Principle # 4: Concept

Business processes must be established both intra- and inter-organizationally. These processes, coupled with the information infrastructure, support the efficient flow of material through the supply chain. While much attention has been placed on understanding business processes within shipper and air cargo handling organizations, it is essential to understand what processes must be built inter-organizationally – among trading partners and logistics services providers - to leverage, enhance and optimize their capabilities to expedite the flow of commerce.

Principle # 4: Application to the Air Cargo Supply Chain

The shortest distance between two points is a straight line, and the quickest, and cheapest, most secure route in the CCSP supply chain is directly from shipper to airside, without passing “Go” (i.e., through an intermediate node). The CCSP allows for this, and it is the right answer for many shippers. However, it is dependent upon collaborative, integrated business processes and between shipper and air carrier, or Freight Forwarder/ ICSF / IAC and air carrier, enabled by tightly coupled information systems as illustrated in Principle # 3.

Prerequisites are sharing and knowledge of up-to-date, real time flight status information; optimal load configurations of screened cargo; tamper-evident packaging and sealing to ensure a secure chain of custody; rapid delivery and capacity for unloading at the airport; knowledge of exactly what’s coming in, when, on the part of the carrier to help consolidate, weigh / balance and expedite handling of outbound loads; and readily verifiable cargo integrity. These conditions can only be realized by tightly integrated, collaborative business processes; the procedural discipline and information capture demanded by the “extra step” in the CCSP create an environment within which this is possible.

Benefits include more predictable lead and flow times, reductions in cargo handling, storage costs and wait times, better facility and aircraft utilization and increased velocity with less inventory in the air cargo supply chain.

Having said this, the current air cargo supply chain is extremely complex, and the requirements for 100% screening at the piece level create new challenges. For example, there is a need to segregate screened and unscreened cargo at the airport, and (at this writing) between incoming international and outbound domestic flights. These problems can be addressed through process reengineering, the application of lean, secure operating philosophies and simulation tools such as those described in Principle #2, and by Principle #5, the implementation of unified, advanced Decision Support Systems.