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Global supply chains are operating in a pressure cooker of complexity, speed, and disruption. On Episode 106 of The Future of Supply Chain podcast, Westernacher’s Matthew Paulaitis joined SAP’s Richard Howells for a candid discussion about where transportation management is headed – and what companies can do to future-proof their operations.
Paulaitis, a seasoned expert in digital supply chain transformations, brought insights drawn from Westernacher’s work implementing over 15% of global SAP transportation management systems. Below are five major trends he spotlighted and what they mean for businesses navigating this volatile landscape.
1. AI is no longer a buzzword – it’s a baseline
Artificial Intelligence (AI) and Machine Learning (ML) aren’t just emerging technologies—they’re now embedded into core transportation functions. They’re becoming the new standard and companies that haven’t started leveraging AI risk falling behind as technology rapidly matures.
Companies are using AI to:
- Optimize lanes and routes by analyzing past shipping patterns and future forecasts.
- Run cost simulations based on rate changes, rerouting, or shifts in volume.
- Streamline invoicing and exception handling, reducing manual effort in finance.
- Respond to environmental data – e.g., stacking limits during hurricanes or cold-chain requirements in heat waves.
2. The real enemy? operational silos that must change
Silos between transportation, warehousing, finance, and planning remain one of the biggest threats to supply chain agility. Organizations may have strong teams and systems – but if they aren’t connected, decisions made in one area can create bottlenecks in another.
“You can make a perfect transportation decision that’s a terrible business decision,” Paulaitis noted.
Westernacher’s approach emphasizes implementing a “single source of truth” across supply chain functions, where real-time data is shared, and the warehouse knows what the planners are doing – and vice versa. The result? Faster, better decisions across the business.s
3. Tariffs are driving a cross-border strategy shift
The increasing frequency and unpredictability of tariffs as a major disruptor. Companies are reacting by:
- Stockpiling inventory to stay ahead of changes.
- Exploring alternate sourcing regions to minimize tariff exposure.
- Reevaluating cross-border freight lanes from places like Mexico and Canada.
However, these actions introduce new challenges, such as congestion, increased transit times, and fluctuating costs. Here, AI once again plays a critical role by modeling different logistics scenarios and helping teams make informed, cost-effective decisions.
4. Digital collaboration with partners is now table stakes
Today’s supply chain demands real-time coordination not just internally but across partners. Paulaitis emphasized that businesses can no longer afford to wait for delayed email responses or disjointed updates.
That’s why more companies are adopting carrier and vendor portals, like SAP’s Business Network for Logistics, that:
- Provide live worklists of actionable items.
- Enable carrier ranking and performance-based prioritization.
- Facilitate instant communication with carriers, forwarders, suppliers, and 3PLs.
These integrations don’t just improve collaboration—they build long-term relationships and mutual accountability across the logistics network.
5. Don’t boil the ocean – start small, scale fast
While the vision is end-to-end integration, Paulaitis cautioned against trying to do everything at once. His recommendation:
- Identify one high-impact area (e.g., transportation or finance)
- Pilot a digital solution at a single location
- Build confidence through success, then scale across regions and functions
He stressed the value of cloud-based, modular systems that support incremental growth. Westernacher often guides clients through this journey, helping organizations build momentum without getting overwhelmed.
“Take a practical approach and understand this is a journey. It might take a few years, but each step gets you closer to resilience.”
Final takeaway: Resilience through integration
The future of transportation and supply chain management lies in resilience through digital integration. Companies that unify their systems, embrace AI, and foster real-time collaboration will be positioned to weather disruptions—and outperform competitors.
“The future of supply chain is having one source of truth… with AI helping you mitigate risk and navigate an increasingly complex world.”
