Academic interlibrary loan departments are facing a major crisis. Interlibrary loan Managers and their staff make use of a complex variety of automated and manual processes as workloads increase exponentially. With the current information explosion, customer requirements continue to escalate. However, the currency crisis and other factors have led to significant serial cancellations, therefore placing a greater strain on interlibrary loan departments. This paper considers the current crisis in interlibrary loan departments and examines the LIDDAS (Local Interlending and Document Delivery Administration System) Project. The paper discusses what LIDDAS will deliver, and how it will be implemented at Macquarie University Library. The paper explores the effects that the implementation will have on staff, and the opportunities for enhanced levels of service to library customers.