Evolving Distribution Strategies

Sandeep FernandesManager Market Development

Cargo@ Mercator

Air Cargo Africa22-24 February 2011

Past worst recession

Increasing costs

Eroding yields

Customers want faster,

cheaper, reliable service

Source Boeing

Cost containment will be

key…

Air Cargo industry situation

Air Cargo industry situation

Cost containment will be

key…

Air Cargo industry situation

Time Compression will be

key…

Industry response: Electronic Integration

Vertical Integration

Electronic Integration

Non Integrated Supply Chain

Electronic Integration Benefits

Reduce processing costs

Reduce processing errors

Improve delivery times

Better customer service

…Increased industry profitability

Challenges to achieve electronic integration

Standardization Vs Flexibility

– Limited Richness

– Limited Reach

‘distribution control’ > intermediaries

– CCS

– ‘industry’ Portals

Intra organisation integration

The Solution: “Insource” distribution capability

Inflexible standards -> Richness and

Reach?

Power of information distribution?

e-freight dilemma?

Inter/intra organisation integration?

Future proofing?

Increased Richness and Reach, through

open standards

Power of information distribution retained

e-freight benefits achieved

Inter/intra organisation integration ready

Future proofed

The tool: Integrated Message Broker

Sits “on-top” of the cargo application

Receives data and transmits data

Multiple Media: SMS, Email, FTP, MQ….& Type b

Multiple Formats: <enter your format here>

…An integral part of SkyChain

Message Broker Benefits

Combat emerging cost pressures & mode switching through:

– Lower processing costs

– Lower communication cost

– Increased Reach & Richness

Quicker delivery times

Improved Customer Service

Retain power of distribution

Choice & Freedom

…Have

Data? …Can

Connect!