HOW AIRFREIGHT CAN EMBRACE AI

HOW AIRFREIGHT CAN EMBRACE AI

FROM optimising routes and predicting demand to enhancing customer service and improving operational efficiency, artificial intelligence (AI) is providing significant advantages across the entire airfreight supply chain.

AI’s impact in airfreight logistics can be seen primarily in three areas: AI leverages historical data, including shipment volumes, weather patterns, and market trends, to create accurate forecasts of future demand. This enables airlines and logistics providers to optimise their flight schedules, ensuring better capacity management and reduced risk of overstocking or understocking. By predicting fluctuations in demand, AI empowers airfreight companies to make proactive adjustments, reducing bottlenecks and ensuring timely deliveries.

AI is crucial in dynamic routing, which allows airfreight operators to adjust flight paths based on real-time factors such as weather conditions, traffic, and fuel prices. This not only reduces operational costs but also helps decrease carbon emissions by optimising fuel usage. Additionally, AI’s ability to improve on-time delivery ensures that shipments reach their destinations faster, enhancing customer satisfaction. AI automates various processes such as cargo loading, unloading, and documentation, which reduces manual labour and minimises the risk of errors.

Predictive maintenance, another AI-driven innovation, anticipates equipment failures before they occur, allowing for timely repairs and reducing aircraft downtime. AI’s resource allocation capabilities also improve efficiency by ensuring the right staff and equipment are in the right place at the right time.

Customer communication AI is not only improving logistics operations but also transforming customer interactions in airfreight. AI enhances shipment visibility by providing real-time updates and predictive notifications about potential disruptions. Customers can receive proactive alerts about weather issues, customs delays, or other obstacles, allowing them to adjust their plans accordingly. AI-driven tracking platforms also feature interactive maps and augmented reality experiences, making the shipment tracking process more engaging and informative.

Using AI, logistics providers can offer customised shipping solutions based on customer preferences, shipping history, and industry-specific needs. AIdriven predictive analytics can even anticipate future shipping requirements, offering tailored suggestions for carriers, expedited services, or specific handling instructions.

Virtual assistants and chatbots powered by AI also provide customers with quick, around-the-clock support. AI streamlines communication between logistics providers and customers by ensuring that all parties remain informed about the status of shipments. With improved transparency and better communication, customers feel more confident in the airfreight process, leading to stronger relationships and enhanced satisfaction.

Real-time decision-making The speed and accuracy of AI-driven decision-making capabilities are central to the airfreight industry’s ability to stay agile and resilient in the face of disruptions. AI systems enable airfreight companies to make real-time adjustments to flight routes, schedules, and resource allocation based on changing variables.

For example, AI algorithms analyse data from weather reports, flight schedules, and demand fluctuations to identify potential disruptions and make swift adjustments. Autonomous systems, such as drones and robots, further enhance operational speed by taking over tasks like cargo handling and inspections. The real-time capabilities of AI result in improved on-time delivery, reduced delays, and better resource management. These benefits not only reduce costs but also contribute to a more resilient airfreight network. By quickly responding to emerging events like severe weather or demand surges,

AI ensures that airfreight companies can adapt to challenges and maintain a competitive edge. Anticipating disruption and building resilience The ability to anticipate disruptions is crucial for maintaining smooth operations in airfreight logistics. Predictive analytics, driven by AI and machine learning, plays a pivotal role in helping logistics companies identify and mitigate potential challenges. AI can predict severe weather conditions and suggest alternative routes or transportation methods to minimise delays. For example,

AI can forecast a storm’s impact and reroute shipments to avoid delays or cancellations. Additionally, AI helps with capacity planning by analysing past data to anticipate future demand spikes, ensuring that airfreight companies can allocate resources accordingly and avoid congestion during peak seasons. AI also helps logistics companies navigate geopolitical risks by analysing data from news articles and social media. AI identifies emerging issues, such as trade conflicts or political unrest, and enables companies to create contingency plans, such as finding alternative suppliers or rerouting shipments.

Bandu JAYAPRAKASH
SVP and head of retail, CPG, travel and transportation industries at Mphasis

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