1400 ecommerce logistics master - iata.org€¦ · what are the latest trends ? ... airmail volume...

E-commerce Logistics

Welcome and Opening Remarks

Alan BarrieDirector Operations and Technology

IATA Competition Law Compliance

§ Welcome & Opening remarks

Alan BarrieDirector Operations & Technology

E-COMMERCE LOGISTICS“How Air Cargo delivers on Customer demand”

GLOBAL E-COMMERCE

Whoareouronlineshoppers?

Howandwhatdotheyshopfor?

Whatdoshopperswant?

Whatarethelatesttrends?

From:IPCcross-bordere-commerceshoppersurvey2016

FREQUENCY OF ONLINE SHOPPINGDistributiononlineshoppingfrequencybycountry

INCHINA,USA,

GERMANYANDUK

>50%OFONLINESHOPPERS

BUYONLINEATLEAST

ONCEEVERYTWO

Onceevery3monthsOnceaweek Onceevery2weeks Onceamonth Around2-3timesaquarter

DEVICE PREFERENCESSmartphoneusagefore-commerceincreases

SMARTPHONE

PREFERENCEINCREASED

FROM9%IN2015TO

14%IN2016.SMARTPHONES

AREMOSTPOPULAR

AMONGMILLENNIALS–

ANDESPECIALLYINCHINA,

JAPANANDTHEUS.

Sample:24,331(allrespondents)Question:Whichisyourpreferreddevicewhenplacinganorder?

WHAT ARE CONSUMERS BUYING?

Distributionbyproductcategoryofonlineshopping

CLOTHING,FOOTWEAR,

APPARELANDCONSUMER

ELECTRONICS

>50%OFALLONLINESHOPPING

Sample:24,331(allrespondents)

PRODUCT WEIGHT

Distributioncrossborderpurchasesbyweight

1.1kgto2kg

2.1kgto5kg

Morethan5kg

Don’tknow

0.6kgto1kg

Lessthan0.2kg

0.2kgto0.5kg

•Women more likely to purchase parcels

weighing up to 0.5kg (47%, vs. 43% for men)

•Men more likely to make a purchase over

0.5kg (52%, vs. 45% for women)

CROSSBORDER

PURCHASESBELOW

2KILOGRAM

CROSSBORDER

PURCHASESBELOW500

PRODUCT VALUE

€200ormore

Idon’tknow

€100to€199 11%

€75to€99 10%

€50to€74 15%

€25to€49 20%

€10to€24 20%

Lessthan€10 16% • Younger women aged 16-34 were most likely to make a

purchase costing less than €10

• 21% of men made a purchase valued over €100, compared to

15% of women

Question:Pleasespecifytheapproximatecostofthegoodswithinthisparticularpurchase?Sample:24,331(allrespondents)

CROSSBORDER

PURCHASESCOST

BELOW10EUROS

CROSSBORDER

PURCHASESCOST

BELOW25EUROS

Distributioncrossborderpurchasesbyvalue

GLOBAL E-COMMERCE

Whoareouronlineshoppers?

Howandwhatdotheyshopfor?

Whatdoshopperswant?

Whatarethelatesttrends?

From:IPCcross-bordere-commerceshoppersurvey2016

TRACKING IS KEY

‘outfordelivery’eventisthemostvalued

Parcelwillbe

delivered

today,specific

date/time

Parcelisbeing

heldbycustoms

inyourcountry

37%40%

Parcelhasbeen

postedby

foreignseller

13%18%

Parcelhasbeen

delivered

Parcelhas

arrivedin

yourcountry

38% 40%

Parcelhas

leftcountry

oftheseller

Ratherunimportant

Don’tknow

Neutral

Ratherimportant

Veryimportant

86%OFCONSUMERS“OUT

FORDELIVERY”ISTHE

MOSTIMPORTANT

TRACKINGEVENT.

DELIVERY PREFERENCES

Deliverychoiceoptionsrequiredbyonlineshoppers

RECEIVING“DELIVERY

ONANEXACTDAY”IS

IMPORTANTTO

68%OFCONSUMERS.Sample:24,331(allrespondents)

WITHINAGREEDTIME

RANGE”IS

IMPORTANTTO

82%OFCONSUMERS.

DELIVERY COST

Distributionfreeshippingoptionsandcrossborderdeliverycost

Specificfreeshippingpromotion

Freeduetohighitemvalue

FreeduetoloyaltyProgramme

Lessthan€5

Between€6and€10

Between€11and€20

Between€21and€30

Morethan€30

Don’tknow

Retaileroffersfreeshipping

20162015

78%OFCHINESECONSUMERS

RECEIVEDFREESHIPPING

FORCROSS-BORDER

PURCHASES

59%OFONLINESHOPPERS

RECEIVEDFREESHIPPING

FORCROSS-BORDER

PURCHASES

IPC E-COMMERCE SURVEY

Downloadthereportfrom:www.ipc.be

Evolution of Online Retail Sales Since IATA WCS 2016

Jörgen van MookHead of Supply Chain Integration

Topics:§Evolution online retail sales§Airmail volume trends§Requirements & challenges

Jörgen van MookHead Supply Chain Integration

Topics:§Evolution online retail sales§Airmail volume trends§Requirements & challenges

A BOOMING E-COMMERCE 2015 VS 2014

27November2015

BlackFridayUK

e-Commercesales

27November2015

BlackFridayUSe-Commercesales 11November2015

SinglesDaye-Commercesales

Russiae-Commercesales

LatinAmericae-Commercesales

+22.9%

Evolution online retail sales

A BOOMING E-COMMERCE 2016 VS 2015

25November2015

BlackFridayUK

e-Commercesales

25November2015

BlackFridayUSe-Commercesales 11November2016

SinglesDaye-Commercesales

Russiae-Commercesales

LatinAmericae-Commercesales

Evolution online retail salesRecessionRussia,growth

sloweddown

RecessionBrazil,Latin

Americagrowthslowed

Top25countriesGLOBAL 2015- 2020 ONLINE RETAIL SALES

7Asiancountriesintop25

4Asiancountries

intop10

SOUTH KOREA 2015- 2020 - TOTAL & ONLINE RETAIL SALES

Note: convertedattheexchangerateofUS$1=KRW1,132.12;excludestravelandeventtickets,includesproductsandservicesorderedusinginternetbyanydeviceregardlessfulfilmentmethod

Note: NielsenKoreanClick 201539,8

43,447

50,4 52,9

2016 2017 2018 2019 2020

OnlineSalesinBillionUS$

In2016onlinesalesin

SouthKoreaaccounted

for12%oftotalretail

In2020onlinesalesin

SouthKoreawillreach

15%oftotalretailsales

and1.5%ofglobalE-

commerce

JAPAN 2016- 2020 - TOTAL & ONLINE RETAIL SALES

Note: convertedattheexchangerateofUS$1=Y121.05;excludestravelandeventtickets,includesproductsandservicesorderedusinginternetbyanydeviceregardlessfulfilmentmethod

Note: OnlineShoppingSurvey;1541respondentsage15+,2015

77,4 81,3 84,988,5

2016 2017 2018 2019 2020

In2016onlinesalesin

Japanaccountedfor

6.7%oftotalretailsales

and4%ofglobalE-

Commerce

In2020onlinesalesin

Japanwillreach7.8%of

totalretailsales

and2.5%ofglobalE-

commerce

INDIA 2015- 2020 - TOTAL & ONLINE RETAIL SALES

Note: convertedattheexchangerateofUS$1=INR61.12;excludestravelandeventtickets,includesproductsandservicesorderedusinginternetbyanydeviceregardlessfulfilmentmethod

Note: ComScoreMediaMetrix2015;age15+desktop/laptoponly

13,323,4

2016 2017 2018 2019 2020

In2016onlinesalesin

Indiaaccountedfor1.6%

oftotalretailsales

and0.7%ofglobalE-

Commerce

In2020onlinesalesin

Indiawillreach5%of

totalIndianretailsales

and1.8%ofglobalE-

commerce

397 457 524 600 6848991192

15471947

2016 2017 2018 2019 2020

CHINA 2016- 2020 - TOTAL & ONLINE RETAIL SALES

Note: excludestravelandeventtickets,includesproductsandservicesorderedusinginternetbyanydeviceregardlessfulfilmentmethod

Note: InternationalEnfodesk,2015;excludesC2Candtravel

TotalRetailSales

OnlineRetailSales

In2020onlinesalesin

Chinawillreach18.4%of

totalChineseretailsales

and2/3ofglobalE-

commerce

In2016onlinesalesin

Chinaaccountedfor47%

ofglobalE-Commerce

MAIN WEBSITES BOUGHT FROMThreee-retailersdominatecross-bordere-commerce

• Amazon and eBay more common among men than women

• Women prefer other sites to the ‘Big 3’

• Alibaba favoured by younger e-shoppers

• eBay favoured by those aged 35-54

AMAZON,EBAYAND

ALIBABAACCOUNTFOR

2/3OFCROSS-BORDER

E-COMMERCEFROMTHE

SURVEYRESPONDENTS

DELIVERY PROVIDER72%ofcross-borderparcelsdeliveredbythepost

89% 85% 83% 82% 81% 79% 77% 77% 76% 76% 74% 73% 73% 73% 72% 72% 72% 70% 70% 69% 68% 68% 66% 64% 64%53%

ESATIEBEFRPTDKHUTotalCHNZGRSINLLUDENOCNSEFI JPCAUK USAU ITIS

72% Post

Idon’tknow

89%OFAUSTRALIAN

CONSUMERSUSEDTHE

POSTFORCROSS-

BORDERDELIVERY

Topics:§Evolution online retail sales§Airmail volume trends§Meeting market requirements & challenges

AIRMAIL GROWTH TRENDSAirmail growth trend since IATA WCS 2016

International Post Corporation monitors cross border airmail volume trends on intercontinental flows exchanged between postal operators (post-to-post)

• Regions: Asia Pacific; BRIS; Europe; North & Central America• Representative subset of countries per region• No domestic volumes• Volume info from electronic dispatch pre-advice data shared with IPC

(representing 60-80% of global cross border volumes)

+16.5%

Total– AllInter-regionalflows

+16.5%

Total– AllInter-regionalflows

AIRMAIL GROWTH TRENDSMonthly volumes Airmail KG, Jan 13 – Dec 16

+4.5%sinceIATAWCS2016

Total– AllInter-regionalflows:

2yearsago

From:24millionKGMonthDEC13

To:41millionKGMonthDEC16Lastyear

Inter-regional:AsiaPacific- Europe

+16.7%

Inter-regional:AsiaPacific- Europe+66.6%

Inter-regional:AsiaPacific- Europe

2yearsago

From:3.4millionKGMonthDEC13To:7.5millionKGMonthDEC16

Lastyear

-24.8%

-24.8%sinceIATAWCS2016

Inter-regional:Europe- AsiaPacific

From:5.3millionKGMonthDEC13

To:6.2millionKGMonthDEC16

LastYear

2yearsago

ThresholdonB2Cimport

ChineseCustoms

+17.1%

Inter-regional:AsiaPacific– North&CentralAmerica

2yearsago

From:5.6millionKGMonthDEC13

To:12.0millionKGMonthDEC16

Lastyear

AIRMAIL VOLUME TRENDS

• Q4 2016 vs Q4 2015 further increase inter regional tonnages

• Overall growth has slowed down to 5%

• Large variances of airmail trends per region

• Asia Pacific to other regions resp. : +17%; • North & Central America to other regions resp: -12%

• Change of Chinese customs regulation impacted postal flows to China; private consumer clearance benefits are restricted by value threshold

• Shift from “Post-to-Post” network to other networks

Slowdownofpost-to-postnetworkvolumegrowth

Topics:§Evolution online retail sales§Airmail volume trends§Requirements & Challenges

CHALLENGES• Post-to-Post network is number one place to go

for many shoppers and e-tailers

• If it is delivered by the post it may not have been post-to-post all the way

• More networks can provide cross-border fulfilment§ Post act as competing operator abroad at source (ETOE)§ Posts are using over 50 different methods to collect mail at

source and directly inject mail in their network or to send out as mail to other posts

§ E-tailers set up warehousing abroad and inject in different delivery networks abroad using different providers and different modes of transport

89%OFAUSTRALIAN

CONSUMERSUSEDTHE

POSTFORCROSS-

BORDERDELIVERY

72%OFONLINESHOPPERS

INDICATEDTOUSEPOST

FORCROSSBORDER

DELIVERY

INCHINA

83%OFCONSUMERS

WEREOFFERED

TRACKING

REQUIREMENTSKey Requirements E-Commerce customers

Predictable, consistently reliable delivery§ Requires airmail conveyance to be on-time against

standards without a long tail of late deliveries

Tracking & Visibility§ Status events airmail for tracking§ Visibility supports Service Performance

improvement & Accountability

RECEIVING

“DELIVERYONAN

EXACTDAY”IS

IMPORTANTTO

68%OFCONSUMERS.

WITHINAGREEDTIME

RANGE”IS

IMPORTANTTO

82%OFCONSUMERS.

CHALLENGESKeep the Airmail Growth sustainable

Business processes Airmail transportation notMeeting E-Commerce requirements fully yet:

Global Visibility & Service Performance issues§ Limited visibility & long tail in distribution of delivery at destination

Capacity planning issues§ Suboptimal mail presentation, mail equipment§ Lack of processes to allocate and book postal consignments

REQUIREMENTS & CHALLENGESAirmail consignments “all posts to all posts”, all mail classes

29%OF POSTAL RECEPTACLES

WORDLWIDE MEASUREABLE

12 daysTO DELIVER 98% OF POSTAL RECEPTACLES WORLDWIDE AT

DESTINATION AND50+ DAYS TO DELIVER 100%

23 % OF MEASUREABLE POSTAL

RECEPTACLES DELIVERED AT DESTINATION ON TIME AS

PLANNED

REQUIREMENTS & CHALLENGESPost-Carrier Cooperation: FoMbA to FoMbA, all mail classes

79%OF POSTAL RECEPTACLES

WORDLWIDE MEASUREABLE

7 daysTO DELIVER 98% OF POSTAL

RECEPTACLES AT DESTINATION

FoMbA posts:AT,AU,BE,CA,CH,DE,DK,FR,GB,NL,NO,PT,US

FoMbA carriers:AA,AC,AF,BA,CX,DL,EK,KL,LH,LX,QF,SK,UA

45 % OF MEASUREABLE POSTAL

RECEPTACLES DELIVERED AT DESTINATION ON TIME AS

PLANNED

In2016:numberofPostssendingCARDIT>100

Currently83aircariers exchangingpostalEDI

In2016:750– 795activepost-carrierexchanges

UselatestEDIstandardversionnow>50%oftotal

POST-CARRIER COOPERATION (FOMBA)Commit to expand EDI and to upgrade to latest version

ExchangesoflatestEDI

messagestandards

doubledin2016

Defineactions:deploylatestCARDITversion;includeLHOTinCARDIT,Carrierstoprovidedeliveryeventstatus

Manageprogress:identifygapbetweenplannedresultsandactual,reviewactions

Notmeasureable,novisibility:identifycauses

POST-CARRIER COOPERATION (FoMbA)Monitor progress & take action to improve VisibilityIPCdevelopedanintegratedDashboard– ActionPlantooltosupportFoMbA postsand

CarrierstoimproveresultstomeetagreedKPIsbasedonmarkedrequirements

KPI=95%ofairmail

receptacles

measureable(pre-advicesent,status

eventsavailable)

DidthePostspecifyLatest

HandovertimeinCARDIT?

DidtheCarriersprovide

theDeliveryevent?

POST-CARRIER COOPERATION (FoMbA)Monitor progress & take action to improve VisibilityIPCdevelopedanintegratedDashboard– ActionPlantooltosupportFoMbA postsand

CarrierstoimproveresultstomeetagreedKPIsbasedonmarkedrequirements

KPI=95%ofairmail

receptacleson-

time;mean

delay<2days(pre-advicesent,status

eventsavailable)

On-timeandmeandelay:identifycauses

Planactions:checkrouting,identifycapacityissues,checkhandlingorigin,monitorhandoveratdestination

Manageprogress:identifygapbetweenplannedresultsandactual,reviewactions

Tail?Whatisthedelayin

Tail?Howmuchdelivered

within24hrsafterLHOT?

FROM TO

• No algorithms to forecast volumes • No allocation procedure, no

allotments• No booking• No closure of consignment at

maximum volume• Suboptimal mail transport equipment

• Use of algorithm to accurately forecast based on historic data

• Agree allotments for season, period

• Book into allotments• Close consignments as booked• Use Enhanced transport

Equipment

POST-CARRIER COOPERATION (FoMbA)Take action to improve Consignment Planning / Presentation

FROM TO

• Small, light weight bulky items in bags • Use of packet boxes

POST-CARRIER COOPERATION (FoMbA)Take action to improve Consignment Capacity Planning / Optimization

Challenges§ Postal network share of E-Commerce growth§ Bridge gaps on visibility and Service Performance§ Enhance capacity planning & equipment

Opportunities§ Double digit growth E-Commerce year by year§ Postal networks first choice for delivery E-commerce§ Post-Carrier cooperation

CONCLUSION

Enabling E-commerceVineet Malhotra

Director, Kale Logistics SolutionsSanjiv Edward

Head Cargo Business, Delhi International Airport

Enabling E-commerce

Vineet MalhotraDirector, Kale Logistics Solutions

Enabling e-Commerce Logistics:Going beyond Air Cargo

IATA WCS, Abu Dhabi | Vineet Malhotra-Director- Kale Logistics

Agenda

e-Commerce Overview: Sunrise or not yet?

The three Musketeer's : What happening in China, U.S. and India

e-Commerce Terminologies : Buzzwords are here to stay

Domestic e-Commerce : A fresh look beyond Air Cargo

Making sense of the e-Commerce Supply Chain: Its complicated

The future beckons : A differently abled International e Commerce Supply Chain

Global e-Commerce Market

The Big Three: Something’s cooking

e-Commerce Buzzwords

Terminologies: Jargons made easy

It is a multichannel approach to sales that seeks to providethe customer with a seamless shopping experience whetherthe customer is shopping online from a desktop or mobiledevice, by telephone or in a bricks and mortar store.

An online marketplace (or online e-commercemarketplace) is a type of e-commerce site where productor service information is provided by multiple third parties,whereas transactions are processed bythe marketplace operator.

The first mile refers to themovement of products from aretailer to a courier service or toanyone who will take thesegoods to their final users

The last mile is a metaphor usedto describe the movement ofgoods from a fulfilment centre totheir final destination.

Terminologies (Cont’d)

Dropshipping is a retail fulfilment method where a storedoesn't keep the products it sells in stock. Instead, when astore sells a product, it purchases the item from a third partyand has it shipped directly to the customer. As a result, themerchant never sees or handles the product.

Reverse logistics is the set of activities that isconducted after the sale of a product, such asservicing, refurbishment and recycling, for thepurpose of recapturing value or proper disposal. Ittypically involves returning a product to themanufacturer or distributor or sending it along forprocessing in the final stages of the product'slifecycle

Long Tail are about selling less of more by focussing on offering a large amount of niche products, while each item sells relatively infrequently.

e-Commerce Supply Chain: Long and twisted

Transformation in Logistics: Fast Forward

How is e-Commerce Supply Chain Different

Traditional Retails Supply ChainMultiple Warehouses supplying to many storesFocus on store replenishment

Store-in-store format for leading brands

Limited returns - less than 5%

Larger inventory due to store inventory

Limited SKUs

No concept of vendor delivery to customer

Cash collection not a major issue

Transportation partner is important

E-commerce Supply ChainOne or two DC supplying directly to customer through LSPsFocus on Home Delivery

Market place model on e-commerce site

Large number of returns - 20% plus

Smaller inventory but higher turns

Very large number of SKUs

Drop shipment a major concept

Cash collection critical to operations

Transportation partner is CRITICAL to operations

The Indian Domestic e-Commerce: On a J Curve

10+ Unicorns and growing

New Generation Logistics Players

Mobile ONLY Market?

Mobile Only500 mnDesktop+ Mobile

100 mn

e-Commerce thrives on FCR (India Story)

The Air Cargo e commerce supply chain : As we know

LSP – Last Mile

Air Cargo Aggregator

Airport Handlerq Bag Acceptanceq Attach AWB q Security Scanningq Manifestq On Ramp Operationq Loading

Airport Handler

q Unloadingq On Ramp Operationq Manifestq Bag level Warehousingq Bag Level Delivery

LSP – First Mile

Outbound

Inbound

Here’s the complete Logistics cycle : Air Cargo is one element

Role of Logistics in E-Commerce

First and Last Mile Delivery Management• Reduce cost per delivery, maximize delivery per person

• Improve Attempt to Delivery Ratio, reduce failed attempts

Market Place and Drop Shipment• Integrated logistics systems for inventory visibility

• Direct shipment from vendor to customer

Visibility across Order Life cycle• Data Integration between varied systems of stake holders

• Visibility across supply chain from warehouse to door delivery

Cash Management and Reverse Logistics• Cash Collection and deposit as well as repatriation

• Managing customer returns, warranty execution, Return to origin

Cash Management Flow

Cash Collection

Deposit at LSP Branch & Reco Deposit in Bank

Customer wise record

Repatriati on to customer

Aspects of Reverse Logistics

rse Lo

gistic

s Multiple Attempts

Customer Initiated Delay

Instant Return

Partial return

Warranty Return

AGENA: Kale’s E-Commerce Logistics Solution

AGENA is a powerful tool for end to end e-Commerce Logistics Management

Order Integrationü Web-service based

integrationü Auto creation of Way bills

against Ordersü Order validation and Pin-

Code based Allocation

Outbound/Inbound Warehouse Operationsü In-scan to verify ordersü Manifest and Baggingü Web-service integration with

logistics partner

Delivery Operationsü Bag as well as CN level

in-scanü Delivery Run Creation

and Zip based Allocation, and Biker Management

Air Cargo Managementü Bag level scanü AWB allocation to Bagü See through tracking

Track & Traceü Web Service to update

customer websitesü Customer Portal for Bulk

Tracking

Reverse Logisticsü Order Cancellation, Failed

Delivery, Customer Refusalü RTO Managementü Warranty Execution and

Reverse Pickup

Features of AGENACOD Managementü Cash Deposit and

Updateü COD Collection and

Reconciliationü Collection Repatriation

to Customers

Drop Shipmentü Pin code based Order

allocation for vendor pick-up

ü Pickup confirmation and direct shipment

Contract Managementü Rate Contract based on

Metro, Zones, Weight slab

ü Automated Rate Application on booking

ü Contract Re-invoke

Billingü Auto bill generation and

Emailü Bill generation to collection

Vendor Paymentü 3PL Vendor Bill

Processingü Freight Audit and

Payment

Biker Login for Delivery

Dashboard

Map View of Pending Dockets

List of Pending dockets

Signature Capture

Update of Undelivered Docket

International e-Commerce: A new Paradigm

Transaction Platform – Sales Proposition

Transaction Platform – Going one step beyond the conventional

Transaction Platform – Booking

Transaction Platform – Transaction

Transaction Platform – Shipment

Crystal Gazing the Future : What lies ahead?

The Future of e-Commerce: Are we ready to face the drone challenge?

Perhaps one of the most exciting developments in ecommerce is one we are already starting to see in testing – drone delivery. Drones will in the future allow companies to deliver packages much more efficiently and quickly, with delivery times of just 60 or even 30 minutes from order entirely plausible.

© 2017, All Rights Reserved. Data from industry publications has been used for this presentation.This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or form or in any media without the prior written consent. All product names and company names and logos mentioned herein are the trademarks or registered trademarks of their respective owners.

Corporate Office 12th Floor, MBC InfoTech Park, Near Hyper City, Kasarvadavali, Ghodbunder Road, Thane - (W) 400615, (Mumbai Area) Maharashtra, INDIATel: +91 22 4113 4113 | Fax: +91 22 4113 4123

Kale Logistics Solutions Private Limited

Channel Network• Africa• Middle East• South-East Asia

Thank You

For more information please contact:

Enabling E-commerce

Sanjiv EdwardHead Cargo Business

Delhi International Airport

IATA World Cargo Symposium

“Evolving E-Com Solutions @ DEL Airport”

Identifying E-Com Trends

Sanjiv Edward (Head Cargo – Delhi International Airport Pvt. Ltd)

15th MAR’17 | Abu Dhabi

Highest FDI Equity Inflows in

Service Sector -18%Construction -8%

Computer H/W S/W – 7%Telecom – 6%

Automobile – 5%Pharmaceuticals – 5%

Hindi, English and 21 Officially recognized

languages150 other languages

1.3 Billion943 females/1000 male

50% below 25 Years

33K Higher Education Institutes

28 million StudentsEmployability – 25%Underemployment –

7.23% Avg. since 1983

EmploymentAgriculture Sector– 56%Manufacturing Sector -

19%Service Sector – 25%

One of the Fastest Growing Economy – 7.5%

World’s Second Largest Workforce – 486.6 million

(2011)60% below 35 years

Youngest workforce by 2020

4500 Years of Cultural History

2nd Highest Genetic Diversity after Africa

2000 Ethnic Groups

Newspapers – 100 Languages &

Radio – 70 Languages

E-Commerce – $24 Bn. to

$300 Bn. by 2024

13th by Services Sector O/P 7.5% of GDP – IT/ITES

5th Largest Retail Market

Decoding India

According to data from InMobi and Tune, shopping apps made up the largest

proportion (25%) of mobile app installs in 2015, compared with entertainment apps

(16%), games (15%) and communication apps (10%).

Mobile Phones & Apps – India.

Ad Spending by Industry Type

3 Number of Internet User Added / Second,

In India

50 Million

320 Million

On Line Shopper

SOUTH KOREA 10%

JAPAN 11%

CHINA 18%

INDIA 51%

ASSOCHAM-Forrester study ( May’16 )

Highest Market Growth Rates....

E-COM Companies Engagement…

1. Currently – All Cargo Documentation is Manual

2. Cargo Terminals lack IT Automation

3. No visibility during Terminal Processing

4. Lack of compatibility with Airline Systems

Challenges Identified | Domestic E-COM

Pre Arrival

Acceptance

Processing

OPTIONAL

AIRLINE

Booking Conf.

Message

Release

Pre Arrival

Acceptance

Processing

Release

OPTIONAL

AIRLINE

Booking Conf.

Message

Outbound Automation

OnlineDomesticWebPortal

1. Single system for all the stakeholders

2. Ability to secure prior space

3. Better flown as booked

4. Better Resource Planning

5. Ability to transact with Multiple

Airlines

Pre Arrival Solution

Automaticmessaging&lesspaperwork

AutomatedCargoAcceptance

1. Paperless Acceptance

2. Real-time Data up-dation

3. Automated Payment Processing.

4. 100% Consignment Tracking

5. Faster / Efficient Processing

On Arrival Solution

Automaticmessaging&lesspaperwork

CargoX-Ray

ULDLoading&Release

1. Faster/Efficient

Processing

2. Automated&Real

TimeUp-dation

3. 100%Consignment

Tracking

4. Electronic

Timestampsforeach

Milestone

5. Automating

Regulatory

compliancedata.

Cargo Processing

65DCMS

Information & Delivery

Segregation

AcceptanceDCMS

Arrival @ Terminal

In Bound Automation

ReceiveFlightImportOperation CollectCharges&IssueGatePass

1. Faster / Efficient Processing

2. Automated & Real Time Up-dation

3. 100% Consignment Tracking

4. Electronic Timestamps for each Milestone

5. Paperless Transaction

In Bound Processing

Digitization

Accuracy

Automation

Standardization

Transparency

Environment

Benefits Delivered

THANK YOU

Thank you to our Networking Break Sponsor

E-Commerce Logistics

E-Commerce from a Supply Chain’s Perspective

Moderator:Ö Christian Bergfelder, Director Network Airside – Europe, DHLPanelists:Ö Jason Dacosta, General Sales Manager, Postal Affairs, Air CanadaÖ Saskia van Pelt, Director Business Development, Schiphol CargoÖ Cheemeng Wong, Senior Vice President, Cargo Services, SATS

E-commerce from a Supply Chain’s Perspective

Saskia van PeltDirector Business Development,

Schiphol Cargo

AmsterdamAirportSchipholIATAWorldCargoSymposium2017

SaskiavanPeltDirectorBusinessDevelopment

Million tonnes

Direct destinations

Airlines flyto AMS

Is the world movingtoo fast for you as well?

Vertical Community

e-CommerceGatewayAmsterdam

HollandFlower Alliance

Pharma GatewayAmsterdam

e-CommerceGateway

Amsterdam

Currente-Commerce

e-Commerceand E-data

e-Commercefast lane

Specialhandlingcode?

Currente-Commerce

focusThelastmile

Customs clearance

141518

9 00111

918201

131011

111510

901211

111421

761111

141111

1014011111

e-Commerce challenges

current handlingprocesses

e-CommerceGateway

Amsterdam

Datasharing

Milkrun

Email:pelt_s@schiphol.nl

SaskiavanPelt

Foodforthought?

Find SchipholCargoon

CARGOTEAM

E-Commerce from a Supply Chain’s Perspective

Moderator:Ö Christian Bergfelder, Director Network Airside – Europe, DHLPanelists:Ö Jason Dacosta, General Sales Manager, Postal Affairs, Air CanadaÖ Saskia van Pelt, Director Business Development, Schiphol CargoÖ Cheemeng Wong, Senior Vice President, Cargo Services, SATS

E-commerce from a Supply Chain’s Perspective

Chemeng WongSenior Vice President, Cargo Services

Requirements from eCommerce Customers

The Capability

to handle:1. High growth2. Exceptional

Peak Demands(e.g. Alibaba Singles Day

Promo 11-11)

Provides DynamicAdjustments

To meetever-changing

demands

Ensures Integrity

Shipments are uplifted as a whole

Delivers Reliability

All uplifts are achieved

In-feed Points

ULD Management

ULD StorageEarly Bag

Storage

Castor Decks

Independent loops

SATS eCommerce AirHub

Single Scanning

Loading Aid Device

SATS eCommerce AirHubInline X-Ray Machine

Chutes

Castor Decks

Early Bag Storage

ULD Storage Racks

Increase inCapability

by 300%

500% in Phase2

Increase in our Connectivity

By 50 % reduction in processing time

Improvement in Efficiency

By conducting Single Step process

ProvidesTrack & Trace

Through data interfaces

First fully Automated Single Scan Mailbag Sortation System

eCommerce AirHub

• Through close relationship with Airlines:• Maximization of Cargo-hold space• Dynamic allocation to boost uplift rate

• Real-time monitoring of Handling Performance

Venturing into Adjacent Businesses

Mindset Changes

Thank youcheemeng_wong@sats.com.sg

E-commerce from a Supply Chain’s PerspectiveJason Dacosta

General Sales Manager, Postal AffairsAir Canada

eCommercesourcesforpassengerairlines

ThirdPartyLogisticsProviders(3PL’s)§ PrimarilyB2Bgoods§ Pre-bookedandtendered“readyforcarriage”

Consolidators§ B2BorB2Cgoods§ Pre-bookedandtenderedinvariousforms

PostOffice• B2Cgoodsgrowingtrend• Sizeanddensityvaries;achallengetoforecast• Dynamiccapacityrequirements

CarriersandPostscollaborate• PostsandCarriersworkingtogethersince1911

• IATAAirmailBoard(AMB)developsandmaintainsstandardsandproceduresconcerningthehandlingofmail.

• WorkcloselywiththeUniversalPostalUnion(UPU)andInternationalPostCorporation(IPC)

• Achievements:• PieceleveltrackingstandardsandpracticethroughEDIdataexchange

• AmodelFrameworkAgreementtoclearlydefineroles&responsibilities

• Ongoingcommitmenttoidentifyoperationalprocedures&processrequirementstosatisfyourcustomers’needs

Shoppingcartscomeindifferentshapesandsizes

e-CommerceChallenges

UsingRFIDtoenhancevisibility&efficiency• Asolutionforlargescaledeploymentthatwillsupporte-commerceusingRFID,

andcouldexpandbeyondcargo.E.g.Mail,assetmanagement,baggage.

• AirCanadaworkingcloselywithproviders,IATA,andIPCtoensureglobalstandardsaredevelopedanddeployed

Improvedvisibility&tracking

Supportse-Commerceneeds

Longtermcostsavingsmitigatescapitalexpense

Where is the “People Component”in Tomorrow’s e-World

Darryl JuddChief Operating Officer

Logistics Executive

e-peopleThe People Effect of the

Digital Supply Chain

CORPORATE ADVISORY | TALENT MANAGEMENT | LOGISTICS ACADEMY

Digital is changing how

the world works and the supply chain.

That means it’s also

changing how we manage

Real Change NOW

Drones / Autonomous Vehicles / Airborne Fulfilment Center

Robotics /3-D Printing

Wearables / Augmented Reality / Brain-Computer Interface (BCI)

IoT AICloud Computing / Blockchain

Big Data e-consumer

“Digital is poised to radically disrupt HR, and

redefine the future of the

human resource function”

PREPAREOURWORKFOCE

No matter how good a new technology, little will be attained without people

Communicate

Ensure staff are engaged in the

journey

Technology changes the way

we do things.Thus the way we

measure our success may

become redundant.

Review internal

management practices

Be more innovative and flexible

Not just with the systems but with your people. If you want your workforce to be flexible, it starts with you.

Throw out the old salary

reward systemInstead think Incentivesstarts with you.

Flexibility Dress Personalized rewards

Adoption staggered hours

Training opportunities

Professional development Ownership

Cross Functional Experiences

ALIGNMENTwith company culture and reputation

If we expect a workforce to

continually adapt to change, people

will need to be open to taking risks. A fear of

failure inhibits this process.

The ability to fail

successfully

Five digital developments transforming HR and our

Talent

Data and integration will be king.

Digital will give power—and people management—to the people.

Consumer applications will find a home in the enterprise.

Digital will enable customized talent management.

Cloud computing will enable new flexibility and agility.

Digital disruption will have

significant implications for

the business and the HR strategy

of an organization

For Business:

• Talent management will become an everyday activity for employees.

• Information and decision making will shift to employees.

• Silos will be knocked down, and boundaries blurred.

• Talent management processes will result in better service for the business.

• Talent practices will play a more important role in businesses’ strategic capabilities.

For HR:

• HR will become smaller. New organizational structures will emerge to help HR professionals collaborate closely with other business functions.

• HR will begin to behave more like marketing—analyzing employee data, creating customized talent offerings, and marketing and branding talent and HR processes.

• HR will play a bigger role evaluating external technologies, and building interfaces between them and the organization’s own data and systems.

Adopt a Disruptive Ready Posture

CORPORATE ADVISORY | TALENT MANAGEMENT | LOGISTICS ACADEMY

Wrap-up and Closing Remarks

Alan BarrieDirector Operations and Technology

Gala Dinner at Emirates Palace

1400 ecommerce logistics master - iata.org€¦ · what are the latest trends ? ... airmail volume...

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