PrÃsentation Champ Cargo Systems

John JohnstonCEOCHAMP Cargosystems S.A.: 

John Johnston CEO CHAMP Cargosystems S.A. RFID, Added Value in Logistics

Who is : 

Who is The former IT Division of Cargolux Airlines. A Cargolux Company. 100% outsource of Cargolux IT. From PC maintenance to… Complex system development. One of the largest ASP providers to the Global Air Cargo Industry.

Cargolux – the main link in the transportation chain: 

Cargolux – the main link in the transportation chain Consignee Air Transportation 30% of time coverage Handling Handling Trucking Trucking Customs Customs A B Shipper Movement of commodity from Shipper to Consignee “Transportation from shipper to consignee" Cargo airline’s service is one part of the transportation chain.

Cargolux Destinations 2004: 

Cargolux Destinations 2004 Komatsu Seoul Shanghai Taipei Manila Singapore Kuala Lumpur Madras Bangkok Hong Kong Karachi Baku Damascus Kuwait Abu Dhabi Dubai Sharjah Johannesburg Beirut Istanbul Accra Abidjan Luxembourg Manchester Prestwick New York Miami* Huntsville* Houston Guadalajara Mexico Bogota Latacunga Sao Paolo Santiago Rio de Janeiro Calgary Seattle San Francisco Los Angeles Auckland Melbourne Maastricht Budapest Tehran Nairobi Milan St Denis - Reunion Curitiba Panama* Kinshasa Fort-de-France* *=charter destination Additional destinations are served via interline and trucking

Cargolux Fleet (April 2004): 

Cargolux Fleet (April 2004) Currently 13 B747-400F LX-FCV City of Luxembourg LX-GCV City of Esch-sur-Alzette LX-ICV City of Ettelbruck LX-KCV City of Dudelange LX-LCV City of Grevenmacher LX-MCV City of Echternach LX-NCV City of Vianden LX-OCV City of Differdange LX-PCV City of Diekirch LX-RCV Spirit of Schengen LX-SCV City of Niederanven LX-TCV City of Sandweiler LX-UCV City of Bertrange 14th to be delivered in Oct. 2005

Cargolux Business as usual…: 

Cargolux Business as usual… Engineering, mechanical and Oil-drilling equipment Fresh fruit, flowers & fish Electronics & computer hardware Automotive components Fashion goods and textiles Artworks Cars, racing cars Live animals (horses, etc.) Pharmaceuticals

… and unusual: 

… and unusual A white rhino to Africa Chilean alpacas to Europe Sled dogs to Alaska Prototype cars for testing purposes

Slide8: 

RFID, Added Value in Logistics

Technology, a matter of survival: 

Technology, a matter of survival Globalization creates: Movement of manufacturing processes Greater component based manufacturing/assembly Greater volatility in the life cycle of a manufacturing facility Huge demand for efficient logistics But…..it is not a level playing field..

Technology, a matter of survival: 

Technology, a matter of survival Manufacturing has/is moving east Significantly lower labor costs Cheaper materials Logistics is also moving East The fastest growing Airlines in the Air Cargo World, are in the Far East. The only exception being Cargolux. Logistics is treated as a core activity by Far Eastern carriers.

Technology, a matter of survival: 

Technology, a matter of survival Labor costs for a Carrier based in the Far East is significantly less than for a European carrier. Europeans must be more efficient…… Europeans must be World Champions at cost control…… Europeans must be more innovative….. Europeans must offer high quality at competitive prices…… Europeans must be early adopters of new technology… …OR DIE!

RFID, What can it do for Air Cargo?: 

RFID, What can it do for Air Cargo? Cargolux has an inventory of 9540 ULDs. In 2003, 183 units were lost. EUR 120,000.00 Approx 2% of the inventory It should be noted that this is significantly below the industry average. Lufthansa and Air France have a 5-6% yearly loss rate. This on a bigger inventory.

RFID, What can it do for Air Cargo?: 

RFID, What can it do for Air Cargo? A significant proportion of ULD losses in the industry are due to a break-down in unit tracking facilities. System Location Process Failure Installing RFID tags to ULDs, linked to process changes, has the potential to significantly reduce unit losses.

RFID, What can it do for Air Cargo?: 

RFID, What can it do for Air Cargo? For Cargolux, a 1% reduction in the loss rate of ULDs, would amount to: EUR 60,000.00 per year in direct cost savings. Reduce staff time in tracing equipment. Reduce insurance risk. Improve efficiency. Reduce Station stock requirements.

RFID, What can it do for Air Cargo?: 

RFID, What can it do for Air Cargo? RFID tags at the shipment level would: Reduce the labor required to identify shipments: Warehouse efficiencies Manpower Better use of automated stacking equipment Quicker transit times Through the warehouse Aircraft loading/unloading Truck acceptance/dispatch Increased customer service: Improved Track and Trace Reduced claims Faster, proactive information exchange Reduced overall travel times

We MUST learn from the past!: 

We MUST learn from the past! When was the Bar Code invented ? 1947 When was a common Bar Code standard adopted by the Air Cargo Industry ? 1995 (IATA Resolution 606) Why did it take 50 years to adopt a common standard ? National Interests Blatant protectionism Airline industry…’the kings of the skies’

We MUST learn from the past!: 

We MUST learn from the past! What has changed since 1990s ? Explosion of globalization EU customs National Boundaries for intra-Europe trade removed Airline Industry in crises Everyone needs better processes Everyone needs to reduce costs Everyone needs to improve customer service Everyone needs to provide value for money Everyone is COMPETING on a global level Individually In a Network In an Alliance The forward thinkers are ready to COMMIT…

RFID in Air Cargo?: 

RFID in Air Cargo? RFID is not a ‘Nice to Have’ RFID is a MUST.

And finally……: 

And finally…… The chicken, or the egg Or Involvement vs Commitment…

Thank you: 

Thank you "Learning is like rowing upstream, not to advance is to drop back." Chinese proverb