Aircargopedia Newsblast: November 2019!
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14th November 2019  
 


Dear Air Cargo Professional:

E-Commerce companies are rapidly growing in Asia specially for perishables and pharma.Technology will enable the air cargo sector to be more valuable as mentioned by Ludwig Hausmann of McKinsey & Company. While in Europe, Budapest Airport strives to gain momentum as the e-commerce hub.

This newsletter also covers two solutions in the field of Logistics Management by Omnis Software Ltd. and Peter Canellis, Professor of Management,Vaughn College of Aeronautics and Technology.

On another note, Global air freight volumes are expected to increase substantially in 2020.
  DJ Ghosh


D.J. Ghosh
President & Publisher
AIRCARGOPEDIA
WWW.AIRCARGOPEDIA.COM
”The Complete Encyclopedia for the Air Cargo Professional & Investor”


______________________________________________________________________________

GIAS

Omnis enables the development of an integrated logistics software in a dynamic, modular system for daco systems ag

Omnis, 4th November 2019

The Challenge:
More and more industrial companies, online retailers and SMEs are entrusting logistics companies with the management of their warehouses in addition to traditional distribution. Strong competition in the forwarding, transport and logistics industry is also narrowing margins. In order to survive in this competitive market, logistics service providers need intelligent, flexible and scalable software solutions that can be constantly adapted to the latest requirements.

The Solution :
FASTLOGISTICS is a successful quality solution for the logistics market, developed by daco systems ag, based in Switzerland. The fully integrated order management system with the individually applicable modules FASTLOGISTICS BASIS, TRANSPORT, ZOLL (Customs) and LAGER (Stock) is based on the latest Omnis technology. The Omnis Studio development environment allows daco systems to offer high-quality, integrated web, mobile and cross-platform functions for their software solutions.

Proof of its flexibility is the application FASTLOGISTICS LAGER, since it adapts flexibly to the size and requirements of the customer. All warehouse logistics processes can be managed and controlled as required.

FASTLOGISTICS is used by many international logistics service providers in Switzerland, Germany and other countries who manage large quantities, complex shipments or smaller standard deliveries, just in time and on a daily basis. Thanks to its multi-client, error-free capability and user-friendly operation, customer orders can be processed quickly, securely and cost-effectively.

With the relational capabilities in Omnis, daco systems dynamically supplements the application with further modular solutions. The customer decides how they want to optimize their processes and logistics. The integration of the modules ZOLL (Customs) and TRANSPORT with the module LAGER (Stock) enables, for example, an efficient, optimized supply chain.

The global service provider Rhenus Logistics successfully uses the FASTLOGISTICS solution in various locations in Switzerland. They use it to control transport and customs clearance, the management of complex goods and forwarding warehouses, order-related storage and retrieval functions, and inventory management at the load carrier level.

Thanks to sophisticated warehouse logistics and efficient material flow, Rhenus Logistics can reduce the lead times of its customers’ orders, reduce costs, systematically optimize processes and therefore gain additional market advantages.

For more information, please visit Omnis


Air Cargo India

Innovation in the Industry: Emirates SkyCargo Launches “Emirates Delivers”

New E-Commerce Service Offers Consolidated Shipping From Multiple U.S. Online Retailers, Resulting in Cost Savings to Shoppers and Environmental Benefits for the Planet

Kevin Pflug, Dubai, UAE 6th November 2019


Emirates SkyCargo announced last month the creation of Emirates Delivers - a new service that will allow individual and business customers to consolidate purchases from multiple online retailers in the US into single shipments for delivery to Dubai.

In announcing this groundbreaking initiative, Nabil Sultan, Emirates Divisional Senior Vice President, Cargo, stated, “The e-commerce industry has grown by more than 150% in the last five years and we have been working with industry partners to develop an ideal delivery platform that can harness the power of Emirates’ modern fleet, expansive global network and multiple flight frequencies together with using Dubai’s strategic position to deliver optimal value to our end customers.”

Emirates Delivers is an open, e-commerce fulfilment platform that can also be used by other e-commerce businesses and logistics integrators. The launch of Emirates Delivers makes Emirates SkyCargo the first international cargo airline in the world to develop an e-commerce delivery platform and consolidation program such as this one.

To encourage customers to give the new service a try, the company a 15% discount on Emirates Delivers through November 30.

Costs Savings and Environmental Benefits
By using Emirates Delivers, customers can save money in several ways.

The service allows customers to save on shipping within the US by shipping goods to their own personal, dedicated Emirates Delivers mailing address. Customers can then realize additional cost savings from the competitive shipping rates offered by Emirates Delivers to move goods from the US to Dubai.

Moreover, customers (and the environment) also benefit from reduced shipping weights thanks to repacking, through which packaging material from each individual shipment is removed and the goods are packed into one consolidated box, reducing the amount of fuel needed to transport the purchases to Dubai.

Silk Road Strategy
Emirates SkyCargo created this new service in connection with Dubai’s Silk Road Strategy, which comprises nine initiatives and 33 projects that will see the collaboration of Emirates Airline, Dubai Airports, Dubai Free Zones (DFZ) Council, and several other key players in Dubai’s industrial and transportation sectors.

The Silk Road Strategy’s initiatives cover various economic domains including government integration, e-commerce movement, linking value chains, air and logistics connectivity among many more. global e-commerce fulfilment hub for customers based in the Middle East, Asia and Africa.

Emirates SkyCargo Offers More than 100 Weekly U.S. Flights
Emirates SkyCargo offers cargo capacity on Emirates’ fleet of over 265 modern wide-body aircraft including 12 freighters - 11 Boeing 777-Fs and a B747F.

The carrier operates to 13 destinations in the US, offering cargo capacity on over 100 weekly flights including scheduled freighter services to destinations including Columbus, Chicago, Houston and New York.

The company operates two state-of-the-art cargo terminals at its hub in Dubai and has developed specialized air transportation products for several industry verticals, including pharmaceuticals, flowers, fresh food, and automobiles.

During during the financial year 2018/19, Emirates SkyCargo transported over 2.7 million tons of cargo through its network of over 155 destinations worldwide. Emirates reported a 10% increase in revenues for the first half of the company’s 2018-2019 year.

For more news and information about the air cargo industry, please visit AIRCARGOPEDIA.COM.


Air Canada Cargo

Don’t Get Caught in the “Jaws of Death”! Logistics Management from the Financial Perspective

The first article in this series provided an overview of five major logistics cost drivers and four perspectives from which to view them in order to reduce costs. This second article focuses on the financial perspective

Peter Canellis, PhD, PE, Professor of Management


What can we, as professional logistics managers, do to help our clients become more successful and profitable? In order to answer this question, we must first understand a client’s financial position.

The income statement is a primary source for financial information. First, we want to know our client’s operating profit margin. This is the difference between sales revenue and expenses incurred for purchased goods and services, sales force operations, administrative expenses, and other general expenses. Higher revenue and lower expenses yield higher margins. This is illustrated in the diagram below

Logistics Management

Trend is also important. By viewing the changes in these financial variables over time, we can see whether or not our clients’ margins are improving or eroding. This is important because, while revenue may be rising, gross margin and profitability will be lower if expenses are increasing at a faster rate than revenue. An accountant with poetry in his soul called this trend “The Jaws of Death.” An illustration of this most unfortunate syndrome is provided below.

Liege airport offers 24/7 slots for widebody freighters and has dedicated infrastructure as well as processes for freighter operators, with airfreight, requiring more than just belly hold capacity. The airport workforce, local cargo community and service suppliers, gives the operators the required combination of flexibility, speed and cost efficiency.

Logistics Management

Once we have developed this overview, we can identify the areas in which our services can help to reduce costs. Details of inbound logistics costs are typically found within ‘Cost of Goods Sold’ (‘COGS’ to the accounting types). Details of outbound logistics costs are typically found within ‘Sales, General, and Administrative Expense’. In these two categories, we will find costs incurred for transportation, packaging, cargo handling, distribution, and other costs related to moving and storing material.

Inventory is a major cost factor in logistics operations. The amount of inventory that a company holds is found in another important source of financial information: the balance sheet.

Using information from the income statement and balance sheet together, we can calculate three critical supply chain metrics:
• Days of Inventory: The fewer days the better, because this means that less inventory is being carried (and purchased) at any given time.
• Days Sales Outstanding (DSO): the number of days’ sales that have not been collected. DSO that exceeds a company’s payment terms means that the company is financing its customers’ purchases. By not collecting in a timely manner, the company will be denied interest that it could be collecting on the money if it were already paid.
• Days Payables Outstanding (DPO): the number of days’ payables that have not been paid to a company’s suppliers. DPO reduces the effective number of days that inventory is held; because what really matters is how long inventory is held after suppliers have been paid.

These three metrics are input to the calculation of cash-to-cash cycle; the amount of time required to convert a dollar of expense to a dollar of revenue.

The effective number of days of inventory (i.e. the amount for which suppliers have been paid) is the actual number of days of inventory reduced by the lag in time required for a supplier to create an invoice and by DPO. In other words, slow invoicing and slow payments mitigate the effects of carrying inventory.

Conversely, the cash-to-cash cycle is lengthened by the time it takes to sell and deliver goods, cut an invoice for those goods, and collect payments.

Each day that can be removed from the cycle by some combination of lowering inventories, making quicker deliveries, billing faster after products are sold and deliveries made, and shortening collection time contributes to widening profit margins.

This is illustrated below.

Logistics Management

Logistics cost data, extracted from the details of the income statement and balance sheet, allow us to focus on our clients’ needs. In providing cost-effective solutions for the planning, scheduling, and execution of cargo transport and storage, we help our clients to widen their margins. This contributes directly to their success and profitability.

Logistics Management

Consistent application of this approach with our current and potential clients will position us where we want to be: respected and treated as a critical business partner.

This, of course, is just the beginning. The financial perspective is both primary and critical to understanding a company’s strengths and weaknesses. However, it only provides the overview: the ‘what’, so to speak, of the company’s condition.

We must understand the ‘how’ and the ‘why’ of a company’s operations in order to provide effective services. This is accomplished primarily through the perspective of process analysis and improvement, which is the topic that will be discussed in the following installment of this series.

Peter Canellis


Peter Canellis, PhD, PE
Professor of Management
Vaughn College of Aeronautics and Technology
peter.canellis@vaughn.edu


Southwestcargo

Antonov Airlines transports Material Processing Equipment to Australia door-to-door

London, UK, Tuesday 12th November 2019

Antonov Airlines has completed door-to-door delivery of two rotary drying drums, from Paris-Vatry Airport, France (XCR) to Port Hedland International Airport, Australia (PHE), on behalf of Australian chemical company, Yara Pilbara Nitrates (YPN).

Antonov Airlines employed eight sub-contractors to complete the door-to-door project that involved two An-124-100 flights.

“We provided the door-to-door delivery service smoothly and on time thanks to the close collaboration between the Antonov team and our partner, YPN, together with the sub-contractors appointed for varying roles,” said Graham Witton, Managing Director, Antonov Airlines’ UK office.

“Executing a shipment like this one requires extensive planning, as we not only had to secure the flight permits, but we also had to organise road permits and transport, as well as crane loading and unloading from truck to aircraft and vice versa at the destination.”

“Antonov Airlines UK office was instrumental in arranging the ancillary services and it shows that Antonov Airlines is able to respond as comprehensively as necessary beyond the role of charter flight mission when our customers call us to go that one, or in this case eight steps further.”

Road transportation from the vendor, cranes for loading and unloading, delivery to YPN’s remote facility in Pilbara, as well as documentation preparation and processing were all required to successfully transport two 21-metre drying drums each weighing 57 tonnes.

“The Antonov Airlines team were very professional in managing the transfer of the two equipment items from France through to our remote site in the Pilbara region of north western Australia,” said Stewart Thatcher, Project Director at Yara Pilbara Nitrates.

“The transportation went very smoothly, and this critical equipment was delivered safely and on time to allow handover to our construction contractor as planned.”

The drying drums were transported in tailor-made wooden saddles designed by the Antonov engineering team in order to secure the cargo and prevent abrasive damage to the equipment during the flights.

The rotary drums were transported from factory to end user, and Antonov Airlines’ custom loading ramp was used to load and offload them from the aircraft.

The rotary drying drums will be used to manufacture ammonium nitrate to supply to the mining industry.


Airbridge banner

Delta Cargo partners with Roadie to become the first U.S. passenger airline to offer door-to-door parcel delivery nationwide.

ATLANTA, October 29, 2019

Shipping a parcel from your own front door could not be easier as Delta Cargo partners with Roadie, an Atlanta-based same-day delivery service, to launch DASH® Door-to-Door – an industry-first for a U.S. passenger airline. The 24/7 pick-up and delivery service, from your business or home, is now available from Atlanta to over 55 cities in the United States. The companies plan to expand the service to dozens more cities before the end of the year.

DASH Door-to-Door pairs TSA-approved drivers with air cargo to create the fastest cross-country door-to-door service available in the U.S., with competitive prices.

“The launch of DASH Door-to-Door is a game changer for Delta Cargo, as anyone who needs to get a small parcel somewhere urgently can now have a same-day delivery, door-to-door service in the U.S., without having to travel to the airport,” said Matt Weisenburg, Delta’s Director – Cargo Strategy and Alliances. “We have been working with Roadie since 2015 on the passenger side of the business and have seen great customer satisfaction with the transparency and quality of the service. So, we wanted to continue this momentum and bring this innovative product offering to our cargo customers.”

Delta Dash

DASH Door-to-Door was created for time-critical shipments in industries including medical, manufacturing, automotive, industrial parts and more. When booking DASH Door-to-Door on deltacargo.com, customers can easily get a dynamic price quote, with a single booking for flights with pick-up/delivery, as well as end-to-end tracking and real-time status updates to provide customers with full peace of mind throughout the parcel journey.

With more than 150,000 verified drivers nationwide, Roadie already has the largest local same-day delivery footprint in the nation and reaches 89% of all U.S. households. Expanding that same-day footprint coast-to-coast is the next milestone in the company’s growth.

“Customers want what they want when they want it,” said Marc Gorlin, Founder & CEO of Roadie. “This partnership means we can deliver - whether it's across town or across the country. Roadie was first to market with an ‘on-the-way’ delivery service utilizing excess capacity in passenger vehicles already on the road. Expanding our model into the belly of a 737 is just the latest step in realizing our vision to make same-day delivery faster, more efficient and more sustainable.”

DASH Door-to-Door is for packages less than 100lbs and less than 90 linear inches and is available to all customers. TSA Known Shipper status is required to ship packages over 16oz and a streamlined registration is available directly on deltacargo.com. DASH Door-to-Door is available 24/7 and has a limited money back service guarantee.

“We have used the DASH Door-to-Door Service several times now and plan to use it more often for critical same-day delivery of critical parts shipments to our customers,” said Matthew Piercy, Technical Service Manager, RONCHI America. “Setting up the shipment was simple. The feature is amazing, select the flight, select the Door-to-Door option, receive a package pickup schedule and the driver picks up the package at your location and just hours later our customer is up and running again! Great job Delta!”

Since 2015, Roadie has been servicing Delta and its customers by expediting the delivery of delayed baggage, without sacrificing its high level of service for Delta customers. Since then, Roadie has expanded its service from 12 cities in 2016 to more than 70 this year, in major metros like San Francisco to smaller markets like Fort Lauderdale.

For further information on DASH Door-to-Door, visit deltacargo.com.


South African Airways

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