The Role of Air Freight in Supply Chain Management.
Air freight has played a pivotal role in supply chain management since the early 20th century, beginning with the first cargo plane in 1910.
The demand for air freight surged with the rise of express delivery services in the 1970s and continues to grow, with revenues reaching an all-time high of USD 128.2 billion in 2020. Projections indicate that the volume of goods transported by air will more than double by 2035.
The integration of air freight into supply chains offers four key benefits: speed, security and control, flexibility and reliability, and reactivity.
Speed:
The primary advantage of air freight is its speed. While ocean shipments take weeks, air freight can deliver goods within days. This rapid transit is essential for time-sensitive shipments, enabling companies to quickly respond to market demands, launch new products, and replenish out-of-stock items efficiently.
Security and Control:
Air freight provides enhanced security for high-value goods, with minimal handling and faster customs clearance reducing the risk of damage and delays. The short transit time further minimizes the exposure of goods to potential disruptions.
Flexibility and Reliability:
Air freight adds flexibility to logistics strategies, allowing companies to bypass delays in ocean shipping and swiftly adjust to changes in production schedules. Its frequent flights and dependable transit times make it a reliable option for ensuring timely deliveries.
Reactivity:
Incorporating air freight enables companies to react swiftly to external events and dynamic market conditions. This reactivity is crucial for sectors requiring rapid responses, such as technology, fashion, and retail. By utilizing air freight, companies can meet increasing demands and navigate supply chain complexities with greater agility.
Air freight enhances supply chain efficiency and responsiveness, making it an invaluable tool for companies aiming to achieve sustainable growth and operational resilience.
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