Automation and DG What s next? James Wyatt, David Brennan & Nick Carlone Guest Speaker: Trevor Howard Emirates Labelmaster Symposium 2018 Rosemont, IL. Thursday 06 th September 2018
Contents Introduction Core Activities in the Supply Chain Industry View Guest Speaker Emirates Industry Pain Points What is IATA doing to solve this pain? Reminder: The DGD data Present & Future edgd DGD insight & changes DG AutoCheck product demo Q&A 2 Labelmaster Symposium 2018 06 September 2018
Core Activities in the Supply Chain Labelmaster Symposium 2018 06 September 2018
Automating the Dangerous Goods Acceptance Process
Industry Pain Points Communication systems and document integration: Planning shipment info supplied with shipment, not in advance (resource & facility allocation challenges) Performance risk of incident increase with not having experts on site if not planned correctly: shift planning Efficiency systems not able to deliver efficiency savings Performance slower handling & acceptance procedures without data automation / validation Safety greater risk of missing compliance with manual processes Automation Inputs are 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. Labelmaster Symposium 2018 06 September 2018
Pain Point Validation 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 Standard checklists are not used globally Issue of customer non-compliance (hidden DG s) 90% 80% 70% 65% 60% 40% - Shippers - Forwarders - Ground Handlers - Airlines - North America, Europe, Asia. Labelmaster Symposium 2018 06 September 2018
Pain Point Validation Manual validation and checks v time taken MAIN pain. The lack of knowledge with shippers Airline acceptance v Regulations Keeping up to date with the latest regulations Special Cargo involves significant trust Lithium Batteries - Shippers - Forwarders - Ground Handlers - Airlines - North America, Europe, Asia. Labelmaster Symposium 2018 7 September 2018
How do we solve this pain? Removing the margin for error at acceptance with automation Consistent application of the latest regulations Focus on core categories during the acceptance check Shipment image creation to support the physical check Use of the shipment data to facilitate other operational processes Labelmaster Symposium 2018 06 September 2018
What is IATA doing to solve this pain? Automation of the documentation check at acceptance Development of Dangerous Goods AutoCheck Promoting electronic messaging Labelmaster Symposium 2018 06 September 2018
The Dangerous Goods Declaration Current Status Shippers 1 Shippers 2 SD DG Origin-Destination Carriers SD DG Origin Freight Forwarders Export Customs SD DG NO- TOC + SD DG SD DG Import Customs Destination Freight Forwarders & Customs Brokers Flow of Goods Paper documents Estimation of 5% of Shipments are subject to Shippers Declaration for Dangerous Goods Consignees Labelmaster Symposium 2018 06 September 2018
Dangerous Goods Declaration The Future Business Process Shippers 2 Shippers 1 SDDG Origin-Destination Carriers Origin Freight Forwarders Export Customs NO- TOC DG edgd edgd Import Customs Destination Freight Forwarders & Customs Brokers Flow of Information Shipper s Declaration for Dangerous Goods Flow of Goods Consignees Paper Documents Labelmaster Symposium 2018 06 September 2018
From process to data automation Process reengineering 1980 Rationalization of staff and operations Process Automation 1990 Introduction of comprehensive cargo management systems Document Messaging 2000 Development of e- freight, i.e. exchange of freight documents via EDI XML messaging 2010 Fully automated exchange of freight data via XML messaging systems Data centric management 2020 Develop virtual freight data records with open and global APIs Labelmaster Symposium 2018 06 September 2018
Electronic Shipper s Declaration (edgd) The air cargo industry recognized the need for a digital process to manage Dangerous Goods Declaration (DGD) among various stakeholders in the air cargo supply chain Changes incorporated in 2009 in the ICAO Technical Instructions enable and support the use of electronic data for DGD IATA developed a XML standard (XSDG) to support the electronic DGD (e-dgd) but not currently used by the industry Part of the digitalization projects driven by the whole air cargo community
Proof of Concept Inception e-dgd initiative kicked off end of 2016 with the launch of 3 independent data platform projects Labelmaster Symposium 2018 06 September 2018
Roles and Responsibilities Shipper Make data available to the platform Required data available to the freight forwarder Freight Forwarders Add AWB number Decide HAWB/MAWB Decide the mode of transport Add the origin and destination Required data available to the airline data flow Airlines Check the content of data Create the checklist and NOTOC Store and archive the electronic data Print the paper DGD if required (single process) Required data available to the ground handler Ground Handlers Read the e-dgd content Perform the acceptance check Labelmaster Symposium 2018 06 September 2018
Pilots Timeline (as of September 2017) Q4 2017 Q1 Q2 Q3 Q4 2018 Q1 Q2 Q3 Kick off Development Testing Pilots Go Live Development Pilots Go Live Kick off Labelmaster Symposium 2018 06 September 2018
Pilots Trade Lanes (as of September 2017) Paper required No restriction To be clarified Paper required Labelmaster Symposium 2018 06 September 2018
DGD Changes Change from subsidiary risk to subsidiary hazard Add (optional) after airports of departure and destination Delete Title of signatory and Place of signing Revise format to be more consistent and replace dotted lines with solid lines. Enhances performance of OCR Long transitional period until 31 December 2024. Labelmaster Symposium 2018 06 September 2018
Interactive Product Demo Labelmaster Symposium 2018 06 September 2018