Lufthansa Cargo goes fully digital

Lufthansa Cargo ’s integration of air cargo software solution company IBS Software ’s iCargo mail handling service has resulted in a fully digital, end-to-end workflow for the carrier. [caption id="attachment_64954" align="alignright" width="300"] (Courtesy/Lufthansa)[/caption] The digital adoption, which launched in January across 100 of its stations, means Lufthansa no longer relies on paper at all, Jan Paulin , senior manager of communications and strategy at Lufthansa Cargo, told Air Cargo Next . The iCargo smart platform allows carriers to conduct all air cargo business operations digitally, the company says, including: Sales; Operations; Handling; Warehouse management; Unit load device management; Mail handling and accounting; and Revenue management. Shipments can be viewed by customers in real time during any point in the cargo’s journey, with the platform allowing customers to make any necessary changes, according to the website. “With the solution now implemented, we have access to comprehensive and accurate data throughout the entire airmail-handling process,” Paulin said. The technology integration includes new features, such as barcode scanners, to speed up processes, Paulin said. “The new barcode scanners accelerate handling processes, allowing our customer to track their airmail consignments in real time during the shipment lifecycle.” This latest implementation gives Lufthansa Cargo a “fully digital supply chain leveraging an efficient airmail export and import handling” platform, he said. Lufthansa Cargo declined to share details regarding the costs associated with the integration, and IBS Software did not respond to inquiries from Air Cargo Next by publication time. Digital integration Lufthansa Cargo has been developing its “Go Digital” initiative to transition away from paper processes and create a more holistic and tech-forward approach to air cargo operations since 2021 . The carrier began by implementing 100% electronic air waybills (eAWB) to reduce paper transactions and improve tracking efficiency, Paulin said. The eAWB not only improves efficiency across the multiple processes in air cargo operations, but also contributes to a more sustainable airline, Paulin said. IATA reported in 2020 that 70% of its airline members had adopted eAWBs to varying degrees. That number grew to 85% as of April, an IATA spokesperson told Air Cargo Next . “A number of carriers have 100% eAWB capability but there are only a handful that enforce 100%, [or] that refuse freight that isn’t supported by eAWB,” the spokesperson said. Lacking connectivity Digitalization in the air cargo industry has been ramping up since the pandemic, though there are still significant roadblocks in connectivity between operators, Paulin said. “Geopolitical crises and macroeconomic instability mean that all system partners in the air cargo supply chain must plan their processes flexibly and adapt them in case of doubt,” he said. “In addition, the air cargo industry must deal with far-reaching changes, such as increasingly complex supply chains and rising customer demands at the same time. Speed and efficiency are main drivers.” The transition to full digitalization requires increased adaptability and speed in business operations. “This is only possible with highly integrated, digital workflows,” Paulin said. “Availability of data, effective communication and standardized data exchange between all the partners involved in the process serves as the foundation.” Until recently, Lufthansa Cargo ’s “airmail processes were paper-based with a multitude of different manual interfaces in an increasingly complex global regulatory environment,” Jan-Wilhelm Breithaupt , former vice president of global fulfillment management at Lufthansa Cargo, said in a post on LinkedIn . Breithaupt is now chief executive of Lufthansa subsidiary Jettainer . Converting paper processes to digital processes takes time and consideration from multiple angles, Paulin said, including: Stakeholder management and buy-in; Data and IT systems, including data integrity and accuracy; Timeliness with regard to governmental regulations; and Budgets and resources. “Considering all the challenges, [this last integration] was a great achievement,” Paulin said. Lufthansa Cargo ranks No. 16 on Air Cargo Next ’s Freight 50 list of top 50 cargo carriers, flying 5.1 billion cargo tonne kilometers in 2022. Register here for Air Cargo Next ’s upcoming webinar, “Air Cargo and Pharma: Using Technology to Save Lives,” on Tuesday, June 18, at 11 a.m. ET.

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