Airfreight. Introduction to Cargo 2000 KUEHNE & NAGEL THE GLOBAL LOGISTICS NETWORK

Transcription

1 Airfreight Introduction to Cargo 2000 THE GLOBAL LOGISTICS NETWORK KUEHNE & NAGEL

2 Cargo 2000, an IATA Interest Group, is radically reshaping the way the airfreight industry operates. Globalisation, technological advances and the increasing pressure on margins are all driving companies in trade and industry to improve processes, not least in their logistics management. The challenge for the industry is to respond to customer expectations for improved levels of service in the reporting and monitoring of air shipments, to lower costs and eliminate inefficiencies. Cargo 2000 brings together many of the world s major airlines, freight forwarders and general handling agents with the goal of implementing a new quality management system for the worldwide air cargo industry. The objective is to introduce processes, backed by quality standards that are measurable and supported by data, thereby improving efficiency. For more information on the present members of Cargo 2000 please consult our portal Based on detailed customer research and with the support of cutting-edge information technology the entire transportation process from shipper to consignee has been re-configured through a Master Operating Plan. The key factor is the creation of a routemap for each individual shipment, which is then monitored and managed throughout its lifecycle. Any deviation from the route-map sets off automatic alerts enabling corrective action to be taken.

3 Cargo 2000 Visibility & Monitoring Planning and Execution Entire Airfreight Chain pickup POD past present future Traditional Tracking & Tracing backward status and history of shipments or packages Cargo 2000 Route Maps backward near real time (customer individual) status and history of orders and inventory and forward forward visibility based on customer or order individual plans The implementation of the Cargo 2000 programme is divided into three stages. A. PHASE 1 Phase 1 concentrated on monitoring the postshipment airport-to-airport forwarding process at a master air waybill level. Once a booking is made, a plan is automatically generated with a series of milestones against which the movement is managed and measured. This enables the system to alert the Cargo 2000 member to any exceptions to the plan, allowing the relevant airline or forwarder to proactively respond to fulfill the customer s order. B. PHASE 2 Phase 2 provides for interactive monitoring of the door-to-door movement at a house air waybill level (shipment level). C. PHASE 3 Phase 3 provides for real-time management of the door-to-door transportation channel at individual piece and SKU level. Cargo 2000 aims to set a new standard for efficiency in the air cargo industry, says Ron Cesana, project director of Cargo Shippers will be pleased to see the continued level of progress because they, more than anyone, want to see us succeed in our objective of implementing a new quality management system.

4 Kuehne & Nagel and Cargo 2000 Setting the pace Kuehne & Nagel is a founding member of the Cargo 2000 programme and was the first logistics company to have its systems certified Phase 2 as of September A global rollout followed and the company was awarded Phase 2 worldwide certification in July Through leveraging its worldwide network of offices and unique technology solutions, Kuehne & Nagel is now the only forwarder to be actively monitoring all carriers (Cargo 2000 certified or not), all trade routes and service providers, thereby enhancing the value of its operations for customers. For the first time, the entire network is under the microscope and we are able to implement improved processes and achieve the level of service expected by the customer based on optimal operational conditions at both shipment origin and destination. This capability will be the basis of our product creation in 2004, says Reinhard Lange, Chief Operations Officer, Kuehne & Nagel International AG. The in-house Cargo 2000 system now allows the creation of door-to-door route maps for around 90,000 trade lanes. In terms of door-toairport, it encompasses 1.8 million routes. This is a significant development for the industry as a whole and for Kuehne & Nagel in particular as the company has traditionally been considered a seafreight forwarder. The successful implementation of Cargo 2000 Phase 2 gives us a leading position in the industry, says Lange.

5 Technology as the enabler A key factor in Cargo 2000 s recognition of Kuehne & Nagel as Phase 2 compliant is the company s globally standardised processing systems platform, which encompasses not only the forwarding application, but also the capability to monitor and view the entire shipment flow. Whilst other members have to rely on the shared technology of external providers, Kuehne & Nagel is able to leverage its substantial capital investment in its own technology, ensuring that the customer benefits from an internal management process that guarantees both flexibility and speed. Kuehne & Nagel has invested a significant amount of capital in its systems development and architecture providing a unique solution of one system supporting one global company, explains Thomas Engel, Chief Information Officer, Kuehne & Nagel International AG. With the additional standards and procedures introduced by Cargo 2000 we can modify the system to accommodate the reporting and monitoring activities across the route map, taking into consideration local market conditions for holidays, hours of operations, customs clearance and release times.

6 Responsive to customer needs Most industry quality programmes concentrate on methodology, whereas Cargo 2000 is focused on improved planning, process control and data integrity all of which are expected by today s customer. Our expectation is that the forwarder engaged in delivering the services is in a position to control the entire process and deliver a reliable service year round. The increased need for time defined services makes the need for precise milestone planning even more important. Director Air Procurement, Philips When we are using airfreight as the transportation means, we are paying a premium to begin with. We look at ways to continually adjust our processes and those of our forwarders to improve overall service quality! Transportation Purchasing Manager, Schneider Electric We are dependent on the interaction between the forwarder, carrier and related parties to make sure our parts get to the field engineers as per expectation. As the logistics group within Mettler Toledo, we have to use those forwarders having the best controlled processes in place. Executive Logistics, Mettler Toledo

7 Cargo 2000 responds to customer requirements. Each and every airfreight shipment moved anywhere within the Kuehne & Nagel network is now subject to the same conditions and standards. Moreover, both origin and destination stations are now obliged not only to comply with these standards, but are also held accountable for delivery. Each consignment is now monitored, not because of the size or importance of the customer, but simply because it is an airfreight shipment. After a massive training programme, terms such as corrective action, preventative action, continuous improvement and key performance indicators are now part of employees daily workplace terminology with proactive door-to-door shipment management recognised as a routine customer service. For more information on Cargo 2000 and Kuehne & Nagel s airfreight services, please contact your local customer service or sales representative or visit our website:

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