Digitalisation is everywhere – and it has changed the way people work and live. However, compared to other industries, the logistics industry – and the air cargo industry in particular – has been characterised for years by inefficiency, manual work, paper documents and opaque supply chains.

The pandemic, rising fuel and resource costs, the general supply chain crisis, and disruptive technological advances have led to a rethinking of the air cargo industry. At least since the pandemic, the industry has increasingly relied on the use of technology and digitalisation to close the gaps in supply chains and serve its customers efficiently – even in volatile market situations. 

Thanks to the efficiency and reliability of autonomous processes, air cargo companies can operate more in line with demand and conserve resources. Digitalisation also enables significant cost savings and risk reduction worldwide, as BlueBox Systems is well aware. The company is one of the leading developers of intelligent airfreight tracking solutions.

“In today’s world of supply chain challenges and global disruptions such as pandemics, natural disasters, geopolitical tensions, and trade disputes, it is increasingly important for companies to be innovative and forward-thinking,” Martin Schulze, CEO of BlueBox Systems, stated.

“Innovation enables businesses to adapt quickly to changing market conditions and consumer demands. Automation, data analytics, and artificial intelligence can streamline processes, reduce costs, and improve overall productivity. This adaptability is critical to weathering uncertain times and remaining competitive in a volatile environment.”

Competitive environment

Innovation is driven by competition only if the innovation or its positive aspects are part of the competition. If pricing is the most important aspect of competition, innovators may not have an advantage.

However, innovations in automation, optimisation algorithms, and process improvements can help companies optimise their operations, reduce costs, and offer competitive prices to their customers. Competition can, therefore, act as a catalyst for innovation in the air cargo industry. To be successful, however, it must also prove its value to the business in the short term.

“Ultimately, decisions in any business are based on economic considerations. If an innovation creates value, companies will invest in it and adopt it on a large scale,” Schulze outlined.

“But innovation is often not thought of holistically, which makes it a complicated topic for a number of reasons. One topic that’s not emphasized enough from my point of view is that the pros and cons of innovation are often not aligned. 

“What I mean is that the person who has to make the investment is not necessarily the person who will benefit from it. To me, this is a point that is often overlooked in this discussion.”

Forward momentum

Although the pandemic accelerated the digitalisation of the air cargo industry, it was not solely responsible for the surge in innovation. Even before the pandemic, there was a growing trend toward digitalisation, driven by the need to improve efficiency, reduce costs, and increase transparency. However, the pandemic highlighted the importance of resilient and flexible supply chains and led to an even greater focus on digital solutions.

For example, the pandemic exposed vulnerabilities in supply chains and prompted companies to invest in technologies such as IoT sensors, blockchain, and AI to achieve greater visibility and transparency. These technologies are helping to optimise routes, reduce costs, and improve efficiency at the bottom line.

Now, air cargo has reached a crucial point where the industry must prove whether this push is sustainable or whether old habits will prevail again.

“Much of digitalisation is still happening in silos, and the next frontier will be end-to-end integration of tools and processes both within and across the enterprise,” BlueBox Systems CEO Schulze explained. 

“Applying the right technologies in the right way will be the key to further enhancing efficiency, visibility, and sustainability across the supply chain – not innovating new technologies. 

“Collaboration among industry stakeholders, regulatory bodies, and technology providers will be essential to drive progress and ensure a more efficient, resilient, and sustainable air cargo ecosystem.”