C 2 K Information Sessions and The Revised

优化空運品质 C 2 K Information Sessions and The Revised MOP IATA Area Offices 2012

Today’s Topics • Cargo 2000 What is C 2 K The program Why C 2 K How it works Members Organization Revised Master Operating Plan (MOP) Additional C 2 K initiatives

What is C 2 K It is an IATA special interest group It is a not for profit members association comprised freight forwarders and airlines GHA’s, IT providers, RFS can also join as Industry Associated members It was founded in 1997

What is C 2 K Is a standard for process monitoring and measuring Is a framework of agreements between main participants in the air cargo industry It supports generation of detailed quality reports It enhances transparency between main participants It assists in determining where and what corrective actions may be needed Is an industry specific Quality Management System

Why C 2 K Why is there a need for C 2 K There is an increasing need for standards in our industry Multiple stakeholders form the air transport supply chain The flow of information is as important as the physical flow of the cargo itself There is an ever increasing need for standards in our industry to enable both information sharing as well as process control External drivers e. g. customs / security / e-freight

Why C 2 K 16%

Why Cargo 2000 16% ? The percentage indication of airport to airport shipments that failed the NFD correct milestone in March 2012 That’s 134, 174 incidents where either the shipment or the needed information failed to reach destination as promised. Who can argue the need for ongoing quality improvement in our industry!

The Program How it works Members of C 2 K have agreed on certain process activities that enable every shipment to be: Actively monitored at critical moments in its journey. Actively measured for timeliness of these moments occurring This is achieved by the consistent use of agreed process steps and related status updates

The Program How it works Every shipment gets a plan called a routemap Every routemap has milestones Members can receive alerts when milestones fail Enhanced ability to re-plan and or recover Detailed records are available for process analysis and improvement at a later date

The Program Creating the Route Map Three basic elements required Offset information from “BRAVO” Scheduled DEP and ARR times from the “Booked” (BKD) status message Flight origin and destination from the “Booked” (BKD) status message

The Program The Route Map Offset information in “BRAVO”

The Program The Route Map Offset information in “BRAVO”

The Program The Route Map Scheduled DEP and ARR times from the “Booked” (BKD) status message Flight origin and destination from the “Booked” (BKD) status message

The Program The Route Map Planned FWB Planned RCS Schedule DEP Schedule ARR Origin Processes Actual FWB Actual RCS Planned RCF Planned NFD Planned DLV Destination Processes Actual DEP Actual ARR Actual RCF Actual NFD Actual DLV

The Program The Route Map

The Program (Measuring Performance)

The Program (Measuring Performance)

The Program (Measuring Performance)

The Program (ALERTS) When a Milestone Fails Alerts can be sent Reasons for failure are recorded Exception Handling Codes are Created

The Program (ALERTS)

The Program (EHCP) Exception Handling Code Procedure

The Program (EHCP) Exception Handling Code Procedure

The Program (EHCP) Exception Handling Code Procedure

The Program (Reports & Analysis Tools) Reporting & Analysis As a result of data collected during measurement Reports are able to be created Areas of problems can be identified Analysis to determine causes can be initiated Actions can be taken to prevent future occurrences

C 2 K Membership in C 2 K Open to all Carriers and Forwarders Regional and Global membership Associate Members Regional and Global Industry Associated Membership Regional and Global for GHA / IT / RFS / Airports

C 2 K Members Airline Members Airbridge China Southern KLM SAS Air Canada Delta Korean Saudi Arabian Air France Dragonair Lufthansa Singapore Airlines Alitalia Egyptair Martinair South African American Ethiad Polar Swiss British Airways Finnair Qantas Turkish Airlines Cargolux Iberia Qatar Airways United Cathay Pacific Kenya Airways Virgin Atlantic

C 2 K Members Forwarder Members Agilty DHL Global Forwarding OHL Aramex Geodis - Wilson Panalpina Cargomind Hellman Int’l CEVA Logistics Kuehne & Nagel DB Schenker SDV Int'l UPS Supply Chain UTI Yusen Logistics Co. Ltd

C 2 K Members Industry Associates AAT Hong Kong ICCS Shenzen SPL Airport / Cargonaut Descartes AACT Korea Plane Handling Jet Airways GLS Australia Air Express SATS Ltd Landair Express IBS Aviapartner Servisair UK Towneair Infosky Cargo Center Swissport Wallenborn Mercator Cargologic TAT Tianjin Champ Riege Software CSC India WFS British Telecom Traxon Cargo Flash Infotech Unisys HACTL Hong Kong CCN

Organization (Management Structure) AGM Board Executive Director Michael Vorwerk Technical Director Thorsten Lafleur Regional Director Areas 1 & 3 Area 2 Tom Presnail Lothar Moehle

Organization (Board Structure) Cargo 2000 Board of Directors * Chairman

The New MOP Revising the Master Operating Plan Recognizing many new realities within the industry It was time to update the basic process model that the Cargo 2000 Quality Management system was built on in 1997 The MOP review group was established in 2011 Its mission was to examine both the content as well as the method of presentation Initial work was completed in March 2012

The New MOP FROM THIS

The New MOP TO THIS

The New MOP Main areas of revision Freight reception process at airport facility. Addition of a latest acceptance time (LAT) Inclusion of the FOH intended to be measured against above Refinement of the RCS to truly identify ready for carriage status and solidify RCS + FWB = evidence of acceptance & contract ( as per e. AWB)

The New MOP Main areas of revision Introduction of two new optional events and measurements FOW freight out of warehouse (to ramp) FIW freight in warehouse (received from ramp)

The New MOP Other Significant Changes The New MOP is freely available to any interested industry stakeholder Enables companies to plan and implement process development and systems in a compatible manner to C 2 K standards Further imbedding the C 2 K methodology as the common quality standard for the industry Ultimately simplifying process to C 2 K membership if desired

The New MOP C 2 K Membership Being a Member of C 2 K Enables access to benchmarking reports and other comparative management information such as Data Congruence, NFD deviation Allows participation in the continued design and development of the C 2 K program and use of the BRAVO tool Enables Information sharing via CDMP mechanisms Routemaps, Status Updating, Alerts, Exception Handling etc… Allows for C 2 K Certification & Member Classification

Additional C 2 K Initiatives Data Congruence Enhanced measurements between members New Reports Facilitates focused quality discussions between stakeholders Identifies areas for improvement Current data congruency at + 96% & target for 98% during 2012

Additional C 2 K Initiatives BRAVO 3. 0 Enhancements to offset management capabilities Sharing and registration of bilaterally agreed offsets Incorporating open and closed hours Enhancing accuracy of planned transport cycle times

C 2 K Have You Any Questions?

C 2 K The End