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CARGO
OPERATIONS
Thank you to our Track Sponsor
Opening Remarks
Chairman
Mahesh Shastry
Head: Strategic Deals BU- Travel, Transportation and
Logistics, NIIT Technologies
Thank you to our Session Sponsor
Welcome Address
Dirk Schmitt
Swissport Cargo Services Germany & Austria
Thank you to our Session Sponsor
FROM LANDING TO TAKE-OFF: WE CARE WELCOME ADDRESS 10th IATA WCS - CARGO OPERATIONS
MARCH 17th, 2016
Dirk Schmitt, CEO Swissport Cargo Services Germany and Austria
CARGO OPERATIONS – LEADING CHANGE
The Value of Air Cargo
Speed
Consistency
is to be delivered with changing requirements and in a complex regulatory environment.
Source: www.images.google.de
CARGO OPERATIONS – LEADING CHANGE
Need for Speed
Situation of air cargo versus other modes of
transportation
„Air“-time versus „Ground“-time
Delivering speed is a result of planned and controlled
actions, not a co-incidence
„Taking out 48 hours“ will make a difference
CARGO OPERATIONS – LEADING CHANGE
Need for Consistency
Source: .“Situation Awareness for Improved Operational Control in Cross Docks: An Illustrative Case Study (Buijs, Szirbik, Meyer,& Wortmann, University
of Groningen, 2012). Extracted 10MAR2016 from scholar.google.com
CARGO OPERATIONS – LEADING CHANGE
Leading and Managing Change needs to address and integrate several aspects
Processes
Technology
People
Source: www.images.google.de
CARGO OPERATIONS – LEADING CHANGE
Conclusions
Speed and consistency are vital to the value of air
cargo
Change needs to be lead and we should be aware, that
if we do not change actively, we may be changed
It will not get easier, so it might be a good idea to add
some speed and consistency also to our industry‘s
change processes
CARGO OPERATIONS – LEADING CHANGE
By the way, you are currently in the right place to experience the results of a fundamental change...
Source: www.welt.de/reise/staedtereisen/article132379464/Was-von-der-Berliner-Mauer-heute-noch-uebrig-ist.html
„Old Normal“ „New Normal“
ICHC’s Update
(IATA Cargo Handling consultative Council)
David Ambridge
General Manager, Bangkok Flight Services WFS
Christian Bergfelder
Director, Network Airside, Europe
Joseph Christopher Notter
Vice President, Operations, Saudia Cargo
Thank you to our Session Sponsor
ICHC (COAG) Update
What’s Happened in a Year?
Agenda
What’s in a name?
Facility Capabilities Matrix (FCM)
New Service Level Agreement (SLA)
Cargo Handling Manual
Dwell Times
What’s In a Name?
Cargo
Committee
(CC)
Cargo
Operations
Advisory
Group (COAG)
Limited activities to advice on
“policy” to Cargo Committee.
Made Standards development
work complex
IATA Ground
Handling
Council
(IGHC)
What’s In a Name?
Cargo
Services
Conference
(CSC)
Cargo
Operations
Advisory
Group (COAG)
Within Conference Structure
Direct line to Board
Complete view of operations
activities on all Boards
Cargo
Operations &
Technology
Board (COTB)
DGB LAPB CSCB AMB ULDB
Facility Capabilities Matrix
You asked, its online
Shipper’s asking for it
Benefits for everyone
DOWNLOAD | USE | COMMENT
Service Level Agreement (SLA)
Air Cargo SLAs way too
complex & Serve too many
purposes
Gets the SLA back to
measuring Service
Could be monitored real-time
and 100% Electronically
Implementation guide to be
developed
Airline 1 Airline 2 Airline 3
Airline 4 Airline 6
Airline 7
Airline 8
Airline 9
CHM
Airline 1 Air A
Dwell Times
• Optimization of the supply chain: 6 Major GHAs started to measure important milestones
Cargo – Time of ownership – RCS to STD
1.53 4.00 4.50 5.30
7.03 8.00
13.00
17.70
24.83
33.30
0
10
20
30
40
50
60
5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95%
GHA "A" - RCS-STD - Hours
GHA "B" - RCS-STD - Hours
GHA "C" - RCS-STD Hours
Average - RCS-STD - Hours
Cargo – Time of ownership – ATA to RCF
56.00 87.50
124.33 133.00 154.00
195.00
288.67
361.33
0
100
200
300
400
500
600
700
5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95%
GHA "A" - ATA-RCF - Minutes
GHA "B" - ATA-RCF - Minutes
GHA "C" - ATA-RCF - Minutes
Average - ATA-RCF - Minutes
Cargo – Time of ownership – ATA to DLV
0.12 0.33 0.44 0.63 0.73
1.01 1.19
2.18
2.84
4.20
0
1
2
3
4
5
6
7
8
5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95%
GHA "A" - ATA-DLV - Days
GHA "B" - ATA-DLV - Days
GHA "C" - ATA-DLV - Days
Average - ATA-DLV - Days
Supply Chain Optimization
For the measurement between RCS and STD, we do not have any earliest acceptance time. Some shipments are delivered a long time (hours/days) before STD.
For the measurement between ATA and RCF, the processes are good; still some precious time could be saved and COAG is looking at enhancing these processes.
For the measurement between ATA to DLV, we can see that many shipments will remain in the warehouse for a long time before pick-up.
Thank You & Questions
• David Ambridge, General Manager, Bangkok
Flight Services WFS
• Joseph Christopher Notter, Vice President,
Operations, Saudia Cargo
• Christian Bergfelder, Director, Network Airside,
Europe, DHL
Leading Change - Today
Mark Guyton
Chief Engineer, FedEx Express
Thank you to our Session Sponsor
LEADING CHANGE today Cargo Operations Track
Mark Guyton
Chief Engineer
VALUE of AIR CARGO speed
Consistent
Efficient
Effective
28
29
CARGO HANDLING challenges
CARGO HANDLING challenges
Complexity
Customer demands for
faster, stream-lined
services 30
Ideas Change
LEADING CHANGE today
31
Ideas Change
• Regulatory Driven • Operational Efficiencies • New Processes (SMS) • Strategic Initiatives
• Customer Requests • Competitive Challenges • End-of-Life Technology • New Technology
LEADING CHANGE today
32
LEADING CHANGE tools
• What tools does FDX use to promote transparent and efficient operations?
33
ACARS W&B
AutoDG
AutoSlip AutoPost
AutoVerify
LEADING CHANGE tools
34 Ops Inspired: Aircraft Load / Launch Initiatives
Customer Satisfaction
Speed
Legibility Accuracy
Safety
LEADING CHANGE tools
35 Ops Inspired: Aircraft Load / Launch Initiatives
LEADING CHANGE tools
36 Regulatory: Safe Cargo
LEADING CHANGE tools
37 Regulatory: Safe Practices
MANAGING CHANGE techniques
• What techniques does FDX use to implement CHANGE into our daily operation?
38
MANAGING CHANGE techniques
39
MANAGING CHANGE techniques
40
MANAGING CHANGE techniques
QUALITY
Customer Expectations
Operational Needs
Regulations
41
MANAGING CHANGE techniques
42
Concept
Definition
Planning
Development
Launch Waterfall Development
• FedEx: A brand that’s known for quality all over the world — How to make it even better?
Quality Driven Management
• QDM is the way FedEx optimizes our business processes to meet two key goals: – To deliver the superior experiences that customers expect. – To deliver superior business performance by minimizing waste, effort, time
and cost.
• QDM is an integrated set of concepts, methods and tools
MANAGING CHANGE quality-driven
43
MANAGING CHANGE QDM principles
44
MANAGING CHANGE ABLE problem-solving model
45
MANAGING CHANGE AutoVerify project
46
MANAGING CHANGE AutoVerify project
47
LEADING CHANGE tomorrow’s challenge
• The FDX goal is discontinuous improvement, where we leapfrog ahead of our current state.
• We don't need to invent everything ourselves. Adapting existing and emerging technologies for the FedEx environment saves time and money.
• When evaluating CHANGE: – "Does it improve service? – "Does it improve cost?"
48
49
Questions?
Networking Break Thank you to our Sponsor
Leading Change - Tomorrow
Ashok Rajan
VP and Global Head, Cargo, IBS Software Services
Thank you to our Session Sponsor
Cargo Operations – Leading Change Tomorrow
Transformational IT Solutions for Travel, Transportation and Logistics
A Technology Perspective
www.ibsplc.com
Agenda
• Industry Context
• Industry Initiatives
• The Digital Enterprise
• Digitised Cargo Operations
• IBS’ Promise
53
Agenda
54
• Industry Context
• Industry Initiatives
• The Digital Enterprise
• Digitised Cargo Operations
• IBS’ Promise
Air Cargo Industry Highlights
55
One of the most crucial enablers of a globalized economy
Represents 35% of global trade, but <1% of trade by volume; focussed on time-sensitive cargo
Trade Volumes Trade Value
Source : IATA Cargo Strategy August 2015
<1% of global trade by volumes
35% of global trade by value
35%
0.5%
$6.8 trillion of
goods
51.3 million tons
$62b cargo industry
revenues in 2014
$19b worth of
goods handled every day
2.9% 10 Year CAGR
of the air cargo industry
56
Source : IAG Cargo, 2014
Incremental cargo capacity from new aircraft
Passive Growth
Excess Capacity Low Yields
Air Cargo Industry Trends
Source : IATA Cargo Strategy August 2015 Source : IATA Cargo Strategy August 2015
Agenda
• Industry Context
• Industry Priorities
• The Digital Enterprise
• Digitised Cargo Operations
• IBS’ Promise
57
e-Enabled Cargo Operations
58
With a vision to have a paperless industry, ensure high-data is available to all stakeholders and offer full visibility/ transparency to customers
Benefits
• Increased productivity
• Reduced costs
• Improved customer service
• Enhanced security
• Reduced lead times
• Increased quality & reliability
Source : IATA
Product Differentiation
59
Through focussing on high yield segments and offering differentiated products/ services to each of them
Source : IAG Cargo Report, 2014
Automotive
Pharma
Fashion
Perishables
Oil & Gas
Hi-Tech
Increase Technology Intensity
Of processes across the air cargo value chain as well as with partners in the supply chain
60
Mobile Process Automation
Internet of Things
Cloud Advanced Robotics
Social Media Analytics
New Generation Technologies
Leveraging on technology for transforming internal and external operations to stay ahead of competition “
”
Agenda
• Industry Context
• Industry Initiatives
• The Digital Enterprise
• Digitised Cargo Operations
• IBS’ Promise
61
What is Digital ?
62
Digital Cargo Industry
Customers
Digitally engaged
Partners
Digitally connected
Products
Digitally delivered
Services
Digitally Managed
Employees
Digitally Operating
It is bigger than the conventional scope of the term “IT”
Digital Impact - Disruptive Value Creation
63
Technologies will create disproportionally high value beyond its boundaries
(Potential value creation estimated at 4-9 times current technology revenues)
USD 3.7 trillion*
Cloud
Internet of Things
Mobile
Automation
Robotics
Internet Technology
Global Tech. Revenues
2014
~ USD 16-39 trillion
Impact of these emerging fields by 2025
Source: McKinsey – Perspective 2025 for NASSCOM, Nov ‘14
And this will cause the emergence of disruptive non-traditional players “ ”
Digital Impact - Today’s Enterprise
64
Digital Products – Improved asset utilization
• Platforms to transform products to services (e.g. Uber, Airbnb)
• Accelerated consumption and value creation
Digital Channels – Massive disintermediation
• 50% bank branches will shut
• 75% reduction in dealer visits
Digitized Processes - E2E Collaboration & Automation
• Reduced staff costs
• Increased efficiency across manufacturing value chain
Data Driven Decisions
• New use cases – ATM network optimization
• Artificial intelligence models
Will be felt across 4 dimensions
65
Source: Booz & Co Study
The Digital Future
Current low digital imprint presents a huge opportunity for improvement “ ”
Agenda
• Industry Context
• Industry Initiatives
• The Digital Enterprise
• Digitised Cargo Operations
• IBS’ Promise
66
Cargo Process – Reimagined with Technology
67
Customer Service Warehouse Management Handling Operations
Mobile apps eCheck-in Security check Dock management
Customer Channels Pre-clearance Electronic data Dock reservation
Self Help Kiosk Shipment pick/drop Cargo declaration
Cloud Electronic doc pouch E-Checklists/declaration
Task Automation Electronic Pick List Process Steering Special Product Handling
Mobility Solutions Smart scanners Progress monitors Forklift automation
Automated Warehouse Auto dims/weigh scales Automated storage systems Self diagnostic systems
Robotics Automated ULD assembly ULD storage and retrieval
Process Automation SLA based operations Automated task delivery
Smart Sensors Integrated devices Automated validations Work completion
Analytics Predictive capabilitie Pro-active planning
Real Time Tracking RFID based operations Task monitoring
Internet of Things
68
“Its all about sensing and sense-making”
“The network of physical objects that have technology embedded in them, that enables them to sense, communicate & interact with their internal states or the external environment.”
- Gartner
Internet of Things in Logistics
69
People Responding to dynamic tasks assigned by the system
Data Collect valuable data and utilize it for decision making
Devices Handheld devices and sensors working
in a connected environment
Process Intelligent process orchestration to deliver information to right person
or device
Connected Warehouse
Automated task flows
Intelligent process definition
Smart work
force
Internet of Things Adoption Maturity
70
Allows • Autonomous product operation • Self-coordination with other
products & systems • Autonomous product
enhancement & personalization • Self-diagnosis & service
Involves algorithms that • Enhance product performance • Predictive diagnostics
Software in the product enables • Control of product functions • Personalization of user
experience
Sensors that enable • Remote access • Limited access to information • Reactive
The extent of adoption of IoT is very much dependent on the requirements of the function/
process/ product that’s involved
IoT in Cargo - Adoption Today
71
Limited mostly to monitoring capabilities in isolated functions across the value chain
• Mobility – Used by employees in cargo terminal operations
• RFID – Identification of pallets and their contents in a warehouse
• Geo-location – Shipment monitoring and location of forklifts in a warehouse
• Smart Devices – Intelligent forklifts, smart tools, lighting and heating/cooling
• BLE Beacons – location awareness and proximity notifications
72
Smart Warehouse Concept
Wa
reh
ou
se
Wa
reh
ou
se
Automated ULD pallet tracking
Automated Build-up progress monitoring
Identification of available storage space
Glassware for inventory check
Efficient work assignment
Wearables for task distribution
Drones for inventory check
New Gen Technologies - Evaluation
73
* Source – Gartner http://www.gartner.com/newsroom/id/3114217
New Gen Technologies - Evaluation
74
Mobility
Maturity of Technology
Esti
ma
ted
Re
turn
on
In
ve
stm
en
t
Wearables
Rule Engine
RFID
iCx
Analytics
Glass
iBeacon
NFC
Automated Vehicles
NLP
Robotics
Geo Positioning
Hybrid Scanners
IoT
Agenda
• Industry Context
• Industry Initiatives
• The Digital Enterprise
• The Digital Airline
• IBS’ Promise
75
Our Software Assets and Digital Platforms
76
Aviation Business Services
Transformational IT Solutions for the Travel, Transportation and Logistics industries
Logistics Travel Transport
77
IBS Today
Products
17 IPs across 5 digital platforms
7000+ person-years invested in creating IP & next generation products
Services
Expertise to provide domain led and IP led services in the TTL industry
Well poised to help our customers lead in a digital world! “ ”
Global Reach
Experience – 170+ global customer base
Thank You Copyright © IBS Software Services 2016
Increasing Productivity
Moderator:
Mahesh Shastry, Head: Strategic Deals BU- Travel,
Transportation and Logistics, NIIT Technologies
Panel:
Nick Platts, Head of Cargo, Heathrow Airport
Mario Patyk, Head of Business Development Cargo/Logistics,
Mitteldeutsche Airport
Thank you to our Session Sponsor
Closing Remarks
Chairman
Mahesh Shastry
Head: Strategic Deals BU- Travel, Transportation and
Logistics, NIIT Technologies
Thank you to our Session Sponsor
Networking Lunch Thank you to our Sponsor