Daniel Carrera, President, UPS Europe, Middle East and Africa argues that, in an uncertain world, supply chains need to be built for change.
For decades, global supply chains were designed primarily for efficiency. Cost, speed and scale were the measures of success. Those priorities remain important, but they are no longer sufficient.
Across Europe, Middle East and Africa, I see a fundamental shift taking place. Businesses are operating in a world where change has become a constant. The most successful businesses will no longer necessarily be those with the lowest supply chain costs. They will be those that adapt fastest when conditions change.
Changing trade rules, geopolitical challenges and shifting customer demands are creating an environment where disruption is no longer the exception. It is part of our reality. The question for businesses is how to anticipate change, respond quickly and continue serving customers when conditions shift.
That is why resilience now stands alongside efficiency as a business priority. Companies are rethinking where and how they manufacture, source and distribute products. We are seeing nearshoring accelerate in parts of Europe, increasing trade flows into Central and Eastern Europe and growing investment in regional supply chain capabilities. At the same time, countries in the Middle East continue to strengthen their position as global logistics and trade hubs connecting Asia, Europe and Africa.
In a global economy, complexity is inevitable. The challenge is not eliminating complexity. The challenge is managing it so effectively that customers experience reliability, predictability and simplicity. Technology is central to this shift, particularly advances that provide greater end-to-end visibility across logistics operations. Visibility used to mean knowing where a shipment was. Today, businesses increasingly need to know what is likely to happen next, how it could affect their operations and which actions will deliver the best outcome.
AI and predictive analytics are helping make that possible. By combining information across transportation networks, inventory systems, customs processes and operational data, businesses can identify emerging risks earlier and act faster when conditions change. But technology alone is not enough. The real value of AI is not visibility, it is decision-making.
The greatest value comes when insight leads directly to action. An early warning becomes meaningful when a business has the capability, expertise and network flexibility to respond effectively. Consider a time-critical healthcare shipment moving across borders. If data indicates that severe weather or a customs delay could put the planned delivery at risk, the priority is not simply to identify the problem. The real advantage comes from having the expertise, network flexibility and operational capabilities to determine an alternative solution and execute it quickly.
That is where the combination of technology, experienced people and an integrated logistics network become important. At UPS, we have been using AI and advanced analytics for years, across route planning, customs processes, network management and customer visibility. We see technology as a way to complement our operational expertise, helping our people turn data into decisions and decisions into action.
The same principle applies as companies balance reliability, speed, cost and sustainability. Smarter logistics can help businesses advance these priorities together. Greater predictability can reduce unnecessary inventory and limit operational inefficiency, while better planning and network intelligence can help companies use their supply chains more effectively.
Businesses will continue to look for opportunities across borders and seek access to new customers and markets. What is changing is the level of intelligence, flexibility and control they need to do that successfully.
The strongest supply chains will anticipate change and adapt while keeping the customer at the centre. That requires connected data, flexible networks, trusted partnerships and deep operational expertise. It also requires a fundamental shift in mindset: recognizing that uncertainty is here to stay.
For me, that is the real opportunity ahead for our industry. Our role is expanding from moving goods efficiently to helping businesses understand what may come next, make informed decisions and act with confidence. Ultimately, resilience creates confidence. Confidence to enter new markets, confidence to respond to disruption and confidence to keep growing in an uncertain world.
The future of logistics is not simply about moving goods more efficiently. It is about helping businesses anticipate change, make better decisions and act with speed and certainty when conditions demand it. Most importantly, supply chains must be built for change.
