AI and Digital Innovation to Cut Australian Freight Costs by 5%, New Research Finds

SYDNEY, Nov. 20, 2025 /PRNewswire/ -- New research from Manhattan Associates (NASDAQ: MANH) reveals that 81% of Australian supply chain leaders expect new technologies to reduce freight costs by at least 5% by 2030, highlighting growing confidence in the role of digital innovation to drive efficiency and resilience.

With Australian logistics networks stretched by demand and rising costs, the findings point to an industry rapidly modernising to keep pace with expectations for speed, capacity and sustainability.

"Transportation has evolved beyond simply moving goods from one place to another," said Raghav Sibal, Vice President, APAC at Manhattan Associates. "It is about how fast, how efficiently and how sustainably businesses can operate. Australian organisations recognise the urgency of modernising their transport operations to stay competitive."

Transforming supply chain systems is a critical priority in Australia with researching showing that 100% of local supply chain leaders believing their current transportation management systems (TMS) will struggle to keep pace with growing demands for speed, capacity and cost reduction over the next five years. As a result, many organisations are responding by deploying data-led tools to improve forecasting accuracy and optimise decision-making. Sixty-four per cent of businesses say they are already using predictive analytics or AI-driven forecasting, 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," 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."

Integration is emerging as a crucial focus. Sixty-three per cent of Australian businesses report real-time connectivity between their TMS and other supply-chain systems, enabling smarter transport planning, greater responsiveness and tighter cost control. Warehouse and inventory-management systems were cited as the most valuable integrations for increasing efficiency.

Additionally, sustainability remains a strategic priority. Over half (53%) of organisations report full compliance with the Corporate Sustainability Reporting Directive (CSRD), and 44% expect significant improvements in transportation sustainability by 2030. This growing emphasis on accountability and carbon reduction highlights the link between responsible operations and long-term business performance.

"Visibility, unification and intelligence are becoming the foundations of the modern supply chain," added Sibal. "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."

Download Manhattan Associates' latest report, The Road Ahead: Unlocking the Future of Transportation Management, here.

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*Methodology: Vanson Bourne surveyed 1,450 senior decision makers with responsibility for or knowledge of their organisation's transportation management operations, working within transportation, logistics, supply chain, IT or finance functions. Respondents must operate within the manufacturing, retail, wholesale, consumer goods, grocery and food & beverage sectors. The survey interviewed respondents from North America, Latin America, Europe and Australia. All respondents came from organisations with at least US$750 million in global annual revenue.

ABOUT MANHATTAN ASSOCIATES

Manhattan Associates is a global technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers.

Manhattan Associates designs, builds, and delivers leading edge cloud and on-premises solutions so that across the store, through your network or from your fulfilment centre, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com