Professional Documents
Culture Documents
Leif Rasmussen
President and CEO, SAS Cargo Group A/S
LOOKING BACK,
TWO YEARS AGO
Disruptive opportunity
Technological
development
Air Freight
Time
EXPONENTIAL
GROWTH
SAS Cargo Group A/S – Miami 15NOV17 8
Fifth Avenue, New York, 1900
TWO WAYS:
GRADUALLY,
THEN SUDDENLY.
Source: Ernest Hemingway, The Sun Also Rises
UNDERSTAND
WHAT YOUR
CUSTOMERS WANT
SAS Cargo Group A/S – Miami 15NOV17 15
THE EXPECTATIONS OF CUSTOMERS TODAY
Personalized On demand
Purpose Mobility
driven
Convenience
Transparent Flawless
price comparison transactions
Access Automation
across all platforms of processes
•Invoice
•Packing List
•Air Waybill
•Invoice •Handling fees
•Packing List •Invoice •Invoice
•Packing List •Packing List
•Air Waybill •Air Waybill
•House Manifest •Flight Manifest
Freight arrival
notification
Advanced
Transport
Order
Cargo
Receipt
Customs Info
(ACI)
•Invoice
DESTINATION
•Invoice
•Air Waybill
•Packing List
•Import Goods Decl.
•Air Waybill
Export Goods Decl. •House Waybill
Transport
Customs Release Import Order
Customs Release Export
•Air Waybill
•Customs fees
Source: IATA •Handling fees
Purchase Order
SAS Cargo Group A/S – Miami 15NOV17 21
DOCUMENT
Customs
Purchase Packing Certificate of House House Goods Flight
Data Owner Data Item Order Invoice List Origin Waybill Air Waybill Manifest Declaration Manifest REPETITIONS
Consignee Consignee's details x x x x x x x 6
Quantity of goods x x x x x x x x 7
Consignee / Shipper Packaging details x x x x x x x x 7
Incoterms
Payment details
x
x
x
x
DATA IS RE-TYPED UP TO x
x
x
x
x
x
4
4
Shipper Shipper's details x x x x x x x 6
Shipper / Forwarder
Description of goods
Classification of Goods
Value of goods
Country of Origin of Goods
Handling instructions
x
x
x x
x
x
x
97 TIMES
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
7
4
4
3
4
Forwarder
Departure / Arrival date/time
Forwarder's details
x
x
x
x
IN ORDER TO COMPLETE
x
x
x
x x
x 4
4
HAWB number x x x 2
ULD details AN AIR FREIGHT SHIPMENT x x x x x 4
Forwarder / Airline Airport details x x x x x 4
Routing x x x x x 4
Airline Airline details
MAWB number
x
97 POSSIBILITIES x
x
x
x
x
x
x x
x
5
3
Flight details x x 1
Airline rates details FOR POTENTIAL ERRORS x 0
Source: IATA
22
IT IS CERTAINLY NOT EASY
BEING A CUSTOMER
Inaccurate
ACTUALLY,
Each stakeholder focuses on self
Incorrect
– at best the next link
Off Screening & Invoicing
weight/volume
IT HAS BEEN
pallet size loads rescreening errors
Incorrect /missing
FOR OVER 40 YEARS
Late Incorrect /missing Varying customer
shipment detailsWe have submission
no shared focus on documents
the end customer experience
OR A SOFTWARE
COMPANY?
ENERGY SOLAR
PROVIDER PANELS
OR A SOFTWARE
COMPANY?
IT PROVIDER GROCER
TOUGH
QUESTIONS
?
How will it
impact our…
AND GLOBALLY
THE NUMBER IS 60%
Inaccurate Incorrect
You avoid
Off
retyping
Screening & Invoicing
weight/volume pallet size loads rescreening errors
Does your board have the necessary How do you utilize the
competences to avoid disruption technological convergence?
and secure the funds needed? Big data, machine learning, prediction etc.
Source: IATA
Data – The Raw Material of the 21st Century also in Air Freight? 52
AGENDA
Data – The Raw Material of the 21st Century also in Air Freight? 53
Digitalization in air freight: Lagging decades behind passenger services
GDS OTAs eTIX
Digitalization of air freight will speed up – and the change will never be as slow as today.
Data – The Raw Material of the 21st Century also in Air Freight? 54
Logistics, transportation and supply chain is getting one of the most
attractive industries for startup investments
Data – The Raw Material of the 21st Century also in Air Freight? 55
Spotlight: eAWB and eFreight
The eAWB is much more than just the digitization of some paper. Electronic documents are the enabler for
efficiency and quality improvements.
Data – The Raw Material of the 21st Century also in Air Freight? 56
Spotlight: eAWB and eFreight
BUT – why does the further rollout seem to get stalled? Is the industry focus getting somewhere else?
Data – The Raw Material of the 21st Century also in Air Freight? 57
Spotlight: CargoXML
Despite of all achievements, the industries still struggles with …
… complex and partially redundant and superfluous message
descriptions
… ambiguous and interpretable descriptions
… inconsistencies in descriptions, auto checks, conditions
across different messaging
… misalignment between XSD structure and description
… lack of staff and priority at airlines, forwarders and IT providers
11 / 2017
XFWB (In / Out)
XFZB (- / Out) 05 / 2018
XFFM (- / Out)
XSDG (In / -)
XFNM (In / Out) 2018+
XFUM (- / Out)
Fully integrated into LCAG Fully integrated into LCAG Yet to be designed – integrated into LCAG Backend IT or to be
Backend IT Backend IT consumed via CCS messaging
Data – The Raw Material of the 21st Century also in Air Freight? 59
e-Cargo is at the center of our effort to shape the future of air freight
Increase employer
attractiveness
Data – The Raw Material of the 21st Century also in Air Freight? 61
Technology is driving IT organizations to work with many speeds
Cloud &
Analytics APIs Platforms IoT Connectivity mobile
To avoid the risk of getting outpaced and to participate in the chances of disruption, a data strategy must
cope with both highest quality standards and the increasing speed of the industry.
Data – The Raw Material of the 21st Century also in Air Freight? 62
AGENDA
Data – The Raw Material of the 21st Century also in Air Freight? 63
eTracking: IoT, APIs and mobile for more transparency
Cloud &
Analytics APIs Platforms IoT Connectivity mobile
Mobile tracking
Tracking web module Tracking app Add-on product
devices
Data – The Raw Material of the 21st Century also in Air Freight? 64
Big data for fuel efficiency: Ops monitor and efficiency gap (OMEGA)
Data – The Raw Material of the 21st Century also in Air Freight? 65
Big data for fuel efficiency: Ops monitor and efficiency gap (OMEGA)
Data – The Raw Material of the 21st Century also in Air Freight? 66
From classical BI to analytics: Some use cases
Data – The Raw Material of the 21st Century also in Air Freight? 67
From classical BI to analytics: Key success factors and learnings
1 Don’t think you already have the right skills in your traditional BI team.
3 Good ideas don’t easily transform into good results. Accept to fail often.
4 Build your Analytics use cases on the right tools. Cloud first.
5 There are much less unstructured data than expected. SQL remains king.
Data – The Raw Material of the 21st Century also in Air Freight? 68
AGENDA
Data – The Raw Material of the 21st Century also in Air Freight? 69
The Logistics Data Cloud (“One Record”): A vision beyond eFreight
TODAY: Isolated data flow and system connection across the supply chain, characterized by
Low level of shipment status transparency for all members of the supply chain
High messaging complexity, fragmented data, and lack of interface standardization resulting in low data
quality and low data consistency
Limited pre-processing of data before shipment arrival (e.g. for customs authorities)
Misunderstanding and inaccuracy as data are handed over across several participants in the supply chain
Data – The Raw Material of the 21st Century also in Air Freight? 70
The Logistics Data Cloud (“One Record”): A vision beyond eFreight
TOMORROW: Integrated information flow via a “logistics data cloud” with the benefits:
High data quality and consistency along the complete supply chain
Efficiency by elimination of many process steps between numerous interfaces
Increased speed by real-time and early data availability for all participants
High potential for preprocessing (e.g. for customs authorities) and improved steering possibilities
Data – The Raw Material of the 21st Century also in Air Freight? 71
AGENDA
Data – The Raw Material of the 21st Century also in Air Freight? 72
Weaknesses in the data environment call for strategic data management
BI &
analytics
Physical Load
Booking FWB Accounting
Delivery planning
PROBLEM: Booking data used for flight planning are not in sync with data received by agent or GHA FWBs
and GHA Messages.
CONSEQUENCE: Incorrect calculation of capacity consumption and missing of important handling
information, leading to transport plan violations, loss of revenue and incorrect invoicing.
Data – The Raw Material of the 21st Century also in Air Freight? 74
Example: Booking data with data lifecycle management
Booking AWB
BI &
analytics Physical
Delivery
Load
Accounting planning
THE VISION: “Versioning” of records instead multiple inconsistent copies allow better business rules and
more consistent information along the entire process chain.
Data – The Raw Material of the 21st Century also in Air Freight? 75
The Lufthansa Cargo cookbook for strategic data management
Data Management
LCAG
Business Glossary
Data Governance
BI Modernization
Logical data
model for core LCAG BO Model
DWH
Lifecycle
Management
Data Management
MDM Metric Processes
Quality Privacy Governance Roles
Security Framework
External Data
Provisioning
15 November, 2017
A Holistic Approach to Data Usage and Modelling
by Damien ZARU
Manager, IATA APCS Consulting
Airport Traffic Forecasting For Tokyo-Narita Int’l Airport: Cargo Traffic Forecast as
Air Service Development part of a Facility Planning and Zoning Development
Airport Marketing Strategy
Strategy
For Dubai Al-Maktoum International Airport (DWC): Air
Background Cargo Development Strategic study
IATA Consulting
For Aeroporti di Roma (AdR) : Strategic market study and
Deloitte Strategy Consulting long term traffic forecast of the Rome airports system
Air France
For Airports of Thailand (AoT), strategic development
IATA Training, Airport Traffic Forecasting Brazil: GRU, GIG, BSB, CNF and VCP
The reasons for forecasting airport activity > What is airport activity forecast useful for?
Estimate the nature, magnitude and timing of future needs for equipment, facilities, manpower,
funding…
1. Data
2. Methodology
3. Analytic work
ACI
Albatross
1 2 4
- Cargo Historical
Traffic Data
Baseline cargo
Traffic forecast Base case
- Socio-economic Adjustment
based on cargo
forecasts factors
historical forecasts
regression
- Aviation-related
data
3 Bottom-up projections
Cargo Traffic is projected using a dual approach that combines a top-down and a bottom-up projection
The top-down projection: demand-based projection derived from historical regression analysis against suitable drivers
The bottom-up projection: short-term forecast based on airlines market capacity
Changes in the airport environment are estimated and added / subtracted to the baseline
Base case = baseline + adjustments
Finding the best statistical regression-based model incorporating the most relevant independent (causal) variables to
explain the historical traffic evolution
Illustration > The case of an international Australian airport > International Air Cargo Imports
Int’l Air Cargo OD Imports actual and modeled traffic
1985 to 2015 – index 100 in 1985
Best fit: Air cargo OD import expressed as a log function
of AUS GDP and US/AUD FX rate
R-square: 0.99
The future changes in the airport environment…. What differentiates the past from the future!
Regulation
Air Service Agreements Competition from regional
Trade Agreements airports
Competition from global hubs
Airport competitors
Airlines
Demand
Industrial Production Airlines Strategies
Cargo Traffic
Trade-weighted Exchange rate Integrators
E-commerce
Tonnes % of Total
762 Top 3 Destinations Exported Tonnes
Brisbane 56,123 81% 69,086
t Singapore 11789
Cairns 3,027 4% tonnes 13,410
Connectivity
Lack of specialized facilities
…
Destination Country # weekly flights from BNE # weekly flights from SYD Aircraft
Singapore 34 13 A330/200/300
Singapore 7 31 B777-200/200ER/300ER To Singapore: more belly cargo capacity offered on a weekly
Singapore 0 7 A380-800
basis in 2014/2015, through a combination of higher
Singapore 0 1 B787-9
Singapore 0 1 B747-400 frequencies and bigger cargo volume aircraft
Weekly PAX flights 42 54
/
Destination Country # weekly flights from BNE # weekly flights from SYD Aircraft
Damien ZARU
E-mail: zarud@iata.org
+1 -514-449-3721
…you can accurately predict and improve your load factor 60-90
days in advance
@ GPS • Damco
Applications
Damco Data
• Big Data
Analytics
The Data Lake is capable of accepting and utilizing any kind of data.
119
Data Lake
Boundary-less data store for valuable internal and external data, as structured and
unstructured static files.
Integration and ingestion
Integrate and ingest all Damco system data into the data lake.
Work in process allowing it to feed data, analytics and intelligence back into the
landscape.
Streaming Analytics
Capability for streaming data into the platform and apply analytics and intelligence real-
time.
Solving internal and external business problems with descriptive, diagnostic, predictive
or even prescriptive analytics and insights.
Online Analytical Processing
Capability for multidimensional analysis, complex calculations and sophisticated data
modeling.
Online Transactional Processing and Storage
Capability for transactional data processing, data storage and file storage.
Services
Capability for (micro-) services and serverless application ecosystem .
ability for lean, low code, rapid application development of web based and mobile
applications.
Create an API ecosystem around Damco insights and Intelligence (through Damco API
library / marketplace.
Power BI
Capability for internal dashboards and self-service Business Intelligence.
Maersk, Damco and IBM analyzed the shipment of avocados from Mombasa to Rotterdam
We followed the shipment from Mombasa to Rotterdam and tracked the actors, people and information exchanges. The
findings illustrated the complexity and costs inherent in today’s global supply chain
Avocado Shipment 1
Actors 30
People 100
TODAY TOMORROW
Consigne
Authority
e
Global Trade Digitization
Inconsistent information across organizational boundaries and “blind spots” Instant, secure access to end-to-end supply chain information; single source
throughout the supply chain hinder the efficient flow of goods of the truth
Complex, cumbersome, and costly peer-to-peer messaging Assurance of the authenticity and immutability of digital documents; trusted
cross-organizational workflows
Manual, time-consuming, paper-based processes; high air courier expense
and delays Better risk assessments and fewer unnecessary interventions
Risk assessments often lack sufficient information; clearance processes Far lower administrative expenses and elimination of costs to move physical
subject to fraud paper across international borders
The administrative cost of handling a container shipment is comparable to Estimated global savings from more efficient sharing of information: $27
the cost of the actual physical transport billion
Forecasting & Lead Time Improvement PoC
Disruption & Live Visibility App
139
Disruption & Visibility App – The Business Challenges
Timeliness of information
We live in a world where natural and man-made global events are impacting
supply chains and overall freight movement. We need to know what it is
happening and react fast.
Lack of Visibility
The lack of visibility in disruptions to supply chain and its mapping to impacted
shipments, which creates late reaction and brings inefficiency to the supply chain.
Moreover, not able to know where shipments are at any point in time in transit.
Quality of Information
Many things happening at the same time, impossible to follow different source for
events, which makes impossible to know whether all those global events are
impacting supply chains and/or overall freight.
Exercise – A Million Dollar Questions
Source: CIPS
81%
??% companies suffered at least 1 disruption during
2014.
- 76% of global companies reported Supply Chain Disruptions within the last
12 months. Source: MH&L
- $1M in lost revenue per day of delay for Intel. Source: Intel
Quick Look to Impacted Cargos Disruptions; see what it is happening around the world
Disrupted and Delayed – Full Details
How Does It Work?
Live Visibility
Application
Local Knowledge
Live GPS Tracking (People)
Data Storage
Carrier Cargo Status (Data Lake)
Updates
Transactional shipment
data
What Else
is
Coming?
Tech showcase 1: Virtual inspection (DDSI Drone)
WHAT IS IT?
• A Virtual reality experience to show a DDSI warehouse
location from a 360 degree perspective.
• The actual experience will be:
• The customer gets a short explanation
• The customer puts the VR headset on and the
presenter starts the experience.
WHAT IS IT?
• Using Cortana on your PC, you don’t need to use your
keyboard anymore. You can just ask the computer e.g.
which containers will arrive by tomorrow at this facility.
This saves a lot of time searching for the right
information!
• The actual experience will be:
• There will be a laptop with the assistant installed on it.
• After a brief introduction the Damco employee will ask
cortana a few questions.
• After this, the customer will have a change to try it
out.
• Rationale: Nowadays, the keyboard and the mouse are
our main tools in the office, but what if we can free up
our hands? You can save a lot of time!
Tech showcase 3: SCM Simulator
WHAT IS IT?
• Equiped with killer graphics, this solution is where the
game industry and logistics meet! It is a solution which
using stunning graphics to visualise a customers supply
chain and allows for all kinds of simulations (what if....).
• The actual experience will be:
• The Damco representative will explain the solution
and what we are trying to achieve
• The Damco representative will then demonstrate the
actual prototype
• As this is a prototype we are explicitly seeking for
customer input. We can use post its or some digital
way of capturing their ideas and suggestions. The
customer should be able to influence our
development path.
• Rationale: Can be found here, but we really want to
make a big jump in visualizing supply chains. This is
great for analyzing them and bringing SCM back into
the board room!
Tech showcase 4: Augmented Reality
WHAT IS IT?
• Tech showcase to demonstrate the capabilities of AR.
• The actual experience will be:
• Representative will do a brief introduction and
demonstration
• The customer will then get the opportunity to try the
Microsoft Hololens
• Rationale: AR can greatly improve the productivity of the
workforce. Sometimes up to 35%! It saves a lot of time
as people do not have to walk to their station but get all
relevant information projected on the wearable they are
using (e.g. Hololens or Google glass).
Tech showcase 5: IoT
WHAT IS IT?
• Tech showcase to demonstrate the capabilities of IOT
and sensors.
• The actual experience will be:
• Representative will do a brief introduction and
demonstration (e.g. showing the use of heat and
motion sensors)
Can We
Cooperate?
Thank you
www.damco.com
Air Cargo in a Digital World -
A Data Centric Approach
James Fernandez
EVP, Commercial, Cargo and Logistics
Accelya
Dynamic
Performance
Management
Real-time &
Proactive alerting
Connected Cargo
& Assets
HIGH
META SEARCH BUSINESS
BUSINESS ANALYTICS
RULES ANALYTICS
VARIANCE
LOOK VS BOOK ANCILLARIES
RULES
TOTAL COSTS
COMPETITIVE RATES
TRUE REVENUE Forecast & Forecast &
LOW
Optimize: Auto Optimize: Review
AWB O&D
EVENT/DEMAND DATA LOW REVENUE HIGH
INCENTIVES
CUSTOMER INSIGHTS
PRA
RDBMS
Data Preparation Prepared Area Data Mart
Semantic Layer Publishing Dashboard Tableua Dashboard
Data Source
Cargo
Files Management Layer
Publishing Layer
Ingestion Layer
Published
Data Analyst
Data Source
Loyalty Data Catalog & Data Model Repository Scheduling/
Internal Lineage Auditing
Granular BI Tool
RMS Exploratory Layer Data Source
External
Data Scientists Developers
INGESTION EXPLORATION
Data
Utility
Reliability
Ariaen Zimmerman
Executive Director, Cargo iQ
Miami, 15 November 2017
Different data
Without Airline Forwarder
Cargo iQ Reports Reports
IT System IT System
Different
reports
Identical data
and reports
Reports Reports
SMART DATA
6
Easy and customized access
10
to your performance data in
million comparison tothe Industry
million
annual
annual AUDIT
SGS audits our members on
quality
Unique route map for every shipment with clear milestones and reliable monitoring
SMART DATA
6
82
Easy and customized access
10
to your performance data in
million comparison tothe Industry
million
annual
annual AUDIT
SGS audits our members on
quality
Airport to airport
shipments
members
Door to door
shipments
MASTER OPERATING PLAN
Maps the process to transport
Unique route map for every shipment with clear milestones and reliable monitoring
Remember how we did that in the old days?
NFD >
FOH > LAT LAT > DEP DEP > ARR ARR > RCF
DLV
RCF >
AWR
NFD >
FOH > LAT LAT > DEP DEP > ARR ARR > RCF
DLV
RCF >
AWR
LAT to NFD (Carrier Commitment)
Process Reliability aim: exceed 98%
min 99.66% min 99.66% min. 99.66% min. 99.66% min 99.66%
RCF >
NFD
NFD >
FOH > LAT LAT> DEP DEP > ARR ARR > RCF
DLV
RCF >
AWR
Process Time Analyzed After 225 minutes
99.66% of shipments
have been120.0%
500
450 processed.
450
395 100.0%
400
367
350
80.0%
Data analyzed on a 288 300
lane / station / Shipments
provider/product 250
60.0%
198 195
grouped by time
combination. needed to process. 200
40.0%
121 150
100
69 63 20.0%
28 50
16 9
0 3 2 1 0
0
0.0%
110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270
Series2 Series1 Series2 Series1 Series2 Series1 Series2 Series1 Series2 Series1
99.66%
388 min 99.66%
240 min 99.66%
418 min 99.66%
225 min 99.66%
39 min
RCF >
NFD
NFD >
FOH > LAT LAT > DEP DEP > ARR ARR >RCF
DLV
RCF >
AWR
Predictive Analytics.
Process Time Process Time Process Time Process Time Process Time
500 450 120.0% 500 450 120.0% 500 450 120.0% 500 450 120.0% 500 450 120.0%
450 450 450 450 450
395 100.0% 395 100.0% 395 100.0% 395 100.0% 395 100.0%
400 367 400 367 400 367 400 367 400 367
350 80.0% 350 80.0% 350 80.0% 350 80.0% 350 80.0%
288 288 288 288 288
300 300 300 300 300
250 198 60.0% 250 198 60.0% 250 198 60.0% 250 198 60.0% 250 198 60.0%
195 195 195 195 195
200 200 200 200 200
150 121 40.0% 150 121 40.0% 150 121 40.0% 150 121 40.0% 150 121 40.0%
100 69 63 100 69 63 100 69 63 100 69 63 100 69 63
20.0% 20.0% 20.0% 20.0% 20.0%
50 16 28 50 16 28 50 16 28 50 16 28 50 16 28
0 3 9 2 1 0 0 3 9 2 1 0 0 3 9 2 1 0 0 3 9 2 1 0 0 3 9 2 1 0
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270
Series2 Series1 Series2 Series1 Series2 Series1 Series2 Series1 Series2 Series1
99.66%
300 min 99.66%
360 min 99.66%
500 min 99.66%
200 min 99.66%
60 min
RCF >
NFD
NFD >
FOH > LAT LAT > DEP DEP > ARR ARR >RCF
DLV
RCF >
AWR
Predictive Analytics.
Route A: 80% reliable in 18 hours, 99% in 46 hours Route B: 80% reliable in 17 hours, 99% in 44 hours
Route C: 80% reliable in 16 hours, 99% in 52 hours Route D: 80% reliable in 18 hours, 99% in 43 hours
Route E: 80% reliable in 24 hours, 99% in 50 hours Route F: 80% reliable in 26 hours, 99% in 73 hours
Step 9:
1: 100%
3:
5:
2:
4:
6:
7:
8: 84%
90%
88%
92%
98%
99%
0%
89%reliable
reliable
reliable
reliable
in
in
in
in
36
36
36
36hours,
hours,
hours,0%
99%
99%
100%
inin
in
72hours
in
72
5072
hours
hours
hours
24h: 80%
72h: 99%
Contact Information
Jean-Christophe Rossand
Product Manager, Cargo IS
IATA
19:45 – 23:00
Plenary Session Room