Australia & New Zealand supply chains shift to resilience

Organisations across Australia and New Zealand are shifting their supply chain strategies from cost efficiency to resilience and agility, according to new IDC research sponsored by Blue Yonder.

The study found that 43 per cent of organisations in Australia and New Zealand said cost efficiency had historically outweighed resilience in their supply chains. That approach left many networks more exposed to disruption at a time of supplier inflation, transport strain and geopolitical uncertainty.

Improving agility is now the leading risk-mitigation priority for 48 per cent of respondents, while 45 per cent cited better integration between systems and partners as a priority to help them respond more quickly when disruption hits.

The figures point to a broader shift in how supply chain leaders are weighing trade-offs after several years of volatility. Rather than focusing mainly on lean operations and lower costs, many organisations are seeking ways to maintain continuity when suppliers, transport routes or trading conditions change suddenly.

Cost pressure remains part of the picture. The research found that 51 per cent of organisations in Australia and New Zealand are dealing with rising supplier and transportation costs, while 43 per cent are concerned about the effect of protectionism and tariffs on supply chain stability.

From visibility

The report argues that many companies have already made progress in tracking goods, inventory and operations across their supply chains, but now face a different challenge: turning that visibility into decisions and coordinated action across internal teams and external partners.

Stephanie Krishnan, associate vice president at IDC Asia/Pacific, described this as a dividing line in the next stage of supply chain transformation.

"Supply chains across Asia-Pacific have largely solved the visibility problem, but many organisations still struggle to translate that visibility into action," Krishnan said.

"The competitive advantage now lies in orchestrating decisions across multiple partners and systems in real time."

That emphasis on coordination is also shaping technology spending. Across Asia-Pacific, 32 per cent of supply chain leaders said artificial intelligence and machine learning were the most critical gap to address to improve resilience.

The research found that so-called agentic AI systems, which can coordinate decisions and trigger actions across supply chain networks, are likely to play a larger role over the next three years. IDC predicts the importance of agentic AI in supply chain operations will grow by nearly 60 per cent across Asia-Pacific over that period.

Regional pressures

For companies in Australia and New Zealand, the findings suggest supply chain planning is increasingly being shaped by forces outside their direct control. Supplier costs and freight expenses are rising, while tariff barriers and protectionist measures are adding another layer of uncertainty for businesses that rely on cross-border sourcing and distribution.

Those pressures have pushed resilience higher up the agenda in sectors that previously focused on efficiency metrics such as inventory levels, transport savings and procurement costs. The study indicates that faster response times and stronger links between systems, suppliers and logistics providers are now seen as necessary to manage shocks, rather than optional improvements.

Blue Yonder said this reflected a wider transition across the region as companies move beyond standalone visibility tools. Antonio Boccalandro, Asia-Pacific president for Blue Yonder, said the operating environment was forcing organisations to rethink what supply chain management should deliver.

"To truly evolve, especially in turbulent times such as we are currently experiencing, organisations need to find ways to become more agile and resilient. As such, supply chains are entering a new phase where visibility alone is no longer enough. Organisations need the ability to translate insights into coordinated action across suppliers, logistics partners and internal operations. Platforms that combine AI, real-time data and multi-enterprise collaboration are becoming essential to help businesses respond faster to disruption while unlocking new opportunities for growth," Boccalandro said.

Operational backbone

The study found that organisations will need a more unified operational backbone that connects data, partners and execution systems if they want to react faster to volatility. In practical terms, that means reducing fragmentation between enterprise software, external suppliers and logistics networks so decisions can be made and carried out with less delay.

For businesses in Australia and New Zealand, where supply chains often depend on long transport routes and overseas trading relationships, that may be particularly relevant. The findings suggest resilience is no longer being treated as a buffer added on top of an efficient system, but as a central design principle for how supply chains are run.

Krishnan said this shift would define the next stage of competition.

"Modern supply chains must evolve from monitoring events to orchestrating responses," she said.

"The organisations that succeed will be those that can translate insights into coordinated action across their entire supply ecosystem."