Despite rapid progress in logistics technology, a surprising reality remains – 75 percent of the shippers still rely on Excel spreadsheets and manual freight acquisition processes. In an era where digitization transforms each sector, why is the purchases of air freight still behind?
The logistics sector is under constant pressure to optimize costs and improve efficiency, but many businesses keep their groans by hand.
“It’s amazing that even some of the largest businesses still make acquisitions on Excel files, endless E -post chains and outdated processes,” said Oliver Esch, vice president of business development at Shipsta by Freightos.
“These methods not only delay decision-making, but leave businesses vulnerable to errors, cost-inefficiencies and market fluctuations.”
The resistance to change, he explains, largely stems from organizational inertia and fear of disrupting existing workflow.
“Many companies have been working in the same way for decades and consider digitalization as an unnecessary risk rather than a competitive advantage,” he noted.
While the industry was slow to embrace digitization, the shift is inevitable. AI-powered procurement platforms quickly get traction, and provide real-time rates benchmarks, predictive analysis and automatic negotiations that help businesses ensure the best possible cargo rates with minimal hand effort.
“Freight acquisition no longer has to be a guess,” Esch explained.
“With AI and data-acid instruments, businesses can access direct market insights, locate cost trends and adjust their procurement strategies in real time. This no longer means outdated tariff sheets, no longer the last minute, and no longer pay too much for cargo space. “
For many businesses, the visibility of data is still a major challenge. Without accurate and real-time cargo cost data, businesses struggle to negotiate effectively, predict expenses or optimize their supply chains.
“Most logistics teams do not have access to a single, centralized platform where they can see all their procurement data in one place,” Esch said.
“Instead, they work on various disconnected systems, rely on historical rates or to make decisions based on incomplete information.”
To address this, collects Shipsta’s digital acquisition platform, which enables logistics teams to measure rates, monitor the performance of the carrier and to customize the acquisition strategies dynamically.
“Having the right data at the right time is what separates the leaders from the industry from those who are constantly fighting to keep up,” he added.
No longer a buzzword
In addition to cost optimization, sustainability becomes an important driver in decisions. With the global net-null targets threatening, businesses are increasingly integrating CO2 extraction detection into their procurement strategies.
‘Two years ago, sustainability was just a buzzword that spoke businesses but did not prioritize in decision-making. It changes quickly, ”Esch noted.
“Now the distractors are demanding green acquisition options, and many are willing to pay more to reduce their carbon footprint.”
For air freight, where carbon emissions are significantly higher than cargo or road freight, transparency and offset strategies become essential.
“The challenge is to balance cost -effectiveness with sustainability goals,” Esch explained.
“Companies start asking: Do we choose the cheapest provider, or do we invest in a greener supply chain that matches our long -term sustainability obligations?”
One of the largest shifts in procurement strategy is the move to index-linked contracts, where cargo rates automatically adjust based on market conditions rather than being locked up by long-term tenders.
“Traditionally, the carriers either paid too much for rates during downturn, or they find themselves around the capacity when prices skyrocketed,” Esch explained.
“With index -based prices, the rates are dynamically adjusted, ensuring that both distractors and carriers benefit from fair market prices at all times.”
This trend is expected to gain further momentum as businesses seek more agile, cost-effective procurement strategies that can withstand the volatility of the global market.
The time for change is now
The message is clear: Freight acquisition is overdue for a digital revolution. Companies that continue to rely on outdated manual processes will struggle to stay competitive, while those who embrace AI, real -time data and digital platforms, gain a clear advantage in cost -effectiveness, decision making and sustainability.
“The world of freight acquisition is changing,” Esch concluded. “The question is: You adapt to it, or will you be left behind?”
