OPINION: Minimising supply chain disruptions in the festive season

AS THE global economy enters peak trade season, minimising supply chain disruptions has never been more crucial. The pre-Christmas and Boxing Day surge marks the most critical and competitive window of the year for retailers and for logistics and air cargo companies, the stakes could not be higher.

The sheer volume of goods moving through warehouses, stockyards, and global networks creates pressure points where even marginal delays can cascade through the system impacting shipment schedules, increase costs, and leave businesses scrambling to meet demand at a time when it matters most.

Domestic distribution bottlenecks and ongoing skills shortages remain key pressure points. Meanwhile customers are unforgiving when it comes to delivery failures (think late-Christmas presents) with brand reputation at risk.

In this climate, forward thinking businesses need faster and more resilient supply chains and customer support through various touch points to withstand disruption and adapt to shifting demand through digital transformation.

AI removing the guesswork to adjust in real time

With demand volatility increasing, logistics operators are accelerating their investment in digital tools that create real-time visibility and operational agility.

Artificial intelligence (AI) has quickly become the backbone of modern supply chains, with forecasting tools helping to take out the guess work and instead enabling companies to anticipate fluctuations in cargo demand, adjust capacity in real time, and streamline their resources accordingly whether by road, rail, sea, or air.

It is precision planning at its best. By analysing the data, from booking trends to weather disruptions and even geopolitical disruptions, the systems enable operators to make proactive decisions which were once harder to foresee.

During the peak holiday season, AI helps air cargo carriers balance the delicate equation between passenger baggage and high-value freight. Predictive models ensure every cubic metre of cargo hold is used efficiently to maximise available belly-hold space while meeting delivery deadlines with pinpoint accuracy during the busiest flying period of the year.

Use of blockchain for end-to-end visibility

Blockchain technology has also emerged as a game-changer for logistics integrity. Working in tandem with AI, it can ensure an unprecedented level of transparency and traceability across complex global supply chains and improve the overall customer experience.

Each transaction and movement of goods is recorded, providing a permanent history. It gives businesses with ‘eyes’ at all times to ensure regulatory compliance. This visibility helps both companies and their customers track the origin of goods and monitor their journey, ultimately leading to greater consumer trust and enhancing routes and schedules for greater efficiency.

By automating processes, blockchain can reduce manual tasks and paperwork, leading to faster processing times and reduced errors while the security features help prevent fraud and tampering.

Accelerating the groundwork with automation and drones

Automation is already revolutionising the operational core of logistics through automated cargo handling systems and robotic sorting at major freight hubs. Customers are in for a pleasant surprise as companies are leaving no stone unturned to deliver an uncompromised service and delivery with innovative solutions like drone deliveries, choose a date for delivery or pick up, and what not.

Drones are now also beginning to play a role, with the Civil Aviation Safety Authority approving two drone delivery service providers, for suburbs in the Australian Capital Territory and Queensland.

The human touch still matters

As AI, automation, and predictive technologies become increasingly embedded in modern logistics networks, companies are also emphasising the importance of human expertise to guide and refine these systems.

It is important to understand the impact of experienced logistics teams which can interpret and apply operational judgement and make real-time, real-world decisions in a way algorithms alone can’t.

Whether it’s adjusting planned routes due to unexpected weather, negotiating capacity during port congestion, or resolving complex cross-border documentation issues, the combination of AI-enabled insights and human operational experience is proving far more powerful than either element on its own.

Businesses understand that this blend of technology and human problem-solving keeps freight moving smoothly from port to customer.

Strengthening Australia’s port-to-customer corridor

The new $8M Avalon 24-hour freight processing facility which has the ability to handle 100,000 tonnes of freight a year thanks to its advanced scanning technology is helping Victoria speed up its cargo processing. Its proximity to key arterial roads and Melbourne’s western freight corridor makes it an increasingly attractive alternative to more congested metropolitan hubs.

In New South Wales, the Port of Newcastle is scaling up container-handling capabilities and enhancing freight pathways along the east coast. New terminal infrastructure and improved berthing efficiency, along with better integration with regional road and rail networks are giving supply-chain operators alternative routing options at a time when flexibility can make or break service continuity.

Navigating uncertainty

One of the biggest tests for supply-chain resilience most recently has been the US Federal government shutdown, which created ripple effects for air cargo, forcing companies to double down on technology to mitigate delays. It saw import documentation slowed and shipments left waiting at major ports, forcing backlogs, last minute re-routing, and expedited freight costs for businesses relying on consistency.

By adopting digital solutions, carriers and logistics companies can better mitigate these risks, with AI re-routing shipments proactively, while freeing up customer service agents to offer personal and high touch interactions with customers.

There are endless opportunities and increased customer expectations, the key is to deliver an exceptional delivery service that builds customer trust and loyalty. Agility, visibility, and diversification are no longer competitive advantages but essential for meeting customer expectations.