NEW YORK: December 18, 2015. A just-released air cargo survey by Accenture says only 25 percent of industry executives think they have the necessary software to optimize their business revenue.
The consulting company says that while air cargo managers want and need better tools to optimize revenues, 54 percent are actively seeking better pricing and reservations software "to improve real-time visibility into utilization and price integrity across the quote-to-cash cycle".
The survey found that 71 percent of air cargo executives would consider Software-as-a-Service (SaaS) to lower overall costs, improve business agility and speed deployment.
"For many air cargo carriers, limited visibility into capacity utilization can result in serious revenue leakage through a number of causes. These include unnecessarily shipping low-yielding freight on in-demand routes to under-utilized allocations and being unable to respond to shipment disruption," said Ganesh Vaideeswaran, managing director, Accenture Freight and Logistics Software.
The research determined that air cargo carriers are looking at three key areas in order to transform their businesses: More efficient business processes, price integrity, and better visibility.
Nearly 70 percent of respondents chose "achieving process efficiencies" as one of their top three business challenges while 39 percent cited process automation and improving software tools as twin priorities to manage their business more efficiently.
Only 14 percent of air cargo executives said their current pricing systems allow them to easily create and manage competitive rates and 61 percent said missing shipment information at time of booking remained a key challenge.
The Accenture research suggests that while executives have relatively high visibility into utilization at each key stage of the shipping lifecycle, only 54 percent have end-to-end visibility across every stage – from quoting and booking to acceptance.
The company said its study was "based on a quantitative, online survey" conducted between February and March 2015 among 85 air cargo executives from Europe, Middle East & Africa (70 percent), North America (21 percent), Asia Pacific (7.0 percent) and Latin America (1.0 percent).