for high-level advisory: teams come together for a specific problem, solve it quickly, and disband once the job is done. - Real Strategic Impact Becomes Non-Negotiable
Clients are increasingly willing to pay only when they see tangible ROI—like guaranteed cost savings, resilience boosts, or new market entry strategies with immediate payback. Fluff deliverables or theoretical models won’t cut it.
Can the Big Players Keep Up?
The question is no longer if the consulting landscape will evolve, but whether the major players can keep pace. As Generative AI and domain-specific “co-pilots” become mainstream, the rationale for hiring high-fee consultancies weakens – especially for supply chain tasks like demand forecasting, inventory optimization, and real-time scenario planning.
Many companies are poised to develop their own supply chain custom GPT, co-pilots or AI-driven advisors. If they can get solid, data-backed answers in seconds—at a fraction of the consulting cost—why pay a premium?
The Wake-Up Call
The recent layoffs at EY, Deloitte, Accenture, McKinsey, and others are a bellwether: adapt or lose relevance. As the need for commodity advice diminishes, only those firms that can truly integrate AI capabilities, provide deep domain expertise, and deliver strategic, outcome-based engagements will retain their foothold.
What do you think about the future of supply chain consulting in an AI-driven world? Share your perspectives in the comments, and don’t forget to join the conversation in our online supply chain community, Chain.NET. Joining is free and only takes a few minutes: https://mygs.cc/chain
