Survey reveals divide in Australian supply chain focus

Australian supply chain leaders are showing a widening strategic divide, with senior executives looking beyond near-term cost pressures while operational managers stay focused on cost reduction, according to new research from Prological.

The Prological Supply Chain Pulse Check Survey 2026 polled more than 200 professionals across supply chain, logistics, manufacturing, retail and operations. It found that 55% of all respondents cited cost reduction as a top priority. The emphasis dropped among C-suite executives and business owners, who instead focused on future growth.

The survey also pointed to persistent gaps in supply chain visibility. Only 9% of organisations reported high visibility across their operations.

Costs and trade

Rising costs and inflation remained the most commonly cited challenge, with 68% of respondents identifying it as a primary concern. Staff shortages ranked second at 44%.

International trade and tariffs moved into the top three challenges at 29%. It displaced inventory management, which had previously appeared among the leading issues. The result reflects increased attention on trade settings among Australian supply chain teams.

The survey presented different perspectives across seniority levels. The broader respondent base continued to focus on immediate cost control. Prological said C-suite executives and business owners showed a greater emphasis on medium-term positioning.

Visibility gap

The low level of reported supply chain visibility stood out against the pressure from cost, labour and trade uncertainty. Only 9% of respondents reported high visibility across their operations. The survey did not break down the result by industry segment or company size.

Visibility has become a recurring theme in supply chain technology programmes. It can affect inventory planning, order fulfilment, supplier management and transport decisions. The survey results suggest many organisations still report limited end-to-end insight.

Automation spending

Organisations increased automation investment in 2025, with 43% reporting higher spending. That compared with 38% in 2024. Prological also reported a pipeline of further investment, with 54% planning to increase automation spend in 2026.

The survey highlighted momentum among smaller organisations, particularly those with 51 to 100 employees. It linked this shift to the availability of modular solutions, though it did not specify technology categories or vendors.

Automation decisions in warehousing and distribution can cover a wide range of systems, from conveyor and sortation equipment to software that manages workflows. The research suggests a growing share of organisations expects to allocate more budget to automation despite the ongoing cost environment.

Warehousing choices

The survey also tracked how organisations approach warehousing and industrial property. It found that 67% prioritise operational efficiency over cost when selecting warehouse facilities.

Industrial property availability appears less acute than in recent years. Only 6% of respondents cited lack of available industrial property as a major challenge. That compared with about 12% in 2024, based on the survey's benchmarking.

The shift suggests more choice for tenants, even as occupiers weigh network design, location and operating requirements. The survey framed the market as moving in the tenant's favour over the past three years.

Sustainability signals

Sustainability implementation showed mixed movement. The survey found that 64% carried out carbon reduction projects in 2025, up from 54% in 2024. It remained below the 65% recorded in 2023.

External pressure for sustainability also eased. Only 40% said stakeholder pressure increased, down from 50% in 2024 and 67% in 2023.

The survey raised questions about whether sustainability measures are becoming standard practice or whether some companies are softening initiatives. It did not quantify the scale of individual projects, or link the results to specific regulatory drivers.

One context behind the findings is the broader run of disruptions affecting supply chains over the past several years, including inflation, labour constraints and shifting trade conditions.

"We're seeing a clear performance gap emerge between organisations that are building for adaptability and those still waiting for things to settle down. The businesses pulling ahead aren't just managing costs - they're also investing in the capabilities and infrastructure that create competitive advantage in an environment where disruption is constant. Our 2026 Pulse Check story shows that organisations are not waiting for things to return to 'normal', but looking to create strategies to thrive in these conditions," said Peter Jones, Managing Director, Prological.

The survey results indicate that supply chain teams expect continued investment in automation in 2026 even as they report low visibility and continued pressure from costs, labour and trade policy settings.