Maintaining a core focus on cargo and freight operations, Challenge Group has worked to build a freight-focused model through a fleet of aircraft, handling agent and ramp service, road feeder services, maintenance and an array of ancillary logistics services.
With the post-pandemic shift altering supply chain models, Challenge Group has redoubled its focus on end-to-end solutions that allow it to meet market demands efficiently and effectively, even when handling some of the most complex vertical cargo.
“Our vision was not to go and play in the fields with the big companies, so we developed our expertise in special cargo, including dangerous goods, pharmaceuticals, etc,” Yossi Shoukroun, Challenge Group’s CEO, explained.
“Our approach, as well, is to be innovative in our business model, which means that the customers can access part of or the full supply chain. They can be more efficient, and time to market is better.”
“In order to be reliable, Challenge Technic give us support in maintaining our airplanes, and Challenge Handling gives us a unique selling point at our operational hub in Liege, ensuring fast and efficient handling.
“Our three aircraft certificates (AOCs) – Belgian, Israeli and Maltese – provide the company with geographic diversification and market penetration, each offering their own routes, traffic rights and flexibility, covering three main continents: Asia, Europe and North America.
“All together, our operations give us a unique selling point. The world and the market are recognising the benefits of this business model.”
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Innovate to expand
As a player focused on a niche segment, Challenge Group has understood that to maintain its unique focus, it must invest in technology. For years, the company has focused on developing its cargo management system to ensure that, as they grow, they meet all customer needs.
“Technology is essential to us, and we are investing significant time to meet requests, demands, expectations, and, most importantly, to enhance the experience for customers,” Shoukroun stated.
“We developed a full end-to-end solution that delivers the ability to meet the customer expectation, investing in operations and giving the ability to the customer to better track goods.”
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Operational approach
Initially, Challenge Group focused on the 747 freighter for complex and oversized cargo, as this was its area of expertise. Over time, the company realised the importance of sustainability and efficiency, leading them to adopt aircraft with lower fuel consumption.
The first step was to introduce the 767 converted freighter aircraft, which had the multiple-pronged benefit of improving operations, addressing market shortages and better serving sectors, such as e-commerce.
“Our diversification allows us to offer a wider range of products and enhance our overall offering,” Shoukroun explained.
“We understand that the business model for e-commerce customers is totally different. They have totally different demands.
“We listen to customers to understand their needs – delivery time and reliability.”