Digital innovation set to cut Australian freight costs by 5%

New industry research indicates that a significant shift is underway in Australia's freight and logistics sector, with eight in ten supply chain leaders anticipating that digital innovation will reduce freight costs by at least 5% by 2030.

This expectation arises as local logistics networks face increasing demands for speed, capacity, and sustainability, prompting a broad-based push towards modernisation.

Technology expectations

According to the study, supply chain leaders are expressing confidence in technology's role to deliver measurable cost savings. The sector faces ongoing pressures from rising operational expenses and frequent disruptions. Leaders are turning to predictive analytics, artificial intelligence, and advanced data tools, aiming to both forecast demand more accurately and optimise decision making at every stage of the supply chain.

Sixty-four percent of surveyed businesses have adopted predictive analytics or AI-driven forecasting, and more than half have already integrated these tools into their broader supply chain planning systems.

"Transportation has evolved beyond simply moving goods from one place to another. It is about how fast, how efficiently and how sustainably businesses can operate. Australian organisations recognise the urgency of modernising their transport operations to stay competitive," said Raghav Sibal, Vice President, APAC, Manhattan Associates.

System integration

The report found that integration remains a central area of focus for supply chain upgrades. Sixty-three percent of businesses surveyed have enabled real-time connectivity between their transportation management and other supply chain systems. Companies noted that tighter integration with warehouse and inventory-management systems was particularly important in achieving gains in efficiency, responsiveness to market changes, and cost control.

Faced with growing complexity, every supply chain leader surveyed signalled doubts about their current transportation management systems' ability to keep pace with sector demands for cost containment, increased speed, and capacity. As a result, the adoption of data-led platforms and real-time integrations is set to accelerate.

"The collapse of several long-standing transport operators this year shows how quickly the industry is changing. Leaders recognise that resilience won't come from adding more trucks or warehouses but from building smarter, more connected networks that can adapt when disruptions hit," said Sibal.

Sustainability focus

Sustainability is increasingly factored into decision-making. Over half of organisations report full compliance with the Corporate Sustainability Reporting Directive. Forty-four percent expect substantial improvements in transport sustainability by 2030. Carbon reduction measures and reporting are being linked closely to business performance, reflecting greater scrutiny from investors, customers, and regulatory bodies on environmental accountability.

Ongoing progress

Visibility, unification and data intelligence are now the foundations of supply chain strategy. According to industry leaders, Australian businesses are making headway, but the pace of innovation will need to continue in order to meet future demands for cost, resilience, and customer expectations.

"Visibility, unification and intelligence are becoming the foundations of the modern supply chain. Australian businesses are making steady progress, but continued investment in smarter systems and connected technologies will be essential to strengthen resilience, control costs and meet evolving customer expectations in the years ahead," said Sibal.