The objective of Cargo 2000 is to improve the efficiency of air cargo. Processes, backed by quality standards which are measurable, are to be implemented. Cargo 2000 operates as an industry group within the International Air Transport Association (IATA). It is composed of major airlines, freight forwarders, ground handling agents, trucking companies and IT providers. Panalpina was one of the founding members of Cargo 2000. The company generates roughly 50% of its net forwarding revenue with air freight. Almost 20% of the company’s global air freight volumes are handled by Panalpina’s own controlled network. The remaining volumes are procured with commercial carriers.
IATA is currently reviewing the standard process of an air freight shipment, the Master Operating Plan (MOP). This is one of the reasons why Panalpina has decided to move forward with Cargo 2000 certification for Phase 1. The certificate was issued in October after an in-house audit. “From the decision to become Phase 1 certified to certification, it took Panalpina only nine months. This was an impressive and unique industry effort,” says Mattijs ten Brink, Chairman of the Board of Cargo 2000.
Phase 1 manages airport-to-airport movements. This involves shipment planning and tracking at Master Air Waybill level. Once a booking is made, a plan is automatically created with a series of checkpoints against which every air cargo shipment is managed and measured. This enables the system to alert Cargo 2000 members to any deviation of the plan allowing them to respond pro-actively to fulfil their customers’ expectations.
“The Phase 1 certification is the only independent seal of quality for our air cargo data and processes. Reliable data leads to a better visibility of cargo during the shipment’s life cycle,” says Rolf Bosselaar, Global Head of Air Freight Standards and Governance at Panalpina. “This can, for example, substantially reduce time spent managing irregularities.” Panalpina was supported by the Descartes Systems Group Inc., a CDMP (Common Data Management Platform) provider, to meet the standards of Cargo 2000 certification.
Panalpina is going to do a feasibility study for Phase 2 certification in the first quarter of 2012. Phase 2 is focused on shipment planning and tracking at House Air Waybill level and provides interactive monitoring of the door-to-door movement. “Phase 2 requirements are more complex, changes in our operations’ IT systems are necessary,” explains Irina Novikova, Corporate Head of Business Transformation at Panalpina. “Phase 2 certification would therefore go hand-in-hand with our major transformation initiative which includes a global rollout of standardized processes and a new SAP TM application.” Based on this initiative, Panalpina expects Phase 2 certification during 2013.
The third and final phase of Cargo 2000 manages shipment planning and tracking at individual piece level. This provides for real-time management of the transportation at piece level. In the attempt to operate in a paperless environment, the IATA e-freight initiative and Cargo 2000 are complementing each other.