Road shows in ZRH January 14, 2014 GVA January 21, 2014 BSL January 23, 2014

Transcription

1 Road shows in ZRH January 14, 2014 GVA January 21, 2014 BSL January 23, 2014

2 Contents Objectives & deliverables Project organisation Cost/benefit model Three possible types of solutions Support for companies without e-freight capabilities Major conclusions and next steps 2

3 Objectives & deliverables Conduct a feasibility study for a possible e-freight solution and its future implementation in Switzerland. Design the Swiss-to-be-process based on IATA and C2K processes and establish a gap analyses as source of information for the RFI to interested IT providers (information gathered by individual interviews) Define the requirements (technical, commercial, marketing, etc.) to be met and formulate an RFI to be sent out to interested IT providers (18) Evaluate incoming concepts & solutions (6) and make a pre-selection Collect feedback regarding acceptance of concepts from the Swiss Air Cargo Community Decide on next steps 3

4 Project organisation The following core team has spent over 1000 hours during the past 18 months FREE OF CHARGE: Project leader Stéphane Noll (IATA) Deputy Adolfo Liguori (Swiss WorldCargo) Coordination Peter Somaglia (Cargologic) Members Christine Barden (Swiss WorldCargo) André Kaiser (Panalpina) Manfred Spycher (Swissport). plus several specialists for specific issues Project consultant Project funding Nick Blake (ImagineCargo) 36 % by Swiss FOCA; rest by sponsors & members 4

5 Thank you e-freight sponsors Platin Gold Silver

6 Cost/benefit of In an Air freight Process & Productivity Study mandated by CAAS the benefits for each of the stakeholder groups were calculated regarding processing cost (=savings) productivity (= gains). Improvements through e-freight Total value per year Shipper Freight forwarder Ground Handler Airline Reduction document processing cost Gains in productivity improvements SGD 18.4 Mio. (13.5 Mio CHF) 1.7 Mio. man hours - 38 % - 38 % - 27 % - 29 % - 38 % - 51 % - 50 % - 30 % %-share Savings in SGD Productivity gains for each stakeholder based on actual activities in supply chain calculated on a reduction in the physical documents processing estimated reduction of manhours e.g. doing repeated keystrokes, several entries for the same information and better data accuracy reducing the need to fix discrepancies. 6

7 Cost/benefit of As both markets SIN and CH have the same type of stakeholder groups and air freight paper and e-freight processes it can be assumed that the results of the SIN-study could be translated to Switzerland The air freight market Singapore is roughly double the size of Switzerland, therefore the savings and gains would be 50 % in CH Savings through e-freight processes Total value p/year Shipper Freight forwarder Ground Handler Airline Process cost savings p/y CHF 5-7 Mio - 38 % - 38 % - 27 % - 29 % This amount seems high enough to justify the efforts for e-freight We have adapted the cost-benefit-exel-spreadsheets based on the online tool that SIN provides for individual analysis for Shippers, Ground Handlers, Forwarders and Airlines (check our webpage) 7

8 Project: Three valid and proven solutions are available from various providers. 1) Common electronic trading platform (1x) For sales, distribution, operations Pull environment Used and operated in a banking environment 2) Standard industry community system with platform (2x) For mixed use of paper and EDI messages exchange Push environment Used and operated in several countries 3) Message and data transfer facility without platform (1x) Supporting trade and operations In use for linking forwarders with shippers Additional functions available on platform for smaller players 8

9 a) Common electronic trading platform Type of solution (portal, CCS) Applications (countries, industries) Levers of adoption Major USPs Secured Web based multi-channel platform ensuring connectivity among actors using standardized air cargo messages and paper based documents. Secured Web based application and communication network for banking industry Managing e-trading platform in major European trading city. Based in Luxembourg and Switzerland. The platform allows multimedia connectivity (data entry digital and data output in fax, PDF, , EDI and other format) and multiple participation (no need to be member to receive information). Easy access as intuitive, similar principle than SKYPE, LINKEDIN model. Community platform designed to interact and facilitate sales, administration and operations. Security : Document certification, encryption, digital signature, message acknowledgement, using banking security levels. Web based secured platform using one front end tool that provides a centralized view on all ongoing transactions and archive : Outlook screen layout. Multiple format from paper scan to messaging supporting multiple format (EDI, Fax, , SWIFT, XML file transfer...) Connectivity from web browser to integration with legacy systems. itrade Portal managing business Sales &Operational transactions between participants. 9

10 a) Common electronic trading platform Organisation in Switzerland Financing Cost structure Implementation plan Swiss based company with data hosted and archived in Switzerland. Hardware shared with Trafec multibank platform Platform exist for other industry but investment needed for Air Cargo customization module. 50% investment by provider. 30 % funding from FOCA, 8% SGS,+ 3 potential banks. 12% missing Monthly membership fee (max CHF 200 / company) to cover hosting and operational costs (basic services, data hosting and hotline service). Additional fee for enhanced features specific to actor type (auditing, reporting, etc..). Business Requirements : 6 months Development : 4-5 months Additional remarks The platform will enable to connect the entire community and offer more than message transaction. It will facilitate access and raise security level in trade. The platform intend to access international markets. 10

11 b) Existing standard industry community platform Type of solution (portal, CCS) Solution 1 Solution 2 Consists of a e-commerce community portal, message switch and SaaS based solution for forwarders with no automation capabilities Offers a multimodal portal and an XML interface to other systems Applications (countries, industries) Levers of adoption Live in UAE, pilots ongoing in 15 countries. Modules designed for airfreight industry (Shipper, consignee, forwarder, export & import terminal ops, airlines sales & ops) - Subscription based pay-as-you-go pricing - Free trial periods Live in India, pilots in 11 countries in Far and Middle East. Applied multimodal (Shipper, forwarder, airport operator, customs broker, chamber of commerce, GHA, Airline, customs Plan to interface to existing Swiss solutions e.g. Spedlogswiss platform - Value added services to be offered - CH &EU regulation compliance planned Major USPs 11 - Modular approach with online platform for all airfreight stakeholders - Credit management - Expedia style availability & pricing screen - Real-time visibility, reporting, e-document sharing and stock control - Airline rating solution and 24x7 product distribution capabilities - Neutral Entity: IT provider with no association to an airline, GHA, airport - Been there done that: successful history of delivering platforms globally - Off-the-shelf cargo community solution for e-freight with EDI platform - Experience with international industry associations / government bodies

12 b) Existing standard industry community platform Solution 1 Solution 2 Organisation in Switzerland Financing Hosted in Dubai. Solution (as-is) to be promoted and distributed via third party marketing & sales organisation in CH (to be built up). Provider recommends implementation of the solution as-is Additional requirements to be supported by a business case and is subject to adoption and critical mass of subscribers Hosted in India. A team in CH will take care of requirements documentation and a team in India will take care of development and testing. Local distribution organisation in CH. Partial FOCA funding Equity participation by interested Swiss organization in the project Internal roadmap funding of provider Cost structure Both solutions propose: - Registration fees - Annual membership fees (subscription) resp. fees per AWB - Value added services are charged separately Implementation plan As-is implementation: 6 months, full requirements: apx. 2 years Compliance of solution about 75%, expected timeline: apx. 1 year Additional remarks 12 Solution as-is implementation recommended by provider Provider expects that IGAC takes minority stake

13 c) Message and data transfer facility Type of solution (portal, CCS) Applications (countries, industries) Levers of adoption Major USPs 1) Middleware connecting existing participant systems using defined message formats 2) Web portal allowing manual data entry and transmission via message format Switzerland, Germany, United Kingdom Logistics, distribution, manufacturing, retail, energy Strong market actor whose pain points are solved will encourage others to join the solution Starting with a simple solution offering the most often used functionality for quick ROI Easy connection to the solution low barrier for participation Powerful EDI/EAI engine with high performance and throughput Supports a wide variety of business data formats and protocols Tracking, proactive alerts & dashboards available Robust software with > 400 previous installations provider has 15 years of experience as an integration specialist Combination of web platform and backend data exchange engine Similar solution already successfully implemented for the Swiss market (Spedlogswiss) 13

14 c) Message and data transfer facility Organisation in Switzerland Financing Cost structure Solution would be managed from Germany and hosted at the provider s Frankfurt facility Solution already exists Transactional basis with guideline price per transaction depending on volume Registration fee per participant company for setup and administration Annual fee per participant company Implementation plan Additional remarks Collection of requirements by DE helpdesk organisation Additional requirements that can become standards would be incorporated into normal release schedule (3 releases per year) Customer-specific needs would be developed on a time & materials basis Three months from initial solution design workshop to go-live Provider believes that they can offer a fast but flexible integration of existing systems with web portal functionality where required. 14

15 Project: Three valid and proven solutions are available from various providers. 1) Common electronic trading platform (1x) 2) Standard industry community system with platform (2x) 3) Message and data transfer facility without platform (1x) 15

16 Support for e-awb if no electronic inhouse solution exists a sample solution for AWB / HAWB data capture: WIN (Worldwide Information Network) - a subsidiary of WCA (World Cargo alliance) The product is a cloud-based platform for SME forwarders to exchange data with each other and with air and sea carriers. It offers connectivity for FWB and FHL transactions in exchange for FNA/FMA/FSUs. WIN signs the multilateral EDI agreement and activation letters on behalf of the agents. Technology: Web-service based API Target group: Forwarders not yet connected to EDI-providers to capture and transmit electronic data to airlines Sign up for 60 days free trial: 16

17 Support for e-awb if no electronic inhouse solution exists a sample solution for AWB / HAWB data capture: Check Carrier Flight Schedules Perform Electronic Bookings (Single, Routine, Multiple, Spreadsheet bookings) Receive Shipment Status Updates Electronically Manage Multiple Allotment Bookings Manage Air Waybill Stock 17

18 Support for e-awb if no electronic inhouse solution exists Usage of airline s specific AWB / HAWB data capture (generally free of charge): Several airlines have set up an e-awb portal : : : Some sample carriers Air Canada Cargo British Airways WorldCargo Emirates SkyCargo Lufthansa Cargo Qantas Freight Links to web pages via CPS (MAWB capture only): %20Business%20Tools%20-%20AWB%20Data%20Capture.htm enuid=web Swiss WorldCargo (available in Q2 2014) 18

19 Major conclusions The environment for e-freight implementation has improved (MeAWB, e- CSD, XML message standards, security requirements, etc.) and a real break-through can be expected for 2014/15 The Air Cargo Community in Switzerland is open for implementation but only with clear improvement potentials (quality, processes, cost, time, etc.) Project e-freight@switzerland has identified several valid and existing solutions for fast implementation and has prepared the ground for improvements with many stakeholders The ground handlers are ready and prepared to provide special acceptance processes for e-freight shipments The market has to decide now - how and when to continue 19

20 Key questions for next steps Do you believe in the advantages of e-freight and is your company ready to adopt the processes and systems within the next 1-2 years? yes/ no 20

21 Key questions for next steps Are you as forwarder / airline / handling agent or as shipper via your forwarder capable of sending electronic messages out of your system (FWBs / FHLs) in order to be able to support the AEI information and e-freight? yes/ no 21

22 Key questions for next steps Have you or your HQ signed the Multilateral e-awb / EDI agreement? yes/ no 22

23 Key questions for next steps has prepared 3 solutions which one could you imagine to use best in future? o A new trading and info exchange community platform/ portal offering added value services instead of simple message transfers (solution 1)? o One of the existing standard industry community platforms already running in several countries (solution 2)? o Message & date transfer facility mainly facilitating message exchanges between players (solution 3)? o We need no solution as we are fully e-freight-capable! yes yes yes yes 23

24 Key questions for next steps Are you satisfied with the information you received today and the concrete implementation steps planned for 2014? yes/ no 24

25 E-info and e-tools (as of ) e-freight information and e-tools on Presentations of today Cost/benefit EXEL spreadsheets (SIN model) Swiss-to-be-process and gap analyses RFI sent to interested IT service providers Decision on further steps by Project Group by end of March 2014: Eventual selection of IT provider Planning of implementation steps Alternatively postpone decision by 6 12 months 25

26 Thank you for your interest and support