Air Cargo and Logistics

Air Cargo and Logistics 1
Supply Chain
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Air Cargo and Logistics 2
Air Cargo and logistics
Introduction
Air cargo management involves training that helps professionals to offer best services while
competing as the air transport industry is wide thus needs creativity and innovation in aspect of
supply chain, strategic planning and development to ensure maximum utilization of resources
and high returns.
15.1 The business case for air cargo
Air cargo is any property that is carried in an aircraft and includes air freight, air express, and
airmail. Shippers should consider this an investment cost on stagnant goods in transit and the
perishability of a product. This shows the length of time that a product takes before it is
destroyed (Graham and Halpern, 2018).
Most distributors value the time preference of money hence will come up with measures to
ensure that retailers are able to get their products on time and satisfy their demand to avoid them
moving to other places or finding other options. They come up with centers for distribution in
which it is the shortest and effective for retailers to receive their goods.
Therefore this centralized distribution helps the company to operate with minimal inventory and
low warehouse costs, which enables various groups of retailers to save capital and other
expenses (Halttunen, 2017). Also, it allows time-saving while shipping new fashions of a
product. The major disadvantage of the decentralized system is although it could be the fastest in
delivering goods when there is a change of products, the goods may still be on shipping.

Air Cargo and Logistics 3
Reducing the variation in delivery time is critical since it leads to saving time as well as costs on
inventory (Barz and Gartner, 2016). For example, an individual would most prefer to use air
transport and not sea due to the time taken in order to receive the goods than waiting for so long
thus maintaining customers, increasing ones market and creating customer confidence.
Security is a significant concern for any business person. Due to globalization, products are
being transported to various destinations with increased distances; hence, they can be
mishandled, lost, or dropped when transported by sea. Transport via air is costly, but goods are
safe, remain in good quality, and cannot be misplaced or stolen as in the case of piracy in the sea
(Olariaga, 2018).
15.2 Characteristics of air cargo
Since airline travel is common majorly for long distance traveling for both passenger and freight
travel and reasonable when time is put into consideration. It has various characteristics, first is
high speed (Brandt and Nickel, 2018). Air transport does not face any traffic jam as it follows a
specific time table and route as a set. Goods are quickly delivered as it takes a short period to
arrive, and an individual can pick.
Moreover, air cargo has high security since goods are carried under specific conditions ad
containers, thus reducing the chances of risk of damage to the products. Because of its safety,
being accurate and insurance costs tend to be lower.
Also, high punctuality of air transport. Due to the fixed schedule and traveling table of
movement, goods can arrive on time, and customers can pick within a shorter period. The
transaction is well enhanced with the help of well-formulated schedule; thus customer
satisfaction fulfilled when they get the goods within a short time.