AIR CARG O WEEK


WEEKLY NEWS


SCALABLE STRATEGIES FOR SUPPLY CHAIN SMES


BY Tom GRAHAM, Head of Logistics Practice, Holmes Noble THE global logistics sector geopolitical is navigating an


uncertain and complex market. Not only are we dealing with


tensions, evolving


tariffs, and ongoing supply chain disruptions, the playing field is also being reshaped. The market has seen big acquisitions, and there’s a trend for diversification, as corporates adopt multi-shoring and multi-sourcing strategies to build much- needed agility and resilience. For SMEs in the logistics space, the pressure is


even greater. Margins are tight, leadership talent is harder to find, and sustainability expectations keep rising – all with limited resources. Amid the complexity, one thing is becoming


clear: technologies like AI and IoT are no longer niche or experimental, they’ve become practical levers for efficiency, agility, and smarter decision- making. Once reserved for industry giants, these tools are now within reach for businesses of all sizes. For SMEs, the opportunity lies in starting small, focusing on impact, and building the capabilities to scale sustainably. So, against this backdrop, what are the most


accessible, low-risk ways for small and mid- sized logistics firms to start leveraging AI cost-effectively?


No longer just for giants Logistics leaders are beginning to tap into AI to drive smarter, more efficient operations. By analysing real-time traffic and weather data, for example, they’re finding the fastest, most fuel- efficient routes and cutting down on costly delays. AI is also being used to forecast demand, plan shipments, monitor cargo conditions, and optimise warehouse space, to name just a few applications. Do the numbers add up? It seems so. Supply


chains that use AI have proven to reduce risks and optimise costs by over 67 percent,


according can to decrease The


Global Supply Chain Institute. And studies show AI-powered routing


fuel


costs by up to 15 percent and increase fleet productivity by approximately 20% percent making it a valuable tool for companies managing large fleets. For SMEs, AI is doors


opening to


capabilities previously available only with deep pockets. Computer


to those vision systems


– once prohibitively expensive – are becoming accessible through as-a-service models, enabling warehouse automation without massive capital investment. Real-time tracking through IoT sensors is


transforming fleet management, with even small fleets benefiting from optimised routes, reducing fuel costs and improving delivery accuracy. Meanwhile, dynamic pricing algorithms are helping SMEs compete more effectively by responding to market conditions in real-time.


The implementation gap Despite these opportunities, adoption remains uneven across the sector. The barriers are real: cost concerns, integration complexity, and data maturity


challenges can seem daunting


smaller operators. My view is that the real challenges lie in


leadership readiness and organisational culture. Indeed,


our successful industry research implementation heavily, they’re shows hinges the ones less


that on


budget size and more on strategic approach. The most successful SMEs aren’t necessarily those investing


fostering


cultures of curiosity and continuous improvement, dedicating even small resources to screening the market for practical solutions.


Practical steps for SMEs For logistics SMEs looking to begin their technology transformation, several practical approaches stand out. Start small but strategically by focusing first on one high-impact area, such as route optimisation or


inventory management, where AI can deliver


quick wins. Explore as-a-service models, as many AI and IoT solutions are now available through subscription or


lease arrangements, eliminating


prohibitive upfront costs. Before investing in new systems,


leverage


existing data by extracting maximum value from information you already collect through basic analytics tools. Build collaborative ecosystems by partnering with technology providers, industry peers, and even clients to share insights and resources. Finally,


invest in people alongside


technology by upskilling existing team members and ensuring leadership has the digital and ambitious mindset to drive change.


literacy www.aircargoweek.com 03 NOVEMBER 2025 ACW


Managing change It’s clear that executives running supply chain firms need to stay ahead of what their customers will ask next. What does that mean for talent? At Holmes Noble, we’re seeing a clear shift in search requirements: executive roles in logistics are being redefined to span operations,


risk,


sustainability, and tech transformation, reflecting the need for more integrated thinking. At


the same time, for


there’s growing demand leaders with deep experience in operating


model design and long-term strategic planning, as organisations of all sizes prepare for a more complex, tech-driven future.


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