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Industry Scorecard - Forwarder

 

The E-Freight Industry Value Chain

Shipper  Forwarder  Ground HandlerAirline Customs Broker  |  Trucker  Consignee


 

BENEFITS OF DIGITIZATION



DIGITIZATION OF

DOCUMENTS

  • Improved digital availability of documents (including lost/missing documents)
  • Improved communication and flexibility (speed; documents available for all parties involved shortly after creation; easier to issue corrections)
  • Reduction of paper storage and archiving
  • Positive environmental and cost impact (no need to print, handle and transport)
  • Faster processing of documents at authorities

 

 

eAWB

  • Decrease in AWB processing and AWB handling (printing, transportation etc.) costs

  • Faster document / information retrieval. Elimination of duplicate data entry since most data can be received/reused digitally

  • Avoidance of emerging “paper AWB surcharges”

  • Streamline process of delivering cargo to handler

  • To the extent that e-AWB transmission begets reciprocal electronic tracking, there is downstream visibility, labor savings, and customer service improvement

  • Reduction of per HAWB ACI fees (CG vs. CC) where/when applicable resulting from electronic submission of accompanying Manifest

  • Additional savings with e-AWB beyond the obvious paper reduction cost: when close our consolidations, airport says it saves them 3-5 min when they use e-AWB, which is huge if you close 20-30 consoles on a weekend. If we could get all carriers on e-AWB it would be a big step forward.

  • Positive environmental and cost impact (no need to print, handle and transport)

  • Improved communication and flexibility (speed; documents available for all parties involved shortly after creation)

  • Reduction of paper storage and archiving

  • More efficient and geographically independent AWB processing

  • Faster document / information retrieval and flow due to elimination of duplicate data entry (most data can be received)

  • Re-use of data (e.g. for AMS/customs programs)

  • Avoidance of emerging “paper AWB surcharges”
    .

   

eCSD

  • Reduced cost of CSD printing
  • Since e-CSD is a derivative of FWB message with additional fields, the cost of generation of e-CSD will be reduced.
  • Better control / security over CSD contents
  • Elimination of another paper document (CA, ZA, CH)
  • Consolidation of CSD within AWB record
  • Improved digital availability of documents (including lost/missing documents)
  • Positive environmental and cost impact (no need to print, handle and transport)
  • Improved security by instant availability for audits
  • Improved response time to regulators
  • Elimination of another paper document
  • Transmission via established paths (FWB)
   

eFREIGHT

  • Here there are maximum benefits for the forwarder.
  • Forwarder can import data from electronic files of Invoice and packing list or letter of instructions thus reducing data entry effort and costs in generating forwarding jobs as well as other documents like AWB, Customs Declaration.
  • The same data will be reused to create bookings with carriers, air waybills and house manifests thus further reducing costs involved in creation of these documents.
  • A single window EDI can be used i.e. from the same data customs declarations could be filed thus reducing efforts and costs involved in customs clearance.
  • The need for printing most of these documents is averted.
  • This ensures better data security than with papers floating in hands of people.
  • Better visibility of shipment is established through FSU messages.
  • Streamline process of delivering cargo to handler
  • Destination agent can initiate inbound process sooner potentially reducing total transit time
  • All benefits of digitization (above)
  • ‘Improved digital availability of documents (including lost/missing documents)
  • Improved communication and flexibility (speed; documents available for all parties involved shortly after creation; easier to issue corrections)
  • Reduction of paper storage and archiving
  • Positive environmental and cost impact (no need to print, handle and transport)
  • Re-use of data for e.g booking, invoicing, ...
  • Improved quality by matching specific instructions with corresponding shipments
  • Improved shipment visibility (messaging)
  • Increased data security by controlling access (paper can be read by anyone)
  • Closer and faster interaction with Airlines/GHAs/...
  • Destination/Import benefits (process can start sooner)
  • More efficient and geographically independent processing

 

Invoice:

The forwarder can get most benefited by this. As the study by e-freight SIN reveals, 62% of data on invoice is reusable in creating a certificate of origin, 37% of invoice data is reusable for creating a HAWB and 32% of invoice data can be reused in creating an MAWB. This will reduce the paper handling as well as efforts in creating other standard freight documents.

 


Packing List:

  • As the study by e-freight SIN reveals, 37% of packing list data is reusable for creating a HAWB and 89% of this data can be reused in creating an MAWB.
  • This will reduce the paper handling as well as efforts in creating other standard freight documents.


Certificate of origin:

  • This will reduce the paper handling as well as efforts in creating other standard freight documents.

 

Letter of Instruction

  • Reduces time and effort required for creating a freight forwarding job and hence further documentation attached with the same.

 

 Dangerous Goods:

  • Less paper handling
  • Less chances of error and hence resulting penalties

 

House Air Waybill

  • Less paper handling
  • Less time in getting the document approved from shippers.

 

House Manifest

  • Less paper to be produced

 

Export goods

  • Less paper handling

 

Customs Release Export:

  • Less paper handling


Import Declaration goods

  • Less paper handling


Customs Release Import:

  • Less paper handling


Cargo 2000:

  • Better shipment planning
  • Better exception management
  • Better visibility
  • Ability to manage SLA (service level agreements) is enhanced
  • Route map creates SLO as basis for performance and quality measurement and foundation for management by exception to streamline processes
  • Industry standardization
  • Shipment visibility
  • Shipment planning & exception management
  • SLA & quality management

 

MOP:

  • Detailed blueprint for air cargo process is a valuable resource for process alignment and automation between stakeholders

 

Phase II

  • Can be foundation for offering premium time definite services

 

Phase III …. Someday

 

 

Data Re-usage

  • ‘Enables optimizations for efficiency and error reduction


 

CHALLENGES OF DIGITIZATION


 

DIGITIZATION OF DOCUMENTS


  • Scalable processes for digitizing paper require substantial investment
  • Platforms for sharing e-documents available but low penetration due to limited integration with operational software (common platforms will help)
   
 eAWB
  • Unless there is a common process across airlines, implementation of e-AWB is complicated. The forwarder staff can’t be expected to know which location is e-AWB compliant and hence when to print the paper and when to not.
  • Exception management (scenarios of unsuccessful messaging) has to be clearly defined.
  • Registration of forwarders for FWB messaging in carrier systems takes a lot of time.
  • Most carrier systems don’t have the ability to acknowledge FWB with FMA (acknowledgement) messages. This creates uncertainty in the minds.
  • User friendly solutions that avoid forwarder making double entry for e-AWB are very few. The forwarders have to do duplicate data entry in CCS / carrier portals.
  • Knowledge of e-AWB is limited within the community as well as with local airline offices. Technology is readily available but information about benefits and implications of e-AWB remain
    cloudy (situation is improving).
  • ROI attainment is protracted during transition (believe paper AWB surcharges will catalyze and counter this)
  • CCS/Airline interface optimized for high volume from few forwarders - not scaling well for reverse (from SME adoption mandate) resulting in appearance of poor Airline performance
  • Industry does not have complete buy-in Differing standards among the supply chain Customs is behind on this worldwide?
   
 eCSD
  • Knowledge of e-CSD is limited
  • No of carriers supporting e-CSD is limited.
  • Still in pilot stage - very few countries and airlines operational
  • FWB 16/17, XFWB are prerequisites
  • Limited knowledge of e-CSD
  • Limited number of carriers supporting e-CSD
  • Rules/regulations not harmonized (standard screening methods, standard screening exemption codes)
  • Still in pilot stage - very few countries and airlines operational FWB 16/17, XFWB are prerequisites Transaction costs for filing data messages
   
eFREIGHT
  • Although digital equivalent of paper can be established, legal sanctity of these messages is still in question in many countries.
    Most shippers can’t send invoice, packing list in electronic messages.
  • Unavailability of integrated single window EDI platforms may mean multiple points of data entry for forwarders.
  • Same challenges as digitization
  • Increased labor cost for LSP for upstream data conversion (entry) into e-documents (it will be a while before that factory in viet nam can provide e-packing lists...)
  • Emergence of more common information sharing platforms will help
   
 CARGO 2000
  • Knowledge of Cargo 2000 is a big issue. Fear of service levels being published
  • Technology integration with in-house systems is a problem
  • Limited participation (only selected multinationals)
  • Lack of awareness within industry broadly speaking
    - poor marketing
  • Cargo 2000 seems to be aimed at making all FF “cookie cutter.”
   
MOP

MOP is “own warehouse” centric... geared more to major players

   
PHASE II
Phase II “D2D” is even more difficult for SME’s to imagine until broad common platform participation and integration by partner agents is widespread
   
 PHASE III Phase III “Pieces” will be a challenge for the long-standing C2K participants lacking the assets possessed by integrators - for SME’s its like a moonshot now - will take some time
   
DATA RE-USAGE
It will take time for everyone to be on or connected to common collaboration platforms



 

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