Logistics Software in Australia: A Quick Guide to Optimizing Supply Chain Operations

The Australia’s Freight and Logistics Market is projected to reach USD 99.08 billion in 2025, and is expected to reach USD 122.74 billion by 2030, growing at a compound annual growth rate of 4.38% during the forecast period (2025-2030). With the rise of e-commerce and increasing consumer expectations, logistics software in Australia has become essential for businesses aiming to stay competitive. This blog explores the key challenges, the transformative role of logistics software, factors to consider when selecting the right solution, and how Shipsy is at the forefront of optimizing logistics operations across the region.

Key Challenges in Australian Logistics

1. Labor Shortages: Driver shortage in Australia is a long-standing issue, and it’s not going anytime soon. In fact, as the demand for freight services grows, the gap between the need for skilled workers and the number of people entering the industry is expected to widen. A tight labour market, exacerbated by COVID-19 has made the solution worse which has led to even higher wages.

The Australian trucking industry faced a shortage of 26,000+ drivers in 2024, projected to worsen by 2030.

2. Consumer Expectations: The rise of e-commerce has transformed how Australians shop, with same-day and next-day delivery now the norm. While this presents opportunities for growth, it also creates challenges for the transport industry. The main problem arises to meet consumer demands for speed and reliability while keeping costs and environmental impacts low. 

80% of Australian e-commerce consumers expect same-day or next-day delivery, with 65% prioritizing real-time tracking, driving demand for logistics software with customer notification features.

3. Infrastructure Constraints: Urban congestion, aging road and rail networks, and port inefficiencies (costing the economy $600 million annually) hinder supply chain reliability. For the logistics industry, this means longer travel times, higher fuel consumption, and greater wear and tear on vehicles.

4. Sustainability Pressures: In Australia, transport accounts for ~19% of total greenhouse gas emissions, with road transport contributing the majority. With Australia’s commitment to net-zero emissions by 2050, the transport industry is under growing pressure to reduce its carbon footprint. Transitioning a fleet is not a small thing. The high costs of new technologies and a still-developing infrastructure for electric vehicles (EVs) in regional areas pose significant hurdles. Companies will need to find a balance between complying with environmental policies and maintaining affordability for their customers.

5. Regulatory Compliance: While regulatory compliance can ensure safety and fairness, it also adds complexity to operations. With Australia’s strict regulatory compliance, companies will need to navigate a maze of compliance requirements, from workplace safety laws to environmental standards and road access restrictions. 

6. Geographical Barriers: Australia’s size—7.7 million square kilometers—creates long transportation routes, such as the 3,290-kilometer stretch between Sydney and Perth. This leads to higher fuel costs and extended delivery times, particularly for remote areas.

Things to Consider While Selecting Logistics Software

Choosing the right logistics software in Australia requires careful evaluation to ensure it aligns with your business needs. Here are key factors to consider:

1. Scalability and Flexibility: Opt for software that can grow with your business and adapt to changing logistics demands, such as handling peak e-commerce seasons or expanding into new regions.
2. Integration Capabilities: Ensure the software integrates seamlessly with existing systems like Warehouse Management Systems (WMS), Enterprise Resource Planning (ERP), and Customer Relationship Management (CRM) tools for streamlined operations.
3. User-Friendliness: A user-friendly interface reduces training time and ensures quick adoption by your team, maximizing the software’s benefits.
4. Real-Time Features: Look for advanced features like real-time tracking, multi-stop routing, and analytics to enhance visibility and decision-making.
5. Compliance Support: The software should offer tools to manage Australia’s complex regulatory requirements, such as automated compliance checklists and centralized dashboards.
6. Cost and ROI: Evaluate the total cost of ownership, including licensing, implementation, and maintenance, against the potential return on investment (ROI) from efficiency gains and cost savings.
7. Support and Training: Choose a provider offering comprehensive support, training, and regular updates to keep the software aligned with industry trends.

Key Logistics Software Features 

1. Route Optimization: AI-powered routing uses sophisticated algorithms to compute the most efficient delivery routes by factoring in real-time traffic, distance, vehicle capacity, delivery windows, and driver schedules. In Australia, urban congestion in cities like Melbourne and Sydney spikes the fuel costs. Beyond improving delivery speed and reducing operational expenses, AI-powered routing also minimizes carbon emissions, supporting Australia’s sustainability goals and ensuring compliance with stringent e-commerce delivery expectations.

In Australia, route optimization software reduces fuel consumption by 10-20%, saving logistics firms an average of $50,000 annually per 20-vehicle fleet.

2. Geocoding: It converts textual address into precise geographic coordinates (latitude/longitude), enabling accurate mapping for deliveries, pickups, and tracking. It leverages natural language processing (NLP) and machine learning to interpret ambiguous or incomplete addresses. In Australia, where rural addresses in Queensland or complex urban layouts in Perth pose challenges, AI-powered software like Shipsy can help you reduce delivery errors by 10-15% and enhance last-mile efficiency.

3. Territory Optimization: Territory optimization divides service areas into efficient zones based on geographic boundaries, customer density, delivery volume, and driver familiarity. The software processes historical data and real-time inputs (e.g., order patterns, traffic) to assign drivers or vehicles to specific territories, minimizing overlap and travel time. It uses GIS (Geographic Information Systems) tools to visualize zones and balance workloads, updating dynamically for seasonal peaks. 

Territory optimization improves on-time deliveries by 10% in Australia, saving A$12,000 monthly for regional freight firms by reducing travel distances by 8%.

4. Auto-order Allocation: Auto-order allocation assigns orders to drivers or vehicles automatically using AI that evaluate factors like proximity, vehicle type, driver availability, and delivery urgency. The software processes order data (e.g., location, weight) and matches it to driver profiles (e.g., shift hours, skills) stored in a database, optimizing assignments to minimize delays and balance workloads. It also incorporates real-time updates via APIs to ensure adjustments for new orders or cancellations.

How Shipsy is Helping Australian Businesses

• End-to-End Optimization: Shipsy’s logistics software in Australia streamlines first, middle, and last-mile operations with features like automated scheduling, real-time tracking, and multi-carrier management to ensure seamless delivery across vast distances.  
• AI-Driven Insights: By leveraging artificial intelligence and machine learning, Shipsy’s Business Intelligence platform empowers businesses to better analyze driver performance, route efficiency, predict demand, and gain insights behind delivery failures.
• Sustainability Focus: Shipsy’s carbon monitoring tools and eco-friendly routing options help businesses reduce emissions, aligning with Australia’s sustainability goals.
• Seamless Integration: Shipsy’s platform seamlessly integrates with existing WMS, ERP, and CRM systems, providing a unified platform for managing complex supply chains.
• Enhanced Customer Experience: Shipsy’s white labeled communication tools allow  businesses to send real-time tracking updates, enabling customers to track, trace, and reschedule deliveries. 
• LIA Co-Pilot: Shipsy’s Logistics Intelligence Agent (LIA) offers prescriptive and predictive incident management for seamless logistics operations. AI-powered Co-pilot facilitates informed decision making powered by advanced analytics and automates processes like rerouting and rider allocation for creating better overall processes.

Shipsy’s logistics software Australia empowers businesses to reduce transportation cost by 14%, decrease average delivery time at doorstep by 22%, increase deliveries per vehicle by 24%, and improve delivery NPS by 31 points. To learn more about how Shipsy’s logistics software can help your businesses address its unique supply chain challenges, simply click here for a demo.