Quality Standard for the Global Air Cargo Industry Cargo 2000 Presentation September 2011 C2K Presentation Cargo 2000 in Details

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.

The Master Operating Plan Characteristics Flow Time & Timeliness Information/Planning Controls/Conformance Objectives Time definite, global services Cost effectiveness Logistics enabling Enterprise management SC

The three phases of Cargo 2000 Chain definition Monitoring level Visual Representation 1 Airport to Airport (A2A) Master AWB level Shipment planning & tracking 2 Door to Door (D2D) House AWB level; Shipment planning & tracking (Example of 3 HAWB) 3 Door to Door (D2D) Shipment planning & tracking at piece level with document tracking

Phase 1 & 2 - A Reality Phase 1 Result Service Level for members Flown as planned Arrived as promised (NFD performance) FWB performance Phase 2 (being rolled out) Members started implementation & measuring over 1,000,000 HAWBS a month

Booking Create Route Map Creation of MAWB Freight Checked in at Departure Airline Goods confirmed on Board Flight Freight Arrival at Destination Airport Freight Acceptance at Arrival Airport BKD FWB RCS DEP ARR RCF Documents Received at Destination Airport Freight & Docs ready for Forwarder Pick Up Documents Delivery to Forwarder AWR NFD AWD Freight Delivery to Forwarder DLV C2K - Phase 1 - Airport to Airport

Forwarder Booking Create Route Map Pickup from Customer Received at Forwarders‘ Warehouse Truck Departure Export Warehouse Received at Export Hub Warehouse Truck Departure Export Hub Warehouse PUP REW DEW REH DEH Transfer of Electronic MAWB Transfer of Electronic Manifest Truck Arrival at Departure Airport FWB FHL DOC Cargo Phase 2 – Door to Airport

Received at Import Hub Warehouse Truck Departure Import Hub Warehouse Received at Import Warehouse Goods Out For Delivery Proof of Delivery RIH DIH RIW OFD PDD Cargo Phase 2 – Airport to Door Third party Notification TPN Document Hand Over Third party HDP KPI – Promised Delivery Date POD

Phase 3 – What is it? Based on ‘Original MOP’: - Control of Information Flow - Control of Freight Flow - Control of Documentation Paperless environment (IATA e-freight) Smart scanning at unique piece level with use of Bar-code scanners – RFID Compatibility between IATA 606, Bar-Code, RFID with Sites operating at different technology levels Cycle Control Framework Security Control

Route Map Creation The Route Map describes the path the freight shipment follows is created when the booking is accepted and includes flight bookings as well as the checkpoints / timestamps required in the various Phases Verifies progress of the freight movement continually determines whether service commitments are kept

Route Map Creation Flight Dep.Flight Arr. Each shipment plan starts with two known entities

Route Map Creation (Dep time minus offset) (Arr time plus offset) Shipment On Hand Flight Dep.Flight Arr. Freight & Docs ready for Delivery Freight Departure Delivery Cut-off Time FWB When a Forwarder makes a booking pre-defined offsets are used to create a 6 point Route Map DLV Phase 1

Route Map in the system This Booking from AMS to PEK generated a route map with defined cut off times for each event

Route Map is now live (Dep time minus offset) (Arr time plus offset) Shipment On Hand Flight Dep.Flight Arr. Freight & Docs ready for Delivery Freight Departure Delivery Cut-off Time FWB The sending of the FWB makes the plan operational DLV Phase 1

Route Map is now baselined In this case we see that the freight has been delivered before the FWB has been received. This sends the plan live, but... RCSDEPRCFNFDDLVFWB XX Mar 1600 (-95) 27 Mar 1835 (+60) dep: 27 Mar 1735S arr: 28 MAR 0855S 28 Mar 1455 (+360) 27 Mar 1525 (+390) 31 Mar 0855 (+4320) 27 Mar 1605 (-90) AMSPEK5

Route Map... it generates an error alert for the missing FWB RCSDEPRCFNFDDLVFWB XX Mar 1600 (-95) 27 Mar 1835 (+60) dep: 27 Mar 1735S arr: 28 MAR 0855S 28 Mar 1455 (+360) 27 Mar 1525 (+390) 31 Mar 0855 (+4320) 27 Mar 1605 (-90) AMSPEK5

Route Map (Dep time minus offset) (Arr time plus offset) Shipment On Hand Flight Dep.Flight Arr. Freight & Docs ready for Delivery Freight Departure Delivery Cut-off Time FWB After delivery the next checkpoint is the freight departure DLV Phase 1

Route Map A further problem! – the departure confirmation has not been received by the planned time. Another error alert is generated. RCSDEPRCFNFDDLVFWB XX Mar 1600 (-95) 27 Mar 1835 (+60) dep: 27 Mar 1735S arr: 28 MAR 0855S 28 Mar 1455 (+360) 27 Mar 1525 (+390) 31 Mar 0855 (+4320) 27 Mar 1605 (-90) AMSPEK5

Route Map The departure message is finally received.

Route Map And the error code is updated to show that it was not received within the planned time frame. RCSDEPRCFNFDDLVFWB XX Mar 1600 (-95) 27 Mar 1835 (+60) dep: 27 Mar 1735S arr: 28 MAR 0855S 28 Mar 1455 (+360) 27 Mar 1525 (+390) 31 Mar 0855 (+4320) 27 Mar 1605 (-90) AMSPEK5

Route Map The Airline posts an error report including an exception handling code for the non receipt of the FWB. This will be used for quality reporting purposes. RCSDEPRCFNFDDLVFWB XX Mar 1600 (-95) 27 Mar 1835 (+60) dep: 27 Mar 1735S arr: 28 MAR 0855S 28 Mar 1455 (+360) 27 Mar 1525 (+390) 31 Mar 0855 (+4320) 27 Mar 1605 (-90) AMSPEK5

Route Map (Dep time minus offset) (Arr time plus offset) Shipment On Hand Flight Dep.Flight Arr. Freight & Docs ready for Delivery Freight Departure Delivery Cut-off Time FWB The next checkpoint is the freight arriving in the import warehouse DLV Phase 1

Route Map The shipment is back on track – the freight is received within the planned time frame. RCSDEPRCFNFDDLVFWB XX Mar 1600 (-95) 27 Mar 1835 (+60) dep: 27 Mar 1735S arr: 28 MAR 0855S 28 Mar 1455 (+360) 27 Mar 1525 (+390) 31 Mar 0855 (+4320) 27 Mar 1605 (-90) AMSPEK5

Route Map (Dep time minus offset) (Arr time plus offset) Shipment On Hand Flight Dep.Flight Arr. Freight & Docs ready for Delivery Freight Departure Delivery Cut-off Time FWB The next checkpoint is notification to the forwarder That the freight and documents are ready for delivery DLV Phase 1

Route Map Another on time event RCSDEPRCFNFDDLVFWB XX Mar 1600 (-95) 27 Mar 1835 (+60) dep: 27 Mar 1735S arr: 28 MAR 0855S 28 Mar 1455 (+360) 27 Mar 1525 (+390) 31 Mar 0855 (+4320) 27 Mar 1605 (-90) AMSPEK5

Route Map Completed (Dep time minus offset) (Arr time plus offset) Shipment On Hand Flight Dep.Flight Arr. Freight & Docs ready for Delivery Freight Departure Delivery Cut-off Time FWB Actual collection by the Forwarder completes the plan for Phase 1 DLV Phase 1

Route Map Completed Phase 1 is Completed. RCSDEPRCFNFDDLVFWB XX Mar 1600 (-95) 27 Mar 1835 (+60) dep: 27 Mar 1735S arr: 28 MAR 0855S 28 Mar 1455 (+360) 27 Mar 1525 (+390) 31 Mar 0855 (+4320) 27 Mar 1605 (-90) AMSPEK5

Visibility & Monitoring Planning and Execution past future Present backward forwardand Entire Airfreight Chain Traditional Tracking & Tracing Cargo 2000 Route Maps Status and history of shipments or packages near real time (customer individual) status and history of orders and inventory „forward visibility“ based on customer or order individual plans

Your Cargo 2000 Membership includes… Capability Full Participation in The Industry Quality Organization for Air Cargo Possibility to create your own Quality management system by using the blue print created by C2K for the industry Full process and technical supporting documentation A choice of turnkey CDMP services or the option to build your own A Broad based technical working group to resolve issues and lead improvement and innovation A dedicated Management Team to support your evaluation, development and ongoing implementation Connectivity Immediate connectivity with most of the major airlines and forwarders around the globe

Comparability Monthly performance reporting including benchmarking based on common sets of data A structured Audit program to validate your performance against the same criteria as all other members Community Participation in setting the direction and goals of the group Bi-annual meetings to discuss quality issues with peers and customers Access to 29 Local association groups at key airfreight destinations to jointly address quality barriers and promote quality improvement Access to our on-line data repository and information exchange web site, and coming soon online training Your Cargo 2000 Membership includes…

Visibility Exposure to the trade press and shippers as an integral part of this unique industry initiative Regularly featured at exhibitions and conferences Alignment Through our Industry Associates and cooperation with other industry groups Cargo 2000 promotes strategic and practical developments that ensure your quality system remains current and relevant within an industry context.

Conclusion Members of Cargo 2000 are committed… to measure the quality implement a solid Quality Management System be certified for compliance by Cargo 2000 to work constantly – together with the partners in the industry – on quality improvement to work together with industry initiatives such as IATA e-freight, security etc.

Conclusion Customers are starting to question if a supplier is C2K compliant. Our goal is for every customer’s first question to be …. ARE YOU CARGO 2000 COMPLIANT?

Thank you for your attention! Quality Standard for the Global Air Cargo Industry