Logistics firms in Australia & NZ ramp up tech spending, face hurdles

Transport and logistics companies in New Zealand and Australia are increasingly moving towards digital technologies, with plans to sustain or increase technology investment in the year ahead, according to the Origin Logistics Technology Outlook Report 2025.

The report, published by Origin, the supply chain division of Sandfield, draws on the perspectives of more than 85 organisations, including third-party logistics providers, freight forwarders, warehousing operators, and transport carriers, spanning from small independents to large enterprises.

Of those surveyed, a notable majority - 80% - consider technology to be important or critical for maintaining a competitive advantage in the logistics and transport sector. An even greater proportion, 94%, indicated intentions to either increase or maintain their technology spending, focusing particularly on cost reduction and enhanced customer visibility within their supply chains.

However, there appears to be a disconnect between investment enthusiasm and implementation results. Only 28% of companies expressed satisfaction with their current pace of technology change, with more than half describing themselves as 'stuck in neutral.' Measurement of technology return on investment (ROI) also lags, with only half of the respondents tracking the impact of previous technology investments.

Divided approaches

"There is a clear divide in the way companies approach technology," says Chris Spence, Chief Growth Officer at Sandfield. "On one side are the companies gaining an edge with flexible, integrated systems that amplify their unique service offering. The others are standing still, hampered by legacy or generic systems, poor integration, and a lack of measurable ROI."

The report highlights that much of the upcoming technology spending will target Transport Management Systems (TMS), customer portals, analytics, and system integration.

Customer demands

"Successful operators use technology to compete by reducing costs and improving margins, and providing customers with real-time information about pricing, deliveries, and emissions, something which will be in more demand as geo-political tensions create uncertainty in supply chains," says Mr Spence. "However, these benefits will only be realised across the industry if there is a concerted effort to improve data accuracy and integration, which is essential to unlock AI-led gains in efficiency and customer experience."

The report also draws distinctions in attitudes between Australian and New Zealand logistics operators. While both groups face barriers such as outdated IT systems, budget constraints, and integration challenges, Australian firms report greater satisfaction with their progress in technology adoption (32% in Australia versus 24% in New Zealand). All Australian companies involved in the study said they intend to maintain or boost technology spending, this contrasts with a more reserved approach in New Zealand.

Key trends

The report identifies five trends influencing supply chains in the region:

Firstly, flexibility in the technology implementation model appears to enhance satisfaction. Only 14% of companies relying mainly on off-the-shelf Software as a Service (SaaS) solutions expressed satisfaction with their technological progress, while 42% of those co-developing technologies with a partner reported satisfaction or high satisfaction.

Secondly, system integration stands out as a critical point of difference. A majority - 56% - judged their current integration as merely adequate, poor, or very poor. Companies experiencing high dissatisfaction with technology progress frequently reported poor integration. Conversely, organisations that provide customers with comprehensive data visibility consistently cited excellent or good integration.

Thirdly, despite the recognised importance of technology, many companies do not prominently feature this aspect when marketing their services. While 80% view technology as strategic, only 35% always highlight their technological assets when pursuing business opportunities, and 45% only sometimes or never do so.

Fourthly, a lack of measurement regarding technology investment outcomes remains widespread. Over half of respondents do not assess the impact of previous spending, with the number rising to 77% among those dissatisfied with their progress in technology adoption.

Finally, the uptake of artificial intelligence (AI) is rising, particularly among small- and medium-sized businesses. Nearly half (48%) of those polled said they are planning, trialling, or actively using AI technologies. Of those already deploying AI, 81% represent companies with revenue below AUD $250 million. Nevertheless, skill shortages pose a key barrier to broader technology deployment.

AI is being utilised for a variety of operational areas, including administrative streamlining, health and safety, quotation management, dispatch optimisation, and responsiveness to customer queries.