Evolving Distribution Strategies
Air Cargo Africa
22-24 February 2011
Sandeep Fernandes
Manager Market Development
Cargo@ Mercator
Air Cargo industry situation

Past worst recession

Increasing costs

Eroding yields

Customers want faster,
cheaper, reliable service
Source Boeing
Air Cargo industry situation
Air Cargo industry situation
Industry response: Electronic Integration
Non Integrated Supply Chain
Electronic Integration
Vertical Integration
Electronic Integration Benefits

Reduce processing costs

Reduce processing errors

Improve delivery times

Better customer service
…Increased industry profitability
Challenges to achieve electronic integration
 Standardization Vs Flexibility
– Limited Richness
– Limited Reach
 ‘distribution control’ > intermediaries
– CCS
– ‘industry’ Portals
 Intra organisation integration
The Solution: “Insource” distribution capability
Increased Richness and Reach, through open
Inflexible standards -> Richness and Reach?
standards
Power of information distribution?
Power of information distribution retained
e-freight dilemma?
e-freight benefits achieved
Inter/intra organisation integration?
Inter/intra organisation integration ready
Future proofing?
Future proofed
The tool: Integrated Message Broker
 Sits “on-top” of the cargo
application
 Receives data and transmits
data
 Multiple Media: SMS, Email,
FTP, MQ….& Type b
 Multiple Formats: <enter your
format here>
…An integral part of SkyChain
Message Broker Benefits
 Combat emerging cost pressures &
mode switching through:
– Lower processing costs
– Lower communication cost
– Increased Reach & Richness
 Quicker delivery times
 Improved Customer Service
 Retain power of distribution
 Choice & Freedom