WEEKLY NEWS


AIR CARG O WEEK


INNOVATING OPERATIONS BY Edward HARDY


WHILE the air cargo industry has been relatively slow to adopt new technologies compared to others, the rapid pace of digitalisation is now becoming


a critical factor for success. Key


players in the industry are increasingly focusing on integrating advanced digital tools to enhance efficiency, increase revenue, and improve customer


retention. One of the major drivers behind the successful


digital transformation in air cargo is the synergy created


through partnerships, something that


CargoTech has embraced at its core. By working together,


the group’s members can engage in


the cross-fertilisation of ideas and products and deliver digital solutions that cater to the complete needs or specific requests from the air cargo sector. “There is a wide range of digital maturity among


the industry,” Cedric Millet, President of CargoTech, stated. “Some companies have already mastered the


basics and are using top-tier solutions. For them, the digital tools they adopt may have a shorter lifespan—perhaps just one or two years—before they need to evolve or replace them with more advanced options. “However, about 80 percent of the industry still


hasn’t fully implemented even the basic digital solutions. For these companies, the focus isn’t on adopting tools that could become outdated in six months or a year but on implementing solutions that will remain relevant for the next five to ten years. “We must provide these foundational tools that are designed to stay effective over time.”


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Drivers of digital adoption The push towards digitalisation in the air cargo industry is primarily driven by four key factors: Productivity


increases: between


processes and reducing the need for data entry are crucial Connectivity


ensures that


costs, potential job losses, and the complexity of integration. However, industry leaders are


addressing these concerns through


clear communication, education, and phased implementation. One ef fective strategy is to of fer proof of trials, allowing companies to test


concept


digital solutions before fully committing. This approach helps to build trust and demonstrates the tangible benefits of digital tools, such as increased ef ficiency, cost


savings, and


revenue growth. “It’s crucial to clearly explain the value


of the technology you’re of fering. This process


begins with understanding the


customer’s needs through process mapping and discussions with those facing challenges within the organisation. By identifying their pain points, you can demonstrate how your solution outlined.


addresses


Automating manual repetitive


for boosting productivity. systems


information flows seamlessly, reducing errors and saving time. Revenue optimisation: Airlines are increasingly


turning to digital solutions to maximise the revenue generated by their expensive assets. Tools that offer capacity forecasting, dynamic pricing, and overbooking recommendations are essential for optimising the use of cargo space. Sustainability: With


growing pressure from


regulators and the public, sustainability is becoming a top priority. Digital solutions that help reduce the environmental impact of air cargo operations are in high demand. Experience: Enhancing the customer journey


through innovative digital solutions is key to retaining clients and attracting new business. Solutions


that simplify elements the together booking ensure process,


provide real-time tracking, and offer personalised services are highly valued. “These


that profitability, and the


technology provided not only meets immediate needs but also aligns with broader goals of efficiency,


environmental responsibility,” Millet declared.


Challenges of digitalisation Despite


the clear benefits, the air cargo


industry still faces challenges in fully embracing digitalisation. Many companies are hesitant to adopt new technologies due to concerns about


ACW 7 OCTOBER 2024 www.aircargoweek.com these issues,”


Millet


Getting the basics right While the pace of digitalisation is accelerating, the air cargo industry is still playing catch- up. The focus, therefore, remains on getting the basics right. This includes implementing core digital solutions that streamline cargo management tasks,


systems, and


processes. For many companies,


automate enhance decision-making the first step is to


adopt basic digital tools that can be integrated into their existing systems. These tools need to be scalable and adaptable to ensure they remain relevant as the industry evolves. The emphasis is on solutions that provide a strong foundation, which can then be built upon with more advanced technologies like AI and machine learning. “The air cargo industry is about 25 years


behind other sectors in terms of digitalisation. The first step towards catching up is mastering the basics of digitalisation. Unlike other industries that might focus on advanced AI to drive innovation, the air cargo industry is still working on establishing foundational systems,” Millet explained. “Adding layers of intelligence, such as


decision support for pricing, booking, capacity forecasting,


and route optimisation,


essential. These basic digital tools are still not widely implemented across the industry, and they won’t become obsolete anytime soon because they address fundamental needs.”


is


repetitive


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