Air cargo industry facing increased competition from other shipping methods

For some companies, ground transportation is a more viable option than air cargo shipments.

The modern logistics chain presents companies with a number of shipping options, contingent upon how quickly freight needs to be delivered and what cost a company is able to pay. As is often the case in the business world, the decision usually comes down to price.

As a logistics professional for PwC, Jonathan Kletzel – and his 15 years of experience working in the supply chain – is a trusted source of information for industry professionals. That is why Air Cargo World recently interviewed Kletzel to determine his thoughts on the evolution of the air cargo industry and the challenges it will face in the coming years.

"Non-air transit options will continue to increase their competitiveness against air cargo," he said. "In today's environment where cost is king and air remains by far the most expensive transport option, greater investment in supply chain management practices, including better demand planning and near-sourcing of distribution facilities, combined with increasing sea, rail and ground service capabilities are taking their toll on the air sector."

Closely related to what Kletzel recommends is a proven system that optimizes inventory levels. Improper allocation of stock produces a domino effect that undermines the efficiency of a company's distribution channels.

The same can be said for cargo and freight damages.

When supply chain stakeholders receive compromised shipments, they need to devote resources toward determining the source of the damage, seeking compensation for it and then, often, replacing the shipment.

This process grinds efficiency to a halt. But with a proof of condition solution, supply chain professionals can photograph and track shipments at each touch point, allowing them to move forward instead of constantly looking back.

Posted in Transportation/Logistics

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