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Posted by David Sexton
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24 April, 2026
A STRONGER focus on workforce planning is required as workforce constraints impact supply chain performance, the Australian Logistics Council (ALC) says.
In its submission to Industry Skills Australia on the Draft 2026 Workforce Planning Update, the industry body highlighted that workforce capacity was failing to keep pace with growing freight demand, with Australia’s freight task projected to grow by up to 77 per cent by 2050.
According to the ALC, while the update identified many of the right issues, it did not fully reflect the scale and immediacy of workforce challenges across the supply chain and freight logistics sectors.
The submission outlines how workforce shortages are already impacting operations, including reduced service frequency in regional areas.
ALC chief executive Hermione Parsons said workforce capability must be recognised as a core determinant of supply chain performance.
“The supply chain does not adjust when the workforce is constrained — it slows. What we are seeing now is not a future risk,” Dr Parsons said.
“Workforce constraints are already affecting capacity, reliability and cost across the system.”
The ALC has said workforce planning must move beyond identifying issues and focus on delivering practical, system-wide solutions, including:
- Aligning workforce planning with freight demand, including scenario-based modelling across key roles.
- Prioritising roles that determine system throughput, such as drivers, warehousing operators and logistics coordinators.
- Ensuring training delivers work-ready capability, with stronger industry involvement and practical learning models.
- Recognising the workforce as critical to supply chain and fuel security outcomes.
The submission also emphasises the need for an end-to-end approach that reflects how constraints in one part of the supply chain affect performance across the entire network.
The ALC has said it will continue to work with Industry Skills Australia to support the development of workforce planning settings “that reflect operational realities and support a more productive, resilient and efficient supply chain”.
