OPINION: Modernising workflows is critical for cargo

MODERNISING frontline workflows can unlock up to $2.8 million (AU$3.9 million) in potential profit for Australian transport and logistics firms, according to a recent study conducted with Oxford Economics. Logistics leaders seeking immediate financial returns can use intelligent automation and connected collaboration to improve operational speed.

In a tight economic climate, supply chain decision-makers constantly look for immediate and substantial returns on investment. Leaders scrutinise every margin to squeeze out extra profitability. Modernising frontline operations presents a direct path to improved financial performance in the cargo industry.

Organisations have always competed on speed and precision, yet visibility across the entire supply chain remains just as critical today. When executives upgrade their processes, they can realise measurable gains, ranging from greater accuracy to stronger overall efficiency.

Validating the financial incentive

The study reveals a financial incentive for upgrading systems. The data indicates that a typical firm in Australia and New Zealand can achieve a potential profit increase of up to $2.8 million (AU$3.9 million) by improving shipping and loading workflows. This financial upswing stems from optimising key tasks and giving workers better tools.

Companies that successfully enhance their routines report revenue growth that is, on average, two percentage points higher than that of their peers. These results underscore a connection between operational enhancements and bottom-line success. Furthermore, if the top 20 global organisations achieved meaningful improvements, they could potentially see an average of $1.2 billion (AU$1.69 billion) in higher revenue and $53 million (AU$74.43 million) in added profit.

Such figures highlight the opportunity within reach of proactive leaders. Better tracking helps deliveries arrive accurately and smoother processes help goods reach their destinations faster. By rethinking traditional methods, companies can operate more efficiently.

Extending gains across the supply chain

Cargo isn’t the only beneficiary. Broader supply chain impacts appear in related sectors as well. Manufacturers improving their supply chain and inventory management reported a potential profit increase of $6.6 million (AU$9.72 million) for a typical organisation. Advancing maintenance workflows provided a $6.2 million (AU$8.71 million) profit uplift, while upgrading production lines added $3.5 million (AU$4.91 million).

Within the retail sector, modernising the point of sale can unlock a potential $4.0 million (AU$5.9 million) in higher profits. Such cross-industry findings suggest that integrating better technology can yield substantial returns across sectors.

Accelerating the shift to automation

Achieving these returns involves breaking down information silos, improving asset visibility and gaining real-time operational insights. When workers have the right purpose-built tools, they can reduce manual errors and increase outbound speed. The study data supports this, with over half of firms citing increased operational speed after improving their picking and packing routines. Some 34% of those same firms noted an improvement in staff retention and satisfaction.

Smarter inventory control alone can drive revenue growth that is 3.4 percentage points higher, translating to a $25.3 million (AU$53.53 million) increase in revenue and $1.3 million (AU$1.83 million) in higher profits. Such improvements demonstrate how equipping the workforce can create a connected frontline, leading to tangible efficiency gains.

The data shows that 75% of organisations meaningfully improved shipping and handling over the past two years, while 70% accomplished the same for inventory management. Upgrading delivery and field operations can potentially unlock more than $17.1 million (AU$24.01 million) in additional revenue and $2.5 million (AU$3.51 million) in higher profits.

Securing a competitive future

Industry data also shows a rapid increase in readiness for AI. Interest in using AI to optimise shipping and loading workflows has nearly tripled among organisations still looking to improve their facilities. This trend signals a shift from theoretical interest to practical application. Executives now recognise intelligent automation as a core component in gaining real-time insights and maintaining a competitive advantage.

The data shows that 67% of operators currently pilot or use AI algorithms for inventory optimisation. Similarly, 61% apply these tools to predictive ETAs and 60% rely on them for cost optimisation. Rapid technological evolution drives the creation of tools that establish a framework for intelligent operations across the logistics landscape.

Cargo leaders face a path forward that demands decisive action. Investing in updated systems offers far more than a simple IT upgrade. These operational enhancements can deliver direct and measurable financial gains worth millions of dollars.

According to the study, equipping cargo teams with advanced capabilities improves inventory and order accuracy by 23% and employee productivity by 21%. Outcomes like these show how combining AI, data and human expertise can change the way work gets done. Workers can execute their duties smoothly and consistently. Forward-thinking companies are positioned to capture these financial rewards and outpace competitors who hesitate to embrace this shift.