Air freight visibility is not at all a supply chain secret anymore, and it has become mandatory. Supply chain professionals are treating supply chain visibility as a high priority. Freight visibility is gaining traction by the day and increasingly becoming critical. Real-time supply chain visibility is a must to get the valuable real-time flow of information. Even though air cargo is a costly shipping method, it promises prompt and speedy delivery. It is best to opt for air freight depending on client expectations and the urgency of shipments. It is crucial to focus on gaining greater supply chain visibility for air freight shipping. You should be motivated by shipment urgency and client expectations.
Challenges Air Cargo Carriers Encounter
Low Demand: Air freight has been going through a difficult phase since 2010, and in 2019 alone; there was s 4% drop in the freight transport kilometers. As such, it is challenging to forecast future demand. According to Forbes, thanks to the outbreak of the global pandemic, passenger air traffic has dropped remarkably, but cargo flights are experiencing booming business. However, optimization is essential for retaining profits.
Airport Slots for Cargo Planes: Many international airports are going through a severe scarcity of slots for accommodating cargo planes at airports. Congestion is a fact at popular destinations, and it is expected to become even worse. It necessitates accurate management of demand and supply.
Efficiency: However, Air cargo carriers seem to operate on extremely thin profit margins. Moreover, they are facing tremendous pressure because of the steady fall in demand and the success of Amazon Air. All this necessitates greater efficiency and visibility to stay competitive.
How Digitizing the Supply Chain of Air Freight Can Help
Real-Time Monitoring & Location Tracking: Monitoring the precise location of consignments to and from the concerned airports and even while in transit proves helpful in keeping your consignment secure and ensuring that it is delivered promptly and handed over to the right party. Right from GPS positioning to accurate aircraft tracking, real-time visibility facilitates managing end-to-end shipments seamlessly, irrespective of where they are. Supply chain visibility air cargo is the best way of keeping air cargo secure.
Customers Are Looking for Transparency & Visibility
However, Stakeholders and customers are keen on knowing the status of their consignments. They wish to stay updated on the current location of their consignment and when it is suppose to arrive at the destination. Customers are looking for transparency. If there is a delay, they wish to be notified, accordingly.
Visibility Enhances Risk Management
Currently, the world is getting increasingly interconnect and complicates. Supply chains tend to become complex and longer. Managing effectively your supply chain necessitates aligning with a perpetually increasing number of stakeholders, right from carriers to suppliers to keep consignments on track. End-to-end visibility fueled by real-time data at every step of the way assists organizations in detecting risks and adapting to circumstances even before the issue crops up.
Conclusion
It is crucial to realize that visibility is best for optimizing your supply chain. You may start the optimization when you gain visibility into the present state or condition of the supply chain. Remember that supply chain uncertainty may lead to undesirable decision risks. Without the correct data, organizations fail to design the perfect or optimal supply chain, resulting in higher costs and associated inefficiencies.
