Australia’s supply chain is at a pivotal point.

In the aftermath of global disruption, we’re no longer just dealing with shipping delays or rising fuel prices. A deeper, more systemic challenge has emerged - a growing and persistent shortage of skilled labour across the logistics and supply chain sector.

This issue is not new, but it’s becoming more severe. From warehousing and distribution to procurement and freight coordination, the gaps in the workforce are beginning to show, and the consequences are rippling across the economy.

Why Is There a Talent Shortage in Supply Chain?

There is no single cause, but more a combination of long-standing structural issues and recent accelerants:

1. Ageing Workforce and Low New Entry Rates

A large proportion of skilled supply chain professionals, particularly in transport and warehousing, are nearing retirement age. At the same time, the sector struggles to attract younger workers. Roles like forklift operation, freight handling, and long-haul driving are increasingly seen as unattractive, especially when compared to more flexible or remote opportunities in other industries.

2. Demand Outpacing Growth

E-commerce has fundamentally changed the logistics landscape. The need for warehousing staff, pick-packers, and last-mile delivery drivers has skyrocketed. But workforce development hasn’t kept pace. Training programs, apprenticeships, and employer investment in talent pipelines have not scaled in proportion.

3. Geographic & Regional Inconsistency

While urban centres may have access to a larger talent pool, many regional operations are struggling to find and retain staff. Even in metro areas, high cost of living and transport challenges are affecting availability and retention, particularly for shift-based roles.

4. Licence and Certification Bottlenecks

In areas like road transport, not only are HC/MC licensed drivers in short supply, but delays in training, testing, and compliance are also contributing to the backlog. This is creating a pinch point that can't be resolved overnight.

Where Is the Pressure Felt Most?

In speaking with supply chain leaders and HR managers across Australia, a few high-impact areas consistently come up:

• Warehousing: High turnover, low availability of skilled workers, and limited on-the-job training capacity are limiting operations. Employers are competing for the same pool of talent, driving up costs without improving outcomes.
• Freight & Transport: Driver shortages are affecting both long-haul and metropolitan routes. This is not just an issue of capacity, it’s also one of reliability, service standards, and driver wellbeing.
• Planning & Procurement: As companies look to better forecast demand and reduce waste, the importance of experienced planners and procurement professionals has grown. Yet the competition for these analytical and strategic roles is pushing smaller firms out of the market.

What Are the Broader Implications?

This isn’t just a recruitment problem, it’s a business continuity issue. Talent shortages are leading to:

• Increased operational delays
• Rising labour costs
• Lower margins
• Reduced capacity for growth or innovation
• Greater risk exposure in peak periods (e.g., holiday seasons)

For Australia, an island nation reliant on robust domestic and international logistics, these issues have national significance. The ability to move goods efficiently from port to warehouse to shelf is essential, not just for business, but for public confidence, affordability, and economic stability.

Where Do We Go From Here?

There’s no quick fix, but a few key themes are emerging from industry discussion:

• Workforce Development Needs Urgent Attention: Government, education providers and industry leaders need to collaborate on training pathways, incentives for entry-level roles, and improved visibility of careers in logistics.
• Culture and Conditions Must Evolve: To attract and retain talent, companies need to offer more than a payslip. This includes predictable rosters, better health and safety, career progression, and in some cases, flexibility where possible.
• Data and Demand Planning Are Critical: Businesses that invest in strong forecasting, integrated systems, and agile planning teams will be better equipped to navigate ongoing shortages.

This issue is complex, and it’s not going away anytime soon. But by understanding the underlying causes and talking openly about the realities, we can start to move toward long-term, sustainable solutions.

If you’re working in or alongside the supply chain sector, I’d love to hear your perspective. What are you seeing? Where are the biggest pinch points in your organisation or region? And what’s working, or not, in addressing them?