How digitalisation became essential

How digitalisation became essential

Offering significant opportunities to transform airfreight into a faster, more efficient, and more sustainable industry, digitalisation has been on the rise in recent years, accelerated by the response to the pandemic. Remote work and travel restrictions exposed the industry’s reliance on outdated paper-based systems, emphasising the urgency of modernisation.

While companies are at different stages of their journey towards innovation, the momentum is undeniable and digitalisation is poised to become the new standard across the cargo industry.

“In many ways, the timing has always been right for digitalisation, but the necessary ingredients for successful implementation weren’t always in place. Covid-19 fundamentally changed that by creating three key factors that have accelerated the push for digital solutions in the cargo industry,” Cedric Millet, President of CargoTech, stated.

“First, during the pandemic, many industry players realised they had lost visibility into their operations. This created widespread awareness that digitalisation was no longer optional—it was essential.

“Second, Covid-19 changed workforce expectations. People became less willing to engage in repetitive, manual tasks and wanted to integrate technology into their daily workflows. This shift in mentality further pushed the industry toward digital adoption.

“Third, the financial pressures post-pandemic acted as a catalyst. Many airlines saw their profit margins shrink dramatically. To avoid regressing to pre-pandemic levels of inefficiency, airlines had to implement digital solutions that could protect pricing, enable better commercial decisions, and ensure long-term profitability.

“These external factors created the perfect environment for digitalisation to flourish. But just as crucially, the right providers are now available. Unlike traditional technology companies that created software based on assumed pain points, CargoTech brings a unique approach. We are cargo business experts who understand the real challenges faced by the industry. We identify pain points first and then develop tailored digital solutions to address them.”

Looking to the future

A key factor driving change is the generational shift in leadership across airlines. The new generation of leaders, many of whom are digital natives, naturally incorporate digital solutions into their business operations. This marks a significant departure from the more traditional leadership styles that previously dominated the cargo industry and were often less inclined to embrace digitalisation.

“With younger, tech-savvy leaders at the helm, digital transformation is becoming embedded in daily processes,” Millet stated. “However, a natural challenge remains in the form of adoption and change management.

The most obvious barriers to digitalisation are financing the journey and recognising the full spectrum of benefits it offers. While many players in the industry acknowledge the advantages of digitalisation, their focus often tends to be narrow. Most understand the benefits in terms of productivity, cost reduction, and operational efficiency. 

For example, implementing e-booking platforms to automate the booking process and eliminate manual tasks is widely accepted as valuable. However, fewer recognise the added value of advanced digital solutions aimed at enhancing revenue. Tools and systems for revenue optimisation—such as those used in passenger operations—are often underutilised in cargo. 

“That said, we’re seeing less resistance among airline customers today. One reason for this is the shift in how digital solutions are designed and implemented,” Millet continued.

“In the past, systems were often imposed on employees, forcing them to adapt to rigid processes that didn’t align with their workflows. our approach is different, we develop solutions that genuinely help them do their jobs more effectively. This makes adoption a more natural and seamless process.”

Modern workforce

Digitalisation is often placed in the context of replacing current roles and restructuring the workforce. However, Millet contests that, actually, that narrative should be flipped on its head – being viewed as a way to create businesses where people actually want to work, with roles that make sense and are meaningful.

“Instead of spending their time sifting through paperwork or handling repetitive tasks, employees are seeking opportunities to focus on more engaging and value-driven work,” he explained.

By implementing these solutions, businesses enable their workforce to move away from repetitive, transactional tasks like data entry and focus on adding real value.

“This is particularly critical for attracting new talent to the industry. To keep the industry growing, we need fresh talent, and younger generations are not interested in manual, outdated processes that could easily be handled by digital systems,” Millet continued.

“The question is no longer, ‘Will I lose my job if we implement a digital solution?’ Instead, companies are coming to us saying, ‘We can’t find people willing to work this way anymore.’ Digital solutions are becoming a necessity because employees want to work with modern tools that streamline processes.”

Developing the right solution

Achieving a digital future does not simply involve targeting sophisticated solutions like revenue optimisation, forecasting, etc. It’s critical to first establish a strong foundation, such as moving away from the data entry, manual emails and basic cargo management systems. 

By solving these immediate pain points, workforces can become more efficient, freeing up resources to focus on more strategic tasks. At that point, they can then introduce more advanced solutions, like decision support systems, which help the workforce make better-informed decisions.

“The beauty of CargoTech is that we’re not just focusing on the most digitally advanced companies. We’re addressing the diverse challenges of all our customers, understanding their specific needs, and developing solutions that cater to different levels of digital maturity,” Millet laid out.

“At the end of the day, we only advise our customers; they are the ones who ultimately decide what strategies to implement. We share best practices, our experiences, and our insights, but the final decision is always theirs. 

“We advise against jumping straight into pricing systems or focusing on maximum prices. If they sell more capacity than they actually have due to overbooking, or if they miss the opportunity to sell capacity because of poor forecasting, advanced systems will be ineffective. We encourage a pragmatic approach—first addressing the most pressing hurdles before moving on to more advanced solutions. 

“We guide our customers through a smooth, evolutionary process. We don’t push them to the highest level of digital maturity all at once. Instead, we take them through the necessary steps, addressing the foundational issues first, so they can naturally progress to more advanced stages of digital transformation.”

 

Picture of Edward Hardy

Edward Hardy

Having become a journalist after university, Edward Hardy has been a reporter and editor at some of the world's leading publications and news sites. In 2022, he became Air Cargo Week's Editor. Got news to share? Contact me on Edward.Hardy@AirCargoWeek.com

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