The Logistics industry is poised for an innovative development

Kale Logistics Solutions has successfully raised $30 million in Series B funding from Creaegis, firmly establishing its position as a significant player in the logistics solutions industry. With a clear and unwavering vision for the future, Kale is boldly navigating the constantly evolving dynamics of the market. What is instore for your customers, partners, and industry at large?

Over the years, Kale has been closely involved in the implementation of industry-leading initiatives incorporating paperless trade, end-to-end visibility, and decongesting the supply chain for cross-border trade in various regions worldwide, including Asia Pacific, Europe, and the U.S. We have leveraged our expertise in digital solutions coupled with our deep domain and business understanding in meeting the growing demand for secure and reliable cross-border transactions.

Kale is an expert in the Logistics SaaS tech space globally, with a proven track record of success. We are confident this investment will enable us to shift gears towards a faster growth trajectory. With clients in over 36 countries, Kale is a pioneer in designing digital trade platforms that promote sustainability and data harmonisation goals led by trade bodies such as the United Nations, IMO, IATA, ICAO, WTO and FIATA.

As the global Logistics industry undergoes rapid digital disruption, smart and centralised technology platforms are leading the transformation. Kale is at the forefront of this digital revolution by digitising and automating end-to-end cargo operations in airports and seaports with its suite of SaaS solutions and category-defining Cargo Community Platforms.

The industry faces significant challenges due to fluctuating demands and struggling infrastructure. However, there are ways to increase its resilience during these challenging times. What steps can the industry take to adapt to the changing landscape?

The Logistics industry displays varying degrees of IT maturity among its stakeholders, which sets it apart from other industries. The larger players possess sophisticated IT solutions to manage their end-to-end operations. At the same time, small and medium-sized enterprises (SMEs) still rely on outdated excel-based data or, worst cases, physical files. Although these players have different operational methods, they share the same data and cargo they handle at various times during the shipment journey. The use of different IT systems causes problems in the movement of freight across the supply chain. These include data discrepancies, time-consuming operations, and lack of trade visibility and transparency, making the entire supply chain inefficient and non-conforming.

Digitisation and sustainability are the future of the Logistics industry, and various policies, governance models, mandates and initiatives are being put in place to shape the industry in the coming years. There is increased pressure on sustainability, with budgets and strategies in place. The Cargo Community System is a technology shift that has been in the works for a decade and goes beyond just the automation of the internal processes of the Logistics stakeholders.

Airports and Ports of today are well-positioned to take advantage of this paradigm shift. It represents a crystallisation of technology choices at a broader level. Many have decided to channel their future technology investments post-pandemic into one or more cloud stacks, significantly accelerating a measured movement over the last few years.

Cargo Community Systems designed by Kale are revolving to be network of networks, beginning at local airports/ports to growing to connect national and regional hubs. Could you tell us more on this organic process of revolution and how technology will change in the next 5 years in your space (with reference to AI)?

AI and machine learning are revolutionising the air cargo industry, ushering in a new digital transformation era. With fully developed applications that can respond in real-time to supply chain issues, disruptions are kept to a minimum, and efficiencies are maximised. Automating much of the documentation accompanying airfreight significantly reduces errors, creating a smoother, more reliable experience for all involved.

Manual processing, high dwell times, sub-optimal use of belly capacity, and missing/damaged non-traceable cargo are just a few areas where AI and ML can significantly improve. The air freight industry has been losing vast sums of money due to under-reported volumes and mis-declarations of air cargo caused by human error. By blending the team’s expertise with real-time, data-driven intelligence, air freight businesses can address these inefficiencies, improve freight management, and increase productivity. Automation and AI work together to leverage the power of real-time data, delivering benefits right from the beginning of the acceptance process.

Cargo Community Systems, powered by AI, are creating an information-rich network that empowers freight forwarders, transporters, airline operations, and ground handling for better planning and decision-making. By creating digital audit trails of cargo received and handled, end customers in the value chain will benefit greatly. The future of air cargo is bright, and with the implementation of AI and machine learning, the industry is poised to reach new heights of success.

Cyberattacks are the biggest hindrance to smooth workflows. According to a 2023 study conducted by the World Economic Forum, 93% of cybersecurity professionals and 86% of business leaders believe there is a high chance of a catastrophic cyberattack due to geopolitical instability in the next two years. How can digitisation help protect against such threats in the logistics domain where there are close to 40 stakeholders in the value-chain?

Cyber-attacks are a serious threat caused by multiple data transfers using various computer technologies. Unfortunately, the lack of cyber threat/event information-sharing among logistics stakeholders only exacerbates these risks. However, implementing next-generation Cargo Community Systems can significantly mitigate these risks. These systems should be built with advanced technologies such as blockchain, user-based access, and secured clouds like Azure, with third-party audits to ensure data security.

To ensure their continued operation, sophisticated multi-layer systems must become more secure. Applying zero-trust principles to airline industry systems can help prevent attackers from spreading their reach once a system is penetrated. Organisations must implement comprehensive and coherent information security controls to mitigate unacceptable risks. Other forms of risk treatment, such as risk avoidance or transfer, should also be considered. By implementing these measures, we can confidently protect our systems from cyber-attacks and ensure the safety of our data.