Air Cargo Community Frankfurt e.v. Competence Team - PHARMA. Presentation of Results Optimization of the Ordering Process and the Information Flow

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1 Air Cargo Community Frankfurt e.v. Competence Team - PHARMA Presentation of Results Optimization of the Ordering Process and the Information Flow April 24th, 2017

Optimization of the Ordering Process Objective / Value: For an increase in reliability of the whole transport chain the ordering process needs so be optimized by implementing a fast and full flow of

2 Optimization of the Ordering Process Objective / Value: For an increase in reliability of the whole transport chain the ordering process needs so be optimized by implementing a fast and full flow of information company-wide. Scope: Looking at information flow from forwarder to airline Audit of processing and transfer of information Measurement of temporal variance of information flow Approach: 1. Risk identification (state-analysis along the outbound process) 2. Risk analysis 3. Risk assessment 4. Risk monitoring See schedule Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 1

3 Schedule Risk identification of expert interviews/ on-site visits CW Risk assessment CW Handing in master s thesis Publishing master s thesis CW CW 06 CW Kick-Off Analysis of risks and weaknesses Workshop Discuss results Define requirements Develop target concept Establish possible solutions Presentation of results Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 2

4 Agenda 1 // Introduction optimization of information flow 2 // Risk identification & analysis of weak points 3 // Risk assessment 4 // Possible solutions & results 5 // Round of discussion Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 3

5 Introduction Optimization of Information Flow

Optimization of Information Reduce flow of information Direct communication Avoid unnecessary communication Improve informational content (quality and completeness) Remedy information leak Coordinate

6 Optimization of Information Reduce flow of information Direct communication Avoid unnecessary communication Improve informational content (quality and completeness) Remedy information leak Coordinate timing of information (time, place und availability) Ensure information documentation Information as a service (track & trace) Create information security Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 4

7 Risk Identification Presentation of Results

8 Presentation of Results: Transport Chain (1/2) Forwarder Freight handler 2 D 2 4 Transport Chain 1 B A 8 Shipper C Sub-contractor 6 3 E 4 Freight handler 1 D F Ground handling 5 D services E Airline Legend A B Transport order + confirmation shipper -> Forwarder TA + B Forwarder -> Airline C TA + B Forwarder -> Sub-contractor D Transport order airline -> Freight handler E Transport order KTT freight handler, airline -> Ground handling services F Transport order general cargo freight handler -> Ground handling services No determined pharma transport as product available No temperature information in transport order Inconsistent temperature information in transport order High range of customers No transport confirmation (prior/afterwards) Missing communication between trucker and freight handler Identified source of error Missing flow of information Physical handling-process (outbound downstream) Process participants 7 8 No transfer of product characteristics (handling-codes) Missing order details for shipper (Services FRA, infrastructure) Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm and Dominik Mißkampf Slide 5

9 Presentation of Results: Transport Chain (2/2) Transport Chain 2 A 2 8 Shipper C Forwarder Sub-contractor 6 3 E Freight handler B F Ground handling services E Airline 5 D G Legend A Transport order + confirmation shipper -> Forwarder B TA + B Forwarder -> Airline C TA + B Forwarder -> Sub-contractor D Transport order airline -> Freight handler E Transport order KTT freight handler, F Airline -> Ground handling services Transport order general cargo freight handler -> Ground handling services G Transport information airline -> Shipper No determined pharma-transport as product available No temperature information in transport order Inconsistent temperature information in transport order High range of customers No transport confirmation (prior/afterwards) Missing communication between trucker and freight handlers Identified source of error Missing flow of information Physical handling-process (outbound downstream) Process participants 7 8 No transfer of product characteristics (handling-codes) Missing order details for shipper (Services FRA, infrastructure) Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm and Dominik Mißkampf Slide 6

10 Presentation of Results: Gantt-Diagram *graphical representation is not true to scale; legend on following slide Order min. 24h prior STD Shipper Forwarder Sub-contractor A B C Bestellung mind. 24h vor Anlieferung Preparation for transport STD -14h Acceptance of goods STD -13h Transport FRA STD -12h 11 Freight handler 1 Acceptance of goods STD -9h Storage ÜF STD -3h Freight handler 2 D Pre-conditioning, loading, consolidation STD -8h 9 E F B/U STD -4h BVD E STD Loading STD -1,7h Apron area Airline transport STD -2h STD - 24h STD - 13h STD - 9h STD - 2h Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 7 9

11 Presentation of Results Risk Identification Identified weak points 1/3 Risk-No. Risk Process Shipper, Receiver Description Review of transport chain Review of Gantt-Diagram Review general 1 No designated pharmatransport as product bookable Commissioning BVD (KTT) CHA, Airline BVD Pharma information not given in KTT- order 2 No temperature information in transport order Commissioning Forwarder Shipper Forwarder Transport commissioning of pharma without temperature information 3 Inconsistent temperature information in transport order Commissioning CHA Shipper, Forwarder CHA, BVD Various details IATA-label, AWB, box etc.; only information about temperature range 4 High range of customers High range of customers Commissioning BVD (KTT) Commissioning CHA 2 CHA 1, Airline BVD CHA 1, Airline CHA 2 Responsibilities and number of possible customers Responsibilities and number of possible customers Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 8

12 Presentation of results Risk Identification Identified weak points 2/3 Risk-No. Risk Process Shipper, Receiver Description Review of transport chain Review of Gantt-Diagram Review general 5 Feedback Transport confirmation not available Feedback Transport confirmation not available Commissioning BVD Commissioning CHA BVD CHA, Airline CHA Airline No confirmation of receipt (prior) nor a transport confirmation (afterwards) of order (KTT, ULD) No confirmation of receipt nor a transport confirmation of order 6 Along with physical handling there is no exchange of information Delivery freight FRA Sub-cont. CHA Information regarding delivery not until on-site registration and ramp assignment 7 No transfer of product information (handlingcodes) Handing over mixed pallets CHA BVD Pharma information are not passed on with passive consignments 8 Missing transparency about products, services and infrastructure FRA General transport process via FRA Forwarder Shipper Marked and offer pharma-transport as product (build awareness) Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 9

13 Presentation of Results Risk Identification Identified weak points 3/3 Risk-No. Risk Process Shipper, Receiver Description Review of transport chain Review of Gantt-Diagram Review general 9 Insufficient quality outdated information media Commissioning BVD (KTT) CHA, Airline BVD Assurance commissioning by fax not given 10 Information flows are overlapping each other temporally Commissioning Forwarder, Subcont., CHA, BVD, Airline All parties Spontaneity and short-term nature of order (minimum lead time) 11 No defined ordering timeframes Commissioning BVD (KTT) CHA, Airline BVD Times of order placement vary widely (short-term, long-term) 12 High number of different information media Commissioning Forwarder, Subcont., CHA, BVD, Airline All parties Wide range of information media (telephone, , handling portal, fax, freight documents, e-booking) 13 Too rough level of detail in track-and-trace-system Traceability consignment in FRA Airline Shipper No transparency on process accountabilities per handling step Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 10

Analysis of Information Flows 1) No exchange of information between freight handler and sub-contractor forwarder 2) Missing backflow of information

14 Analysis of Information Flows 1) No exchange of information between freight handler and sub-contractor forwarder 2) Missing backflow of information (prior/afterwards) 3) Varying customers 4) Wide range of information media Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 11

15 Analysis of transport data Fresenius Kabi IN Transport route FRA - AUH FRA - SGN FRA - CDG FRA - AUH FRA - IST FRA - SGN FRA - IST FRA - IST FRA - IST Temperature recording (Start)* Wed, :04am Fri, :02am Fri, :08am Fri, :02am Thu, :30am Thu, :00am Mon, , 06:08am Fri, :05am Wed, :10am Temperature recording (End: STD) Thu, :30am Mon, :00pm Sat, :11am Sat, :30pm Thu, :40am Sat, :30pm Tue, :00am Sat, :10am Thu, :15am Transport duration within FRA* Result Outbound 37 h Outdoor temperature (maximum temperature) date of departure 27:11 h 24 C 78:58 h 30 C 24:03 h 29 C 33:28 h 37 C 46:10 h 30 C 54:30 h 37 C 25:52 h 35 C 23:05 h 37 C 25:05 h 22 C min. 22 C max. 37 C Booked transport temperature +15 C to +25 C +15 C to +25 C +15 C to +25 C +15 C to +25 C +15 C to +25 C +15 C to +25 C +15 C to +25 C +15 C to +25 C +15 C to +25 C Transport temp. range fulfilled? Number excesses of temperatur e * 1 Maximum/ minimum value Duration beyond temp. range Temperature jump (handing over process) Yes No 1 +52,3 C 5 h 4 BVD No 2 No 3 No 3 +33,8 C +26,4 C +25,7 C +25,8 C +62,5 C +35,7 C +25,2 C +25,5 C 3,5 h 4,5 h 3,5 h 0,4 h 25 h 17,5 h 0,5 h 0,8 h 4 CHA Weak points 5 CHA, BVD 3 BVD No 1 +38,4 C 48 h 5 CHA, BVD No 3 +26,5 C +25,3 C +25,8 C 16 h 2 h 0,5 h No 1 +36,2 C 23 h 5 No 5 Predomina nt No +25,3 C +25,7 C +26,3 C +26,1 C +25,2 C 4 h 0,5 h 1 h 1 h 0,8 h Forwarder, CHA, BVD All parties (Shipper, Forwarder, CHA, BVD, LVG) Forwarder, CHA, LVG Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 12

16 Example: FRA Pharma-Transport Consignment: Consolidation freight with temperature information (+15 C to +25 C) on PMC pallet with thermo blanket Identified weak points 2 No temperature nor pharma information with transport order 7 8 Storage 12:52pm FRA: Delivery 12:45pm Build up 09:04pm Temperaturecontrolled storage 07:55am Freight information 06:04pm Handing over apron area transport 11:43am Temperature-controlled freight booked and shipped as general cargo Missing order details on transport facilities on shipper s side (no KTT booked) 11 No defined ordering timeframes = no predictability, capacity constraints Collecting apron area 12:00pm Arrival POS 12:09pm Loading 12:38-01:30pm OFB 01:55pm Positioning time outdoor area Outdoor temperature 3 C No temperature control Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 13

17 Analysis of Weak Points Risk Assessment

18 Risk Assessment 1. Identify risks 3. Evaluate risk Risk-No. Risk Extent of damage (rating scale 1-5) Probability of occurrence (rating scale 1-5) Risk category (A-C) How to handle risk 1 No designated pharma transport as product bookable 4: high 4: high A avoid 2 No temperature information in transport order 2,5: low/intermediate 1: very low C accept 3 Inconsistent temperature information in transport order 1: very low 3: intermediate C accept 4 Wide range of customers 1: very low 4: high B control 5 Feedback transport confirmation not available 2: low 5: particularly high B control 6 Along with physical handling there s no exchange of information 2: low 4: high B 7 No transfer of product information (handling-codes) 3: intermediate 3: intermediate B control control 8 Missing transparency on products, services and infrastructure FRA 2: low 3: intermediate B control 9 Insufficient quality outdated information media 2: low 4: high B control Information flows are overlapping each other temporally No defined ordering timeframes 2: low 4: high B control 2: low 2: low C accept 12 High number of different information media 1: very low 5: particularly high B control 13 Too rough level of detail in track-and-trace-system unrateable unrateable - unrateable Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 14

19 sehr niedrig sehr hoch Risk Assessment sehr niedrig sehr hoch Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 15

20 Possible Solutions Result Analysis

21 Evaluation No. R1 Risk characterization No designated pharma transport as product bookable Risk category R4 Wide range of customers B R5 Feedback transport confirmation not available B A Approaches Implementing pharma transport as a process Give a clear definition of accountabilities and responsibilities Implement backflow of information (prior/afterwards) Efficiency class A B B R6 Along with physical handling there is no exchange of information B Encourage communication between forwarder and freight handlers B R7 No transfer of product information (handlingcodes) B Improve EDI-Interfaces and transfer information A R8 Missing transparency about products, services and infrastructure FRA B Improve marketing of pharma-transport B R9 Insufficient quality outdated information media B Replace and standardize information media B R10 Information flows are overlapping each other temporally B Standardize and update information flows B R12 High number of different information media B Implement a standardized information network and platform of communication C Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 16

22 Results & Conclusion Various weak points along the transport chain (comprehensive approach) Complexity because of using a varied communication structure combined with a differentiated and company-specific choice of media Integrate passive-pharma-transports along with the whole supply chain Premium, standard Define accountabilities and different competences Implement backflow of information (prior/afterwards) of quality / KPIs Process optimization Ensure delivery, tracking Harmonize EDI interfaces Basis for possible integration in e.g. FAIR@Link Improve marketing of infrastructure and service pharma FRA (Trade-Off cost-benefit) FRA meets Pharma Support digitalization Supply chain risk management tools Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 17

23 Standardization IATA CEIV KPI Harmonization IATA CEIV Thank You! Transparency of information Community Approach BigData Air Cargo Community Competitiveness Risk management Supply chain integration Communication network

24 Round of Discussion

26 BACK UP

27 Possible Solutions Optimization of the Ordering Process and the Information Flow Moderator: Linda Sahm Slide 10

Case Study: Implementing the CEIV Program and Lessons Learned. Nathan De Valck Cargo account manager Brussels Airport Company

Case Study: Implementing the CEIV Program and Lessons Learned Nathan De Valck Cargo account manager Brussels Airport Company 2 June 2015 Pharma Context Pharma clusters within reach of BRU Source: the European