A NATIONWIDE study of supply chain leaders has found 81% expect AI and digital innovation to reduce freight costs by at least 5% by 2030.
The report, The Road Ahead: Unlocking the Future of Transportation Management, points to an industry modernising quickly to keep pace, while maintaining capacity.
Findings came as Australian logistics networks faced rising costs and stretched by demand and rising costs.
Manhattan Associates vice president APAC, Raghav Sibal, said transportation had evolved beyond movement of goods from one place to another.
“It is about how fast, how efficiently and how sustainably businesses can operate,” he said.
“Australian organisations recognise the urgency of modernising their transport operations to stay competitive.”
All research participants believed current TMS will struggle to keep up with speed demands capacity and cost reduction in the next five years.
Transforming supply chain systems was viewed as a ‘critical priority’, with integration also emerging as a focus.
According to the report, 64% of businesses have responded by deploying data-led tools to improve forecasting accuracy and optimise decision-making, while 59% have integrated these tools within their broader supply-chain-planning systems.
“The collapse of several long-standing transport operators this year shows how quickly the industry is changing,” Mr Sibal said.
“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.”
More than 60% of Australian businesses reported real-time connectivity between their TMS and other supply-chain systems, which enabled smarter transport planning, greater responsiveness and tighter cost control.
Warehouse and inventory-management systems were cited as the most valuable integrations for increasing efficiency.
Sustainability also remained a strategic priority.
More than half (53%) of organisations reported full compliance with the Corporate Sustainability Reporting Directive (CSRD), and 44% expected significant improvements in transportation sustainability by 2030.
A growing emphasis on accountability and carbon reduction highlighted the link between responsible operations and long-term business performance.
“Visibility, unification and intelligence are becoming the foundations of the modern supply chain,” Mr Sibal said.
“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.”
Click here to read the full report.