Amid persistent disruptions in ocean freight, many companies shift goods to airfreight and raise safety stock — but is it truly saving revenue or simply adding cost burden?
With ocean shipping routes continuously disrupted, many retailers and manufacturers have been forced to “share the load” by shifting part of their goods to airfreight, while simultaneously increasing safety stock selectively.
However, the key question is: is using airfreight and higher buffer stock a costly burden, or genuinely a way to salvage revenue?
When is airfreight “worth it”?
Airfreight is often seen as a luxury option in supply chains. However, in volatile contexts, it becomes a lifeline when delayed goods threaten revenue.
It is vital to know when it’s “worth activating” airfreight. If the product has high margin, volatile demand or high customer-loss risk, the added cost may be justified. On the other hand, for low-value or slow-moving items, switching to airfreight may be wasteful and distort cost structure.
Safety stock by SKU group
Not every product warrants an increase in safety stock. A blanket “increase everything” approach leads to waste and capital tied up. A rational solution is to allocate buffer stock by SKU group, based on multi-variant analysis: margin, lead time, demand volatility, and promotional cycle.
For fast-turning but high-risk groups, VMI or consignment models can help reduce capital pressure. Companies should also monitor “aging risk” indicators to proactively clear stock. Meanwhile, product substitution and flexible promotion packages help relieve stock-out pressure.
Combining Sea–Air & flexibility
Another cost-optimization solution is combining sea and air transport. With a Sea–Air model, goods may be shipped by sea to relay hubs (such as Middle East or Eastern Europe), then flown by air to final markets.
This model both shortens lead time and saves cost versus full airfreight. Also, diversifying transit hubs and destination airports helps firms mitigate risk when disruptions hit one route. Most importantly, this flexible approach allows balancing cost and speed during high-volatility periods.
Source: Vietnam logistics renew
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