South African AirwaySouth African

Airways (SOC) Ltd

Request for Information for the supply

of a Cargo System

RFI-GSM-041/2016

REQUEST FOR INFORMATION

Instructions on Completion of Request for Information Document.

Sections 2 are to be completed by the vendor.

SAA will be glad to accept any information you can offer on the commodity as stated.

This request for information must be completed in English and the prices must be stated in South Africa Rand.

SECTION #1

Request for Information Details

1. Background

SAA is in the interest of a new generation Cargo System with Ancillary Services, which will accord with all SAA procurement policies. The replacement of the existing technology will assist in supporting the SAA Cargo strategic business requirements inclusive of achieving increased revenue off a lower cost base.

South African Airways (SOC) Ltd is a registered South African Company that provides scheduled revenue passenger and cargo flights/services to the general public. SAA has been in operation since 1934 and has a fleet of 53 aircraft that provide scheduled flights to the domestic, regional and international market sectors. The latter includes flights to Africa, Europe, the Americas, Far East/Asia, Australia and the Middle East as well as the sub-continent.

SAA operates some of the longest sectors in the world where payload maximization is critical. The Cargo Business Unit's mission is to provide quality airfreight related products and services to maximize profits, primarily using capacity generated by the SAA’s group schedules, complemented by our alliance partner’s networks and freighter operations.

SAA Cargo's main operating base and Head Office is situated at the SAA Cargo Centre at OR Tambo International Airport in Johannesburg South Africa where all SAA Cargos services and many other carriers are handled. SAA Cargo sells freight space mainly to freight forwarders through a network of CASS (Cargo Agent Settlement system) relationships and General Sales Agents (GSAs). There are also Sales Offices staffed by South African Airways personnel throughout the world.

2. Business Requirement

SAA has a business requirement for an efficient, cost effective new generation Cargo System that will support cargo operational activity in the domestic and international regions.

System Maintenance

Management of Unit Load Devices (ULD’s)

Sales and Reservations

Outbound Operations (Domestic and Export)

Inbound Operations (Domestic and Import)

In-transit Service Management (Transshipment)

Warehousing

Barcode scanning

Claims handling

Customers Services

Mail

Courier

Frequent Freighter Loyalty program

Branch Accounting

Revenue accounting

Revenue Management

Management reporting

Data Warehousing and Business Intelligence capabilities

Audit Capabilities

The following points summaries the key objectives:

Replace SAA Cargo platforms with a solution that leverages the advantages of modern technologies thereby reducing costs and contributing positively to bottom line profitability.

Implementation of a system with a community development model that inherently addresses industry changes & challenges. The solution must however be flexible enough to cost effectively address SAA Cargo specific requirements which provide SAA Cargo with a competitive edge.

Introduce productivity efficiencies by leveraging technology and through the automation of business processes in areas such as EDI, Training, Management Reporting, Warehousing activity support.

Online access to Cargo applications for more outstations, GHA & GSA’s

Implementation of a solution that inherently addresses the challenges of the IATA e-freight – Cargo IQ and other related initiatives.

The following overview details the Airlines requirements for an International Cargo System.

2.1 SYSTEM OVERVIEW

This section which is generally monitored and maintained by the businesses central headquarters department, covers the core data elements required to operate a cargo system. These include such areas as:

Storing and maintaining reference data/table system messaging, schedule set up maintenance capacity set up/maintenance (including allotments and permanent booking) Introducing and associating aircraft type(s) and ULDs type(s) to the cargo system.

In addition to these "standard" requirements the Airline has specific functionality requirements that will provide:

Ability, when creating a schedule, to "clone" data that is repetitive in its content and input.

Calculate and provide indicative ULD station stock levels based on the schedule, aircraft type, and local ULD turnaround factors.

Ability to insert and maintain a yield criteria value for a given flight which would be updated by the capacity management area.

Ability to insert and maintain a minimum spot rate threshold value for a given flight, which would be updated by the capacity management area.

Consignments that failed to meet the required criteria/threshold would be queued to the capacity management area for action.

Provide widely accessible tracking and tracing of cargo through all its movement across the network of the airline and their partners;

Provide for management of mail and other special air-cargos handled.

2.1.1 UNIT LOAD DEVICES MANAGEMENT

Global Management of ULDs

This area covers the global tracking of owned, leased and other airlines ULDs within the Airlines network, including those ULDs transferred in and out of IATA ULD Control.

Locally Managed ULD

This area covers the local movement, storage, transfer and tracking of owned, leased and other airlines ULDs at a given station. Included in this area is the ability to create LUC, UCM messages, print ULD control receipts including the calculation of demurrage and determine the status and location of a given ULD, in and within the airline system.

Report ULDs

This area provides ULD status reports to those users responsible for managing ULDs. These reports would cover areas such as:

ULDs scrapped, Lost, damaged, out for repair and disposed.

Location of ULDs including quantity and type both in static and dynamic state

ULD purchased ULDs on a given flight

ULDs that are available at a given station

Total ULD inventory and location

ULDs transferred to another agent/carrier ULD stock level deviation.

2.1.2 SALES & RESERVATIONS

This functional area covers the tasks carried out in managing commercial and freighter aircraft cargo capacity, managing pricing, allotments, creating and changing bookings and the processing of host and interline cargo reservations.

In addition to fundamental functionality such as: view a schedule, determine flight capacity/availability, issue an air waybill number, create a booking and maintain the booking, the Airlines have identified several specific sales and reservations requirements for a future Cargo system summarized below:

Ability to check a booking against the flight sector yield criteria

Maintain market and contract rates, quotes and spot rates within the system

The spot rate threshold and flight criteria values would be checked against the predetermined flight criteria. A booking that failed the flight criteria would be queued to the next available flight.

Capability of automated booking confirmations based on certain pre-defined aircraft and capacity limitations/availability.

Allotments need to be available both on unitized and loose cargo configurations.

Graphical load plan. Users have the concept of a graphical load plan that would be created as part of the create flight process. The load plan would be updated as the confirmed ULD base sizes (ULD configuration) were known. Bookings would be assigned to these ULD base sizes and ultimately form the guide document with which the warehouse builds the load. Any assignments, modifications, or deletions to the air waybill or flight record would be reflected on the load plan

Interfacing capabilities with other statistical and sales management systems. The system must have online portal capability that will allow for the following:

o Availability on all mobile deviceso Ability to perform transactions such as:o User management, track and trace, claim registration, master and house awb

data capture, booking management as well as captured awb listing.= as well as flight schedule display.

o The portal must support the Electronic Security declaration as well as the Regulated agent initiative.

The same should apply for the mail system, must be able to support the ACC3 as well as the local CAA Regulated agent and E-CSD initiative

2.1.3 OUTBOUND OPERATIONS (DOMESTIC and EXPORTS)

This area covers the acceptance and processing of Cargo at the air waybill and house air waybill level and includes:

Accept booking lists (from customer airlines)

Weighing and rating checks

Assigning booked and un-booked (lying) air waybills to a flight

System interface for acceptance of consignment to loading scales

Flight make-up, including dead load weight statement creation (assigning ULDs to a flight and consignments to ULDs).

Pre-manifest creation

Final Manifest creation

Off loads

Notification to Captain, and depart flight messaging

Flight Reporting

Performance management in terms of flown as booked indices and other related.

2.1.4 INBOUND OPERATION (DOMESTIC and IMPORTS)

This area covers the processing of the inbound operations which include, manifests, air waybills/house air waybills, and the physical cargo. Functionality would include:

Accept an arrival manifest and air waybill information, (ability to enter arrival manifest or data capture air waybills if electronic versions not available).

Arrive the physical air waybills and cargo

Distinguish movement of cargo from that of ULD at both air waybill and house airway bill level during check-in

Assign holds for air waybill such as, charges collects, bank release specify discrepancies on arrived cargo and send discrepancy messages

Locate and retrieve cargo

Produce and send a notification of arrival. The notification may be sent by e-mail, fax or post.

Check if the cargo is ready for delivery. A consignment could not be delivered if requirements such as: Customs and Quarantine Clearance, Charges Collect had not been satisfied. Calculate related terminal charges and reflect on delivery note.

Deliver the cargo and produce a delivery note

2.1.5 WAREHOUSING

This area covers the management of the warehouse. Functionality would provide the capability to:

Perform warehouse stock check and report discrepancies.

Update warehouse locations

Warehouse reports such as, warehouse utilisation, consignment dwell times by selected parameters i.e. commodity, ULDs, Carrier.

2.1.6 BARCODE SCANNING

This area covers the ability to scan bar codes throughout the handling process specifically where handling is done by SAA cargo.

The concept of piece level identification and using unique tracking number complying with the IATA 606 standard will be a requirement. Although IATA 606 does not require piece level identification it is a requirement for SAA Cargo. The use of pre-printed tracking numbers on import shipments, with no barcodes, must be facilitated in order to connect the consignment information to the tracking number for the warehouse handling process. For international transshipments the re-labeling from pre-printed barcodes to that of IATA 606 labels must be provided.

All warehouse functionality that will be performed on a desktop must be available on mobile radio frequency barcode scanning devices.

2.1.7 MANAGEMENT REPORTING

This area comprises a range of management reports that cover the following areas:

Customer Reports

Terminal Activity reports

Terminal Service Standards Reports (these reports would be based on a table of agreed service standards set up in system maintenance)

Capacity Management Reports

ULD Management reports

Respond to Cargo 2000 measurements reporting requirements

2.1.8 CUSTOMER SERVICES

This area comprises those functions that are supportive of activity where the user interfaces with the customer and associated customer enquiries. Functionality in this area would provide the capability to:

Search for an air waybill record. The search criteria might consist of one or a range of air waybill fields such as, air waybill number, shipper/consignee name, Flight number/date, Booking Reference Number, origin/destination.

View booking and or air waybill details.

Customer Profile. This function would provide the capability to create, update and delete, all customer details such as name, address, phone/fax/e-mail contacts, customs agent, key personnel, IATA number.

Customer History. This function would provide the capability to create, update and delete a customer history and would include such areas as: booking history, shipment history, account status, account limits, payment history, claim status etc.

Interfacing capabilities with other CRM systems.

2.1.9 MAIL HANDLING

This area covers the processing of inbound and outbound mail. Conceptually, the functionality applied at the air waybill and physical cargo processing level would also apply to mail and the CN38s (AV7) and mail bags. Key functionality covers the following:

Enter CN38/DSN details into the system

Accept out bound and inbound manifests

Creating a mail manifest sending a mail manifest

Processing Mail Discrepancies

Delivering Mail bag

Where data such as CN38 (AV7), manifest and status details are exchanged, that the capability to exchange this data an electronic would be available.

2.1.10 MAIL ACCOUNTING

This area covers the processing of all CN 38 for invoicing to the various postal authorities.

Capture the manifests and create AV3 and AV5 information

Calculation of flights and totals

Mails maintenance eg billing and contract tables

Mails Reports

Mails Month end procedures

Mails Interface process to SAP and Postal authorities

DSS Interface

2.1.11 COURIER HANDLING

This area covers the processing of courier vouchers and providing the capability to pro rate the courier revenue to uplifted flights:

The acceptance off courier material

Rating of courier vouchers

Creating manifest and EDI to customs authorities who require reporting

Processing of discrepancies

Delivery of courier material

2.1.12 LOYALTY PROGRAM - FREQUENT FREIGHTER

This area covers the loyalty program that incentivizes the customers to earn points that can be redeemed for flight ticket to any destination services by SAA, for movement of cargo on SAA Cargo. These points are awarded on revenue earned by SAA Cargo, after liability for foreign carriage has been provided for. The system should cater for the following:

Create member records

Maintaining member records

Processing of request for travel

Managing tier level movements

Issuing awards certificates for redemption of points

Processing of monthly statements

Year-end processing of tier levels and lost points

2.1.13 BRANCH ACCOUNTING

This area covers the back office control on rating applied to captured air waybills and the verification of the rating prior to interface to SAP or CASS. Control and approval workflow of Charges Correction Advices (CCA) is also controlled in the area. Maintenance of accounts and global incentive management is covered in this area:

Maintain accounts:

Capture Agent accounts

Modify Agent accounts

Close, Suspend and Re - instate Agent accounts

Register new Agents accounts

Agent Account audit trail

Generate Sales Reports

Air waybill Verification / Pending

CCA and DCM creation

Maintain Agent incentive Kickbacks

Agent reports

2.1.14 COMMON FUNCTIONS

This area comprises those functions that have commonality to both import and export processes and covers the areas of:

Air waybill entry (Data Capture)

Included in this would be the ability to split an air waybill for a part shipment, generate a dummy air waybill reference number and where appropriate, clone an air waybill where the capture of multiple same-data air waybill is required.

Locate a consignment into the Warehouse

This functionality would provide the capability to locate an empty position in the warehouse, assign the cargo to that location. Print consignment and warehouse labels.

Manage Payments

This functionality would cover those areas that accept and reconcile payments such as cargo acceptance and delivery areas and those users performing cash drawer function.

Calculate charges owing on a consignment

These would cover charges such as weight/volume charges, storage, terminal fees, express handling etc.

Cash Drawer

This provides the capability to accept payments, print receipts, tax compliant invoices and reconcile those payments through a Cash Summary report.

Clear Customs & Quarantine

This area covers the capability to interface with Customs and Quarantine authorities. Functionality in this area would include:

Notify Customs/ Quarantine of arriving/departing cargo Mark cargo as held for Customs/Quarantine

Clear Customs/Quarantine for cargo

Notify Customs of departure of cleared goods

Acquit the Flight (Release of a flight by Customs)

In-Transit Service Management (Transshipments)

This area comprises the processes that would generally cover the transshipment of cargo. Functionality would include the following:

View a list of cargo that is to be transshipped.

Providing Ramp handling functionality for tail to tail transfers

Check if the cargo is ready for transfer, (checked-in, relevant Custom/Quarantine approvals received)

Create an Air Cargo Transfer Manifest (ACTM)

Damage Reporting

This area provides the capability to record damage details against a specific air waybill, produce a cargo damage report and where, as a result of such damage a value claim is received, record the settlement value and the type of damage (damage, loss, mishandling).

Data Warehousing and Business Intelligence capabilities

The ability for the system to have a central repository of data that is easily accessible to the end user to create dynamic reports. A dimensional layer that is exposed to the user and can be easily changed to user requirements. This layer needs to be accessible by all or any business intelligence tools.

Audit Capabilities

The system should meet SAA audit requirements in respect of data governance.

2.2.1 REVENUE ACCOUNTING

This area covers the ability to prorate all shipments using the sales based information and manifest or transfer manifests on a daily basis to declare revenue and determine flight profitability. In the event of no manifest information, the use of the AWB routing to perform a temporary prorate must be available. As soon as the Manifest or the Transfer manifest is available the temporary prorate needs to be confirmed or recalculated to declare revenue.

In addition to the Multilateral Prorate Agreement (MPA – C), Bi Lateral prorate agreements (SPA Special Prorate Agreements) must be applied to determine “OWN” and “Other Carriers” revenues. On “OWN” routes further special prorates could apply. Provision to prorate other charges and commission earned must also be provided.

Functionality for re-proration of CCA’s / ADJUSTMENTS and amended manifest or transfer manifest must be provided.

The processing of IDEC in and out needs to be accommodated in conjunction with the normal IATA Clearing House invoicing process. Interfacing of revenue on a monthly to SAPR3 needs to be provided.

2.2.2 REVENUE MANAGEMENT

This area covers the ability to use revenue management to manage to maximize flight profitability and the production of management reports to be used in the construction of rates. The ability to simulate flight profitability must be available.

2.3 IT TECHNICAL REQUIREMENTS

Regardless of the whether the solution is used on an Application Service Provisioning basis, (ASP), SAA owned, internally or external hosted, it must meet the following SAA IT services minimum requirements:

The solution must be based on open and flexible software platform easy to integrate with existing applications and systems;

Hard-coding will not be accepted, the solution must allow definable user templates that will enable the SAA system or business units administrators to easily tailor the system to their requirements;

The solution must be user friendly WEB browser enabled and also be able to support rich client interface for our distributed "power users" or a periodically disconnected mobile workforce;

The solution should have no web browser restrictions/limitations as SAA makes use of multiple browsers e.g. IE, Opera, etc;

The solution must be accessible globally, regionally and domestically where SAA offices are present;

The solution must integrate to SAA messaging infrastructure as well as other systems with SAA e.g. SAP, Sales Force. This integration should not be limited to extracting files from the system;

The solution must be easily adaptable or configurable to the changing SAA business requirements;

The solution must provide meaningful reporting inclusive of Executive Dashboards across the regulatory compliance framework;

The solution should also provide for dynamic user report and dashboard creation, which should be driven by a Data warehouse and Business Intelligence strategy.

System must be in alignment with SAA Architectural Footprint; and

System must be capable of supporting multi tenancy to support the SAA Group requirements.

The system must be capable of being deployed in the cloud.

There needs to be local support for the system.

The system must have the ability to communicated through various protocol, such and e-mail, SFTP, cargimp, EDIFACT and CXML.

The system should have the ability to manage Regulatory authority’s requirements, such as ACC#, ACAS, PRECISE as well as having the ability to communicate with other Customs authorities, such as EU, CBPS, India and other Customs Authorities within the markets we serve.

Cargo 200 must be fully supported and the application must provide a CDMP platform

The ability to interface with our in-house applications, developed for SAA, such as the IVS access control application.

User access to the system must be configurable to specific predefined role groups, this must be applicable for the WEB as well as the HHT platform.

The application should be able to interface with various platforms, such as Windows CE, and android devices

The application must support various devices that will allow remote mobility access.

The application must be scalable to various devices, such as tables and smart phones

The system should support security declarations.

2.3.1 IT Security

The solution must meet the following minimum SAA baseline security standards:Audits trails and logs enable;

Automatic notifications (Work Flow capabilities) according to SAA defined rules for any regulatory changes, updates; etc.

Generate exception reports for administrators; Logical Access Managed through Username (pension no) and password (complex); The systems must come with system specification and procedures; and Regardless of where the solution is hosted, the solution provider shall adhere to SAA

security policies.

SAA’s intent with this invitation for information is for the following:

To establish the type of tools and their respective capability to meet the requirements set out above; and

To establish the potential costs of such tools.

Request for Information closing time:

Time: 11h00, South African time (GMT+2.00)Date: 31 May 2016

All questions must be sent by e-mail to: Khosimorobi@flysaa.com no later than 27 May 2016 @16h00pm

Address of tender box or to send an electronic submission please contact us on:Tenders@flysaa.com

South African Airways

Jones Road

Airways park – Main Entrance (Tender box is situated inside the security office).

All documents must be addressed to: Main Reception Gate

SAA Airways Park Jones Road

OR Tambo International Airport

Kempton Park

1627

Number of copies of this RFI to be Submitted (Original included):2 copies and soft copy (disc or memory stick).

NB: No award can be made following a RFI process; however the subsequent request for bid (RFP) may be restricted to respondent suppliers provided that it was so specified in the RFI document.

Section # 1 ends

Section # 2

(To be completed by Supplier)

Supplier Information

2.1) Name of company: ____________________________

2.2) Company registration number: ____________________________

2.3) Address of company:

Postal Address: Street Address:

___________________________ ___________________________

___________________________ ___________________________

___________________________ ___________________________

Company’s internet address:-

2.4) Contact person:

Name: _________________________

Designation: _________________________

Telephone number: _________________________

Fax number: _________________________

2.5) Names of the directors of your company:

Name: Designation:

__________________________ ______________________________

__________________________ ______________________________

2.6) Total number of Employees: ______________________

2.7) Declaration:

The information supplied in this document is correct and complete to the best of my knowledge and accurately reflects the capability of:

(Company name) ________________________

Signature: ________________________ Date:_____________________

Name: ________________________

This RFI is signed in my capacity as: _____________________________________

Section # 2 ends

Section # 3

(To be read very carefully by supplier)

Standard conditions for Request for Information

1. INTERPRETATION AND DEFINITIONS

1.1 DefinitionsThe expressions defined below shall have the meanings hereby assigned to them unless inconsistent with the context of a particular proposal, agreement, contract or order.

1.1.1 “Company”: South African Airways (SOC) Ltd

1.1.2 “Closing date”: the date and hour specified in the document

2. REQUEST FOR INFORMATION INVITATION

2.1 Requests for Information PreparationAll cost in the preparation, presentation and demonstration will be for the account of the vendor. All supporting documentation and manuals submitted in response to this request for information will become “company’s” property unless otherwise stated by the vendor at the time of submission.

2.2 ConfidentialityThe information obtained through this request for information will be regarded as confidential; however, South African Airways (SOC) Ltd does not accept liability for any information which may become public.

2.3 No binding AgreementIt must be clearly understood that no business will be awarded to any vendor out of this request for information. Prices submitted with the request for information are for information only and no vendor will be held to any price submitted. South African Airways (SOC) Ltd further reserves the right to contact individual Vendor’s to obtain further information should this be deemed necessary.

Responses from this RFI may be used to pre-screen potential bidders for the RFP process.

2.4 SamplesVendors may, as part of their response, submit samples, brochures or documentation of the products supplied by the vendor. Samples, brochures and documentation submitted will be returned to the vendor only on request.

3. REQUEST FOR INFORMATION DOCUMENTS

3.1 Document requiring completion and returnVendor’s must complete and submit the following documents as part of their response:

a) Prescribed request for information documents

b) Any information required in the request for information

3.2 Amendment of documents by South African Airways (SOC) LtdSouth African Airways (SOC) Ltd may, at any time prior to the deadline for lodging request for information, amend of the documents or extended the time for lodging documents by notice in writing to the prospective Vendor’s. (Any amendments under this clause will become part of the request for information).

4. PREPARATION OF REQUEST FOR INFORMATION4.1 Language of document

The request for information and all correspondence and documents related to the request for information exchanged by the vendor and South African Airways (SOC) Ltd shall be written in English.

5. SUBMISSION OF REQUESTS FOR INFORMATIONAll requests for information must be:

5.1 Address and marking of requests for informationAll requests for information must be:

a) Enclosed in a plain envelope or wrapping and clearly marked with the request of information number specified on the document.

b) Lodged so as to ensure that they are received not later that the closing time and date specified for their receipt in accordance with directives issued with the document.

5.2 Number of copies requiredThe vendor must submit 2 copies and soft copy (disc or memory stick) (including the original) of each request for information lodged as specified in the request for information.

5.3 Closing dateAll requests for information close on the date and the time indicated in the document.

5.4 Late tendersRequest for information are late if they are received at the address indicated in the document after closing time and date. South African Airways (SOC) Ltd may, at its discretion, consider or refuse to consider any late request for information.

Standard Conditions for Request for Information ends.