AIR CARG O WEEK


GSSAs


THOUGHT PIECE: DIGITALISATION FACES MAJOR CHALLENGES


A in


drian Thominet takes time away from his duties as ECS Group’s executive chairman to consider how air cargo will transition in a digital age. How can the air cargo industry adopt a hybrid model combining digital tools and legacy processes to improve


efficiency and service quality? There are three approaches: implement


digital booking platforms that integrate smoothly


with existing legacy systems. This ensures improved operational efficiency and service quality without causing disruptions to current workflows. Leverage these platforms to automate routine tasks such as bookings and status updates. By streamlining these processes, staff can focus on more complex, high-value activities. Human oversight remains essential for managing these complex tasks, ensuring digital tools enhance rather than replace human expertise. Establish partnerships with technology providers to strengthen


digital booking platform capabilities. These collaborations can introduce advanced features, such as AI-driven analytics, that improve booking accuracy and efficiency. ECS Group adopts a focused approach by utilising digital


booking platforms that specialise in streamlining the booking and tracking processes. This method ensures that the adoption of digital tools directly enhances these specific areas, improving efficiency while maintaining high standards of service quality. By emphasising the strategic use of these platforms, ECS Group ensures that its digital transformation aligns with the core needs of its operations and customer expectations, maintaining a balance between technological advancements and traditional operational excellence. Nevertheless the human interference remains very important on the top of those processes While the air cargo industry has seen substantial advancements digital


technology, full digitalisation faces significant


challenges. Firstly, digital tools and platforms cannot yet handle all customer requests, especially those that are complex or highly specific, necessitating continued reliance on manual processes. This is particularly true in areas such as specialised logistics, cargo handling or customised customer service interactions, where human expertise and intervention are crucial. Furthermore, while digital tools can significantly aid decision-


making and process optimisation, they are not replacements for


the core business activities of commercialisation or the


establishment of tailored client processes. To protect our business against the risks of full digitalisation, it is essential to maintain a balanced approach. This includes integrating digital tools that complement and enhance our core operations without attempting to substitute the personal touch and expert insight that our clients value. This strategy ensures that while we harness the efficiency and data capabilities of modern technology, we continue to provide the personalised and professional service that builds long-term client relationships.


Digital tools boost transparency, profitability, trust. Digital tools play a crucial role in enhancing transparency, profitability and trust within the air cargo industry. By employing real-time tracking systems like Pathfinder, companies can offer complete transparency throughout the cargo journey, significantly enhancing customer


trust and satisfaction. These systems 6


allow both clients and operators to monitor cargo status at any point, ensuring accountability and improving service reliability. Additionally, tools such as Apollo provide predictive analytics that help optimise pricing strategies and forecast market demand and capacity more accurately, directly boosting profitability. Such technologies also offer clear and reliable insights into operational performance, thereby building long-term trust with partners and clients. Through these digital platforms, ECS Group not only improves operational efficiencies but also strengthens relationships by providing a more transparent,


responsive and


predictable service environment. This approach underscores the commitment


to leveraging


technology to enhance key aspects of the air cargo business, fostering a more transparent and trust-filled industry landscape. Transparency applies at all levels too. Customers as well


shippers can have a better visibility of market prices and logistics chains and costs. This helps to better understand the pricing strategy due to costs constraints.


Automation or human management? In the air cargo industry, digital automation proves highly effective for routine tasks such as bookings, where tools like Quantum streamline processes to enhance efficiency. However, the true potential of digital tools extends into more complex areas like load optimisation and revenue management. For instance, ECS Group utilises SkyPallet by Wiremind Cargo to optimise cargo loading processes. This tool employs advanced algorithms to maximise space utilisation, ensuring cargo is loaded efficiently and effectively, which directly impacts operational cost and service quality. In addition to operational efficiency, digital tools play a crucial role in financial aspects of


management tools are employed to optimise pricing strategies, taking into account


real-time market demand and capacity


fluctuations. These tools analyse vast amounts of data to suggest optimal pricing, which helps in maximising revenue while remaining competitive in the market. This type of predictive analytics is essential in adjusting to the dynamic nature of global trade, where understanding and reacting to market conditions can significantly influence profitability. At ECS Group, we strike a balance between automation and


human oversight. While we employ tools like Quantum for booking and SkyPallet for load optimisation, we also ensure that our teams are equipped to handle tasks requiring human insight, such as customer


interactions and complex decision-making.


This hybrid approach allows us to leverage the strengths of both digital innovations and skilled personnel, optimising both operational efficiency and customer satisfaction. By integrating these technologies, ECS Group not only enhances its operational capabilities but also ensures that strategic decisions are informed by the most accurate and up-to-date information available.


Transitioning staff from manual to digital competencies Create


comprehensive the use of digital tools, training programs that emphasise incorporating hands-on learning and


scenario-based exercises. Establish mentorship programs where experienced staff are paired with digitally skilled personnel to


facilitate a smooth transition to new technologies. Introduce digital tools gradually, allowing employees time to adapt and build confidence before automating critical processes. ECS Group has introduced Discovery, an e-learning platform where staff can continuously train on essential tools and stay current with the latest digital advancements.


Investing in advanced digital tools Investing in advanced digital tools such as predictive pricing and revenue management systems provides a significant competitive advantage in the air cargo industry by enabling more accurate and efficient pricing strategies. These tools use real-time data to optimise pricing and capacity utilisation, ensuring ECS Group can quickly adapt to market shifts and maximise profitability. ECS heavily invests in AI technology to ensure access to the best tools available through its collaboration with CargoTech. This consortium includes leading tech providers like Wiremind Cargo and CargoAi, which were initially airliners and thus design tools that are finely attuned to the industry's specific needs. Such advanced tools, commonly used in other sectors for enhancing operational efficiency, are vital


for ECS to implement within


the air cargo sector to maintain its leadership in innovation and revenue optimisation.


How can digital tools support air cargo sustainability? Digital platforms in the air cargo industry not only streamline operations and minimise inactive time but also play a crucial role in reducing energy use and resource waste, significantly cutting down carbon emissions. The adoption of electronic documentation reduces paper waste,


further bolstering sustainability efforts the air cargo business. Revenue


within the industry. Additionally, these platforms enhance the transparency


of selecting service providers, ensuring that


sustainability standards are met across the supply chain. A notable initiative in this realm is CargoAi's cargo2ZERO


program, which focuses on measuring and managing carbon emissions specifically related to air cargo activities. This program aids companies in making more choices,


aligning with broader industry


environmentally goals


environmental impact and promoting sustainability.


How can air cargo companies capture the best revenues ECS Group prioritises rigorous and continuous benchmarking of its performance VS market standards, employing KPIs that drive us to excel beyond typical market norms in terms of pricing strategies and market share gains. This proactive approach to monitoring ensures that we remain ahead in a competitive landscape. Additionally, by utilising predictive pricing models, we can


dynamically adjust our pricing in real-time, responding swiftly to market changes and maintaining a competitive edge. ECS also concentrates on offering high-value services that are precisely tailored to meet the specific needs of our customers, leveraging advanced digital insights to continually refine and enhance our service offerings. Through these strategies, ECS Group not only meets but


exceeds market expectations, securing robust revenue streams and sustaining a competitive edge in the air cargo industry.


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