Compared to many other sectors, airfreight has been slow to embrace digital transformation. However, it is now experiencing a significant period of digitisation as businesses strive for efficiency, cost reduction, and a competitive edge.

As more businesses adopt digital solutions, those that don’t will be left behind, so it’s become essential for success. The industry is seeing an increasing take-up of cloud-based tech solutions as businesses see benefits beyond the tech solution itself—such as outsourcing the responsibility for updates, fixes, and cyber security—and the ability of cloud solutions to drive efficiencies at scale.

“Digitalisation is vital for streamlining operations, simplifying processes, and cutting paperwork in the airfreight industry,” Yuval Baruch, CEO of Hermes Logistics Technologies, explained.

“Technology can optimise processes, enhance transparency, and improve overall efficiency. It enables real-time tracking, automation of tasks, and data-driven decision-making.

“In practice, businesses can save money and resources, for example, by optimising cargo loads and routes and addressing any issues quickly. Digital tools speed up processes such as creating and sharing important documents. And, by analysing data, companies can predict demand and assign relevant resources.”

Post-pandemic push

The pandemic undoubtedly accelerated the push towards digitalisation in airfreight, showcasing the possibility and necessity of embracing technological solutions. The pandemic drove rapid digitalisation in our everyday lives, and people became more aware of the benefits – how technology can drive efficiencies, simplify operations, and reduce paperwork.

In addition, business leaders quickly saw the need to adapt to disruptions to ensure business continuity, so the industry saw a heightened focus on digital innovation that has now filtered into freight operations.

“Opportunity lies in integrating digital solutions across the entire logistics chain. Interoperability is vital for this,” Baruch highlighted.

“Businesses often run several tech solutions concurrently, and the key is to get them all talking to one another. For example, at dnata’s new Freight Building 17 at Amsterdam Airport Schiphol, Lödige Industries is developing the automated storage system inside the warehouse, while Hermes Logistics Technologies will bring the software that manages the cargo from landside to airside, including critical interactions with outside players.

“The combined automated warehouse and cargo management systems will streamline throughput and drive huge efficiencies.”

Complete visibility

Track-and-trace systems, Internet of Things (IoT) devices, and data analytics enable real-time updates and transparency. Cloud-based solutions, in turn, facilitate seamless collaboration and accessibility, providing customers with real-time information sharing and visibility.

By centralising data storage and ensuring interoperability of tech solutions, customers can access and update information from any location for complete visibility.

“The next steps in the digital evolution of the air cargo industry will see further adoption of cloud-based services and integration of emerging technologies, including AI and IoT,” Baruch continued.

“Cloud-based solutions are the foundation for embracing new innovations and future-proofing operations. Whether it’s integrating IoT devices for real-time tracking or adopting AI for predictive maintenance, the cloud infrastructure provides a flexible environment for experimentation and implementation.

“Staying ahead requires embracing technological evolution in a dynamic industry like air cargo. With enhanced agility, collaboration, security, analytics, and innovation, the cloud empowers air cargo companies to better navigate the challenges we face and make the most of any opportunities.”