Complete e-Freight implementation in the air cargo industry

Abstract

The increasing global demand for air cargo shipments, driven by trade growth and the need for fast transportation, creates pressures on the air cargo supply chain to ensure efficient, safe, and reliable operations. The current documentation process, a mix of digital and paper-based systems, introduces inefficiencies and potential safety risks. This thesis explores the barriers, opportunities and potential solutions for a complete e-Freight implementation in the air cargo supply chain, that is, a completely paperless documentation process. Due to the lack of specific literature on the documentation process in the air cargo supply chain and the dearth of empirical studies, the research aims to identify and categorize potential barriers to e-Freight implementation and ascertain the current state of e-Freight implementation within AirFrance-KLM Martinair Cargo (AFKLMP Cargo). The study conducted an extensive literature review on related topics to create a theoretical conceptual barrier overview. An empirical study was executed at AFKLMP Cargo using a single in-depth case study approach with multiple sub-cases at various outstations worldwide. Semi-structured interviews, informal expert conversations, and direct observations were used to gather data, which was then analysed using a bottom-up coding method. The findings revealed 21 barriers to e-Freight implementation, grouped into seven main categories.

These barriers are complex, interrelated, and include organizational, social & cultural, economic & financial, technical/technological, market, regulatory, and standardization issues. The lack of unified industry standards complicates the transition, leading to country-specific restrictions and processes that obstruct e-Freight's universal application. The disconnect between the organization and the market exacerbates this issue, failing to effectively communicate the importance and benefits of digital documentation standards. Additionally, the company's decentralized structure creates obstacles for the standardized implementation of e-Freight across all outstations. The conservative nature of the industry and lack of commitment from top management, along with ineffective communication strategies, further reinforce these barriers. There are opportunities, however, in the form of digital document acceptance by local authorities and international regulations like the Import Control System 2 (ICS2). The study concludes by recommending an adaptive and collaborative implementation approach, with a focus on internal practices to address external challenges. An engaging narrative and a win-win situation for all stakeholders should be emphasized to facilitate collaboration. Small steps and a structured, iterative process are advocated for successful e-Freight implementation. This research makes a significant contribution to the field by providing a theoretical framework for identifying barriers to paperless documentation and offering valuable insights into the e-Freight implementation at AFKLMP Cargo. Future research can further test these findings for their applicability in other organizational settings in the air cargo supply chain. Other recommendations address the need for future academic research to test, compare, or expand upon the results.