Special Cargo AutoCheck Workshop. 14th March 2016
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1 Special Cargo AutoCheck Workshop 14th March 2016
2 Special Cargo AutoCheck WCS 14 March 2016 David Wall & Paul Horner IATA Guest Speaker James Wyatt - DHL IATA Confidential
3 IATA Competition Law Compliance Follow the prepared agenda. Do not discuss: Pricing, including fares, service charges, commissions, etc. Bids on contracts or allocation of customers Geographic/Product market allocations and marketing plans, including expanding or withdrawing from markets Group boycotts Your commercial relations with agents, airlines or other third parties Any discussion aimed at influencing the independent business decisions of your competitors You will be asked to leave the meeting, and the meeting may be terminated, if the above-mentioned discussions occur. 3
4 Agenda Agenda Special Cargo AutoCheck Vision Why is this being considered? Thinking behind Special Cargo AutoCheck. Reality What is Special Cargo AutoCheck? Why is it needed? - Guest Speaker James Wyatt: DHL. The value of data automation, and the trend for greater dynamic content integration. Pain Points What are the pain points identified. How would a solution seek to address these? Learn about the results of global research conducted across the supply chain. Into action Next Steps Up close: bringing Special Cargo AutoCheck to life a demonstration. Can I help shape it? How can I be a part of it? What is due to happen next and when? Where can I get more information? IATA Confidential 4
5 Goal of the Meeting 1) Inform you of plans regarding application of standards. IATA Product Advisory Groups Independently validated research 2) Address industry pain points, gaps and themes. The value of data automation the trend for content integration. Themes, Pain points, Inputs. 3) How would special cargo autocheck resolve pain points? Next Steps. How can you be a part of this? IATA Confidential 5
6 Vision Background there are challenges (pain) Pain Points Seek a Solution IATA Cargo Standards IATA Confidential 6
7 Vision Core Activities in supply chain Shipper Forwarder (origin) Airline 1 / GHA 1 Airline 2 / GHA 2 Forwarder (destination) Consignee - Pack - Label - Document - Prepare SD - Receive. - Check. - Accept. Generate AWB - Occasionally generate SD for shipper Export Customs - Receive. - Check/ Validate - Accept. - Generate NOTOC. - Load. - Hold docs. Import Customs - Receive. - Check/ Validate - Accept. - Generate NOTOC. - Load. - Hold docs. - Receive data. - Action: - Handling req s; quarantine, certain rocedures. Common Activities: Validation, Checklists, Acceptance, NOTOC Generation. IATA Confidential 7
8 Reality What is Special Cargo AutoCheck? Special Cargo AutoCheck proposes to take standards that IATA currently distribute in static print format and electronic publications through the dissemination of rules, best practices, guidance; convert into an automated compliance solution that aims to help stakeholders in the supply chain begin to optimise certain functions related to the booking, preparation, and acceptance of special cargoes to deliver time, accuracy, cost and efficiency savings. IATA Confidential 8
9 Reality Why is data automation needed? Guest Speaker: James Wyatt Senior Director Global Global Restricted Commodities DHL Express Global Head Office IATA Confidential 9
10 Agenda Introduction The DHL Intercontinental Network The World of Dangerous Goods at DHL What are our challenges? Dangerous Goods Acceptance Where does acceptance go wrong? Facts & Figures Examples of failed checks Special Cargo Auto Check System - Advantages & Disadvantages Special Cargo Auto Check System - System requirements IATA World Cargo Symposium Berlin 14th March
11 DHL Express - Global Network Management - Organizational Chart SVP Global Network Management (GNM) Dr. Joerg Andriof Bonn VP Network Control Global (NCG) Geert Schoonejans Brussels Senior Director Global Restricted Commodities James Wyatt Brussels RCG EU RCG AM RCG AP RCG MENA RCG SSA IATA World Cargo Symposium Berlin 14th March
12 Strong Intercontinental, Regional & Feeder Air Operation 35 INTERCONT AIRCRAFT 142 REGIONAL AIRCRAFT 90 FEEDER AIRCRAFT INTERCONT AIRCRAFT Youngest in the industry! +20 aged aircraft replaced Global access to small markets IATA World Cargo Symposium Berlin 14th March
13 Leading Express Intercontinental Network IC Fleet 35 dedicated Intercontinental Aircraft (B767F/747F/B777F) 5 partner airlines 380 flights per week IATA World Cargo Symposium Berlin 14th March
14 Global Restricted Commodities Group Strategy Policy & Procedures ICAO & IATA Global Training Global Audit Programs & Compliance Global IT Applications & Reporting Global Technical & Business Support Working groups Global Express Association (GEA) IATA World Cargo Symposium Berlin 14th March
15 DHL Products for DG Multiple options within the DHL Product Portfolio - Express Time Definite - Day Definite International Road Only - Air Capacity Sales - DHL Global Forwarding - Supply Chain Solutions Reduced service for DHL Express DHL Express on Commercial Airlines (CAL) - ICE, UN3373, UN3245, EQ, Libat Sec.II Air Capacity Sales - Potential for all classes dependant upon location handled. Pre-Approvals shipment level - 3 rd party handling IATA World Cargo Symposium Berlin 14th March
16 What are our challenges? IATA World Cargo Symposium Berlin 14th March
17 Dangerous Goods Acceptance Process Each booking requires customer account or individual shipment approval Each full DG shipment undergoes the 4 eyes principle 2 acceptance checks by two IATA Category 6 trained personnel Every DG shipment receives the final acceptance check at the last point before air uplift Once shipment gets final acceptance check, it is visible to all other transit and destination locations via the Accepted sticker 100% manual process for shipment acceptance 100% manual data input for NOTOC creation at acceptance point IATA World Cargo Symposium Berlin 14th March
18 Examples of Failed Checks INCOMPATIBLE CLASSES ALL PACKED IN ONE RLM in PI970 Or RLM in PI965 IB?? IATA World Cargo Symposium Berlin 14th March
19 Examples of Failed Checks IATA World Cargo Symposium Berlin 14th March
20 Examples of Failed Checks UN1987 AND UN ALL PACKED IN ONE EXTRA HAZARD LABEL? IATA World Cargo Symposium Berlin 14th March
21 Special Cargo Auto Check for an Operator Advantages Dis-Advantages Live Regulations Acceptance Checker Complacency Reduction of Operational Resources Handling Process and Training Reviews Reduction of Dangerous Goods Acceptance Errors Extra system to roll out and manage Reduction in static documentation Frequent updates and version control Capability to receive data directly from shipper Higher level of engagement IATA World Cargo Symposium Berlin 14th March
22 System Requirements Portable Ability to move the system with the acceptance checker e.g. ipad. Desktop solution only is not sufficient Stability Must be available 24/7 Reliability High system performance Possibility to work on- and off-line Updates Addendums / updates of the regulations must be incorporated in a defined time frame with quality checks Signatory name based Global languages possible extension of the standard IATA languages to ensure global reach and understanding Possibility of receiving and transmitting EDI/EDP messages to reduce repeated data input Special Cargo Auto Check NOTOC SYSTEMS IATA World Cargo Symposium Berlin 14th March
23 IATA World Cargo Symposium Berlin 14th March 2016
24 Agenda Agenda Special Cargo AutoCheck Vision Why is this being considered? The thinking behind Special Cargo AutoCheck. Reality What is Special Cargo AutoCheck? Why is it needed? - Guest Speaker James Wyatt: DHL. The value of data automation, and the trend for greater dynamic content integration. Pain Points What are the pain points identified. How would a solution seek to address these? Learn about the results of global research conducted across the supply chain. Into action Next Steps Up close: bringing Special Cargo AutoCheck to life a real world example. Can I help shape it? How can I be a part of it? What is due to happen next and when? Where can I get more information? IATA Confidential 24
25 Pain Points 1 Built on industry s experience(s) IATA PAG s Product & Publishing team with industry + IATA Prod User Survey August/September 2015 Industry Board Presentations + Qualitative Independent Validation Research Interviews Ind. Validation Flow 1 Survey Monkey + Ind. Validation Flow 2 Online Focus Group 2 IATA Confidential 25
26 Pain Points Board presentations = DG phase 1 5 Hypotheses where is the pain? 1. Focus on automation of goods acceptance upon arrival at the airport warehouse of origin? 2. Advanced validation document checks and check lists? 3. Application of state and operator variations to a commodity/consignment? 4. Content integration/population into a NOTOC document? 5. Sending and/or receiving XML messages (or other) communications? IATA Confidential 26
27 Pain Points PAG s: pain points identified 1 Communication systems and document integration: Planning shipment info supplied with shipment, not in advance (resource & facility allocation challenges) Performance risk of incidence increase not having experts on site if not planned correctly Efficiency systems not able to deliver efficiency savings Performance slower handling & acceptance procedures with out data automation / validation Safety greater risk of missing compliance through margin for error with manual processes Automation - Inputs not electronic today meaning less demand for automation. IMPACT: Fines Delays Efficiency issues Client relationship issues Injury Damages Loss of license Jail terms Competition = COST. IATA Confidential 27
28 Pain Points Painpoints: independently validated (1-2-1) 2 Unreliable nor current state and operator variations Misinterpretation of rules and regulations Lack of training throughout the supply chain Standard roles and responsibilities in supply chain 90% 80% 70% 65% - Shippers - Forwarders - Ground Handlers - Airlines - North America, Europe, Asia. Standard checklists are not used globally 60% Issue of customer non-compliance (hidden DG s) 40% IATA Confidential 28
29 Pain Points Painpoints: independently validated (FG) 2 Manual validation and checks v time taken MAIN pain. The lack of knowledge with shippers. Airline acceptance v Regulations. Keeping up with the latest regulations. Special Cargo involves significant trust. Lithium Batteries. - Shippers - Forwarders - Ground Handlers - Airlines - USA, Europe - Asia, Africa. IATA Confidential 29
30 30
31 31 16 March 2016
32 32 X X
33 Incorrect version IATA Confidential 33
34 34
35 Into Action IATA Confidential 35
36 Into Action Value Proposition phases. Consider integrating the DGR Data elist into the system. Take static standards, and convert them into a single compliance solution, that helps automate the preparation, booking and acceptance of special cargo. Extend the content (system output) to populate and create the NOTOC for GHA s and Airlines. Use messages to electronically connect the chain, facilitating the downstream flow of the content of a Shippers Declarations. Work with industry to establish a standard and means to transmit eshippers DG declaration s. Future Steps IATA Confidential 36
37 Into Action AutoCheck Feature set Target Audience 1) Airlines & Integrators accepting & loading cargo 2) Ground Handling Agents & Forwarders 3) Shippers sending cargo Core: A real-time database of DG rules (initially) and regulations authored and maintained by IATA Subject Matter Experts and the ICAO Technical Instructions. Extend to other special cargo later. A pre-check service for airlines, forwarders, ground handlers and shippers to check shipment compliance requirements in real-time against rules and regulations centrally. Input: Manual entry; scanner software & smartphones; auto-message population (not in 1 st Phase). DGR Data DGR Rules Connectivity: adoption relies on connectivity. To Cargo Booking System (CBS) and Departure Control Systems (DCS) at a minimum. Use of messages to connect multiple eco-systems? IATA Confidential 37
38 Into Action Timatic, TACT, Special Cargo IATA Confidential 38
39 Next Steps Next Steps - how can I help? Can I help shape it? How can I be a part of it? - SCAC Group Where can I get more information? David Wall Product Manager: walld@iata.org Thomas Klein Product Lead: kleint@iata.org Paul Horner Subject Matter Expert: hornerp@iata.org IATA Confidential 39
40 Thank You IATA Confidential 40
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