"Octoloop removes need for intermediaries in the booking process"

In the rapidly evolving world of air cargo, Octoloop, powered by CargoFlash Infotech, is revolutionising the air freight booking process.

Octoloop, an innovative digital platform, is making significant strides in connecting airlines and freight forwarders. Launched in India in August 2024, Octoloop aims to revolutionise the way the industry operates, providing visibility and streamlining processes.

In an exclusive interview with Indian Transport & Logistics News, Poonam Faridi, Business Head, Octoloop, discussed the platform's unique features, its journey from inception to implementation, and the future of digital transformation in the air cargo sector. She also shared insights on Octoloop's expansion plans and the role of technology in driving efficiency and growth.

What is Octoloop by Cargoflash? Could you please elaborate?

Octoloop is one of Cargoflash's flagship platforms, complementing its other product, nGen. Previously, we primarily focused on providing Enterprise Resource Planning (ERP) solutions tailored for airlines and handlers. With Octoloop, we are taking a significant step forward by introducing a platform designed not only for airlines but also to benefit freight forwarders.

The platform connects supply, represented by airlines, with demand, represented by agents. Its unique selling point is that it’s inclusive, any agent regardless of the size of business can make bookings through it. Any agent without holding the Airlines Air Waybill can register and start using the platform seamlessly, following a simple verification process. This feature disrupts traditional workflows, enabling smaller or independent agents to book directly with the airlines.

How does Octoloop create value for airlines and agents?

Octoloop removes the need for intermediaries in the booking process. Traditionally, smaller agents without direct airline connections rely on larger forwarders to facilitate bookings. For airlines, this often means restricted capacity distribution, with a few forwarders dominating the market and influencing pricing. Octoloop overcomes these limitations by directly linking airlines to a broader network of agents, significantly expanding their distribution reach.

For agents, the platform offers unparalleled transparency. Rates displayed on Octoloop are fetched directly from airline systems, with no markups or hidden costs. This ensures agents can access the same rates as any other user, levelling the playing field. Additionally, the platform enhances visibility for airlines, they can now see what the actual source of booking and actual market potential. This increased transparency and reach transform the booking ecosystem into one that’s more inclusive and efficient for all stakeholders.

What are the main challenges that Octoloop is addressing in the air cargo industry?

When we began conceptualising Octoloop during the pandemic, the industry was facing an unprecedented need for digitalisation. The traditional air cargo process is manual, involving extensive paperwork and lengthy coordination. For instance, smaller agents often had to go through larger agents to access airline inventory leading to inefficiencies and delays.

Coming from a background in passenger aviation, which is far more digitalised, it really surprised me to see a significant gap in how cargo bookings were handled. Unlike passenger aviation, where bookings are just a command away, cargo processes require multiple intermediaries and manual steps. This complexity, combined with the industry's lack of digital integration, inspired our management to create a platform like Octoloop, designed to simplify operations for all stakeholders, especially small and medium forwarders.

When you already have an existing booking platform, nGen, under Cargo Flash. What prompted the need for Octoloop?

To clarify, nGen is not a booking platform but an ERP solution primarily designed for airlines and handlers. To illustrate, think of platforms like MakeMyTrip or Expedia, which connect to airline systems via Application Programming Interfaces (APIs) to fetch schedules and rates and simplify the booking process. Similarly, Octoloop is a platform, but nGen functions as the internal system for airlines.

nGen is exclusively for use by airlines and handlers, providing integrated cargo management through specialised applications and modules tailored to their operational needs. In contrast, Octoloop connects airlines and forwarders, offering a user-friendly platform to share capacity and rates directly. This makes Octoloop highly accessible to forwarders of all sizes, while nGen remains focused solely on airline-specific processes.

You launched Octoloop on August 15, 2024, starting with two stations in Delhi and Mumbai. Are there plans to expand this service further, either within the domestic market or internationally?

Qatar Airways Cargo is our first customer, and we chose Delhi and Mumbai, two major metro cities, to gauge the market’s response and dynamics. Our contract with Qatar Airways Cargo covers all of India, but we began with just these two stations. After getting a good response from the market and good traction. By November 5, we expanded to other stations across India and are now live with all 13 stations for Qatar Airways Cargo.

“When we began conceptualising Octoloop during the pandemic in 2020, the industry was facing an unprecedented need for digitalisation.”
Poonam Faridi, Octoloop

Are you planning to collaborate with or partner with any other cargo carriers in the future?

Yes, we are planning to collaborate with several international carriers, both from India and Southeast Asia. However, I cannot disclose specific names yet, as the contracts are still not finalised.

How does Octoloop differ from similar solutions offered by your competitors in the market?

We welcome competition and see it as an opportunity to showcase our unique approach. Unlike many competitors who focus solely on International Air Transport Association( IATA) or International Air Transport Association-Cargo Account Settlement Systems (IATA-CASS) customers, we work with all types of agents, ensuring inclusivity. As a neutral digital distribution platform, we operate transparently with no markups and provide airlines with on-ground sales expertise and marketing support. This broadens our reach and sets us apart in the market.

In terms of digitalisation, we leverage online channels to generate leads while maintaining a dedicated on-ground sales team to facilitate customer onboarding and verification. Additionally, we streamline transactions by handling payments from forwarders and remitting them to airlines, ensuring seamless operations.

What future enhancements or upgrades are planned for the Octoloop platform?

We have several upcoming features planned, although I can’t disclose all of them just yet. However, I can share that we’re working on updates that will benefit both forwarders and airlines. One key feature that sets us apart is our wallet system.

Traditionally, forwarders have relied on credit to do business with airlines, but we started with a wallet system to mitigate financial risk. Our wallet system has been successful so far, and we're happy to see positive results.

How is the wallet system different from the traditional credit system?

Unlike the traditional credit system, which relies on post-payment terms with a credit cycle of 30-45 days, Octoloop operates on a prepaid wallet model. Agents load funds into their wallet in advance, ensuring they always have sufficient balance for bookings.

The wallet system is accessible to forwarders of all sizes, including those who may not qualify for traditional credit terms with the airlines. This inclusivity allows smaller forwarders to participate actively without financial barriers and have the visibility of routes and rates transparently.

What are your plans for the digital transformation journey, and how is Octoloop helping you move in that direction?

Our goal is to serve airlines of all types, especially those seeking to expand their reach and enable more forwarders to utilise our platform. We are committed to continuously improving our platform's capabilities and introducing new features to enhance the forwarder experience.

Additionally, we aim to board more airlines, providing forwarders the advantage of accessing multiple airline options through a single, unified platform.

Have you received any feedback or suggestions from your customers regarding Octoloop?

The feedback we’ve received has been overwhelmingly positive. However, digitalisation in the air cargo industry is still in its early stages. Typically, it takes one airline to lead the way, and Qatar Airways Cargo has emerged as a pioneer in embracing this transformation and recognising the importance of platforms like ours.

By partnering with Octoloop, Qatar Airways Cargo has streamlined its cargo booking processes and expanded its sales reach. With dynamic pricing of airlines in place, customers now have access to real-time rates and can make bookings directly, reducing reliance on larger freight forwarders and saving time.

When engaging with airlines, the response is generally encouraging. However, the pace of digital transformation varies, some airlines have dedicated digital teams, while others do not. Drawing from my experience in passenger aviation, I’m confident that as one airline adopts this shift, others will eventually follow suit.

How do you believe a platform like Octoloop is helping freight forwarders and airlines, especially in the context of global disruptions?

If I talk about disruption from a futuristic perspective, think of a platform that exist in passenger domain are the examples. Initially, it only provided visibility into airline rates and routes. Later, they expanded to include hotel packages.

This is the power of digitalisation on a platform. Once you're connected with the demand and supply, service providers can also connect to that platform. That's the real disruption, offering everything in one place.

When it comes to expanding your reach internationally, what channels do you find are different between the Indian and international markets?

The challenge isn’t so technical, it’s more about setting up a sales team in that market. We need a dedicated team that understands the nuances of that specific market. The Indian market was easier to navigate since we are already here and familiar with its trends and how forwarders operate. Expanding into a new market, like the European one, could be more challenging in comparison to launching in India.