Page 15 - STAT May 2024 for Magzter

A approaches – particularly technology.
market size of more than $175
"The key is to address the people factor
billion with a volume of over
as part of a digital transformation. Last
58 million tonnes, the air cargo
industry has become a pow-
logistics and supply chain companies cite
erhouse for global trade, especially with year, we conducted research that found
rising e-commerce shipments, according lack of resources to drive adoption (53
to an update from Maersk Air Cargo. percent) and workforce resistance (38 per-
"The following industries and products cent) as the top two challenges to imple-
rely on air freight due to its quick delivery menting technologies that enabled more
timelines, visibility throughout their operations.
 E-commerce: Facilitates expedited "I’m sure we all wished it were as easy
shipping for high-value goods such as At Lufthansa Cargo, as flicking a switch but in reality this is a
electronics, luxury and high-demand change management process. Success-
fashion items. we are also committed ful digital transformation in the logistics
 Manufacturing: Ships time-sensitive industry involves more than just great
components critical for production to developing and technology. The ‘human factor’ is critical.
lines to enable just-in-time inventory introducing new digital People may be hesitant to abandon famil-
management. iar methods in favour of new technologies
 Humanitarian aid: Delivering relief solutions that align if they don’t see the anticipated business
supplies to disaster zones, including benefits, if they don’t believe the benefits
medicines, food, water and shelter ma- with our sustainability can be achieved or if they are not confi-
terials, enabling quick response during goals and measures. dent that they can succeed with the new
emergencies. tools or methods.
 Aerospace and defence: Sup- We leverage digital "The air cargo industry is still a people
ply of avionics, aircraft engines, business that relies on talent in all sorts
and military equipment and technologies that reduce of sales and operational roles in order to
armaments like missiles and CO2 emissions. maximise the uplift on every departing
drones, crucial for armed forces. flight. The process of managing cargo
 Perishables: Produce, seafood, Jasmin Kaiser bookings at airlines and freight forward-
dairy items, chemical materials, Lufthansa Cargo ers is typically a front-line role. For such
plants and flowers are quickly change management to be successful,
transported to the market, reduc- a carrier, co-loader, multiple forwarders leaders need to clearly communicate the
ing spoilage and preserving fresh- and a shipper. Unifying these also requires vision of the transformation to their front-
ness; and unifying additional services, say cartage or line team members, and be ready to hear
 Pharmaceuticals: Transporting insurance, as well as streamlining access to and address any questions and concerns
temperature-sensitive immunisa- this information. their people might have.
tions worldwide, crucial during "With the core booking digitised, and, "The change required to drive positive
health crises like the Covid-19 in some cases, already spanning multiple adoption is as much with freight forward-
pandemic." forwarders (in the case of booking delega- ers as it is with airlines. Both parties to the
And digitalisation is gaining mo- tion), carriers (in the case of interlining) booking transaction need to collaborate
mentum to keep up with the sheer and shippers (like with our enterprise ship- and agree on a pathway to transition from
pace of volume growth. per product that enables shippers to price manual methods to digital. There has
"Digitisation tends to follow an from forwarders online), this challenge is been noticeable improvement over the
80/20 power law where the more already being addressed but we’re still at past couple of years with more airlines rec-
common types of bookings, say Day 1 when it comes to industry digitisa- ognising their customer’s desire to embed
smaller Freight All Kinds (FAK) ship- tion. Okay, maybe Day 2." digital processes into the systems they
ments, are digitised first," says Eytan The tools and technology exist today to use. Airlines are increasingly providing
Buchman, CMO, Freightos. "From there, enable a large percentage of all shipments their customers with choice by adopting
we began to digitise common cases to be booked electronically but adoption a multi-channel distribution strategy – in
like blockspace bookings, temperature- lags this capability, adds Stuart Hayman, many cases learning from digital transfor-
controlled bookings, hazardous book- Head, Carrier Integration and Transforma- mation in the air passenger sector."
ings and more. The long-term challenge tion, WiseTech Global. "However, with The challenges for faster adoption of
of the industry is how disjointed the ongoing disruptions experienced in global digitalisation in the air cargo industry
end-to- end process for a shipment can supply chains (pandemics, sanctions, primarily revolve around (1) traditional
be, taking place across multiple levels weather events and political unrest), logis- inherited processes, (2) legacy systems,
of actors. A typical shipment can span tics companies must embrace innovative and (3) digital savvy workforce, according

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