8TH WORLD CARGO SYMPOSIUM LOS ANGELES 11-13 MARCH 2014 Operations & Cargo Handling Track 1 8TH WORLD CARGO SYMPOSIUM LOS ANGELES 11-13 MARCH 2014 Items to Note: Please keep in mind the compliance to competition law guidelines Coffee Breaks & Lunch are located in the in exhibition hall Kindly silence electronic devices For all agendas and event information visit the event app: www.eventmobi.com/wcs14 2 Opening Remarks ↗ David Ambridge ↗ Director, Cargo Operations, Bangkok Flight Services 3 TRANSFORMATION THROUGH INNOVATION TELEPHONES 1970 COMPUTERS 1970 IATA AWB 1970 1980 1980 1980 1990 1990 1990 2000 2000 2000 TODAY TODAY TODAY Welcome Address ↗ Thomas Windmuller, ↗ Senior Vice President, Airport, Passenger, Cargo and Security, IATA 20 COAG Update ↗ Henrik Ambak, VP Ground Services & Commercial IT, Cargolux ↗ Jussi Matilla, VP Cargo Operations, Finnair ↗ P. Balasubramanian, Manager Cargo Global Operations Services, Emirates SkyCargo ↗ Paul Coventry, Head of International Cargo Operations, dnata ↗ David Ambridge, Director, Cargo Operations, Bangkok Flight Services 21 Introduction What is COAG? What has COAG done (so far)? What is COAG doing next? What can COAG do for you? 22 What is COAG? Industry Experts in Cargo Operations 14 members (8 airline, 6 GHA) Invited Experts (as necessary) Reports to Cargo Committee & IATA Ground Handling Council Provide recommendations to CC and IGHC Customer Experience Integration / CAVS LOJIC What has COAG done (so far)? SGHA “e”Update Single-process for eAWB Facility Capabilities Matrix (in progress) Recommended Cargo SLA (in progress) IGOM Chapter 3 Acceptance Procedures 24 What is COAG doing next? Customer Experience Audit Efficiency Program IT expertise involvement Airport Development Reference Manual Updates Further IGOM Cargo Chapter Updates Build-up / Break-down Transit cargo Delivery 25 Security / Regulatory ACC3 Customer Experience Safety / Regulatory IFQP DACQP IOSA “CCE” RA3 ISAGO MOP Building Blocks for Future Work SGHA SLA FCM C&C 26 What can COAG do for you? Thank you Cargo Operations Brendan SULLIVAN Manager, Dangerous Goods and Training Standards Tel: + 41 (0) 22 770 2553 [email protected] | www.iata.org IATA WCS 2014 IGOM Chapter 3 Acceptance Cargo Operations / Jussi Mattila March 17, 2014 Cargo Operations – A Vital part of the airline business model and processes. – Operations must be flawlessly executed in a global environment that is ever changing. – Operations are executed out mainly trough partners – Simplified and well executed processes are important to gain cargo excellence: Reliability, Service and Frequency Evolving world • What has changed • eAWB, ACC3, CSD, C2K • To accommodate the needs of the evolving world around us there is a need to have an uniform approach - how do we take care of the business globally? 31 COAG • To accommodate the changes COAG took a task to have a look of the IGOM Chapter 3 revised • The Acceptance section is now done • Simplicity in doing and in processes • Capability to accommodate the changes • Feasible for all interest groups Airline / handlers 32 Acceptance • Takes in to account variations in process and what has been updated. • Electronic AWB – is it required to print it (ECC, ECP) • Security status (SPX, SCO, SHR) and Cargo Security Declaration (CSD) • eAWB acceptance • Special cargo acceptance process (DGR, AVI, PER) • Time and temperature cargo acceptance • Mail section 33 Coffee Break in Exhibition Smart ULDs – If Pallets and Containers Could Talk ↗ Floris Kleijn ↗ IT Director, CHEP Aerospace Solutions 35 ENABLING PEAK PERFORMANCE How CHEP Aerospace Solutions' pooling synergies and global repair network can improve your supply chain efficiency CHEP Aerospace Solutions If ULDs could talk… Floris Kleijn World Cargo Symposium Los Angeles March 12th 2014 IF ULDs COULD TALK WHAT WOULD YOU ASK THEM? Who are you? What are you carrying? Where are you going? When will you get there? Who hurt you? Have you been injured before? How much does it cost to repair you? CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn When were you manufactured? How much did we pay for you? How long have you been lying here? 37 TODAY’S PRESENTATION • The digital revolution: facts and figures • An innovation story • Discovery driven planning • Business drivers - Do you feel the pain? • ULD Asset Management – Service pillars • Guiding principles for our innovation program • ACTIS – E-workorder • Focus App • GPRS tracking CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn 38 THE DIGITAL REVOLUTION There are 8.7 Billion “Things” connected to the Internet of Things¹ There are 6.5 billion portable devices worldwide² = 93.5% of global population We have more information available than we have time to digest What does this mean? Information is richer in content than ever before Where lies the opportunity? What does it mean in an Aerospace context? 1 – Source: Rob Soderbery, Cisco executive on Forbes.com 2012 2 - Source: Paul Lambert, Informa (Q2, 2013); national telecoms regulators via: mobiThinking CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn 39 THE PATH TOWARDS STRUCTURAL CHANGE Source: Hau L. Lee – Thoma Professor of Operations, Information and Technology Stanford University CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn 40 DISCOVERY DRIVEN PLANNING¹ • Corporate history is littered with examples of good ideas that failed to get implemented successfully • Planning a new venture involves envisioning the unknown • Learning to spot unconscious assumptions • Innovation can be managed successfully in 5 key steps: – – – – – Bake profitability into your plan Calculate allowable costs Identify your assumptions Determine if the venture still makes sense Test assumptions at milestones ¹ Developed by: Rita Gunther McGrath and Ian C MacMillan – several publications this content taken from HBR July/August 1995 CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn 41 DO YOU FEEL THE PAIN? Pain in a ULD Asset Management context: • Out of stock • Excess stock • Damage • Losses • Efficient optimization • Cancellations • Diversions • Aging fleet • Weight • Service expansion • The economy CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn 42 AT CHEP AEROSPACE SOLUTIONS WE ENSURE: • Serviceability • Compliance with laws and regulations • Damage prevention and repair • Product engineering • Visibility • What is where now • Message compliance • Easy / Intuitive / shared reporting of KPI • Optimization • Matching needs vs availability • By network not just carrier • Cost leadership • Innovation • Continuously evolving systems • Latest technologies • Pro-actively driving innovation CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn CHEP AEROSPACE SOLUTIONS OFFER LOGISTICS AND ASSET MANAGEMENT SOLUTIONS IT’S IN OUR NAME!! 43 GUIDING PRINCIPLES FOR OUR INNOVATION PROGRAM • Zero Harm and safety • Compliance with laws • Business value – Not technology for technology sake • Embracing technology that already exists • Exception handling - Tracking deviation from perfection “Don’t reinvent the wheel, just realign it.” Anthony J. D’Angelo CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn 44 INNOVATING THE KEY PILARS OF OUR SERVICE SERVICEABILITY VISIBILITY OPTIMIZATION INNOVATION CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn 45 ACTIS - CAPTURING ODLN DAMAGE INFORMATION CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn 46 ODLN INTO DAMAGE MAP ACTIS Tablet – Damage Map CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn 47 ODLN INTO ACTIS TABLET EP ACTIS Tablet – Damage Map FP SP FD ACTIS Tablet – Damage & Rectification Matrix 48 CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn ACTIS – E-WORKORDER VIDEO CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn 49 CHEP FOCUS • Mobile software App for capturing standard IATA ULD movement messages, managing stock and serviceability information • Delivers improvements in processing time and reduces optimization cost • Device camera takes pictures and associates these with current location; • Optical character recognition makes it easy to capture data; • Forwards information and documents to configurable email recipients • Available to customers for free from the App Store (IOS) and Play Store (Android); CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn 50 CHEP FOCUS VIDEO CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn 51 THE HOLY GRAIL IN ASSET MANAGEMENT We are combining Energy Harvesting techniques with GPRS location and sensor data to create a unique asset management platform • A self-powered energy harvesting tracking device capable of reporting on its exact location, surroundings and history • Fully compliant with airline safety regulations including switch-on / switch-off functionality during flight • Designed to ensure that operational capabilities of the ULD remain unimpaired • Reduces direct operational cost and creates the opportunity to offer valueadded services to customers • Field trials with our customers will be commencing shortly CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn 52 If ULDs could talk what would you ask them? CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn 53 THANK YOU CHEP Aerospace Solutions Head office: Steinackerstrasse 2 8302 Kloten Switzerland Tel: +41 43 255 4141 [email protected] chep.com/aerospace Innovations in Handling ↗ Robert Kleppers ↗ Senior Sales Executive Air Cargo, Jan de Rijk Logistics 55 Jan de Rijk Logistics Landside Air Cargo operations Robert Kleppers LA, March 2014 www.janderijk.com Jan de Rijk Logistics Organization Organization Asset Based Equipment People People Experience Strategic Focus 5 Business units, 15 European countries, 25 offices 650 trucks 1,200 trailers 125,000 m2 warehousing More than 1,000 employees Our main asset Over 40 years in Logistics Recognized market leader RFS in Europe FTL<L network, serving 100 European Airports Add value for clients by Logistics Solutions & IT Optimize processes and network with clients and partners Intermodal distribution Globalization of services Healthcare logistics Transfer Time Air Cargo Supply Chain • Most of the transit time of an air cargo shipment is on land • Trucking is a large part of this transit time • Combined waiting- & transfer time in between parties can even be a bigger part ! • Competitive advantage for an airline is to reduce ground transfer time Origin Shipper Off-line Airport Collect& Manifest Build On-line Airport Trucking Transfe r & load to Truck Transfe r & load to Aircraft Handling Agent Off-line Airport Offload Airport Trucking Transfer Destination Consignee Handling Agent Airline A long transfer time will result in a low perceived quality of service by both shipper & consignee 58 Teamwork is key Ahead in the game But still beaten 59 Contractual relations AIRLINE RFS GHA GHA • Relationship between GHA and RFS provider is not contractually enforceable • Nevertheless RFS provider is often faced with long waiting hours and the GHA with relatively unplanned peaks • Utilization of assets and load factor is important for both airline and RFS provider while manpower is the biggest cost item for both the GHA and the RFS provider • A seamless and quick transition both benefits the economics of all as well as the end consumer 60 Delays in the transfer process • Other parties schedules unknown • Alignment between SLA of Ground Handler and Distribution / Trucking • Lack of insight in total schedule opportunities (shipped to wrong airport) • Lack of information between parties • Waiting for inbound plane / truck • Customs checks / RFC • Missing some crucial unformatted information • E-mail is still a large part of communication Result: wasting waiting time due to congestion and repairs of the process 61 Congestion Effects • A small delay might have a big impact on Service • Unexpected peaks • Missing slots, opening times, Customs availability • Road bans • Legal rest of the driver • Waiting time incurs manpower costs • Biggest cost by far for both GHA & RFS • Waiting Time destroys asset utilization • Costs involved will create disputes between parties Lack of cooperation between parties will cost clients 62 Air Cargo RFS Consolidation Daily Challenges • Time: On time, while being flexible in changing customer demands • Place: Having the required availability at the right place trying to balance the network as much as possible • FTL versus LTL: Depending on customer demands and load factor optimization • Hubs: In order to optimize the network • Import/Export ratio (in vs. out): complement imbalances in the network. This will not always be feasible with air cargo • Availability of equipment or third parties: A strong network of external providers Achieve a high load factor, yield, and utilizing of the asset in order to deliver the customer a high quality service 63 Load Factor •RFS justify the term “Air Cargo” • Unused capacity • Cargo left behind (repairs & service issue) Client A Client C Client B Client D Client A Client C Client B Need for a common incentive on load factor for GHA & RFS provider 64 Utilization • Waiting reduces loading possibilities • Shipment 1 waiting at loading • Shipment 2 delayed • Shipment 3 no time to collect Waiting eliminates productive capacity Waiting introduces uncertainty 65 Disclose available Technology in Supply Chain GPS offers dynamic position information. Zoomed in: On street level detail . . . . . . and zoomed out: As continental overview By a fleet equiped with fixed or mobile GPS units Forward Messaging Shipment Tracking & Tracing Temperature monitoring • Real time tracking & tracing info • Signalling function • Detailed shipment information • ‘Live’ and historic trip monitoring • Active signalling via e-mail / SMS • Multiple and reporting options • Geo fence per unloading location • ETA Arrival time based on the current position of the truck • Check on the ‘geo fence’ parameter • Email message GEO Fencing 67 Standard Information Exchange • No Standard for messaging (orders & FSU) • Information available at the airlines that could be of use for other parties • Direct delivery addresses • Flight inbound • Custom Status • Information available at the GHA that could be of use for other parties • RFC • Dimensions • Queue time • Information available at RFS provider • ETA • License plates • Position • Temperature measurements 68 Peer Solutions • Benchmark against other supply chains Mandatory neutral information system used in port of Rotterdam 69 Smart Planning • Shipments follow the standard routing and miss Network Opportunities • Only limited use of DDS deliveries and Direct Pickups • Coordinate schedules over RFS/GHA • Use specialized knowledge of parties 70 Airport development programs • Create the ideal landscape is joint effort (Airport, Forwarders, GHA and RFS) • Large European Airports investigate shared service centers GHA 1 Situation Now at AMS, FRA, BRU, LHR GHA 2 GHA 1 GHA 3 SSC GHA 2 GHA 3 Shared supply chain savings creates value 71 Let’s align processes to ensure efficiency in the supply chain • Vertical & horizontal collaboration in order to eliminate waste • Information & communication is key and needs standardization • Make use of technology available • Technology is no longer the issue; the interfaces are • Tri-party relationship / agreement 72 THANK YOU Jan de Rijk Logistics The connecting link in your supply chain Closing Remarks ↗ David Ambridge ↗ Director, Cargo Operations, Bangkok Flight Services 74 8TH WORLD CARGO SYMPOSIUM LOS ANGELES 11-13 MARCH 2014 Don’t Miss the Closing Plenary! Innovation Jam Session Launching of IATA Innovation Awards And more… 75 Gala Dinner Sponsor Gala Reception & Dinner: California Science Center Gala Reception Sponsor ↗ Items of Note: ↗ Ticket Required for Entry ↗ Busses depart from The Hyatt at 18:15 – 18:30
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