Freight and logistics have long been associated with men but in the United Arab Emirates (UAE), women play an equally important role in sustaining and growing these sectors.
Nadia Abdul Aziz, the first female and Emirati president of the National Association of Freight and Logistics (NAFL-UAE), the Arabian Gulf’s first national nonprofit organization that brought together in one body all the major players in the freight forwarding, logistics and shipping industries in 1992, says she felt intimated at first handling the family business—UNASCO, which offers competitive solutions for sea and air freight, trucking and warehousing—but eventually overcame all obstacles.
“I initially felt intimidated. No one took me seriously. I was new and worked so hard to build a reputation through my work experience,” recalled Abdul Aziz when she took over the management of UNASCO in 2003.
Today, she’s at the helm of protecting the interests of more than 400 companies, all members of the nonprofit group NAFL, leading them to an innovative future where technology is utilized for the common good of all.
“I now feel confident and am always supported by my male colleagues and board members. The role of UAE women positively changing has also helped me and many others to be taken more seriously. We have our top leaders believing in us and empowering all females in the UAE and Dubai so I see no obstacles if we are equipped with the relevant experience/training and attitude,” said Abdul Aziz who in 2017 was voted as the Vice President of the Extended Board of FIATA (International Federation of Freight Forwarders), the Geneva-based nonprofit organization representing about 40,000 forwarding and logistics companies in 150 countries.
Abdul Aziz, who has a Bachelor’s Degree in Marketing and Advertising from the American University in Dubai with Master’s Degree in Business Administration who also studied at London Oxford College and Edinburgh University, said serving NAFL is a national duty she takes to the heart.
“I feel motivated & proud/honored to represent my country to more than 150 countries abroad. I also feel great because I am able to assist foreigners in the UAE to handle their business more smoothly via the association. It’s our duty as nationals to help all the people who believe in the UAE.”
Air Cargo Update caught up with this busy entrepreneur and leader who starts her day early in the morning spread over her family-owned business, NAFL and other associations she leads.
Her day doesn’t end until 1 am. In between, she tries to relax by spending time with her parents, family and friends, watch news and replying to countless emails.
But despite her overly loaded schedule, Abdul Aziz still finds time to pray, mentor, share and inspire.
What would you like to tell women who may be interested in making a career in the logistics industry?
I welcome all of them. We have a WILAT-ME network in the UAE. We have NAFL to support them in training, networking as well as work experience/internships. The sky is the limit and this is a niche yet growing industry. A bright future awaits them if they are serious about a career in logistics. Logistics can be in fashion, health care, electronics, FMCG sectors, food, etc. They can visit me at the NAFL office anytime and I will be more than happy to assist them.
How do you handle stress?
I handle stress through faith and prayers. And if it is work related, I try to delegate tasks so I can finish all my work on time. It’s hard, especially, when you’re leading more than four organizations that require time and a lot of efforts.
How do you spend your free time?
As I got older, I spend more time with my parents, sisters and grandmother. I also like to spend time with my nieces and nephew. Sometimes, I take them out or treat them to something they really enjoy.
What is your dream holiday?
My dream holiday is to be with friends in a beautiful clean place with great weather and no work. I love Monaco, Maldives, Paris, etc. These are some of my favorite destinations.
What advocacies are dearest to your heart?
Helping orphans by assisting them in securing professional training, career guidance, etc., so that they can be independent and can stand on their own feet. I also love to help distressed women and children with special needs. I always ensure that all my work has CSR in these areas.
Japan’s longest running car and motor manufacturer, Isuzu Motors Limited, has built a new factory within the premises of its Tochigi Plant with demand for heavy and light-duty trucks steadily increasing in the country and other emerging markets.
The company says the production of the new diesel engine series has already started conforming to the 2016 exhaust emission standard.
They will be mounted on the light-duty truck model, “ELF” for the Japan market. The Tochigi Plant has been the base to produce heavy-duty and mid-duty truck engines. With the new factory added, it is now capable of producing light-duty truck engines also. The light-duty truck engines for overseas markets are produced at the Fujisawa Plant continuously.
At the new “smart” engine factory, thorough quality control is implemented using IoT and the so-called cell production system (to group multiple processes) is adopted to improve productivity. In addition, some new methods and systems, including the examples below, have been introduced to realize a clean factory friendly to people and environment.
System to collect debris scattered from the machining line to reduce smell and dirt.
Barrier-free floor to reduce workload
All lights in the factory use LEDs.
Founded in 1916, Isuzu Motors has been known throughout its more than 101-year history of producing quality and efficient trucks. As of 2009, the company had produced 21 million diesel engines used in over 100 countries.
General Navigation and Commerce Company (GENAVCO) is the sole distributor of Isuzu cars and trucks in the United Arab Emirates (UAE) since 1982 with showrooms in Dubai, Sharjah, Abu Dhabi & Al Ain.
Genavco is a subsidiary of the Juma Al Majid Group of Companies founded by local businessman Juma Al Majid who remains the force behind the Group’s phenomenal success for over 50 years now.
A smart warehouse encompasses several facets including working with a multitude of smart devices, streamlining processes, providing employees with better data to make informed decisions and keeping airlines and customers informed.
Warehouses of today are far more than just a facility where stocks are stored for supplies and inventory. Leveraging the latest supply chain technology and the Internet of Things (IoT), a ‘smart warehouse’ can now serve as a hub to boost efficiency and speed throughout the entire supply chain.
From wearables on workers to sensors and smart equipment, internet-enabled devices and technology can profoundly change logistics management.
With the advent of e-Commerce consumers are spoilt for choice and expect goods to be delivered quickly. Even die-hard traditional stores like IKEA have embraced the e-Commerce revolution by making their goods available online.
This shift in culture has increased expectations for faster delivery through air cargo and driving a lot of innovations in the industry. In the competitive marketplace, this increased demand puts pressure on the supply chain to reduce cycle times.
Many airlines have embraced e-Commerce and, like Amazon, are radically changing warehouses and processing using IoT, digital devices and smarter processes to deliver goods quicker.
e-Commerce driven small parcels require swifter delivery to the consignee which requires more efficient handling in the warehouse. A larger proportion of online purchases will make the shipment size smaller, but it also increases the frequency of shipments.
As the volume of small parcels increases, warehouse operators need to improve the picking and processing of items by using smarter means to process them swiftly from the warehouse to delivery. As small parcels tend to create a small shipment size, there are greater risks for shipments to be misallocated.
A smarter warehouse uses better picking lanes, wearable devices, drones and better integration with machines to help to process shipments faster and more accurately. Thus parcels will drive a new evolution and operators have to proactively position them to reap the benefits of the parcel boom.
Additionally, investing in IoT or hand-held devices reduce manual labor to a considerable level, increase speed and shipping accuracy and offer retailers an opportunity to obtain unparalleled transparency into supply chains and inventory.
Global information technology company Unisys recently predicted the rise of an even smarter warehouse and new strategic alliances that will transform the Asia Pacific Cargo Industry by 2020, while IoT and voice AI enabled smart devices and systems, warehouse drones and strategic alliances between airlines and distributors will be key to the air freight industry capitalizing on the e-commerce market.
To further discuss Unisys’s 2020 prediction, we got in touch via email with Unisys’s Asia Pacific Logistics’ Solutions Director Niranjan Navaratnarajah and with David Christmas, CEO Middle East, Russia and Turkey and Head of Transport of DHL Supply Chain.
Critical traits
Warehousing is no longer an unsophisticated business. Operators need to embrace technology and understand it. An intelligent warehouse features three critical traits—visibility, mobility and flexibility. Technology, ultimately, is the means to those ends.
DHL’s Christmas, said, “The potential of automation in logistics is enormous. According to a research, around 80 percent of warehouses currently have no supporting automation whatsoever, but DHL estimates that robotics implementation will be the norm in the industry in less than five years. Automation in logistics will be further propelled by factors such as globalization, increasing e-commerce volumes and changing consumer expectations, as well as labor shortages in logistics. DHL considers warehousing to be the most relevant application field for recent advances in robotics.”
Unisys’ Navaratnarajah, notes, “Air Cargo needs to move from the manufacturer/grower to the consumer spends majority of time on the ground – most of it in warehouses. Some consolidators also use warehouses for storage. But this is very inefficient use of expensive real estate. Therefore warehouse owners and managers need to find ways to process goods through the warehouse as quickly as possible.”
Saving money and energy
Automatic warehouses save energy in many ways; from efficient, lighter engines in the AS/RS systems, intelligent motion calculations and regenerative power supplies to the simplest of all energy savings method: turning off the lights.
However, the principle of energy is neither created nor destroyed – it is transformed. When an automated machine is in motion, the kinetic energy created from this movement must go somewhere when the machine slows down.
“It saves money by reducing time when goods are just sitting in the warehouse and reducing the risk of items being lost or misplaced. And generates revenue by enabling a freight company to be able to move more goods through the warehouse in a given time,” says Navaratnarajah.
Rise of robots and co-bots
According to DHL, collaborative robots equipped with high-resolution cameras, pressure sensors and self-learning capabilities will soon assist warehouse workers with tasks such as picking, packing, and sorting of items.
Collaborative robots can also be redistributed globally to respond to changing peak seasons or complete replenishment and cleaning tasks overnight.
“DHL is currently testing collaborative robots all over the globe to evaluate where they may best be implemented. Pilots already completed include programs with Fetch Robots, Baxter and Sawyer and EffiBOT. Such robots can help with co-packing and value-added tasks, such as assembly, kitting, packaging and pre-retail services. “EffiBOT follows workers through the warehouse and completes most of the physical tasks. Robotic cargo unloading, in which a robot scans the boxes in a container to determine and carry out the optimal unloading sequence, although not yet implemented, may also become more feasible and cost-effective as the technology improves,” said Christmas.
Advances in robotics have the potential to dramatically improve efficiency in logistics, fill labor shortages, and support workers, allowing them to focus on less strenuous and more rewarding tasks.
“Yes, but it will only supplement and not totally control it. The digital innovations of a ‘smart warehouse’ help the workforce to process goods more quickly. A smart warehouse encompasses several facets including working with a multitude of smart devices, streamlining processes, providing employees with better data to make informed decisions and keep airlines and customers informed. Warehouse need to process more goods faster to optimize the return on real estate,” responds Navaratnarajah.
A key to air freight industry
Warehouses that do not embrace the digital evolution will feature a lack of mobile devices, legacy systems and processes, heavy dependency on paper processes that are labor intensive and slow, lost goods, delays by customs inspections and a lack of communications to customers.
But the use of digital economy and IoT, supply chain integration, drones and mobility will help to process goods more quickly, keeping the customer informed in delivering goods expeditiously.
Traditionally a specialist with a lot of experience and strong ‘gut feel’ has led air cargo processing to help them spot challenges, bottle necks and address issues.
However, there is very low take up of warehouse jobs in the younger workforce. Training cycles are long and the attrition is high. The traditional experts are often ties to lengthy legacy processes.
“Embracing digital solutions is essential to meet this challenge for warehouses in the future. Smarter devices such as IoT, Voice enabled AI, simplified processes are at the very center of this evolution and will help attract more workforce and shorter training cycles. The workers will also be augmented by richer analytics to continually improve services for customers. Thus, the evolution driven by such smart technologies is pivotal to the transformation of the warehouse,” says Navaratnarajah.
Generating higher ROI
A typical task of a warehouse periodically takes physical check of the storage bins/locations on the recorded inventory and to match the actual inventory, which will help to match goods. A worker taking a note content by visiting all locations does this.
If the storage bins are up high it is hard to read bar codes or physically view the actual goods. Such a process is also open to human errors. As it is a lengthy process it is typically only done weekly or fortnightly. Instead, drones and shipments with beacons and blue tooth enabled devices, drones can fly at different levels within the warehouse to easily capture the data about shipment locations in a much shorter time so they can be done more frequently.
There drones can also be used to identify shipments that are in distress by assessing the temperature and communicate to alert worker if corrective action needs to be taken for the distressed shipment or a live animal.
IoT is the key to the future of smart warehouses. Traditional warehouses are process driven, and highly dependent on people-based process that increase demand at peak times. Any growth requires additional crews.
In contrast, IoT will automate many repetitive tasks, and high frequency tasks, like inventory checks to increase accuracy and real time knowledge of goods location. Devices such as drones will be able to perform smart tasks like scanning shipments for signs of distress and trigger action to better manage the well-being of perishable goods or livestock.
The distribution facility
The use of multiple channels in the warehouse to process diverse types of shipments is essential in the modern age to drive towards a smarter warehouse.
IoTs, drones, wearable devices, integration, voice commands are some of the channels that will drive the change and operators have to take it into cognizance in the quest to change.
However, to be truly effective these channels must feed into each other to provide a single view and experience – rather than act as separate disparate channels. Development to achieve this will truly drive the new warehouse of the future.
Airline operators can draw a lot of inferences from data and pick valuable insights from machine learning.
Data is invaluable to identify trends on how resources should be deployed to manage peaks and troughs. Data can also provide a lot of insights and interpretations to suggest areas of process impro-vements, bottle necks, area of integration, goods flows and directions, customer connectivity, customer serving performance, truck handling etc.
It can also predict what equipment required and help optimize equipment utilization to save capital costs.
“This is especially important for livestock and perishable cargo where the environmental conditions must be managed. Using insights from data warehouses can improve peaks and troughs, understand customer behavior, predict shipment arrivals and provide a customer a better experience,” says Navaratnarajah.
Integral warehouse role
Air cargo is generally a people’s business driven and operated by experts and sometimes ‘legends’ in the warehouse.
Most operators rely on these so-called legends to drive the business as well as train the new workforce based on legacy practices. As a result change is low or slow. It is also curtailed lack of investment.
Many leaders speak about change but have not yet implemented the digital investments to make it happen.
Unisys believes as a solution provider it has a role to play in sharing our thought leadership with such operators and jointly exploring methodology to introduce these IoT to help operators to adapt these devices to supplement manual activity.
Components of a smart warehouse
A smart warehouse should inform a customer when to hand over the cargo based on analytics; operators use smart devices to accept or locate cargo; machines can communicate data to systems; mobile devices and wearable devices process data in the warehouse and integrates it with airport systems for manifesting and transporting cargo to an aircraft. In addition, users can process data via voice-enabled commands to process tasks in the warehouse. Drones will monitor shipment well-being, optimized goods flow and suggest corrective actions if cargo is in distress.
Conversely for import goods, in addition to processing, deliveries (including delivery to door) will be enhanced via mobility devices with electronic signature on the keypad. Movement of assets (Unit load devices – ULDs) in the warehouse will be managed through beacons and blue tooth enabled devices to track optimum stock levels and the movement of assets. Data will be captured and made available to process goods more quickly and accurately, and further enhanced by machine learning to continuously improve processes, according to experts at Unisys.
It is a global phenomenon where online sales are just skyrocketing for the many advantages it brings along with it. In India, the e-Commerce industry is seeing high growth and this is likely to catapult further as the digital sector expands and as retail players keep innovating on delivery systems.
In 2017, online retail sales touched $17.8 billion in gross merchandise value (GMV) from $14.5 billion last year, a healthy increase of 23 percent. The sales picked up in the second half, according to RedSeer Management Consulting, a market research and consulting firm. It was the big players such as Amazon India and Flipkart Ltd which were the main drivers, along with Paytm E-commerce which got a tremendous boost, post demonetization of India’s currency.
The RedSeer report said the trend would continue and accelerate in 2018, projecting that the e-commerce market may hit $28 to $30 billion in GMV, a staggering 60 percent growth.
In fact, in the Indian Parliament, the Minister of State for Consumer Affairs, C.R. Chaudhary says “India’s e-Commerce market is estimated to be $33 billion in the 2017-18 financial year.”
The acceleration would come through aggressive marketing by the e-Commerce companies, backed by technology infusion such as faster internet speeds, huge discounts, prompt deliveries, easy returns, easy payment options besides other value additions.
The consulting firm indicated that with such growth, the e-Commerce segment would see new online shoppers come into the space, not just from urban areas but also semi-urban areas and even rural pockets. And during festive season, sales always skyrocket.
In last year’s year end sale, Indians spent around $3.2 billion. Both Amazon and Flipkart notched up impressive sales, claiming growth of 4.5 to 5 times during the festive period over a non-festive period.
Amazon makes massive investments
The big e-Commerce players are betting big. Amazon for instance has invested about $1 billion in its e-commerce business in India since the beginning of January 2017.
Amazon Seller Services, the largest arm of the US company in India, has had three rounds of capital infusion in 2017. In all it has invested heavily in India operations at $2.7 billion and the American company is keen on becoming number one player, outperforming Flipkart which claims to have a cash reserve of $4 billion.
The e-retail industry has galvanized the domestic cargo segment with an expected contribution of about $760 million in this fiscal, of which the air cargo segment would account for $152 million, according to an Express Industry Report 2018.
The e-retail industry has shaken up the traditional express operations and unlocked several opportunities. The domestic express industry (both by road and air) is growing at 15 percent and e-retailers have increased their share in the growth. The domestic express industry has been pegged at $2.5 billion.
The way Amazon and Flipkart have made inroads into online commerce is amazing, with the two accounting or almost 80 percent of industry revenues and there are more entrants coming on the scene, enhancing competition significantly.
The report said the dynamic and competitive nature of the e-retail segment has brought in many new trends for the industry such as adoption of alternate delivery methods, customer centric delivery, shift from air express to surface express, increase in regional movement, adoption of technology and expansion to remote locations, the express report underlined.\
Express industry driven by e-Commerce
The financial consultancy firm Deloitte says the Indian express industry is expected to grow at compounded annual growth rate (CAGR) of 17 percent and reach Rs. 7.3 billion $ by 2023.
The report titled “Indian Express Industry-2018: A multi-modal play in building the ecosystem” forecasts this growth as being primarily driven by the growth of cross-border and domestic e-Commerce in India, and significant demand from the small and medium B2B segment.
The Minister for Commerce & Industry and Civil Aviation, Suresh Prabhu who launched the report said, “The express industry is a key enabler for the growth of India’s trade and economy. Factors such as ease-of-logistics will increasingly play a critical role in attracting investments into the country, which will, in turn, support the development of several industries involved in manufacturing. We are pleased to see the industry sustaining its growth momentum, and also acting as a major contributor to employment generation within the country.”
Contribution to economy
The report highlighted that with the rise of new age business models and SMEs, and economy on the path of revival, there has been a considerable focus on improving India’s logistics performance.
It also indicated that the industry grew at 15% CAGR over the past five years and is estimated to be worth 335 billion $ in FY17. In FY17, the express industry contributed $456 million in Service Tax and $300 million in Custom Duties besides direct taxes around employment creation, thereby contributing to the national exchequer.
The study attributes e-retail to be a major growth driver for the industry with over 13 lakh shipments from this sector shipped daily.
Speaking about the industry outlook, Mr. Vijay Kumar, Chief Operating Officer, EICI, said, “The express logistics landscape is undergoing a huge transformation due to the need for time bound delivery services to complement the growth of trade. As a key enabler of trade, the industry will also support and benefit from the e-retail boom in India. We also anticipate the express industry to provide a significant boost to India’s employment base to increase to 26 lakhs. Regulatory and policy changes and infrastructure enhancements will also give a much needed fillip to the industry, which will positively impact the growth of other sectors.”
Established in 1997, the Express Industry Council of India (EICI), a not-for-profit organization, is the apex industry association that represents leading international and domestic express companies in India.
EICI is the key driver of policies impacting the express industry that aims to create a favourable environment for the express industry and its users. EICI operates Common User Express Terminals at Mumbai, Delhi and Bangalore Airports.
EICI with Indian Customs has jointly and successfully developed and implemented a state of the art electronic Express Cargo Clearance System (ECCS) for Custom clearance of express shipments, which will increase India’s global competitiveness.
Level playing field
The Council has favoured re-evaluation of a policy to allow domestic cargo airlines offer operations in foreign countries to create a level playing field with international cargo operators.
Domestic cargo airlines have a share of 760 million in the overall express industry in India. The express industry, of which cargo airlines are key constituents, has also sought ease in regulations for air cargo infra-structure to flourish, as development and usage of airport facility is posing a challenge for the industry.
The report called for time-bound approval from agencies such as Bureau of Civil Aviation Security (BCAS) for commissioning of cargo and express terminals.
“While the domestic express industry is seeing a healthy growth, we want more cargo airlines to operate in the market. Re-evaluation of the policy to allow them to offer international operations will not only bring more operators but give us a level playing field with respect to international cargo operators,” said Vijay Kumar.
At present, the notable player in domestic cargo airlines is Blue Dart Express, while other small players came and vanished.
Regulations, however, continue to pose a hurdle for the industry.
One of them is that the lease period is limited to 10 years. Express operators contended that since they need to make significant amount of investments to develop infrastructure, the lease term should be increased to 30 years.
Other issues such as delay in customs approval to operate facilities and insufficient number of CISF personnel to man cargo terminals, were flagged by the report.
Imagine handling more than 2.3 million kilos of cargo (about 2,500 tons) everyday for 365 days in different cities and airports, under different circumstances, time zones and rules, for different owners. Only the toughest and the most efficient can do such tasks with stakes so high in this digital age where dissatisfactions are openly aired with full consequences.
ECS Group overcomes those challenges day-after-day, successfully transporting more than 902,000 tons of cargo across the world in 2017. And it continues to work and prepare for the changing and challenging demands of the foreseeable future.
Adrien Thominet, the CEO of the Paris-based ECS Group, one of the world’s top GSA companies which has 69 subsidiaries and 137 offices in 47 countries, said their success comes with a lot of investments on people and technologies that require many counterchecks to ensure a seamless process in the competitive air freight industry.
“In 2017, we transported more than 902,000 tons around the world. It means almost 2,500 tons per day. The only way to be successful is to invest in high performed and advanced IT system in order to monitor our operations in time, no matter the time zones. The Group’s information and reporting systems, KPI, dashboards allow us to monitor the performances contributing to fulfillment of our objectives regularly and precisely,” shared Thominet.
It also helps that the company has the right partners and new intelligence tools to offer its principals the best services and industry practices.
“Centralized stations to coordinate bookings, dedicated offices to care for our customers products from A to Z and being able to reply in due time to any setbacks, support from ECS HQ top management: being part of an integrated GSA means that you have the capability to secure all your business, financially and humanly speaking,” Thominet pointed out.
“We bring synergies, solid and global network, security, and of course, more technologies: business intelligence, tracing, any kind of information regarding the cargo. The expertise is tenfold and boosted.”
Growth Year
After lackluster years, the air freight industry, with windfall to the supply chain, started picking up last year, many made historic volume growths and profits.
Thominet said 2017 was indeed one of their strongest and most intense with record high activities in the industry. Not only did ECS Group performed well but it also created jobs for 200 people during the year.
“The air freight activity had been very intense in 2017, especially last Quarter. About ECS Group, in 2017 our managers have shown of strong involvement. This year was tremendous and people were really happy to be part of this mix of opportunities and new challenges to face. Almost 200 people joined ECS Group in 2017, mostly in Asia with the acquisition of AVS,” shared Thominet who described the company as like a family where everyone works as a team.
ECS acquired AVS last year and among its immediate impact is enabling the company access to 11 countries in Asia.
In Latin America, ECS also expanded its footprint setting up offices in Chile, Peru, Colombia and Equador.
Still in the Americas, the company made an alliance with Exp-Air Cargo in Canada, sealing its position as a key general sales and service agent in the continent.
“This is part of the strategy of our network deployment and of course in line with the market we are active in,” said Thominet who continues to break new grounds for ECS Group. “In 2017, more than expansion, we did integrate all those subsidiaries and developed all the synergies we set up already. In 2018, we provided our principals an extensive network. The only integrated GSSA network.”
Africa, with its vast mostly untapped natural resources, also remains a huge potential market for various industries, including air cargo. And ECS, which counts Niger Air Cargo as among its clients in the region, is cognizant how efficient air transportation can dramatically change an economy.
“There are still lots of challenges in Africa but we see many opportunities in the air cargo industry. With the development of new services, the importance of e-Commerce and digitization, we are exploring new opportunities in this region. Regarding the figures, the Airports Council International (ACI) World reported high growth momentum in global air freight in January, posting 8 percent increase as compared to the previous year, in line with the rolling year-end figures,” said Thominet.
Asia-Pacific
In Southeast-Asia, ECS Group forged alliance with Royal Brunei Airlines to pool synergies in cargo sales for Europe as well as North and South Asia.
“The collaboration with ECS enables Royal Brunei to control 19 stations in different parts of the world and benefit from a network filling space where required, and thus, providing the highest yield to the airline. Royal Brunei is a vibrant and growing airline with a great diversity of customer-oriented and reliable services,” said Thominet.
“Its values and network perfectly match ECS’s setup in Asia, allowing synergies that no other GSSA can offer. We are looking forward to playing a key part in promoting the further success of Royal Brunei,” he noted.
Elsewhere in the Asia-Pacific, Thominet said ECS is also working on something to penetrate China, now the world’s biggest economy with unrivaled appetite for online sales.
“We also have some plans in China that are about to materialize. China’s continuous economic growth was particularly strong in the previous year. Year-on-Year, it saw growth of 23%. East China saw a volume increase of 35% y-o-y. Same for North of China. High technology and consumers goods (+55%) keep on rising,” explained Thominet.
Thominet who has been in the industry for over 20 years says “deregulation and liberation” are mainly driving growth in many ASEAN countries complemented with the introduction of low cost carriers in a lot of key routes.
“Development and change has been driven, however, by a new breed of low-cost airlines serving domestic and short-haul regional routes. The development of new routes and more connectivity always give a boost to the economy. Those regions are very interesting in term of Total Cargo Management. For instance, as a TCM contract, we represent Jetstar Asia in all countries in the region,” the ECS Group CEO said.
Middle East & South Asia
The Middle East and South Asia, India in particular, remain an important market for the industry.
In February, air cargo volumes in the region rose by 7 percent and capacity jumped by 7.6 percent.
Thominet said this is a good indication of a vibrant trade and economic activities in the region which are further enhanced by e-Commerce, particularly in India, home to over 1.4 billion people.
“More goods are being traded in this region and that is driving growth in air freight. Despite an escalation of protectionist measures, the demand for air cargo continues to be strong, with 6.8% growth last month. India is one of the top markets for our industry,” Thominet said.
Adding: “e-Commerce is transforming the landscape of our industry, and hence, we need to develop our capabilities to optimize new technologies. India is a real Eldorado for all technologies development, hence, our two brands — AVS and Globe Air Cargo — are connected to this fast increased trend. Recently, Globe Air Cargo India just won the representation of Ukraine International. ECS is already representing PS in most of the region of the world.”
Finnair has chosen ECS subsidiary Globe Air Cargo to represent it in the United States from May 1. The airline, which serves major gateways at Chicago, Miami, New York and San Francisco directly from Helsinki, will utilize an Airbus 350 on the routes.
Europe
Despite controversial political issues in Europe, the continent remains an important trade route for the majority of regions across the world and Thominet is of the opinion it will continue to generate growth and demand for the air cargo industry.
“GSSA core business is most accomplished in Europe in comparison with other continents. De facto, ECS Group most important set-ups are based in Europe since more than 30 years. Hence, our subsidiaries are very strong there and most of them lead in their respective countries,” said Thominet.
In recent weeks, ECS Group secured important partnership agreements in Europe, boosting further its clout in the continent.
“As a matter of fact, we finalized many very precious partnerships during the past few weeks. Globe Air Cargo NL (GAC NL), one of the leading Cargo General Sales Agents in the Netherlands and member of the ECS Group, has forged an operative partnership with IAG Cargo to expand and optimize its services for freight customers. ECS Group is already representing IAG Cargo in Germany, Austria, and Scandinavia before IAG Cargo has formed the partnership with GAC NL,” he said.
The company also secured deals to represent Hainan Airlines in Spain, Georgian Airways and Air Armenia Airlines in France.
More than two decades ago, an adventurous and young Adrien Thominet was selling wines in the United States. As fate would have it, the French national was then introduced to the General Services Sales Agent (GSSA) industry and moved to the ECS Group in 1996 devoting countless hours and taking on various management positions and eventually becoming its Chief Executive Officer in 2017.
The CEO says he never thought he would reach this far though he described himself as “ambitious.” As head of one of the most trusted and top GSSA companies worldwide, Thominet currently oversees 1,000 employees across ECS Group’s 37 offices in 47 countries and burdened with the task of stimulating further business growth.
Some days he would be in Asia. Other days, he would be in the Americas, Europe, the Middle East, Africa or anywhere in the world. But this busy father of four still takes time to nurture his family, endearing him more to the ECS Group which he also treats like a family.
Read on the rest of Air Cargo Update’s Q&A with Thominet who is not only highly regarded for his proactive business sense but also for his penchant for giving people a chance to grow in their career where possible and helping the younger generation, the so-called “Millennials”, get employed in an industry predicted to grow even more.
Please share with us in details the services that you currently provide to clients and the innovations that you have introduced as value added incentives for them?
ECS Group likes to provide tailor made or customized services. We feel that under no circumstances would there be only one or a sole way to do business. When we represent an airline, we’re cognizant of the fact that there is not one sole offer to suit a supposed client. We offer them flexibility tailored to their needs.
At ECS Group, we adapt the contract to match our prospects’ expectations. From CSA to Total Cargo Management, from back office support to supervision of the ground services, we have the capabilities to offer any kind of services.
And of course, digitalization is another “area” of maximum involvement for us. Our customers, different airlines, are expecting more advanced tools to optimize the yield, to develop pricing strategy and to manage the capacity.
Today, we are able to provide our customers with those new expected IT solutions. We got a global new team just hired to bring expertise and stronger added value to this IT system. We keep on working on providing and developing such new kind of services, new dynamic and new proactive supports.
Although China remains the world’s factory, it is increasingly becoming more popular as the top market for consumers, especially for e-Commerce. What are your thoughts about this?
Digitalization is mainly driven by e-Commerce. As a matter of fact, e-Commerce is pushing for more traceability and more efficiency on the delivery. More than e-Commerce, IoT is running the world today.
By 2020, there would be 25 billion connected things. Internet of Things (IoT) will definitely transform the world, and of course, our industry.
Everywhere, IoT runs the world’s economy. Even becoming vital. There is no other way to proceed and as a matter of fact, it will keep on being more and more inescapable for all the actors of the air cargo industry.
Today, transparency brought by Internet of Things is already impacting the sky ( tracking , temperature control, the Cloud, etc.) and all the supply chain can already benefit off its non-disruptive impact.Data efficiency, capacity management, routes optimization, new software solutions, time-saving, performances maximization. Yet,
this is not and won’t be a magic solution until all in our industry dares to embrace and to invest money, people and time into this blessing reality. The point is how to deal with it.
As G S S A , we are part of this transformation. And we deal with it for long time but we still have to go faster. Hence, in the next two months our Revenue Management Department will have three more people. This is important to deliver and develop sophisticated services and innovative GSSA solutions over those regions as airports and
regional careers have developed tremendously.
In fact, for example, today the three main airports of China are totally choco-bloked and we can observe a
real need to find new solutions for passengers and cargo business also.
The region of Sichuan is becoming a new platform for the Cargo. Chengdu airport is becoming the 4th main airport.
Hainan Airlines is now getting online in Shenzhen. Provinces are now bourgeoning and as a G S S A we have to adapt
ourselves so that to get aligned with this transformation. This is so challenging!
How do you prepare your staff to handle e-Commerce products and have you made or asked any airlines for physical adjustments to maximize space on aircraft when carrying such individualized packages?
At E C S Group , each of us i s concerned by e-Commerce. But beyond feeling involved in this economic transformation, we have to be able to provide the right services to match with it. Hence, for many months now, new technical experts have joined our group. For instance, in China we worked with local experts with proven track record of creating e-Commerce solutions. His strong partners portfolio associated with the ECS’s
network is highly productive in terms of original option to maximise capacities and revenues of our principals.
Same, at the HQ, we hired a team fully devoted to revenue management. When they happen to work all together, the result is just astonishing and super brilliant. This is what led us to create an e- Commerce cell. Working in line
altogether, we try to give the most appropriate reply to the market’s demand.
And above all, the relation we have with the airline we represent based on trust and transparency allows us
to multiply the partnerships in our portfolio.
Technology has made the world smaller and faster.Real time communication with people from all over the world at different time zones through phones and gadgets
