Hermes Logistics Technologies (HLT) and Germany-based cargo handler VG Cargo have signed an agreement to migrate the handler's cargo management system to a software-as-a-service (SaaS) platform, a move designed to improve operational resilience and prepare for future AI-enabled cargo capabilities.

The project, scheduled to begin later this year, will transition VG Cargo's Hermes 5 Cargo Management System (CMS) from on-premise infrastructure to HLT's managed cloud-based SaaS ecosystem.

According to HLT, the migration reflects a broader shift across the air cargo industry as operators adopt cloud-native platforms that reduce IT complexity while providing greater flexibility to integrate new technologies.

The SaaS platform is expected to reduce infrastructure and maintenance requirements for VG Cargo while providing secure cloud hosting, streamlined software updates and improved scalability. HLT said the platform also establishes the foundation for future AI-enabled tools across its Hermes ecosystem.

"Cargo operations are becoming increasingly connected, operationally critical and data-driven," said Yuval Baruch, CEO of Hermes Logistics Technologies. "Organizations are looking for platforms that not only support today's operational requirements, but also provide the flexibility to adopt new capabilities as technology continues to evolve."

Baruch said migrating to SaaS enables customers to benefit from continuous software innovation while reducing operational overhead and maintaining the reliability required for live cargo operations.

VG Cargo said the move aligns with its long-term digitalization strategy.

"As part of our long-term technology strategy, moving to the Hermes SaaS ecosystem was a natural next step," said Jan Krepstekies, key account manager at VG Cargo. "This migration will provide a more scalable and resilient operating environment while reducing the overhead associated with managing infrastructure internally. It also positions us to take advantage of future Hermes innovations as they become available."

Hermes Logistics Technologies has supported air cargo operations for more than 25 years and continues to expand its SaaS offerings across Europe as cargo operators invest in cloud-based systems to improve resilience, integration and scalability while preparing for AI-driven operational capabilities.