Cargo Talk Feb2021 (2) - Flipbook - Page 18
GUEST COLUMN
Digitised supply chain
for last-mile distribution
Air cargo is comfortably the most suitable mode for transportation of sensitive vaccine shipments because it can
reduce transit time to a bare minimum. Ashok Rajan, SVP & Head of Cargo & Logistics, IBS Software, talks about the
transformative role of digitisation in last-mile delivery of the COVID-19 vaccine.
he vaccine airfreight supply
chain needs to overcome
some critical challenges.
Not only must shipments conform
to pharmaceutical grade handling
requirements, but the industry must be
able to guarantee delivery of shipments
urgently and completely reliably to
every corner of the world – the allimportant ‘last-mile’ of delivery. Global
vaccine shipment is consequently a vast
logistical puzzle.
T
Fortunately, air cargo has a secret
weapon available that makes this
puzzle surmountable; data. Digitising
every step of the supply chain provides
the ability to socialise mission-critical
data with all relevant parties so that
it can be used in real time to enable
informed decision making. Embedding
data collection in all process steps
and distributing and analysing data
efficiently will be a vital element of
the industry’s response to arguably its
greatest challenge in a generation.
18 CARGOTALK
FEBRUARY - 2021
Digitisation will improve lastmile distribution in three
major ways:
Extending the reach of airline
networks – In the wake of the
pandemic, most carriers are operating
with smaller fleets and networks. This
is a major impediment in their ability
to deliver the vaccine across the world.
However, the problem can be tackled
if carriers could leverage each other’s
networks to create a system of large
conduits between their hubs, and then
serve locations throughout this enlarged
global network.
The digital platforms that allow such
complex networks to operate seamlessly
will not only improve the reach of
individual carriers, but also provide
huge savings in terms of better capacity
utilisation – which can help offset the
cost of distribution of the vaccine.
Extending digital processes to
third party handlers and small
GHAs – Embracing digitised workflows
that are driven by configurable rules
that can guide processes through
electronic work orders, electronic
check sheets and process validations
will ensure a much more efficient and
effective supply chain. Plus they will
unlock a huge treasure trove of data
which can be used to fine tune the
process, identify bottlenecks and drive
further improvements in service quality.
Digitisation will not only add value in
the short-term, it will be a valuable
asset for the future. Additionally, for
airlines without established third
party handler relationships, it can be
challenging to establish partnerships
and agree to processes and SLAs,
which can cause delays. In some
markets, smaller GHAs may have
limited digital offerings. Extending
digitisation to small GHAs lowers the
bar for them to access latest digital
tools to deliver superior quality
of service.
Digitising every step of
the supply chain provides
the ability to socialise
mission-critical data with
all relevant parties so
that it can be used in real
time to enable informed
decision making
Equipping the supply chain with
the flexibility needed to cope with
issues – Even the most carefully created
transportation plans and standard
operational procedure are only fit for
purpose if the delivery system is resilient
enough to understand deviations in the
supply chain and react quickly to get
it back on track. Smart digital systems
can collate and make sense of data to
identify potential issues which can be
resolved before it results in catastrophic
failure in the last mile.
A ‘control tower’ system can constantly
monitor progress of critical shipments
across the network and identify
issues such as flight delays or missed
milestones which can potentially derail
the itinerary and put a huge risk on
maintaining the integrity of the vaccine
shipments. By working together as an
industry to operationalise a progressive
approach to air cargo digitisation,
every party in the transportation chain
can fulfil their responsibilities and the
challenge of global last-mile vaccine
distribution can be cracked.
Ashok Rajan
SVP & Head of Cargo & Logistics
IBS Software
(The views expressed are solely of the author.
The publication may or may not
subscribe to the same.)
www.cargotalk.in