8TH WORLD CARGO SYMPOSIUM

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
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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
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Introduction
 What is COAG?
 What has COAG done (so far)?
 What is COAG doing next?
 What can COAG do for you?
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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
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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
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Security /
Regulatory
ACC3
Customer
Experience
Safety / Regulatory
IFQP
DACQP
IOSA
“CCE”
RA3
ISAGO
MOP
Building Blocks for Future Work
SGHA
SLA
FCM
C&C
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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?
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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
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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
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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?
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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
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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
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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
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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
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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
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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!!
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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
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INNOVATING THE KEY PILARS OF OUR SERVICE
SERVICEABILITY
VISIBILITY
OPTIMIZATION
INNOVATION
CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn
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ACTIS - CAPTURING ODLN DAMAGE INFORMATION
CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn
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ODLN INTO DAMAGE MAP
ACTIS Tablet – Damage Map
CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn
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ODLN INTO ACTIS TABLET
EP
ACTIS Tablet – Damage Map
FP
SP
FD
ACTIS Tablet – Damage & Rectification Matrix
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CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn
ACTIS – E-WORKORDER VIDEO
CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn
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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
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CHEP FOCUS VIDEO
CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn
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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
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If ULDs could talk what would you ask them?
CHEP Aerospace Solutions World Cargo Symposium Presentation - Floris Kleijn
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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
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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&LTL 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
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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
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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
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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
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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
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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…
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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