The air cargo sector is no exception to the industries' digitalization across the globe. Change has been a continuing factor as technological change changes operational landscapes and air cargo handling, long the nature of transporting material goods passed from paper-based, manual systems to automated information-based solutions. Beyond operational efficiency, these advancements are essential to improve accuracy, transparency, and speed. This document investigates how digitalization can enhance air cargo handling operations. Based on my own professional experience, and not only as a stack developer but as the Outbound Operations Section Manager at SAL (Saudia Logistics), I hold a leading position in the field of logistics in Saudi Arabia and the Arab region in general, trying to make the Arab region a global logistics hub.
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Saudia Logistics (SAL) is an independent entity set up in December 2019 within the group structure of Saudia Airlines Group, which is being restructured strategically (SAL, 2019). Emerging from the company’s cargo ground handling division, Saudi Airlines Cargo Company is central to Saudi Arabia’s Vision 2030 objectives (SAL, 2019). SAL is a logistics and supply chain service provider that includes air cargo handling, customs clearance, and warehousing. It helps support the Kingdom’s economic diversification and boost its logistics infrastructure.
As the Outbound Operations Section Manager, I ensure that processes for exporting cargo are built, monitored, and optimised. This includes accepting Cargo, processing it, documenting it, and efficiently transferring that Cargo to an Outbound flight. Digital transformation is essential for me in terms of enhancing performance, reducing delays, and meeting customer expectations.
Air cargo handling digitalization includes WMS, EDI, CCS, IoT devices, artificial intelligence (AI), robotic process automation (RPA), etc (Liu, 2021). They assist in automating the processes, reduce errors involved in human endeavours, and facilitate real-time data sharing amongst the airlines, the ground handlers, the freight forwarders, and the customs authorities.
Air cargo operators thereby gain enhanced visibility, shorter processing times, and better resource allocation by replacing traditional manual workflows of air cargo operations (To Sum Ho et al., 2021). The use of digital technologies in cargo handling further facilitates predictive decision-making, compliancy to compliance checks and seamless data integration. Such high volume and real-time operations require these features as in SAL.
Slack’s 4D Model
| Slack’s 4D Model | Definition | Application in Digitalised Air Cargo Handling at SAL |
|---|---|---|
| Direct (Steering Operations) | Setting the strategic direction, ensuring alignment with goals, and overseeing high-level decision-making. | Digital dashboards provide real-time data on cargo volumes, processing times, and workforce efficiency, helping managers make data-driven decisions. |
| Design (Shaping Operations) | Structuring and optimizing processes for efficiency, flexibility, and adaptability. | Implementation of EDI systems for automated documentation, WMS for streamlined inventory control, and digital kiosks to reduce congestion. |
| Deliver (Managing Daily Operations) | Executing and controlling ongoing operations, ensuring smooth workflows. | Automated cargo scanning, IoT-enabled tracking, and process automation enhance speed, accuracy, and real-time monitoring. |
| Develop (Improving Capabilities) | Enhancing skills, technology, and processes to drive continuous improvement and innovation. | AI-driven predictive analytics for cargo forecasting, blockchain for secure documentation, and workforce training for digital tool adoption. |
Table 1: Slack 4D model
Since the beginning of the year, several digital solutions have been introduced at SAL to enhance outbound operations (Szücs, Arányi and Dávid, 2021). Electronic data interchange (EDI) systems are a key development. EDI allows for the secure and accurate exchange of shipment documentation from/to external stakeholders like customs authorities, freight forwarders, and partner airlines. Moving from paper-based documentation to digital one has reduced processing errors and, perhaps, aided clearance times (de Andres Gonzalez et al., 2021).
Furthermore, the deployment of a warehouse management system (WSM) has facilitated the storage and withdrawal procedure. With real-time tracking, search time and space utilisation have been reduced. Cargo scanning is automated, and all weights and dimensions are recorded without manual intervention for incorporation into the system (Ashok and Ravi, 2024). In particular, it has been extremely useful for controlling temperature-sensitive shipments such as pharmaceuticals and perishables where an acceptable degree of control is necessary and actions must be taken swiftly.
To support this, real-time operational dashboards are introduced to make managers aware of key performance indicators like processing time, staffing levels, and cargo volumes. Both these dashboards help us make proactive decisions about congestion points and re-utilize resources before delays occur. Having used these tools, I can manage high periods and adhere to strict airline schedules as someone responsible for maintaining outbound flow.
One innovative work is that SAL implemented the digital kiosk system in cargo driver check-ins, which now not only saves time in the manual check-in process but also eliminates congestion and long wait times in the cargo gates (Shi et al., 2024). Digital kiosks allow drivers to check in quickly, which also improves site security, safety, and operational flow. The mere fact of this change has yielded significant time savings as well as enhanced coordination of ground handling teams and freight forwarders.
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Digitalization affects the productivity of several operational aspects of SAL. Digital documentation, as well as automatic validation systems, has dramatically decreased the processing times of cargo acceptance (Tan and Sundarakani, 2020). Instead of spending hours verifying paperwork, it only takes teams a few minutes to move shipments. This speed also increases cargo throughput during times of high demand. Another thing to note is that the error rates also lessened due to the minimisation of manual data entries. At every stage, the automated systems validate shipment information, ensuring that there are no inaccurate inputs or misplaced cargo. Such customs clearance is smooth, and it favours customer satisfaction (Moszyk, Deja and Dobrzynski, 2021).
However, digitalization has its own set of pros and cons. Integrating new systems into old legacy systems can be messy and expensive (Taschner and Charifzadeh, 2023). Another challenge is workforce readiness. New skill sets are needed for a transition to digital tools, and this requires continuous training and support (Taschner and Charifzadeh, 2023).
Recommendations
Increase training programs to encompass advanced digital competencies to enable employees to take full advantage of new technologies (Taruchain-Pozo and Fátima , 2024).
These recommendations will serve as the base for operational improvements and future systemic practices in SAL.
SAL is also looking ahead to explore possible applications of artificial intelligence and blockchain technology to further enhance cargo handling operations (Sunil Kr. Singh et al., 2022). AI can be used to predict cargo volumes and accordingly adjust resources.
Conclusion
In serving to redefine air cargo handling operations by streamlining, improving visibility, and boosting productivity, it is digitalization. Adopting digital tools like EDI, WMS, real-time dashboards, and IoT sensors has enhanced SAL's processing speed, accuracy, and resource efficiency. Being part of the Outbound Operations Section, I have observed how digital innovation fosters the development of our staff and helps improve service quality. With digital transformation, there are far more significant benefits.
References
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