E-commerce Logistics
Welcome and Opening Remarks
Alan BarrieDirector Operations and Technology
IPC
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
19%
28%
INCHINA,USA,
GERMANYANDUK
>50%OFONLINESHOPPERS
BUYONLINEATLEAST
ONCEEVERYTWO
WEEKS
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?
6
Distributionbyproductcategoryofonlineshopping
CLOTHING,FOOTWEAR,
APPARELANDCONSUMER
ELECTRONICS
>50%OFALLONLINESHOPPING
Sample:24,331(allrespondents)
PRODUCT WEIGHT
7
Distributioncrossborderpurchasesbyweight
7%
4%
8%
14%
21%
28%
17%
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)
Sample:24,331(allrespondents)
CROSSBORDER
PURCHASESBELOW
2KILOGRAM
81%
CROSSBORDER
PURCHASESBELOW500
GRAMS
45%
PRODUCT VALUE
8
2%
€200ormore
Idon’tknow
7%
€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
16%
CROSSBORDER
PURCHASESCOST
BELOW25EUROS
36%
Distributioncrossborderpurchasesbyvalue
GLOBAL E-COMMERCE
Whoareouronlineshoppers?
Howandwhatdotheyshopfor?
Whatdoshopperswant?
Whatarethelatesttrends?
From:IPCcross-bordere-commerceshoppersurvey2016
TRACKING IS KEY
10
‘outfordelivery’eventisthemostvalued
6%
Parcelwillbe
delivered
today,specific
date/time
Parcelisbeing
heldbycustoms
inyourcountry
40%
37%40%
16%
4%
40%
21%
5%
Parcelhasbeen
postedby
foreignseller
43%
40%
13%18%
4%10%
2%
Parcelhasbeen
delivered
Parcelhas
arrivedin
yourcountry
38% 40%
31%
19%
Parcelhas
leftcountry
oftheseller
32%
2%
55%
31%
Ratherunimportant
Don’tknow
Neutral
Ratherimportant
Veryimportant
FOR
86%OFCONSUMERS“OUT
FORDELIVERY”ISTHE
MOSTIMPORTANT
TRACKINGEVENT.
Sample:24,331(allrespondents)
DELIVERY PREFERENCES
11
Deliverychoiceoptionsrequiredbyonlineshoppers
RECEIVING“DELIVERY
ONANEXACTDAY”IS
IMPORTANTTO
68%OFCONSUMERS.Sample:24,331(allrespondents)
RECEIVING“DELIVERY
WITHINAGREEDTIME
RANGE”IS
IMPORTANTTO
82%OFCONSUMERS.
DELIVERY COST
12
Distributionfreeshippingoptionsandcrossborderdeliverycost
2%
4%
2%
7%
14%
13%
2%
9%
9%
39%
3%
2%
2%
6%
12%
16%
3%
9%
8%
38%
Specificfreeshippingpromotion
Freeduetohighitemvalue
FreeduetoloyaltyProgramme
Lessthan€5
Between€6and€10
Between€11and€20
Between€21and€30
Morethan€30
Don’tknow
Retaileroffersfreeshipping
20162015
Sample:24,331(allrespondents)
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
IPC
Topics:§Evolution online retail sales§Airmail volume trends§Requirements & challenges
Jörgen van MookHead Supply Chain Integration
E-COMMERCE LOGISTICS“How Air Cargo delivers on Customer demand”
Topics:§Evolution online retail sales§Airmail volume trends§Requirements & challenges
E-COMMERCE LOGISTICS“How Air Cargo delivers on Customer demand”
A BOOMING E-COMMERCE 2015 VS 2014
27November2015
BlackFridayUK
e-Commercesales
27November2015
BlackFridayUSe-Commercesales 11November2015
SinglesDaye-Commercesales
2015
Russiae-Commercesales
2015
LatinAmericae-Commercesales
+32%
+14%
+22.9%
+31%
+54%
Evolution online retail sales
A BOOMING E-COMMERCE 2016 VS 2015
25November2015
BlackFridayUK
e-Commercesales
25November2015
BlackFridayUSe-Commercesales 11November2016
SinglesDaye-Commercesales
2016
Russiae-Commercesales
2016
LatinAmericae-Commercesales
+12%
+22%
+17%
+6%
+32%
Evolution online retail salesRecessionRussia,growth
sloweddown
RecessionBrazil,Latin
Americagrowthslowed
down
Top25countriesGLOBAL 2015- 2020 ONLINE RETAIL SALES
7Asiancountriesintop25
4Asiancountries
intop10
20
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
sales
In2020onlinesalesin
SouthKoreawillreach
15%oftotalretailsales
and1.5%ofglobalE-
commerce
JAPAN 2016- 2020 - TOTAL & ONLINE RETAIL SALES
Note: convertedattheexchangerateofUS$1=Y121.05;excludestravelandeventtickets,includesproductsandservicesorderedusinginternetbyanydeviceregardlessfulfilmentmethod
Note: OnlineShoppingSurvey;1541respondentsage15+,2015
77,4 81,3 84,988,5
91,5
2016 2017 2018 2019 2020
OnlineSalesinBillionUS$
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$1=INR61.12;excludestravelandeventtickets,includesproductsandservicesorderedusinginternetbyanydeviceregardlessfulfilmentmethod
Note: ComScoreMediaMetrix2015;age15+desktop/laptoponly
13,323,4
37,5
52,5
65,1
2016 2017 2018 2019 2020
OnlineSalesinBillionUS$
In2016onlinesalesin
Indiaaccountedfor1.6%
oftotalretailsales
and0.7%ofglobalE-
Commerce
In2020onlinesalesin
Indiawillreach5%of
totalIndianretailsales
and1.8%ofglobalE-
commerce
397 457 524 600 6848991192
15471947
2416
2016 2017 2018 2019 2020
CHINA 2016- 2020 - TOTAL & ONLINE RETAIL SALES
Note: excludestravelandeventtickets,includesproductsandservicesorderedusinginternetbyanydeviceregardlessfulfilmentmethod
Note: InternationalEnfodesk,2015;excludesC2Candtravel
TotalRetailSales
OnlineRetailSales
China
USA
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%
41%
ESATIEBEFRPTDKHUTotalCHNZGRSINLLUDENOCNSEFI JPCAUK USAU ITIS
72% Post
16%
13%
Other
Idon’tknow
89%OFAUSTRALIAN
CONSUMERSUSEDTHE
POSTFORCROSS-
BORDERDELIVERY
Topics:§Evolution online retail sales§Airmail volume trends§Meeting market requirements & challenges
E-COMMERCE LOGISTICS“How Air Cargo delivers on Customer demand”
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%
+4.5%sinceIATAWCS2016
Total– AllInter-regionalflows:
2yearsago
From:24millionKGMonthDEC13
To:41millionKGMonthDEC16Lastyear
Inter-regional:AsiaPacific- Europe
AIRMAIL GROWTH TRENDSMonthly volumes Airmail KG, Jan 13 – Dec 16
+16.7%
+16.7%sinceIATAWCS2016
Inter-regional:AsiaPacific- Europe+66.6%
Inter-regional:AsiaPacific- Europe
2yearsago
From:3.4millionKGMonthDEC13To:7.5millionKGMonthDEC16
Lastyear
AIRMAIL GROWTH TRENDSMonthly volumes Airmail KG, Jan 13 – Dec 16
-24.8%
-24.8%sinceIATAWCS2016
Inter-regional:Europe- AsiaPacific
From:5.3millionKGMonthDEC13
To:6.2millionKGMonthDEC16
LastYear
2yearsago
ThresholdonB2Cimport
ChineseCustoms
AIRMAIL GROWTH TRENDSMonthly volumes Airmail KG, Jan 13 – Dec 16
+17.1%
+17.1%sinceIATAWCS2016
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
E-COMMERCE LOGISTICS“How Air Cargo delivers on Customer demand”
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.
RECEIVING“DELIVERY
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
days?
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
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Agenda
1
2
3
4
5
6
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
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Global e-Commerce Market
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The Big Three: Something’s cooking
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e-Commerce Buzzwords
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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.
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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.
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e-Commerce Supply Chain: Long and twisted
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Transformation in Logistics: Fast Forward
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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
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The Indian Domestic e-Commerce: On a J Curve
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10+ Unicorns and growing
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New Generation Logistics Players
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Mobile ONLY Market?
2020
Mobile Only500 mnDesktop+ Mobile
100 mn
2014
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e-Commerce thrives on FCR (India Story)
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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
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Here’s the complete Logistics cycle : Air Cargo is one element
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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
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Cash Management Flow
Cash Collection
Deposit at LSP Branch & Reco Deposit in Bank
Customer wise record
Repatriati on to customer
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Aspects of Reverse Logistics
Reve
rse Lo
gistic
s Multiple Attempts
Customer Initiated Delay
Instant Return
Partial return
Warranty Return
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AGENA: Kale’s E-Commerce Logistics Solution
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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
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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
cycle
Vendor Paymentü 3PL Vendor Bill
Processingü Freight Audit and
Payment
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Biker Login for Delivery
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Dashboard
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Map View of Pending Dockets
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List of Pending dockets
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Signature Capture
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Update of Undelivered Docket
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International e-Commerce: A new Paradigm
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Transaction Platform – Sales Proposition
Transaction Platform – Going one step beyond the conventional
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Transaction Platform – Going one step beyond the conventional
Transaction Platform – Booking
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Transaction Platform – Transaction
Transaction Platform – Going one step beyond the conventional
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Transaction Platform – Shipment
Transaction Platform – Going one step beyond the conventional
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Crystal Gazing the Future : What lies ahead?
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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.
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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
52
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
53
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%
GDP
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
54
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.
55
Ad Spending by Industry Type
56
56
3 Number of Internet User Added / Second,
In India
57
57
2015
50 Million
2020
320 Million
On Line Shopper
58
SOUTH KOREA 10%
JAPAN 11%
CHINA 18%
INDIA 51%
ASSOCHAM-Forrester study ( May’16 )
Highest Market Growth Rates....
59
E-COM Companies Engagement…
60
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
61
Pre Arrival
Acceptance
Processing
OPTIONAL
AIRLINE
Booking Conf.
Message
Release
Pre Arrival
Acceptance
Processing
Release
OPTIONAL
AIRLINE
Booking Conf.
Message
Outbound Automation
62
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
63
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
64
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
DCMS
Arrival @ Terminal
In Bound Automation
66
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
67
SPEED
Digitization
Accuracy
Automation
Standardization
Transparency
Environment
Benefits Delivered
68
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
1.7
Direct destinations
322
Airlines flyto AMS
>100
Is the world movingtoo fast for you as well?
Vertical Community
focus
e-CommerceGatewayAmsterdam
HollandFlower Alliance
Pharma GatewayAmsterdam
e-CommerceGateway
Amsterdam
Currente-Commerce
focus
e-Commerceand E-data
e-Commercefast lane
Specialhandlingcode?
Currente-Commerce
focusThelastmile
Customs clearance
141518
9 00111
1
1
918201
15151
131011
10111
111510
81418
46101
41151
901211
11111
11111
11114
111421
11185
761111
11
111
141111
1014011111
4610
10
e-Commerce challenges
current handlingprocesses
e-CommerceGateway
Amsterdam
Datasharing
Milkrun
VENUE
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
SATS
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
In-feed Points
ULD Management
ULD StorageEarly Bag
Storage
Castor Decks
Independent loops
65
4 3
1
2
SATS eCommerce AirHub
65
4 3
1
2
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 [email protected]
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
work.
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
IPC
Gala Dinner at Emirates Palace