WEEKLY NEWS


BREAKING THE CYCLE OF SILOED DIGITAL ADOPTION


AIR CARG O WEEK


BY Oscar SARDINAS 06 Fragmentation across global networks continues to hinder airfreight visibility, particularly beyond


basic track-and-trace milestones. Although common processes exist, inconsistency in adherence and the absence of standards for specialised cargo limit industry-wide reliability. Menon notes that global supply chains increasingly depend on higher-fidelity data, yet most exceptions still surface too late for effective action. While core milestones such as Cargo iQ are reasonably well established, bespoke processes for pharmaceuticals,


unstandardised. This generates structural blind spots. Delay management remains too reactive, with critical information often reaching decision-makers after intervention windows have closed. “When you go beyond the common denominator processes, things start to break down. Specialised


cargo does not benefit from the same standards, so workflows are tailored and inconsistent. That is where visibility gaps grow,” Radhesh Menon, Head of Product Management and Strategy at IBS Software, said. “The industry is not good at situations that require rapid solutioning. When delays or cancellations


occur, it can take too long before the right people even realise what has happened. By then, the situation might already be beyond repair.” “Before even talking about AI, basic capabilities like proactive monitoring and global control-tower


models can return reaction time to operators. These systems track what should happen and what is actually taking place, giving teams the ability to intervene earlier.”


Standard adoption Standardisation remains a persistent limitation. The industry’s common denominator is too low, resulting in inconsistent data flows and incompatible digital layers. Despite strong frameworks such as IATA’s One Record, adoption lags. This undermines end-to-end visibility even when individual companies advance their own capabilities. Many organisations continue to innovate in isolation, introducing bespoke digital layers that improve


some local processes but complicate industry integration. This has been likened to the creation of “tech debt” that must eventually be unwound or realigned with common standards. The longer the delay, the more costly the consolidation becomes. “The industry is only as good as the common denominator, and, unfortunately, that denominator is


very low. Even excellent operators cannot perform well if their partners cannot return the required data,” Menon explained. “One Record is a brilliant technological framework, similar in its ambition to concepts like blockchain.


But strong technology is not enough. Adoption is the point at which value either consolidates or collapses.” “When I heard about January 2026 as a mandatory date for One Record option one, part of me was


pleased. Pressure is necessary. You cannot keep old doors open and expect the new one to be used. But the change management required is substantial, and implementation will not be easy.” However, digitalisation will likely remain uneven for the foreseeable future, requiring a hybrid approach.


Enterprises often prioritise projects that deliver the majority of benefits through a limited set of partners. He recognises this as commercially rational but stresses that it introduces long-term integration risks.


ACW 09 FEBRUARY 2026


Wider standard adoption would allow innovation to accelerate without leaving structural inconsistencies


behind. However, the industry cannot wait for full harmonisation before investing. A balanced model of bespoke solutions and progressive standard alignment appears to be the only path in the medium term. “Enterprises cannot wait for standards to mature before transforming. Many focus on an 80-20 model,


targeting the partners that deliver the greatest impact. It makes sense, but this creates technology debts that must eventually be cleared,” Menon outlined. “Once a business goes down a bespoke path, continuous investment becomes unavoidable. At


temperature-controlled goods, and other specialised categories remain largely


some point, the solution needs reinvention or standardisation. That future write-off should not be underestimated.” “We need standards to move faster, but innovation will still require some level of customisation. A healthy mix is the only realistic approach to maintain velocity while working toward common frameworks.”


Sustainability reporting, commercial considerations Rising sustainability expectations are sharpening the case for unified data structures. Accurate reporting of scope 1, 2, and 3 emissions depends on consistent, high-resolution operational information, particularly for cross-border supply chains. Sustainability is becoming an embedded requirement rather than an external pressure, and he expects future booking decisions to incorporate emissions transparency more directly. Carbon-optimised routing could become an economic differentiator. As organisations pursue their own


decarbonisation targets, higher-emission routes may become less attractive even if they are marginally cheaper. Digital infrastructure will be required to enable such comparisons in real time. “There is a growing intrinsic need for companies to adopt frameworks such as SAF usage and emissions


reporting. In other sectors, customers are already guided towards more carbon-friendly choices. Air cargo will move in the same direction.” “When a buyer is choosing between two options, the lower-carbon route could become the logical


choice, even at a higher cost. This is not just about environmental preference; it is connected to corporate targets and reporting obligations.” “IATA already has a carbon calculator and a standard API that allows operators to assess the impact


of a given booking. The definitions exist. The question now is how to embed them into the commercial workflow.” Cost remains a core factor in adoption decisions. Digitalisation must be justified through clear ROI,


whether through process efficiency, quality improvements, cost optimisation, or revenue growth. Top- line value, he notes, often produces the strongest business cases. Organisations should start with the problem they need to solve rather than the tool they want to


deploy. Technology-led projects can create elegant solutions that do not address operational realities. “Every investment has to be based on ROI. Digitalisation for its own sake does not make sense. It must


improve process quality, efficiency, or the top line,” Menon continued. “Business managers and IT teams should work backwards from the problem, not the solution. Too often an organisation has an end state in mind without confirming whether it addresses a real operational need. “Our own approach is to examine the day-in-the-life of each role and identify where repetitive tasks


can be automated or workload reduced. Productivity gains matter more than deploying a particular technology.”


www.aircargoweek.com


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