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Challenges in Inventory Management in Air Cargo

Air cargo is said to be one of the most challenging modes of transportation all around the world, even after being the quickest and the fastest one. Despite the regular issues with the weight of the cargo/shipment, it still remains a popular choice. However, there are several reasons as to why air cargo is inviting as to why it is becoming unsustainable, like:

  • High cost
  • Increase in fuel price
  • Inventory change (Harrington, 2006)

Air cargo is a dynamic practice as it has taken the inter-continental transportation to a next level. There are several things which are transported from all around the world like frozen food, furniture, letters, and even arms and ammunition.

It is important to know that the majority of these things require immediate or overnight reach to their destination, hence air cargo was caught in the trend regarding the same.

However, air cargo has its own set of challenges, the most important of which comes from the inventory management, which again is the crucial part of any supply chain and logistic problem.

Inventory management is a major challenge in air cargo, and it is here that making changes seems to be extremely difficult at times.

Inventory management plays an important role as it decides the future costs the company can charge, the cost given to the airline for their service, balancing the fuel prices with order demand and certain other things (Burnson, 2018)

It is important to ensure that the inventory in an air cargo is well managed to allow maximum profits and revenue for the company per flight.

  • Booking the cargo and making it to the flight inventory before other cargo companies
  • Pricing the cargo according to the rush
  • The weight carried by passengers in the flight
  • Stock to be left and stock to be taken around the trip
  • Taxes to be levied for the service

Management in DHL Logistics

DHL Logistics is a widely recognized 3rd party logistics company based in the UK. The company is known to cater to a variety of logistics solutions like procurement services, the supply chain for companies, transportation for industrial goods and so much more.

The company has been working well for quite some time now and has established for itself an international presence as well.

The management of DHL Logistics is well functioning. It includes managing the activities of the company, the employees, customer relation as well as other daily activities which happen in a logistic company(Khan, 2018)

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In order to retain their position in the industry, DHL has been working extremely hard towards fostering an environment where all the work is done with ease. The company is trying to diversify their services in order to expand themselves, and gain a wider customer base(Bearth, 2018). The company has entered the flight cargo services and have made tracking the shipment entirely online ie, any shipment/cargo sent by air using DHL can now be easily tracked with up-to 100% precision without any lag. They have opened this online service for online booking and quote service as well in order to eliminate middlemen and provide their customers with a smooth experience (Lennane, 2017).

This is a very welcome step taken by a third party logistics company as it has various benefits associated to itself like:

  • Direct interaction with the customer
  • Providing complete and confusion-free services to the customers
  • Taking full responsibility for the losses (if any happen)
  • Eliminating the extra cost paid to the middlemen

DHL is ensuring that the management of these services are very well carried out to ensure that they provide not only the best customer experience, but are able to get a regular customer base for themselves as well. Once this is achieved, it will be quite easy to grow on it.

Thus, it is identified that the management of DHL is working exceptionally hard to ensure that their services are at par and in-fact better than any other 3rd party logistics company.

 

References

Lennane, A. (2017). DHL the latest to offer air freight online as forwarders fight third-party booking sites. Retrieved from https://theloadstar.co.uk/dhl-latest-offer-air-freight-online-forwarders-fight-third-party-booking-sites/

Khan, M. (2018). DHL launches transport management system. Retrieved from https://www.logisticsmanager.com/dhl-launches-transport-management-system/

Bearth, D. P. (2018). 2018 Top 50 Logistics Companies: XPO Retains Its Place at the Top. Retrieved from http://www.ttnews.com/articles/2018-top-50-logistics-companies-xpo-retains-its-place-top

Harrington. (2006). High 5: Air Cargo’s Top Challenges. Retrieved from https://www.inboundlogistics.com/cms/article/high-5-air-cargos-top-challenges/

Burnson, P. (2018). Air cargo shippers facing many new challenges, says prominent analyst. Retrieved from https://www.logisticsmgmt.com/article/air_cargo_shippers_facing_many_new_challenges_says_prominent_analyst