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Unlock Value Potential from your Cargo Management Operations INTELLIGENT, INTEGRATED, INNOVATIVE

NIIT Technologies White Paper

CONTENTS Overview

3

Unlocking the potential of cargo management systems

3

Characteristics of A Smart Cargo Management System

4

Some Examples Where Intelligent Cargo Management Systems Have Made A Difference

5

Smarter Cargo Handling Systems Promise New Era of Efficiency

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TRANSPORTATION TRAVEL CARGO

PACKAGING

TOURTRANSPORTATION TRAVEL GUIDE TRANSPORTATIONTRAVEL

CARGO CARGO LOGISTICS TRAVEL

JOURNEY GUIDE TRANSPORTATION CARGO JOURNEY

CARGO

GUIDE

LOGISTICS

TRAVEL

Overview

through efficient handling of these precious & time sensitive

The increase in air cargo traffic creates unique challenges for the

commodities could result in a major business loss for the shippers

management of airlines and cargo handling companies. For

& freight forwarders.

example, recent press report by the International Air Transport Association (IATA) states that despite an extremely difficult economic environment in 2013, there was a clear improvement trend. With freight load factors in 2013 at 45.3% and 1.4% expansion of global freight tonnes-kilometers (FTKs), IATA stated that airlines were continuing to push and drive efficiencies to a different level. (Source: IATA 1). More importantly, IATA has also raised the cargo traffic growth forecast. With higher world GDP growth forecast and rising business confidence, IATA is more optimistic for air cargo than before. In Jan-2014, global freight tonnes-kilometers had recovered to the previous peak of early 2010. IATA has increased its cargo traffic growth forecast for 2014 from 2.1% to 4.0%,

As per IATA’s Director General Cargo & CEO, Tony Tyler “The dynamics in which the air cargo industry operates are changing, but air cargo’s basic value proposition remains the same. Customers still need speed, quality, reliability, and efficiency. And we need to get better at delivering it through improved technology and modern processes…” In summary, the multi-billion dollar freight transportation industry is a critical element in the developing network of businesses around the world. As supply chains grow in complexity and demand for time-definite service increases, the efficient delivery & handling of freight through efficient processes & supported by technology becomes of paramount importance.

although it says that cargo growth could be closer to 8%. IATA has also raised its cargo yield growth forecast from -2.1% to -1.5%. Overall, its cargo revenue forecast for 2014 is 5% higher than before. In growth terms, it forecasts total revenues to be 5.2% higher in 2014 than in 2013. (Source: Centreforaviation.com 2)

Unlocking the Potential of Cargo Management Systems The key to improving freight handling time lies in simplifying ground handling processes. Smart cargo management systems can enable

As volumes rise, it becomes extremely important for airlines to

it. Smart cargo management systems not only provide essential

raise their level of efficiencies. Typically, ground handling systems

cargo handling & shipment tracking information on a near real-time

consume a significant amount of time and cost in an air cargo

basis, but also significantly facilitate speedier cargo handling, which

operation. With a rapid increase in air cargo volumes, involvement

is the key to improved revenue realization.

of various stakeholders, multiple flights, different warehouses and different locations, cargo handling has become extremely complex

Some significant benefits enabled by smart cargo management

and unpredictable. Additionally, disparate or lack of cargo

systems include:

operation terminal systems can lead to process redundancies, lack of visibility and control over processes.

Improved Serviceability By seamlessly integrating with all connected functions, a cargo

Type of the cargo causes additional challenges specifically in the

operations system can reduce warehouse holding period, increase

case of perishable goods and goods having specific handling

throughput, and prevent damage due to mishandling. In short, a

requirements such as - pharmaceutical-related goods may require

cargo handling solution can enable better monitoring and greater

cold or refrigerated environments; new smartphone launches have

control over operations.

time-sensitive requirements. These challenges if not addressed

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A smart cargo handling system can provide greater visibility and

Stability: It is crucial that these systems are always available, as

control over the daily operations of a terminal by managing

any downtime can severely impact the operations that could lead

documentation and integrating with the material handling system.

to significant losses in revenues.

Similarly, smart cargo management systems can provide visibility to enable higher space utilization. It leads to increased flexibility to

User Friendliness: The user interface must allow fast navigation

attract more airlines and allows Cargo Handling companies the

and must be designed to enable multi-tasking. It will allow

ability to offer superior services and increase speed to market of

information seekers to access quickly the right information to

new product offerings. It can significantly improve customer service

complete a transaction quickly. Providing online help at crucial

by minimizing processing time and effort by 20% – 30 %.

stages helps in quickly access important functions through short keys. Systems must also have the option of multi-lingual support.

Reduced Ground Handling Time for Cargo Smart cargo handling systems can enable airlines to reduce

Within a cargo terminal, these systems can be accessed via handhelds. Equipped with handhelds, workers can scan goods quickly and feed information automatically into corporate systems.

connection time for trans-shipments. Transparent and efficient communication of cargo load leads to lesser delays and improved

Accessibility: The system must be highly accessible via

aircraft utilization. As smart systems enable compliance and

web-based functions with robust security. The access to the

adherence to the rules of customs and excise, ground handling

application & the data should be well designed to suit the

time can be reduced. The electronic data interface between

requirements of the agent, airlines and other government bodies so

agents, customs, ground handler and airlines at each touch point

that the information & content presented is precise and meets their

enables transparency and communication that leads to a reduction

operational requirements.

in handling time. In some cases, we have seen improvements of

Configurability

ground handling time by close to 40 percent.

Real-Time Tracking of Cargo in the Terminal Automation enables agents to have real time and speedy access to cargo information. Smart cargo management systems can also allow agents and freight forwarders to book truck docks and alert the terminal with advance information before bringing the cargo to the terminal. Hence, ground handlers can make informed decisions with more accurate data.

Characteristics of a Smart Cargo Management System The cargo operations system should seamlessly integrate with all connected functions in order to reduce warehouse holding period, increase throughput, and prevent damage due to mishandling. Any cargo handling solution should, therefore, enable better monitoring

Stability

User Friendliness

Accessibility

and greater control over operations. Some other essential characteristics are: Configurability: As cargo management processes are unique to different firms, they have to be easily configurable. It is crucial and would significantly impact the agility of the company. A highly parameterized

and

configurable

system

ensures

greater

operational scalability and expansion.

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Some examples where intelligent cargo management systems have made a difference

Warehouse Planning System A unique solution to assist the Cargo Terminal Operator to plan, monitor & manage their operations efficiently & ensure SLA Compliance by enabling the use of the capacity of the facility

An example of a smart cargo system is COSYS, co-developed by

optimally. Planning is the process of allocating tasks (work to be

NIIT Technologies for SATS, a complete cargo handling platform

done) using resources (used for performing the task) with

that automates and simplifies the process. Short for Cargo

constraints on the possible allocation of resources for a task.

Operations System – Intelligent Solutions, COSYS is a proven

Additionally, tasks have restrictions on assignment on the timeline,

warehouse management system specifically designed for cargo

with an Earliest Start Time(EST) and Latest Completion Time (LCT).

ground handling agents and cargo carriers.

This solution has a unique UI, which allows the Duty Managers & Supervisors to have a graphical representation of the data. It has an

The system can handle the following functions:

interactive ‘What-if Analysis’ feature that allows the user intervention

• Export operations

and ensure SLA compliance during delays and weather inclemency.

• Import operations • Transhipment Handling for Hub Operations

Benefits:

• AWB Management

• Cargo Planning based on Heuristic-based algorithm

• ULD Management

• Functionality for – ‘What if Analysis’

• Track and Trace Functionality

• Use of Historical Information in the absence of Real Time inputs

• Flight Management

• Assurance of SLA Compliance

• Warehouse Management • Billing

COSYS is now a fully functional at 5 Cargo Terminals at 4 of the

• Incidence Management

biggest airports in the world. Some of the key installations of

• Report Generation (Cargo Tonnage, AWB, Staff productivity,

COSYS are as follows:

Mishandling etc.) The system has some innovative features such as truck control system and planning module.

Truck Control System Truck Control System is first of the kind solution that uses a combination of RF device signals & fuzzy logic to give the operators in the terminal control center a real-time view of every truck in the terminal. Benefits: • Real-time Truck Park & Truck Dock Allocation System • Unique GUI for Tracking of Truck movements through RF device tracking at vantage points across terminal using flash.

SATS– Singapore With more than 50 years of experience in the air cargo business, SATS is one of the busiest cargo and mail handlers in the world. It provides airfreight, mail, express and courier services to more than 300 international and local freight forwarders in Singapore. SATS is the leading provider of gateway services and food solutions in the Asian region. Consistently rated the best Air Cargo Terminal Operator in Asia, SATS is one of the most modern in the world combining the latest computer technology with a fully mechanized material handling system. It can handle 2 million tons of cargo per year. The cargo and mail handling services are ISO-9002 certified.

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The first ever development and implementation of COSYS was done

COSYS has helped PT JAS and its customers with the benefits of

for SATS in Singapore in the year 2000. Subsequently the system

faster cargo turnaround improved operational efficiency leading to

has undergone upgrades technologically & functionally & presently

a reduction in costs, reduced cargo mishandling, faster and

supports not only SATS cargo operations in Singapore, but also the

accurate information exchange and enhanced customer service.

SATS Joint ventures in Beijing, Taiwan, Indonesia, India & Vietnam. NIIT Technologies has a strategic partnership with Singapore Airport Terminal Services (SATS), to market jointly and implement COSYS Intelligent Solutions to help air cargo ground handling agents improve their cargo handling capabilities.

Smarter Cargo Handling Systems Promise New Era of Efficiency As one can observe, the Smart Cargo Handling System enhances service capabilities and simplifies the cargo handling process, and

Cathay Pacific Cargo Terminal – Hong Kong In 2008, Cathay Pacific Services Ltd (CPSL) aimed at building the most efficient cargo terminal in the region. The terminal planned was more vertically designed to save land and construction costs. NIIT Technologies has designed, configured and enhanced the core COSYS system using open, component-based, n tier architecture, which is highly flexible, scalable and efficient. Truck Control System, Planning, Booking, SLA, Performance and Real-Time Monitoring Transhipment and Integration with the most advanced material handling system has ensured that the terminal meets its program goals of increased efficiency. With a handling capacity of 2.6 million tons per annum, this terminal is specially designed for a ‘Just-in-Time’ operation and

can help firms significantly improve overall customer service. Additionally, the Smart Cargo Handling System handles all cargo ground handling agents and airlines from one front end. It provides EDI Messaging, monitors bottlenecks in workflow and improves service

levels

and

provides

flexibility

to

operate

in

a

multi-warehouse, multi-location environment. In an economy where airports have an enormous requirement to facilitate quickly movement of large volumes of cargo traffic; airline and cargo ground handling firms need to invest in IT systems that enable them to manage operations efficiently. Smarter cargo management systems can facilitate quicker cargo turnaround rate, provide easy integration with a diverse system landscape including partner networks, and most importantly ensure a future-ready infrastructure in terms of scalability and enhancements.

facilitates hub transfer processing, reducing the waiting time between connections. The terminal & the system are designed to offer customer airlines the advantage of extended cut-off times, last-minute cargo acceptance and reduced connecting handling time for trans-shipments due to a strategic mix of just-in-time operations and advanced technology.

Sources: 1. http://www.iata.org/pressroom/pr/pages/2014-02-05-01.aspx 2. http://centreforaviation.com/analysis/world-airline-industry-in-cyclicalupswing---but-in-search-of-usd125-billion-annually-in-financing-158633

PT Jasa Angkasa Semesta Tbk – Indonesia NIIT Technologies has implemented COSYS to support the cargo handling operations at Jakarta, Surabaya, Denpasar and Medan airports in Indonesia for PT JAS. COSYS facilitated better monitoring and enhanced control of the end-to-end cargo handling operations. COSYS for PT JAS was configured & enhanced to interface completely with the local customs thereby improving staff productivity by reducing process redundancies.

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About NIIT Technologies NIIT Technologies is a leading IT solutions organization, servicing customers in North America, Europe, Asia, and Australia. It offers services in Application Development and Maintenance, Enterprise Solutions including Managed Services and Business Process Outsourcing to organizations in the Financial Services, Travel & Transportation, Manufacturing/Distribution, and Government sectors. With employees over 8,000+ professionals, NIIT Technologies follows global standards of software development processes.

Over the years, the Company has forged extremely rewarding relationships with global majors, a testimony to a mutual commitment and its ability to retain marquee clients, drawing repeat business from them. NIIT Technologies has been able to scale its interactions with marquee clients in the BFSI sector, the Travel Transport & Logistics, and Manufacturing & Distribution, into extremely meaningful, multi-year "collaborations.

NIIT Technologies follows global standards of development, which include ISO 9001:2000 Certification, assessment at Level 5 for SEI CMMi version 1.2 and ISO 27001 information security management certification. Our data center operations are assessed at the international ISO 20000 IT management standards.

India NIIT Technologies Ltd. Corporate Heights (Tapasya) Plot No. 5, EFGH, Sector 126 Noida-Greater Noida Expressway Noida – 201301, U.P., India Ph: + 91 120 7119100 Fax: + 91 120 7119150

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