Evolving Distribution Strategies Sandeep Fernandes Manager Market Development Mercator Air Cargo Africa February 2011

 Past worst recession  Increasing costs  Eroding yields  Customers want faster, cheaper, reliable service Source Boeing Cost containment will be key… Air Cargo industry situation

Cost containment will be key…

Air Cargo industry situation Time Compression will be key…

Industry response: Electronic Integration Vertical Integration Electronic Integration Non Integrated Supply Chain

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

The tool: Integrated Message Broker  Sits “on-top” of the cargo application  Receives data and transmits data  Multiple Media: SMS, , FTP, MQ….& Type b  Multiple Formats: …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

…Have Data? …Can Connect!