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