7% cost saving for airlines via Web3-based supply chain solution, study finds
LONDON, August 7, 2024 – Airlines can benefit from a 7% overall cost saving in their cargo handling operations by leveraging Web3-based solutions, a study conducted by Aventus & Airport Perishables Handling (APH) at Heathrow Airport finds.
The existing tool set used for global ULD management has remained unchanged since the 1990s and relies heavily on manual data inputs, resulting in critical challenges with data visibility and accuracy, secure information sharing, and costly ULD losses, damages and delays – costing airlines north of $1.6 billion annually.
Web3, through blockchain technology, offers a robust solution to the challenges of traditional ULD management, by:
- Enabling immutable, tamper-proof records that provide a single source of truth, eliminating disputes and improving regulatory compliance;
- Reducing administrative overhead and minimize errors by automating manual processes via self-executing smart contracts;
- Enabling real-time visibility into ULD location, custodianship and condition, and streamlining data sharing to enable airlines to optimize operations.
In a pilot study conducted at Heathrow Airport, Aventus, an industry-leading provider of end-to-end Web3 solutions for enterprises and parachain on Polkadot, found that its end-to-end blockchain-based cargo handling solution drives significant improvements in data visibility, accuracy and operational efficiency within the cargo handling sector.
- 90% reduction in communication and error incidents as a result of digitized data capture;
- 83% reduction in manual documentation time;
- 81% reduction in time between ULD stock updates from 3-4 hours to just 30 minutes, enabling real-time decision-making; and
- 28% reduction in loading times as a result of optimized ULD loading workloads.
Alan Vey, Founder at Aventus, comments: “These results are truly remarkable, underscoring the transformative potential of blockchain for not only the aviation industry but for supply chains globally. We are proud to be empowering enterprises to enhance data accuracy, reduce operational inefficiencies, and achieve greater transparency. As we expand our partnerships across North America, Europe, the Middle East and Asia, we anticipate these results to only improve via network effects.”
Michelle Roosevelt, Director at Aviation Perishables Handling, adds: “Aventus' technology is fast and responsive, which is key in our busy airport environment. We've seen huge improvements in productivity. The app is more than a tool – it's reshaped how we manage and track our aircraft containers, and the Aventus team's support and expertise in meeting our needs has been outstanding.”
Aventus’ aviation solution brings partnerships with major enterprises to the Polkadot ecosystem, including Aviation Perishables Handling at Heathrow Airport, Vodafone’s Digital Asset Broker, as well as other major airlines across Asia and the Middle East.
For more information on the study, download the full report here.
