Artificial intelligence (AI) and machine learning are set to power the air freight value chain.
Speaking at the IATA World Cargo Symposium, McKinsey & Company manager Soufiane Daher said artificial intelligence (AI) and machine learning have a key role to play in the future of the air cargo sector.
Giving examples, he said as chatbots become more sophisticated, they can suggest alternative options tailored to customer requests based on historical information. he explained.
AI and machine learning can also be used to respond to supply chain issues in real time and minimize disruption.
It is also used to increase efficiency and reduce errors by auto-filling many of the paperwork associated with air transportation.
Capacity and revenue management are other areas where there are many opportunities for improvement, he said.
Daher gave examples of airlines using machine learning to better predict no-shows and underloaded cargo.
“Machine learning is a very powerful tool for understanding datasets that are incomprehensible to the naked eye,” he said.
“Machine learning allowed airlines to uncover patterns in advance so they could overbook and improve available capacity for flights.
“This has significantly improved our load factor, which has a direct impact on our bottom line.”
The company reports an 8% improvement in cargo loading efficiency as a result of using machine learning.
In another example, a carrier was able to use machine learning to improve demand forecasting.
In this case, the carrier was able to immediately improve the prediction error rate from 20% to 14%. This improvement accelerated over time as more data was fed into the system.
“Machine learning can understand data patterns and uncover very niche patterns,” he said.
“For example, if there is a surge in raw materials or semi-finished products, this means further increases in transport demand ahead.”
In conclusion, Daher said he couldn’t have chosen to innovate. we have to accept it. ”
“But innovation is not easy. It requires discipline, a different culture and an open approach to risk.
“Ideas are relatively easy to come up with, but how do you execute them? A lot of success comes from the discipline and organization to act on these ideas and make them successful over time. .”
