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GPRS Monitoring of Air Freight: Know Apply Grow
GPRS Monitoring of Air Freight: Know Apply Grow
know . apply . grow.
Editor
Tim Mais
Editors-in-chief
Tim Mais
Luc Pleysier
Anke D’Halleweyn
Liesbeth Geysels
Publisher
Liesbeth Geysels
Translation
Contents
Josie Chorosinski
Executive Summary 5
© VIL 2013
Flanders Institute for Logistics Introduction 6
Koninklijkelaan 76 The air freight supply chain and its stakeholders 8
B-2600 Berchem Time and temperature 8
T: +32 (0)3 229 05 00 Monitoring of goods 9
F: +32 (0)3 229 05 10
www.vil.be Project scope 10
Market demand 10
Photos: Brussels Airport Company, Real-time temperature-controlled
Aviapartner, Seabury, Onasset Intelligence, supply chain monitoring 12
Biobest Practical testing 12
Research 14
Regulations 14
Technical framework 17
Operational results 22
Lessons learned 32
Location accuracy 32
Word of thanks to all participants from Operations or quality 32
the supervising committee (Belgian Supply chain cooperation 32
Customs, BRUcargo Strategic Booking procedures 33
Committee, Essenscia, IATA, Marsh, Complementary to identification
POM Vlaams-Brabant) for their and monitoring technology 34
willingness to share their insight and Operational usage 34
knowledge and of course, thanks to all
participating companies without whose Value proposition 36
cooperation this project could not have Technical feasibility 36
been realised: Aviapartner, Biobest, Economic feasibility 36
Brussels Airlines, Brussels Airport Added value 38
Company , Ceva Logistics, DHL,
Global Forwarding, Owens Corning, Conclusion 45
Scania Logistics, Sentipharm (MSD),
Swissport and WFS.
Executive Summary
Belgium plays a prominent role in the mobile network. Precisely these are an quality product as well as an excellent
pharmaceutical industry. In fact, time issue for air freight given that electronic service to the customer. GPRS monitor-
and temperature sensitive cargo forms devices need to be switched off during ing exactly satisfies those conditions.
a considerable part of goods trans- take-off and landing of an aircraft.
ported by air. Vaccines are shipped In March 2013 the new Good
throughout the world on a daily basis With the GPRS monitoring project, Distribution Practice (GDP) guideline
and must be delivered quickly and pro- VIL aims to investigate the feasibility was published for the pharmaceutical
fessionally to guarantee patients’ health. and applicability of systems that are sector. This updated version of the
Live animals such as useful insects authorised for air freight and allow real- guideline establishes manufacturer
are exported from Belgium to other time monitoring of location and storage and wholesale responsibility in order to
continents to support the production of conditions. VIL has tested several assess the risks in the pharmaceutical
crops. Spare parts are transported on GPRS (General Packet Radio Service) supply chain.
a daily basis to locations where there is / mobile-based systems in air freight
an urgent need for components. shipments to ascertain whether with Providing transparency in the supply
such systems transparency throughout chain is not only important from a
Air freight is the only mode of transport the supply chain with reference to time, regulatory perspective. Flanders
that guarantees delivery of goods to location and temperature could be possesses invaluable assets such
the other side of the world the following improved. By means of quality meas- as the pharmaceutical industry and
day. However, can location and storage urements and practical tests, the appli- biotech industry, spare parts and a
requirements strictly be monitored for cability of GPRS monitoring to specific great number of innovative companies
these time and temperature sensitive sectors was investigated. specializing in life-sciences, science
shipments? and sustainable development. Flanders
The outcome is promising: several air should therefore not only make its mark
Logistical stakeholders offer advanced freight tests reveal that GPRS-based in the field of production, but also in
track & trace systems allowing real-time systems promote a more proactive the service provided and the quality
monitoring of shipments for most trans- approach in the monitoring of time and of products delivered by air freight.
portation modes. These systems usually temperature sensitive freight. Real-time Brussels Airport is thus making all the
contain monitoring devices that make information on location and condition necessary efforts to facilitate time and
use of data transmission through the contributes to the delivery of a high temperature sensitive air freight.
Introduction
Figure 2 – Volume and value of pharmaceuticals
Through air freight, goods can be delivered anywhere in the world biotech companies, including the most
Tons (x million) per year Value (USD B) per year Tons (000’s)
the following day. As such, a unique service is rendered to sectors prominent players in the sector, were
located in Belgium. 5.0 300 600
with time and temperature sensitive shipments. The short transit time 269 563
250 500 18% Other
guarantees quick delivery of goods, adding value to temperature The production value of the pharma 4.0 4.0 2% Israel
sensitive cargo by limiting exposure to detrimental conditions. ceutical industry was estimated at 0.5 Air 200 400 7% China
16% India
7,713.83 million Euro in 2011, which 3.0 150 213 Air 300
is an increase of 13.1 % compared to 23% USA
3.5 Ocean 100 200
2010. This growth is greater than the 1.0
The largest air freight volumes for are extremely time and temperature total of the processing industry (+9.5%). 50 100 34% Western
sensitive. In terms of volume, more 56 Ocean Europe
export and import are industrial The production of the pharmaceutical 0.0 0 0
consumables, exotic fruit, machinery pharmaceutical goods are shipped by industry currently represents 19.9% of 2012 2012 2012
parts, technological products, and sea; however, typically individual air the production of the chemical sec-
conditioned goods. In Flanders, freight shipments have a significantly tor and 5% of the production of the Source: Seabury, Global Trade Database
interest for the GPRS monitoring higher value than sea freight shipments. processing industries.
project came particularly from the This also applies to live animals, spare
Figure 3 – Growth of pharmaceutical air freight export since 2000
spare parts sector, the pharmaceutical parts and air cargo in general. Belgium transports 5.4% of Europe’s
(conditioned) sector and the live total air freight. 9.2% of Europe’s
animals sector. Compared to others, Europe plays a key role in the trade pharmaceutical products are Growth in air weight indexed to 100 (NL)
the live animals sector transports of pharmaceutical products. In 2012, transported via Belgium.
smaller freight volumes. Nevertheless, Europe handled 34% of the world’s 260 Belgium
it remains an important segment, total volume of pharmaceutical Figures 3 and 4 clearly illustrate the im- 240
Germany
especially for some fast-growing shipments. portance of the pharmaceutical sector 220
Switzerland
Belgian companies such as Biobest. for Belgium and for air freight. Time and 200
France
The pharmaceutical industry is temperature sensitive shipments are 180
The pharmaceutical industry frequently strongly represented in Belgium. In crucial for the pharma-ceutical sector, 160
uses air freight because the goods 2011, 149 pharmaceutical and 35 spare parts and live animals. Italy
140
England
120
100
80
60
2000 2002 2004 2006 2008 2010 2012
Source: Seabury, Global Trade Database Source: Seabury, Global Trade Database
”
within the supply chain
commodity constitutes an important product or shipment level, and track active transmitting device. Owing to
part of air freight. & trace software systems indicate this restriction, monitoring as from
Figure 5 – Air freight process and stakeholders’
location and/or process flow within the delivery to a handling agent can thus
supply chain. only be done with the handling agent’s
system information, such as a bar
Monitoring of goods If a shipment becomes highly critical code system. Whenever goods are
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Track & trace techniques and technol- conditions, real-time monitoring should whenever goods on the apron are
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ogy have long been used to monitor be done at any time, preferably at exposed to unfavourable conditions,
For
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Air
shipments and goods. Within track & shipment level. This type of monitoring action is required. This can only be
trace, there are several hardware and is available for most transport modes. achieved through local infrastructure or
software solutions providing access to: For air freight however, there is a by means of real-time monitoring.
• the location of the shipments restriction in the use of electronic
• the process flow transmitting devices. Hence from the
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Project scope
“ There
One obvious requirement stipulates
Current trends in logistical monitoring that monitoring systems present
set new requirements for monitoring qualitative information, enabling is a need for transparency,
systems relating to flexibility, infrastruc- effective use by stakeholders in independent from infrastructure and
ture, data registration and integration, order to take immediate action or
stakeholders, throughout all activities
”
and real-time data transmission. A perform analysis.
survey among shippers and forwarders of the air freight supply chain
showed that there is a need for trans- Describing a market need is one
parency, independent from infrastruc- thing, finding a practical solution in
ture and stakeholders, throughout all the context of air freight is another.
activities of the air freight supply chain. Besides the imposed technical
requirements, practical conditions
The above-mentioned market demand have been put forward to come to a
sets the following technical require- deployable solution:
ments for the monitoring system:
• Global deployment in air freight
• Independence from local infra- The usage of electronic devices is
structure strongly regulated in the aviation
Monitoring of shipments should be industry. The requirement to have
done without local investments in electronic devices switched off
hardware or software, which is not during aircraft take-off and landing
the case with a local RFID or Wi-Fi is generally adopted. Deploying
network. monitoring systems for air freight
requires the authorisation of the
• Independence from stakeholders airline and should be applicable for
Transparency in the monitoring all worldwide destinations.
process can only be attained if
information is made available through • Simplified customs formalities
the entire supply chain. Due to the Since import duties are applica-
great diversity of systems and data ble, goods above a specific value
formats, acquiring supply chain data should be declared to customs. The
is not a simple task. Independent same applies to monitoring devices.
monitoring is only possible if the The frequent import and export of
information is delivered by an monitoring devices needs a general
independent service provider sharing framework to optimise the efficiency
the information with all parties of customs formalities.
concerned.
Real-time Figure 6 provides an overview of the • What is required to proceed to tests have been carried out at the three Use in air freight
temperature- applicability of different technologies
within various logistical applications,
practical usage?
• What added value does the system
ground handling agents involved in the
project. In their operations, GPRS de-
The use of GPRS devices had to be
put into practice during ‘live’ tests with
controlled supply proving GPRS data transmission to be offer? For which stakeholder? vices were placed adjacent to calibrated air freight shipments. For time and
chain monitoring an interesting field of study for further
in-depth analysis. Process analysis
temperature loggers at approximately
seven points. The measurement setup
temperature sensitive shipments, on
the one hand the time aspect had to be
In order to put the applicability and was carried out at each handling agent taken into account, and on the other
In 2011-2012, VIL carried out the ‘Real- deployment of monitoring technology during three days, registering values hand the registration of temperature
time monitoring of conditioned goods’ for aviation into practice, critical control every ten minutes. and conditions. Air freight shipments
project, aiming to chart the available Practical testing points needed to be charted. accompanied by a GPRS device were
technologies for real-time supply chain Packaging as limiting factor tested on several lanes and the results
monitoring. At the same time, the need Practical supply chain deployment Critical control points are locations, In aviation, there are several ways were subsequently analysed. For
for monitoring systems, independent and applicability had been put forward steps or procedures where, by applying to package shipments. Temperature temperature-controlled shipments, the
from infrastructure and stakeholders, as main objectives. Market demand control activities, the aim is to reduce or sensitive goods are shipped in focus lay on passive packaging at a
had already been expressed. needs to be translated into a functional avoid the chance and impact of a risk. insulated material, whereas other temperature of +2 to +8 °C.
deployable system requiring an assess- products may be loaded in aluminium
During this project, GPRS-based ment of the following aspects: Through process analysis, it is possible Unit Load Devices (ULD’s). Packaging During the project, in order to
monitoring systems were tested to indicate where control by means material can have a negative impact chart visibility on the apron, an
in American airspace given that • What process support and of technology could add value to the on radio waves used for GPRS data additional test was carried out at
authorisation for the use of some integration is required? monitoring of quality and efficiency transmission and the reception of the Brussels Airport during an airside
GPRS/GPS devices had already been • Which factors limit the use of within the supply chain. GPS signal. Because of this, a test transportation operation.
granted in America. Compelling as the system? was included in the project to verify
the test results were, a subsequent • To what extent can system informa- This project’s process analysis specifi- whether for some types of packaging
project was bound to come. tion be translated into an action? cally focused on the airport’s process- specific constraints occur.
es, from the handler’s acceptance until
aircraft loading. This choice is justified Data transmission is a significant
because of the urgent demand for aspect in guaranteeing real-time
monitoring at the airport. monitoring. Due to signal fluctuations
on the mobile network, data trans
Due to the maturity and market avail- mission is sometimes hampered.
ability of standard monitoring systems, The packaging test should indicate
Figure 6 – Applicability per logistical application
research into critical points at the level whether or not there is an impact
of shippers, forwarders and transport- on data transmission when using a
Technology WSN RFID WSN Wifi GPRS Satelliet ers was less relevant. common type of industrial packaging.
Frequency 433 MHz 868 MHz 2.4 GHz 2.4 GHz 1.9 GHz The test did not take into account
Quality of measuring values local fluctuations in the quality of the
Applications In order to be useful, information mobile network itself.
Road transport trailer + + + +/- ++ ++ should be detailed and accurate.
Road transport boxes/pallet ++ + + +/- ++ ++ Details convey to what extent a specific With a combination of factors
Air freight boxes/pallet - + - +/- ++ - piece of information can be analysed. however, such as during build-up of
Sea freight boxes/pallet ++ + + - +/- - air freight pallets, container transport
Sea freight container ++ - + - ++ ++ Temperature measurement and locali- or storage in a cooling room, extra
Warehouse + + ++ + + + sation are two aspects that have been environmental circumstances may
Warehouse boxes/pallet ++ + ++ + + +/- further investigated for the selected exert a greater constraint on the
Transhipment boxes/pallet ++ + + +/- ++ ++ GPRS devices. data transmission signal. Because
of the large number of possible
In order to chart the quality of localisa- combinations, these were not
Legend: ++ highly suitable, - less suitable Source: 2012, VIL, Real-time monitoring of conditioned goods
tion and temperature measurement, included in the scope.
14 I VIL I GPRS monitoring of air freight I 15
”
to guarantee passenger safety
Regulations
Research
In the course of the project, various Products or services of which usage Passengers carrying a PED are
sources were consulted to get a clear information is limited are not authorised requested to switch off their devices
view on the regulations. The following to be used in-flight. before take-off and landing. In the
Aviation regulations serve primarily to four points provide a brief overview. cargo hold, manual manipulation of the
In the context of the project it was important to consult the guarantee passenger safety. Products No clear regulation exists on the use devices is not possible, thus requiring
applicable regulation for GPRS usage in air freight in the first or services of which usage information PED and interference of electronic transmitting equipment, that the data transmission function
is limited are not authorised to be In modern aircraft, critical equipment making this a source of ambiguity for be switched off automatically at least
place, for it could hold up progress of the practical tests.
used in-flight. Every day, passengers is shielded from interference to such GPRS devices in air freight. before take-off and landing, and in
Additionally, all available devices and systems were scrutinised take mobile phones and laptops on a degree that issues rarely occur, most cases during the entire flight.
in order to make an accurate comparison between various board an aircraft. Before take-off, the otherwise mobile phones would be In the case of portable electronic
technologies and suppliers. devices should be switched off, not banned. Due to the tremendous devices (PEDs), specific types and Fixed aircraft component
only to avoid radio wave interference evolution of wireless communication models need to be found suitable In aviation, components and devices
with critical aircraft equipment, but products such as mobile phones, for a specific type and model of connected to the aircraft frame are
During the research, various tests also to avoid passenger distraction Wi-Fi, Bluetooth, Zigbee, etc., the aircraft. Only an airline can make differentiated from components and
were carried out to assess the quality during critical stages of the flight. The aviation sector experienced difficulties a statement on the impact of a devices travelling along with cargo or
and applicability compared to the possibility of manually switching off the in estimating the influence of all these specific type of electronic device passengers. Elements connected to
market’s needs. devices authorises their use on board. devices on aircraft equipment. used on their fleet. the aircraft frame, for instance a smoke
16 I VIL I GPRS monitoring of air freight I 17
Temperature measurement x x x x
detector in a cargo hold, need to have Directives for non-fixed responsibility of the airline, which must Localisation (x) x
passed a comprehensive test proce- components grant authorisation for each type of PED. Registration x x (x) (x)
dure before being added to the aircraft. For both EASA and FAA, cargo han- Display x (x) (x) (x)
PEDs and track & trace devices ac- dling falls under the responsibility of FAA has provided some PED suppliers Alarm on display (x) (x)
companying cargo or travelling along the airline. The same applies to PEDs. with a ‘No Technical Objection’ (NTO) Performance
with a passenger, are not considered Recently, regulation EU No 965/2012 status indicating that there is no Flexibility * (x) (x) (x) x
components of the aircraft. Regulating was issued for commercial flights in objection against the usage of PEDs. No infrastructure* x
bodies within the aviation industry, which the usage of PEDs is clarified. An NTO does not negate the fact that Data integration* x x
EASA (European Aerospace Safety the airline remains responsible. Real-time (x) x
Agency) and FAA (Federal Aviation As a complement to this, EASA en-
Authority), issue rules related directly acted directives describing in detail the Initiatives
Source: VIL
to aviation, specifically for elements operator’s responsibility concerning Due to increased PED usage and
connected to the aircraft frame. Since PEDs (cfr. “EASA Acceptable Means of on forwarders’ request, various
PEDs are not considered components Compliance and Guidance Material to initiatives have been taken to provide Legend: x available for all devices, (x) not available for all devices
*Flexibility – parameters adjustable in the device
of an aircraft frame, directives for these PART-CAT”). These directives state that more clarity in the use of PEDs by *No infrastructure – Does not concern local infrastructure for measurements and read-outs
*Data integration – Automatic, non-manual integration in a software system
devices have been enacted by EASA. the usage of PEDs is and remains the passengers and in cargo.
18 I VIL I GPRS monitoring of air freight I 19
Cell-ID Cell-ID and triangulation location of a transmitted message can accurate than Cell-ID, although highly a coordinate indicating the location of motion, humidity, pressure and air
In most cases, GSM/GPRS devices be determined within the telecom infra- dependent on information received an object, for instance a warehouse. pressure. Sensor selection depends on
transmit data via the nearest mast of structure. Although it lacks accuracy, from telecom suppliers. what needs to be monitored. For this
the telecom infrastructure. Cell-ID is a this mode of localisation is nevertheless Sensor measuring values project, temperature, light, motion and
technique that uses the geographical solid enough to determine a position in Process-based localisation Sensors are designed to convert infor- air pressure sensors were used.
gps
coordinates of a mast to determine a a specific region at any time. Each defined process in the supply mation about ambient conditions into
position. chain is linked to a specific location. digital information, which is especially System configuration
A derived version of the Cell-ID According to GS1, location is defined important for temperature sensitive GPRS-recorded data should be
A GSM/GPRS message contains technique is triangulation based on through a specific Global Location shipments, requiring temperature supported by software solutions that
routing information about the usage of various Cell-IDs. Through calculation of Number (GLN), a unique number linking registration throughout the supply chain. process, record and visualise the
telecom infrastructure and about the information received from at least three a location to a geographical coordinate. information. Additionally, the software
mast via which the data was transmit- masts, a more accurate location can The registration of a process can Common monitoring sensors include also needs to guarantee configuration
GPS versus Cell-ID accuracy ted. Accordingly, the geographical be determined. This method is more be linked to a geographical GLN – temperature, light, acceleration/shock/ and control of the GPRS devices.
“ Intheorder to determine
applicability of
monitoring to air
freight, blind spots
”
need to be identified
air
transmission function needs to be registered (at intervals) and can be entirely ‘waterproof’.
by
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switched off before take-off and retrieved after a blind spot. During a
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switched on after landing. During blind spot, localisation is only possible Shippers’ goods are either stored
wa
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For
For
the project the following times were through satellite positioning. During temporarily at a forwarder, who
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registered: flight location registration is completely provides all the necessary facilities, or
• Switched off 5 to 15 minutes before switched off out of safety precautions. delivered directly to a handling agent.
take-off As a result, localisation can under The process analysis mainly focused
• Switched on 20 to 45 minutes after certain circumstances contain gaps. on the handling agent’s processes.
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Figure 16 maps the blind spots and Figure 17 shows the different stake-
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Gaps – information gaps in an air freight supply chain, holders in the air freight supply chain.
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Blind spots do not necessarily imply reflecting the principle of blind spots in The green section indicates the scope
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Source: VIL
gaps in the information received. relation to stakeholders. of this project.
28 I VIL I GPRS monitoring of air freight I 29
Landside Airside
Handling processes ambient factors whereas process Figure 20 clarifies the different handling
Within the handling agents’ processes, control systems supply monitoring stages. The table essentially establish- Delivery of shipments Airside transport
Acceptance Process: Shipments are delivered to the handler, where the goods are physically
and administratively checked before being stored at the right location.
Critical point: Limited capacity of the acceptance zone.
Storage Process: Shipments are stored according to booking and airway bill information.
Critical point: Manual storage and verification of actual storage.
Pallet build-up Process: Build-up of pallets is done in a dedicated area and is time-consuming.
Critical point: Pallet build-up is not always performed in a cooling room
Figure 18 – Landside and airside handling process
and is not registered.
Airside pick-up Process: After build-up, shipments are positioned for transport to the apron.
Depending on the available space, shipments are placed indoors or outdoors.
Critical point: Conditions of time sensitive shipments should be monitored.
Landside Airside Airside transport Process: Shipments are transported on airside to the aircraft.
(Aviapartner, Swissport and WFS) (Aviapartner and Swissport) Critical point: Possibility of lengthy exposure to external conditions,
depending on the duration of transport.
• Acceptance • Transport Planeside Process: Shipments are placed next to the aircraft before loading.
• Storage • Planeside Critical point: Exposure to external conditions.
• Build-up pallets • Loading aircraft Offload Process: Exceptionally, at the very last minute, shipments are refused on board an aircraft.
• Airside pick-up • Offload T he shipments are placed on the apron and must be collected by the handler.
Critical point: Exposure to external conditions.
In the column ‘GPRS useful’, added bringing shipments under controlled export, a system was set up in
value is shown for monitoring of storage conditions seems to be more cooperation with Belgian customs.
shipments on landside, specifically difficult. A company can register a pool of logger
in the warehouse. For example, for devices to which unique numbers are
a shipment that has been stored Customs attributed. These numbers will appear
incorrectly in the warehouse, the Shippers and forwarders ship goods on on a list at customs that the company
handler can easily be informed through a daily basis and use loggers for data can refer to during import or export. As
GPRS and take action for appropriate registration during transport. These a result, no import rights nor VAT have
storage of the shipment. loggers are usually ‘one-way’ loggers to be paid.
valued at less than 22 Euro, which are
On airside, the usage of GPRS exempted from custom clearance. Every company can use this system
especially helps to improve control for simplifying shipments with reusable
and reduce impact on the shipments. If a shipment’s total intrinsic value data loggers, such as GPRS devices.
The analysis shows the device’s does not exceed the 22-Euro mark, a
effectiveness when shipments are complete exemption of VAT and import
positioned or picked up at planeside. rights is granted.*
During airside transport however,
GPRS alerts are less effective. Due In order to simplify the use of data
to operational and practical reasons, loggers for temporary import and
Brussels Airport Company
‘effectiveness of control’ x ‘chance of occurrence’ tive supply chain. The last column Figure 21 – High-level conclusion risk mapping
x ‘impact on shipment / product’ = risk indicates the situations where GPRS is
most useful. These were determined
Activity Risk High GPRS
by identifying the outcome of real-time
Risk useful
monitoring on each of the critical points
Risk analysis on following equation: regarding risk reduction.
Trucking 1. Shipment not delivered at correct temperature
A risk analysis is to a certain extent an ‘effectiveness of control’ x ‘chance
addition to the process analysis. The of occurrence’ x ‘impact on ship- As shown in the table, an incorrect
Handler
main difference is that process analysis ment / product’ = risk booking entails the highest risk for a
landside Risks due to:
provides an indication of critical points shipment on landside. This increased
2. Incorrect label Yes
whereas risk analysis clarifies the Eleven critical points were defined risk can be attributed to the fact that
3. Incorrect booking Yes Yes
importance of each individual point. for which a risk score was assigned during shipping the booking is not
4. Human error, incorrect storage Yes
using both the current AS IS situation verified. The ensuing impact of a wrong
5. Pallet build-up
A risk analysis was carried out from and the situation where GPRS is booking is especially unfavourable for
shipment acceptance by the handler used. However, risk scores assigned the shipment.
Handler
to shipment departure by aircraft. through GPRS were rather based on
airside Risks due to:
The risk analysis specifically focused a theoretical approach given that not On airside, shipments are exposed
6. Location airside pick-up Yes Yes
on temperature sensitive shipments in all risks could be assigned with a value to external conditions, which, in case
7. Apron transport Yes
passive packages of +2 to +8°C and during the test lanes. of extreme weather conditions such
8. Planeside positioning Yes Yes
+15 to +25°C. as freezing temperatures, can have
9. Offload Yes Yes
Figure 21 lists the most relevant ones. a negative impact on the shipments.
The risk analysis used a standard The column ‘High risk’ indicates the For this reason airside activities are
Source: VIL
methodology, quantifying a risk based critical points in a temperature sensi- perceived as being high-risk.
Lessons Learned
sive heat or cold will gradually change (SOPs). Ideally, these agreements
Location accuracy the temperature within the packaging. should be conform to procedures
In this context, which measurement is in order to sustain the global supply
To what extent is accuracy of locali- more relevant? The internal or external chain. In air freight, such conformity
sation important? temperature? Is information about is regulated and warranted by
product stability the GPRS monitor- publications such as IATA’s Airport
As mentioned before, GPS conveys ing objective, or is it information about Handling Manual, Perishable Cargo
more accurate location information than when ambient factors become critical? Regulations, Dangerous Goods
Cell-ID does. Most GPRS devices offer Regulations, Live Animals, etc.
both localisation methods, although for Important to mention is that with a
cost reduction purposes devices oper- GPRS device both the internal and In addition to the agreements, it is
ating solely on Cell-ID or triangulation external temperature can be measured, crucial to maintain efficient com-
are also being developed. Choosing albeit with a second sensor connected munication with the stakeholders
Road transport Cell-ID
one method over the other mainly via a cable-connected probe. By using the right tools. Communication
depends on the situation and the moni- introducing GPRS monitoring, between stakeholders evolves from
toring objective. It is therefore important each stakeholder can be informed mutual commercial agreements.
to determine the situation in which preventively about inconsistencies. The shipper has an agreement with
information accuracy is expected: Transmitted data for example, can the forwarder, the forwarder with
reveal under which ambient conditions the airline. As a result, the forwarder
• Monitoring of long-distance road a shipment has been stored. The communicates with the airline about
transport monitoring system thus enables users the status of a shipment, and not
• Arrival time of shipment at the right to take action to guarantee appropriate directly with the handler.
airport storage of the shipment if necessary.
• Monitoring of time sensitive ship- With GPRS monitoring, communica-
ments A GPRS device can be used as a tion is independent from infrastructure,
preventive tool complementary to a providing all parties concerned with
The screenshots on this page illustrate USB logger. The registered data of automatic updates of shipments, such
GPS time sensitive shipment the above-mentioned scenarios. the USB logger can be used when as temperature deviations. An indirect
inconsistencies have occurred. communication channel thus arises • Booking procedures are specific requirements can be found in the
between for instance a forwarder and to each airline. Owing to the rather IATA guideline ‘Packaging Instruc-
Operations or a handler. The handler can directly take novel nature of the device, the tions for Dangerous Goods’, PI967*,
Value Proposition
business case and can thus only be PaaS involves a monthly cost it takes before a shipment returns to the 25 Euro per hour and lasts 30 minutes.
explained generically for this report. which includes use of hardware, shipper. The transit time also affects the
communication and web application. number of devices required. Calculation of Product as a
Although the recurrent cost is high, Service (PaaS)
there is more freedom and flexibility The operational handling of adding The PaaS cost is based on the service
Technical feasibility with the adoption of GPRS devices. If a GPRS device to a shipment was charge per shipment. In the calculation
the company chooses to purchase the allocated as a cost, since it involves an a cost of 170 Euro per service was
The market offers GPRS monitoring devices, the following costs apply: extra service. This service is charged at considered.
devices authorised for use in the avia-
tion sector which can be employed for: • Purchase of hardware
• Temperature registration at product Depending on the purchase quantity,
and shipment level throughout the the purchase of the hardware in-
entire supply chain; volves a one-time investment cost of Figure 23 – Cost model for GPRS monitoring usage
• Localisation throughout all activities 150 to 400 Euro per device. Training
in the supply chain, where accuracy for usage of the web application is Cost factor Price
depends on operational constraints sometimes charged at the first order.
(e.g. cooling room, packaging, etc.); Purchase GPRS device 150 to 400 Euro
• Time indication for monitoring • Monthly communication cost Monthly communication 15 to 45 Euro/month/device
throughout the processes at Most suppliers offer a service Product as a Service (PaaS) 70 to 200 Euro/month
location level; package in which the monthly Return of devices 60 Euro (per shipment)
• Communication within the communication cost along with
supply chain. the usage of the web application is
included.
Case parameters Quantity Price
GPRS monitoring is not, or is to a
lesser degree, suitable as: Note: Quantity rebate for both
Purchase GPRS devices 5 300 Euro/device
• an internal process monitoring tool, purchase and communication is
Monthly communication cost 5 5 x 25 Euro/month
providing information about the possible. The prices in the table of
One-time purchase cost
different process stages; figure 23 show the most common
(web application, training, SIM cards etc.) 1 3,800 Euro
• a global monitoring tool, since minimum and maximum prices.
Number of shipments / boxes per year 50
there is still a limited number of
Transit time of return 8 days
In order to assess a type of technology, airlines worldwide that have given • Operational costs
Number of devices assembled for return 1
it is important to determine the authorisation; Shipments provided with a
Insurance per device 20% 25 Euro/device
following three aspects within an • a tool for temperature registration monitoring device involve manual
objective: to be used for product stability manipulations which should be
data. Thermal inertia slows down considered.
• Technical feasibility the measurement. A probe is thus Purchase hardware Investment Annual costs (Euro)
Is the preconceived objective recommended. • Return of devices
technically feasible? Does the market The return of GPRS devices to GPRS devices 1,500 125 (insurance)
provide products that can respond the shipper involves a cost that Web application and communication 3,800 1,500
to the specific requirements of the should be taken into account. Manual handling and return 0 625 + 3,000
business case? Economic feasibility Cost reduction can be obtained Total 5,300 5,250
• Economic feasibility by assembling all devices at one
Does the technology provide The TCO (total cost of ownership) particular location and returning
affordable solutions? of GPRS was included in order to them in one package. Product as a Service Investment Annual costs (Euro)
• Added value make an estimation of the economic
What added value does the advantages of the project. Two Cost example GPRS devices 0 8,500
solution provide? What are the business models were developed The table below shows a cost model Web application and communication 0 0
gains and costs? to evaluate the adoption of GPRS of 50 shipments per year, for which 5 Manual handling and return 0 625 + 3,000
monitoring. The first via the purchase GPRS devices are purchased at a cost Total 0 12,125
The assessment of the above-men- of hardware, the second via a Product of 300 Euro per device. The transit
Source: VIL
tioned aspects is specific for each as a Service (PaaS). time of a shipment indicates how long
38 I VIL I GPRS monitoring of air freight I 39
“ The
is suitable for the goods and whether supply chain. assist the forwarder in:
it meets the service requirements. • creating transparency throughout
shipper is responsible A GPRS device assists in validating • the protection of shipments. the supply chain, providing
for the delivery of product a lane for time and temperature High-value shipments require access to information about the
”
conditions, without having to take continuous monitoring. The extra progress as well as the status of the
quality to the customer measures at location throughout the cost of a GPRS device is negligible shipment. This is especially useful
Aviapartner, Pharmahub supply chain. for such shipments. during delays, where clients can
receive the most up-to-date of an airport. The handler has to handler, the parties concerned
information about shipments. correctly manage the confluence of can be notified of possible
different types of shipments, such inconsistencies.
Transfers from one airline to another as spare parts, high-tech products,
are usually avoided for temperature perishables, live animals and The IATA time and temperature
sensitive shipments. GPRS does pharmaceuticals. checklist is a list verified by the
not provide a direct solution for this, handler upon acceptance of
but ensures that bottlenecks are On the one hand, the handler’s facilities delivered goods. The checklist
exposed. portray its operational possibilities. also has a field indicating whether
For example, without a cooling room the shipment has been received in
• acting proactively and reactively. shipments cannot be stored at a cooled conditions.
The processing of information temperature of -20°C. On the other
about the location and storage hand, transparency in the handler’s • Internal monitoring of storage
condition of a shipment gives the operations can to a great extent be conditions. One of the handler’s
forwarder the possibility to be attained through process control, responsibilities is to guarantee the
alerted whenever inconsistencies which entails verifying the registration quality of the shipments, both in
requiring immediate action occur. of consecutive process stages. With the warehouse and on the apron.
this kind of control, the handler can Monitoring in the warehouse
The Standard Operating Procedures prove that the shipments have been will happen through control of
(SOPs) comprise procedures for handled accordingly. the processes. The most critical
specific actions within the supply point for a handler is the apron,
chain that need to be respected. GPRS monitoring is not a process where shelter is limited. Through
SOPs need to be adjusted according monitoring tool, but an addition to this GPRS, a handler can be notified
to experience. kind of system. The following points of shipments stored in conditions
indicate the added value of GPRS exceeding their tolerance level.
• stimulating supply chain coopera- monitoring information for handlers.
tion. The GPRS software system • Monitoring of logistical resources.
enables involvement of the stake- • Pre-notification of shipment With GPRS / GPS monitoring,
holders in the information flow. The delivery. A shipment with a GPRS logistical resources such as
appropriate contact persons can be system can by localised within a towing tractors and dollies can be
notified of emerging problems. The specific distance from the handler monitored for location, status and
logistical service provider can ini- by means of a geofence. Handlers storage conditions. Through this
tially assess and solve the problem should verify the documents monitoring, increased efficiency and
independently. If not, the forwarder accompanying the shipment, which risk management can be attained
will take the necessary action. can hamper the transit of the goods on the apron. Eligible GPRS / GPS
at the moment of acceptance. By devices used for these purposes are
The Standard Operating Procedures integrating pre-notification in GPRS not loaded into an aircraft and do
(SOPs) includes contact information systems, the handler is notified of not need airline authorisation.
of the people relevant for a particular the shipment’s arrival.
action in the supply chain.
• Cooled shipment at delivery.
• risk management. To a forwarder, A handler should verify whether
it is important to monitor and reduce cooled shipments have indeed been
risk, mainly in order to promote the delivered at the right temperature.
quality of the rendered service. With GPRS systems, a report can
be issued or an indication can be
Handler given on whether the shipment has
The handler’s expertise and specialty been kept in adequate ambient
convey to a great extent the possibilities conditions. Upon delivery at the
Conclusion
With this project, VIL shows that GPRS monitoring for air
freight is technically feasible, economically justifiable and offers
considerable added value for the pharmaceutical sector, live
animals and spare parts.
With thanks to
our participants
Vlaams Instituut voor de Logistiek
Flanders Institute for Logistics
Koninklijkelaan 76
B-2600 Berchem
32(0)3 229 05 00
www.vil.be - info@vil.be