C2K Presentation
Purpose and Benefits of Cargo 2000
Quality Standard for the Global Air Cargo Industry
April 2012
Cargo 2000 (C2K) Vision and Mission
Vision
C2K defines quality standards for the supply chain, is improving the efficiency of the air
cargo industry, improving customer Service and reducing costs to all participants by
implementing a program of agreed business and automation standards, which are
measurable and lead to quality competitive performance.
Mission
C2K is a self funded non-profit interest group sponsored by IATA, with the mission to
create and implement a quality standard and management system for the worldwide air
cargo industry.
What is C2K?
• Founded in 1997
• Not for profit Members’ Association
• IATA sponsored initiative
• Aimed at improving industry quality
• With a mission to create and implement a
quality management system for the global
air cargo industry
Trends and Dependencies
Cargo 2000 linchpin for Industry
Quality Standard
Workflow-management
(GH Procedures)
Web-
applications(XML vs CargoImp)
Strategy + Planning
Risk-management
Automation + Symplification(e-freight, e-AWB)
Quality-
Management(C2K as internal QMS)
Balanced
Score Card(Performance measuring)
SecurityMeasures
(Screening, Secure-Freight)
Business Reengineering(Interlining, Groups, Hubs, other MOT)
Product-development
(i.e. Time-Temperature)
C2K Development and Timeline
2010/122009200820072006200520042003200220012000199919981997
Vision & Development
ImplementationNew
Organization & Industry Quality
Vision
Volumes & Metrics
Data Publication& Industry Associates
Getting it Right!
Driving Internal Quality
30 30 28 29 29 46
1816K
85%
80%
57
3338K
91%
73%
64
7343K
90%
74%
71
11786K
91%
84%
66
13600K
92%
85%
82
14443K
91%
82%
Members
Shpmts
FWB
NFD
C2K House
Foundation
Stakeholder
Strategy
A2A Phase 2 (D2D)D2A-A2A-A2D
D2D(D2A-A2A-A2D)
Bilateral Route Arrangement and Verification Online (BRAVO)
Inter-CDMP Messaging
C2K
WebpageReporting
Data Base Q CargoTraining
ModuleBRAVO
Webpage
C2K Cycle Control
FrameworkC2K Quality Reporting
C2K Quality Management
System
Airlines Forwarders CDMP /
IT ProviderGHA/RFS Airports
• Member base • Members • Solutions• Quality
Growth Improve Support Deliver
Master Operating Plan (MOP) - Membership
Key Elements
IT Tools & Access
Quality Control
C2K Board
C2K Management team
AGM
Shipper
D2D(Piece Level)
PositioningObjectives
Airlines
Mr. Mattijs ten Brink (Chair) - AF / KLM Cargo
Mr. Daniel Roeska - Lufthansa Cargo
Mr. David Kerr - Etihad Airways
Mr. Peter Langslow – Cathay Pacific
Mr. Neel Shah - Delta Airlines
Forwarders
Mr. Max Sauberschwarz - Kuehne + Nagel
Mr. Mick Fountain (Vice-Chair) – OHL
Mr. Kunio Omae– Yusen Logistics
Mr. Thomas Mack – DB Schenker AG
Mr. Henrik Lundt - Panalpina
Mr. John Batten - Swissport (Advisor)
C2K Board
AirlinesAirBridge Cargo [+]Air Canada (*)Air France (*)Alitalia (*)American Airlines (*)British Airways Cargo (*)Cargolux (*)Cathay Pacific (*)China Southern (+)Delta Airlines (*)Egyptair [+]Etihad Crystal Cargo (*)Finnair [ t ]Iberia [*]Kenya Airways (+)KLM (*)Korean Air (*)Lufthansa Cargo (*)Martinair (*)Polar Air [+]Qantas [+]Qatar Airways [*]SAS (*)Saudi Arabian Airlines [+] Singapore Airlines (*)South African Airways [+]Swiss WorldCargo (*)Turkish Airlines (*)United Airlines (*)Virgin Atlantic [+]
ForwardersAgility Logistics (*)Aramex [ t ]Cargomind [ t ]CEVA Management LLC (*)DB Schenker (**)DHL Global Forwarding (**)Geodis – Wilson (*)Hellmann [+]Kuehne + Nagel (**)OHL [+]Panalpina [*]SDV International Logistics (*)UPS SCS [+]
Uti [+]Yusen Air & Sea (**)
GroundhandlersAACT [+]
Asia Airfreight Terminal (*)
Australian Air Express (*)
Aviapartner (*)
Cargo Airport Service [+]
Cargo Center Sweden [*]
Cargologic (*)
CSC India [+]
Flightcare Belgium [+]
Flightcare Spain [+]
Groundforce (*)
Hong Kong Air Cargo Terminals Ltd. (*)International Cargo Centre Shenzhen (*) Planehandling [+]SATS Ltd. (*) Servisair UK [+] Swissport (*) TAT (*)Worldwide Flight Services [+]Xiamen Int. Airport Cargo Terminal [+]
Who participates in C2K?
(*) = active Members who obtained the C2K Quality Certificate
(**) = active Members who obtained Phase 2 certification
[ t ] = Members who are presently testing the C2K Quality Management System (QMS)
[+] = Associated Members who are yet to implement the C2K QMS
IT ProvidersAirclic [+] British Telecom (*)Cargo Flash Infotech [+] CCN (*) Champ Cargosystems (*) Descartes Global Logistics (*) GLS (*) IBS [+]
Infosky[+]
Mercator [+] Riege Software (*) Traxon (*)Unisys (*)
Trucking CompaniesAccelerated Inc. (+)Land Air Express (+)Jet Airways [+]Towne Air [+]Wallenborn [ t ]
AirportsAmsterdam Schiphol / Cargonaut [+]
Members Industry Associates
Airlines + Forwarders
Global or Regional members
Associated membershipFull MembersImplementation stageQuality CertifiedClassified
Membership fee:USD 5.000,- / 10.000,- p.a. (Assoc.Member)USD 10.000,- / 25.000,- p.a. (Full Member)
GHA‘s / RFS‘s / IT companies / Airports
Global or Regional members
Industry Associated MembershipImplementation stageQuality CertifiedClassified (concept work-in-progress)
Membership fee:USD 10.000,- / 25.000,- p.a.
C2K Membership categories / fees
C2K - How it works?
Every shipment gets a plan
Every plan has milestones
Members receive alerts when milestones fail
Enhanced ability to re-plan and or recover
Detailed records are available for process analysis and improvement
The Route Map
ScheduledDEP
ScheduledARR
ActualFWB
PlannedNFD
ActualRCF
ActualDEP
ActualARR
Actual
RCS
ActualDLV
PlannedFWB
PlannedRCS
PlannedRCF
PlannedNFD
PlannedDLV
Origin Processes Destination Processes
Phase 1
AirlineIT System
ForwarderIT System
AirlineCDMP
ForwarderCDMP
constant data exchangeC2K
Reports Reports
Identical data and reports
Forwarder Airline Forwarder
AirlineIT System
ForwarderIT SystemReports
Different data
FormerStatus Reports
Different reports
Alerts if actual movement of the freight is not as planned !
Visibility & Control thru identical Data
C2K Value Proposition
Achieving transparency and visibility of the actual freight movement for the customer by applying C2K measurement of milestones and alert setting procedures during transportation
Improving internal processes to enhance service delivery by using the C2K milestone measurement and alert system as well as applying the C2K Quality Management System
Achieving recognition of adherence to C2K quality standards through structured auditing procedure and certification
Comprehensive reporting on compliance with harmonized C2K standards/milestones and selected KPI’s including benchmarking of performances within the industry
Gaining experience from knowledge and best practices of the C2K member organization in finding solutions for existing and future challenges to improve transportation performance
Getting access to comprehensive documentation of proven procedures and specifications of C2K processes and quality standards to measure and benchmark supply chain performance
Supporting and facilitating the alignment with new developments in the industry by harmonizing standards, procedures and business rules within C2K
What are the benefits of C2K? (1)
Increasing client retention & growth through enhanced service
Increasing new business based on “preferred supplier” status provided by quality performance backed by reliable data
Reducing the time spent for manual track & trace activities and for the management of irregularities
Increasing quality of warehouse and trucking operations because of standardized processes and fewer failures
Improving processes towards paperless shipping management
Reducing claims through improved visibility, control and quality
Ensuring reliable and timely delivery of freight through harmonized processes and standards of airlines and forwarders
Training of operational staff on identical standardized processes
What are the Benefits of C2K? (2)
Improving capacity utilization for aircraft, warehouse and trucking space by C2K planning
Reducing cycle times
Using same quality monitoring and reporting logic, airlines and forwarders rely on identical data to discuss quality improvements
Benchmarking of quality performance by a “neutral” body
Monitoring of real performance to ensure a high level of service delivery reflecting the requirements of different stakeholders.
Providing proactive information for shipper and consignee in case of deviation from transport plan.
Accessing knowledge from a well developed system with sizeable data of + 1 million reported transactions per month
C2K – What’s next?
• Development of C2K Platform
• Implementation of Phase2: • Alignment of C2K + e-freight:
- Review of the Master Operating Plan (MOP)
• Expansion of C2K for:
-Perishable products
-Security related products
-Air Mail services
- Enhancement of Reporting System
S C
Driving Internal Quality
9
9
Integration and completion of build up for high
quality C2K Industry Standard
Strategy
Element
Phase 1 Phase 2 Phase 3
Grow
Deliver
Support
ImproveEnsuring Data
Quality & Integrity 2
Au
dit
Act
ivit
ies
Pe
rfo
rma
nce
Im
pro
ve
me
nt
9
Priorities
Specs & Rules
Offset Management
Enhance Reporting
Shipments & Members
5
6 1
7
8
3
4
1
2
Improve congruence8
1 Review & Validate MOP, Phase 1 Specifications,
Milestone Definitions and Audit Process
2 Improve reporting process, outputs and broaden
scope. Deliver high level of Data Congruence
3 BRAVO - Standardize process, review & improve
delivery system
4 Membership differentiation, geographical growth,
increased implementation & innovation
5 Simplify terminology, develop integrated
communications plan
6 Align org. to support Delivery, Second Member
resources to increase speed to completion
7 Develop P2 Implementation Plans, Audits ….
Hig
hM
ed
ium
On
go
ing
Get initial information & ongoing support from your C2K Regional Director
Enter into C2K Membership Agreement
Start by performing a gap analysis between your current systems/processes
and the C2K specifications
Participate in C2K Local Association’s as a learning tool and support mechanism
Use the C2K quality matrix as permanent “to-do-list” and quality management tool
Participate in the C2K working groups
How can new Members start?
� …provides measurement & reporting as key elements of the C2K System
� …data initiates corrective actions and eliminates quality issues
� …enables benchmarking based on identical data / reports
� …is a well developed Quality Management System, ready to apply,
made by the industry for the industry
� …is a global organization, where all stakeholders of the airfreight industry
work together on quality improvements
� …members are audited and certified
� …is open to interested parties to join and help further improve industry
quality
� …is reaching out to shippers / customers to be part of this initiative ….
In conclusion
"Swissport is an active member of the Cargo 2000 initiative. As a service provider, we are deeply committed to customer satisfaction. The Cargo 2000 provides a common quality management system that allows our performance to be measured, reviewed and improved." John Batten - EVP Global Cargo, Swissport International
"We are definitely only talking to carriers that have it (Cargo 2000)".
Thomas Mack, VP Airfreight, Schenker AG
Customer Reactions and Testimonials
‘If not Cargo 2000, then what?’David Brooks, President of American Airlines Cargo
"C2K has become our internal quality program at United Airlines Cargo. Carriers, forwarders and logistics partners must share and act upon reliable, consistent data to deliver the highest quality service to our customers. C2K provides the data and framework to support our industry’s focus on continuous improvement."Scott Dolan, President of United Airlines Cargo
Contact Information / Working Structure
Tom PresnailRegional Director The Americas
and Asia Pacific
5091 Del Monte Avenue
Victoria British Columbia
Canada V8Y 1W9
Phone +1 778 977 4815
E-mail [email protected]
Michael Vorwerk
Executive Director
Thorsten LafleurTechnical Director
Cargo Network Services Corp.
703 Waterford Way Suite 680
Miami, FL 33126 / USA
Phone +1 786 413 1008
FAX +1 786 413 1005
E-mail [email protected]
www.cargo2000.com
Lothar MoehleRegional Director EMEA
European Office
Erlenhorst 19
46499 Hamminkeln / Germany
Phone +49 (0) 2852 - 509 003
FAX +49 (0) 2852 - 509 003
E-mail [email protected]
Thank you !
Quality Standard for the Global Air Cargo Industry
Cargo 2000 Presentation,
May 2012