Six trends that will shape the Australian supply chain in 2024

Trend 1: Talent shortages

A continuing trend in 2024 will be talent shortages in high and low-skilled positions. Starting at the time of the pandemic, widespread job losses and resignations reached 20-year highs in the US labour market. Employees cited several reasons for leaving their jobs, the top three being insufficient pay, no opportunities for advancement, and feeling disrespected at work. Many also felt that they did not have enough flexibility in their work.

For employers to turn this around, they must focus on their company cultures. Nurturing positive and supportive cultures where all employees feel appreciated and have flexible hours and working arrangements is essential. Technology will be crucial in creating these work cultures, allowing workers to access their systems efficiently and securely from anywhere, and streamlining operations so businesses can be more profitable and reward their team accordingly. Smart companies will also use technology to take over mundane tasks, making work more enjoyable for employees.

Trend 2: Accelerated digital transformation

No longer left behind, the freight industry is quickly embracing the advantages and opportunities of going digital. While options were once sparce, now, new technology is revolutionising the way transport operators manage everything from safety compliance to customer relations. Not only that, but it is clear that this transformation is necessary to stay competitive, encouraging operators to invest heavily in digital advances.

In terms of what 2024 has in store for the logistics industry, the digital supply chain claimed the number one spot for 2024’s supply chain trends at the Association for Supply Chain Management’s 2023 annual conference. This is attributed to the importance that digital systems will play in streamlining various supply chain activities. For example, digital capabilities have replaced paper and antiquated processes, leading to a more agile supply chain architecture.

In addition, automation is increasingly being used in various ways in the distribution industry, and its use is expected to grow in the coming years. Those lagging will find it increasingly challenging to keep up with the pace of change and meet customer expectations.

Trend 3: Sustainability

Hot on the heels of the digital transformation as an Australian supply chain 2024 trend is sustainability. Next year will see the logistics industry make its most significant shift to date towards sustainability, with investments in this space set to skyrocket, according to MEGATRANS Show Director Lauren Chartres. 

“The sustainable supply chain is going to be the top focus in the new year,” says Lauren, who oversees MEGATRANS, Australia’s largest logistics event taking place in Melbourne in September 2024.

“The past few years have been about securing supply chains at any cost, after they were disrupted by the pandemic. Now that supply chains have settled, and stock levels risen, major logistics companies are telling us that they are looking to invest in sustainability.” 

This investment is being supported by the federal government’s most recent budget that provided more than $4.5 billion in climate-related spending, which includes $20.9 million over five years to decarbonise transport and infrastructure.

The freight transport industry currently contributes up to 46% of Australia’s transport-related emissions. This will only increase demand of sustainable freight and logistics practices such as eco-friendly packaging, electric and hybrid vehicles, and renewable energy adoption.

Not only will environmental factors push sustainability to the fore, but government regulations and legislation will also require transport operators to develop sustainability strategies. Environmental, Social, and Governance (ESG) legislation will require companies to disclose risks and opportunities to reduce emissions. Expect compliance to require greater reporting of your sustainability efforts.

Trend 4: Supply chain resilience

The unprecedented turmoil caused by the Covid pandemic exposed vulnerabilities in global supply chains. Logistics companies have taken the opportunity to review their supply chain strategies to enhance resilience and embed risk management. This includes diversifying suppliers, changing how goods are sourced, and incorporating more digital and cloud-based processes into their workflows. Having sophisticated analytics will be increasingly important to identify potential risks and appropriate solutions.

Trend 5: Economic uncertainties

The continuing impact of the pandemic means that the Australian economy is facing uncertainty with interest rate hikes by the Reserve Bank to kerb inflation. The challenge to transport operators is to find innovative ways to offer more value-added services by using technology to provide their services efficiently and cost-effectively. You should embrace business practices that facilitate flexibility and adaptability, as the next 12 months will no doubt bring more change to the economy.

Trend 6: Last mile delivery expectations

Another Australian supply chain 2024 trend initiated by the pandemic is last mile delivery and skyrocketing customer expectations. Last mile delivery refers to the movement of goods from a transportation hub to their final destination, especially when it is same day or next day delivery. It is the last step of delivery. Covid brought into sharp focus how much we rely on the freight industry, and in 2024, expectations will get even higher when it comes to convenience in shopping and online deliveries. 

Demand for same day delivery will only grow, particularly in these four sectors:

• eCommerce and online retail
• healthcare industry
• food and beverages
• manufacturing and distribution

To facilitate last mile delivery, businesses should consider these five strategies in 2024:

• pop-up warehouses
• electric vehicles
• rapid order fulfillment
• hybrid fleet management
• autonomous technology

If you run a freight business, the smart move is to invest in systems that help you sustainably meet, predict, and exceed customer expectations.

Leverage Australian supply chain 2024 trends

For a next-generation TMS that will help you reach your digitisation, sustainability, and adaptability goals in 2024, no other system compares to GoDesta. Our TMS has been designed for complete customisation so you can optimise every step of your transport operations.

Explore GoDesta’s solutions here or get in touch to talk with our team and find out more about how you can take advantage of digital innovations.