INTERVIEW

We are making sure we manage the capacity in line with the g...

We are making sure we manage the capacity in line with the growth expectations

Admin November 9, 2021 0

Despite being severely impacted by the pandemic, ground handling firms continued with stocking and supply of products 24x7 that included time-critical and sensitive pharmaceutucals, medical equipment, essential commodities, and now COVID-19  vaccines. Turkey-headquartered Çelebi Aviation, one of the largest independent ground handling companies in India, has been in the country for more than a decade now, carrying out ground handling operations at seven major airports of the country, including Mumbai, Delhi, Bengaluru, Hyderabad, Kochi, Ahmedabad and Kannur. In addition to ground handling services, the company also provides cargo and warehousing services in its Delhi Airport cargo terminal which was previously wholly run by the government. A joint venture between DIAL and Çelebi Ground Handling Turkey, Çelebi Delhi Cargo Terminal Management India is currently one of the largest cargo terminals by volume in the country. Kamesh Peri, CEO, Çelebi Delhi Cargo Terminal Management India,who had joined the company in mid of March 2021, elaborates about the plethora of challenges brought in by the pandemic but how they maneuvered and now geared up to capture additional opportunities with India Inc scaling up the largest ongoing vaccination drive. The air cargo veteran also discusses about the domestic cargo handling infrastructure at airports and how government initiatives like ‘Self-Reliant India’ can befit the country at large, improvements that are essential for the country to reach its full potential. Excerpts from his interaction with Ritika Arora Bhola.

With over three decades of experience of working with the Aviation and Air Cargo Business internationally, how has the journey been? So far, how has the experience been shaping at Çelebi?

I have experience of over 30 years of working with the air cargo and aviation business with brands like Lufthansa Cargo and Menzies Aviation. Overall, I believe I have a good understanding of the business. I recently joined Çelebi in India. I am still finding my feet here. The last few months were quite challenging for us due to the ongoing second wave of the pandemic. Though, we had the operations running throughout the day. We had essential supplies like medical equipment and oxygen containers coming in 24x7 and we were able to efficiently handle those in bulk at a very short notice having been prepared for the various scenarios. At the same time, we were also very much concerned about the health and safety of our workers.

At present, I see we have gone past the challenging times, things are now returning back to normal. I can attest that in these trying times, Çelebi has done extraordinary well for its clients and their businesses while continuing to assure safety of our workers by following all the COVID-19 protocols, guidelines and practices and further monitoring the situations very closely.

Could you elaborate on the best operating models and strategies you are planning to bring in to enhance functioning of Çelebi India utilising your sectoral experience and expertise of many years?

As a cargo terminal operator, we need to keep elevating the mood and productivity in the workplace in line with international standards and using the right equipment and systems to boost performance. We also have to look at space utilisation and optimisation of available capacity because unlike other operations, our capacity is limited in terms of the layout that has been allocated to us by the particular airport.

At Çelebi, the focus has always been on how to optimise space and capacity and run efficient operations. My remit and my aim would be to take this strategy forward and mark an evolution in action.

Together with my team, I would look at implementing ways to enhance our capacity both on the imports and exports gateways. This will help us track the growth that we have envisioned for the future, exploring how to manage the layout in a much more efficient manner, through some restructuring and designing and investing in new material handling systems for a combination of better utilisation of space and greater efficiency of operations. We will bring in advanced technology and superior IT-enabled business capabilities.

Last year, we initiated paperless transactions, e-karting of orders in order to keep in place a touchless environment. As such, we will try to do more things which are intelligent and systems-driven and more automised and we would make use of technology to bring in more efficiency to whole operations.

As we go back to pre-COVID growth levels, we are making sure we manage the capacity in line with the growth expectations.

In what ways do you think India really stands to benefit from the business localisation proposition or ‘Atmanirbharta’?

‘Atmanirbhar Bharat’ initiative by the government is all about trying to do everything in-house by using the expertise and experience gained by the industry stakeholders over time. If we talk particularly about the aviation business, a lot of people have a good understanding of it. To start with, we can go for tie ups with foreign companies who are into aviation or air cargo business and those who have expertise in the specified fields. Significantly, the industry will find ways to become more successful and connected. To encourage players, the government can relax certain existing norms for foreign investors.

Therefore, I feel it’s all in understanding the kind of opportunities that exists, how the business can be expanded, how the sector could be made attractive for both domestic and international players. Once the economies of scale come into play, players would be more interested to step into this sector as it has the potential to grow and develop into a decent preposition.

With airports expanding in non-metro cities, there will certainly be many opportunities to offer. Industry players by using their own experience, expertise, advanced technologies, capabilities and in collaboration with the foreign players can start developing services within the country that would be fulfilling the formation of ‘Atmanirbhar Bharat.’

Besides, there are several reputed tech companies in India and they should magnify the growth. They must focus on developing technologies and smart solutions for the aviation/air cargo business and be innovative in the current environment. All these would be steps in the right direction. By combining the government and industry efforts, everyone will stand to win.

India’s growing industrial manufacturing is putting pressure on logistics and transportation infrastructure, and importantly the government is starting to feel that. According to you, what improvements are essential for the country to reach its full potential?

First and foremost is to understand the kind of infrastructure that the logistics industry currently has, second is to understand which areas need development. Lastly, the need is to check if the accuracy of policy frameworks and if the government is ready to take forward the initiatives.

If you look at India’s the top infrastructure companies like Adani, they have got huge potential, expertise and capabilities to improve the current infrastructure. They should just look at ways to work towards it. In India, development of roads, ports and terminals infrastructure is required in terms of reach and network. No doubt, a lot has been done, but a lot is still to be done.

Even to capture the huge domestic Indian market, we need to have best-in-class infrastructure to connect different hotspots spread across the country. Time has come to start looking at the captive demand which is still available in the country, to understand and create the right infrastructure, cater to the demand and be able to sell a good business preposition, which is again the core motive of ‘Atmanirbhar Bharat’ supporting ease of doing business. So, if the government makes taxation and finances easier and convenient for the industry stakeholdersand creates transparency, then there is good scope to improve the infrastructure. This will ultimately help India realise its US$5 trillion dollar economy objective.

The current government is totally committed to work in the right direction because the authorities have finally realised that importance of having superior infrastructure for conducting highly efficient and reliable business operations, for meeting growing expectations and to compete at the global level.

With the pandemic, we have seen the need for companies to start digitising. How is Çelebi India digitalising its operations?

From an IT perspective, the focus is on three key areas:

Enhancing the digital ecosystem: Çelebi saw the pandemic as a catalyst for digitisation. While we drove a host of enhancements on our core cargo management software, the focus was on improving the efficiency of our operations without halting projects. Even if those may have not brought immediate returns but improvements yield as operations continued driven by process monitoring and data analysis solutions.

Çelebi joined hands with Delhi Airport to be one of the early partners to ensure complete electronic integration of their e-gate pass policy, thereby reducing physical contact of a person in gaining entry to the cargo complex besides making the entire process hassle-free.

We were also swift in adopting government electronic norms as and when mandated, and was recognised as the first to comply with the e-invoicing mandate set by the centre during the first COVID wave. We were further appreciated by the government as being one of the top adopters having the highest transactions on the government portal in the subsequent months.

Streamlining the interfaces: IT infrastructure was streamlined rapidly by moving about 60 per cent of the in-house servers on to the cloud and decommissioning them locally, increasing their reliability and stability. IT BCP drills were conducted to ensure that critical applications were always available and there was no hindrance to operations. Wi-Fi was upgraded in the cargo terminal to have seamless coverage across the office space.

Rush to bolster data security: While many organisations around the world took to working remotely, Çelebi envisioned, quite early, the need to improve information security and bolster cyber security initiatives. We underwent a rigorous ISO 27001 audit and certification and looked at every minute aspect of our information security measures and identified opportunities and room for improvement. With increased remote interactions, secure VPN was provisioned for all users, multi-factor authentication to secure login into key systems and E-mail spam protection measures were put in place to reduce phishing and hacking attempts. The large number of desktops and laptops were upgraded to the latest windows versions with the latest security patches. Additionally, a centralised Security Operations Centre was setup to monitor every network endpoint and perform detailed Vulnerability Assessment and Penetration Testing of the infrastructure.

We foresaw the need to adopt GDPR compliance norms in India and initiated measures towards it to ensure that we were safeguarding not just ourselves but also looking at the needs of our European customers where such compliance is the norm. Further, looking at safety of our own employees, Çelebi went on to upgrade its Biometric Systems to zero contact authentications through intelligent smart facial scanners as against fingerprint readers.

As Çelebi looks forward to 2022 and beyond, we continue to push the boundaries of technology initiatives like automated storage and retrieval system (AS/RS) for cargo handling and management, evaluating the use of autonomous vehicles, pursuing accelerated digitisation as the standard while leveraging intelligent technologies like Blockchain, AI and IoT as the blueprint for survival.

Could you tell us about on your growth plans and in which areas you see the company exceeding?

We at Çelebi India have a decent infrastructure for handling all types of cargoes especially perishables and pharmaceuticals. When the demand rises, for example, during the year 2020 when COVID-19 started, there was a rise in imports of pharmaceuticals, PPE Kits and other essential supplies and we were ready to stock and enable its safe transit through the airports where we operate. When the discovery of a potential COVID-19 vaccine was reached at, we were informed that two Indian companies will be producing it for the domestic as well as international markets and we were ready with world-class handling and transportation requirements. Right now, with the country’s growing focus on distribution of the vaccines in the domestic market, we stand ready to enhance capacity at our end as and when needed considering we have the funds, equipment, space and expertise as needed. As of now, for the given volumes being handled to and from Delhi Airport to international destinations, our huge perishable centre has helped sustain as well as expedite the process with the adequate capacity available.

Lastly, we would like to know your views on the current scenario of the Indian air cargo and ground handling sector, considering a likely third wave to hit businesses. Where does India stand globally?

India has come a long way. The momentum was built at a time when the airports were being privatised—so the catalyst, whether be it the Greenfield airports at Bangalore and Hyderabad or other big airports like MIAL and DIAL handed over to the private players, we could see a huge change towards what is being done to improve the infrastructure at airports and bring the whole ecosystem at par with the international standards which is a very important part of the process.

There’s a sea of change in the airports now—cargo terminals, passenger terminals—the infrastructure has remarkably improved than it was before privatisation. Everything has changed—from its appearance, performance, safety and security, customer service, etc. Today, the airport infrastructure of India could very well be classified or categorised as world-class or truly international.

The public-private partnership (PPP) model is now an important and excellent initiative as it involves the expertise and drives initiatives in place complemented by government agencies and authorities who make up for an integral part of the airport ecosystem of India. This blend seems to nurture and to unlock the growth potential by facilitating best solutions for airports to go forward after privatisation. That said, we will soon see efficient and prosperous airports outside metro cities as well.

Cargo handling and ground handling are an integral part of the airport ecosystem, so if overall infrastructure of airport improves and the strategy and focus is towards taking it to higher levels then there’s huge scope that the whole aviation community would benefit from. This will lead to development of everything related to the airport—airline performance, PAX operations, ground handling, etc.

Along with that, there’s opportunity to develop more like MRO and leasing. India is now looking to work with homegrown companies rather than outsiders—for aircraft leasing, airport equipment leasing. Sooner or later, this will all add up to become a solution which is going to be ideal and will benefit airport users.

Overall, the idea should be to build on the growth mechanisms and ensure prosperity of the community.

Airports through its capability and infrastructure should contribute towards economic prosperity, sustainable growth and generate employment opportunities. And I believe the country is on the right trajectory.

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Anticipating seasonal or peak demand, we implement inventory strategies for optimal preparation without excess costs during quieter periods. Collaboration with 3PLs allows scalability and access to specialised facilities. Utilising data analytics, we continuously analyse warehouse efficiency, facilitating data-driven decisions for ongoing process improvements. Through these strategies, we aim for efficient, agile, and customer-centric operations, ensuring timely product delivery across India while optimising costs and resources. Distinct capabilities with a strategic Innovation Approach Maximising the efficiency of our logistics and backend operations involves a multifaceted approach focussed on continuous improvement and innovation. Leveraging advanced analytics, we prioritise accurate demand forecasting for optimised inventory levels, balancing meeting customer demands with minimising excess stock. Building strong relationships with suppliers and implementing lean supply chain principles help in reducing lead times, cutting costs, and maintaining a responsive supply chain. Constantly exploring and integrating emerging technologies such as AI and Bar Coding enhances visibility and transparency across the supply chain. Sustainability initiatives, including eco-friendly packaging and optimised delivery routes, align with our commitment to environmental responsibility. Regular assessments and adaptation to market changes, whether regulatory shifts or consumer preferences, ensure operational agility. Our ultimate goal is to create a responsive, cost-effective, and sustainable supply chain that meets customer demands across diverse cities. Megatrends changing the face of Supply Chain Executives In the dynamic landscape of India's supply chain and logistics, several pivotal megatrends are set to reshape the roles of managers in these domains. Technology integration, including AI and machine learning, will revolutionise operations, requiring managers to harness these tools for enhanced visibility and data-driven decision-making. Building resilience against disruptions and diversifying sourcing channels will be imperative. Leveraging data analytics for predictive insights will be essential for optimising inventory and enhancing overall efficiency. Collaborative partnerships across the supply chain ecosystem will strengthen, necessitating closer ties with suppliers, distributors, and technology providers. Adapting to evolving regulations, upskilling the workforce for increased automation, and prioritising customer-centric logistics experiences are paramount. Striking the right balance between globalisation benefits and localised strategies will be a key challenge. Managers who adeptly navigate and capitalise on these megatrends will build agile, sustainable, and technologically advanced operations, meeting the evolving demands of the market. Advice for budding professionals To young supply chain professionals entering the industry in India, here's some invaluable advices for navigating the evolving landscape. Embrace continuous learning by staying updated on technological advancements and industry trends, and seek certifications and mentorship. Develop a holistic understanding of the supply chain spectrum, acknowledging the interconnections between procurement, logistics, operations, and customer relations. Cultivate adaptability and flexibility to navigate the fast-paced and disruptive nature of the industry. Focus on data literacy, particularly proficiency in analytics tools like Excel, for making informed decisions. Hone communication and collaboration skills to effectively coordinate with diverse teams and stakeholders. Embrace ethical and sustainable practices, recognising their growing importance in supply chains. Lastly, foster a problem-solving mindset, as the ability to address challenges efficiently is highly valued in the dynamic field of supply chain management.

Admin May 3, 2024 0

Only a flexible strategy allows to adapt to market situations

A multifaceted approach focussed on continuous improvement and innovation

Only a flexible strategy allows to adapt to market situations

Fabindia: Crafting Success through Supply Chain Excellence

Fabindia embarked on a journey that evolved from exporting home furnishings to establishing over 350 retail stores across India. This expansion wasn't merely about market presence but a deep-rooted commitment to sustaining traditional craftsmanship and empowering rural artisans. Nitin Joshi, Head Warehousing and Logistics, Fab India, in a recent tête-à-tête takes us through the 64-year-old legacy and most recognisable retail brand’ resilient supply chain strategies, balancing fulfilment across various channels, and effectively managing diverse demand patterns, weaved into the ethos of collaboration and innovation. With a combination of practical knowledge, solution-oriented mindsets, technological advancements, and a dedicated focus on customer satisfaction, Fabindia consistently sets industry benchmarks while promoting sustainable practices and preserving India's cultural heritage. It is, therefore, affirmable that Fabindia's supply chain model stands to provide valuable insights for managers navigating the complexities of modern-day fashion fulfilment and SCM mandates. Natural, Craft-Based Products with Community Collaboration Established in 1960 by John Bissell with the aim of promoting India's rich craft traditions, Fabindia initially focussed on exporting home furnishings. Its first retail store opened in Greater Kailash, New Delhi, fifteen years later. By the early 1980s, Fabindia had gained recognition for its handwoven and hand-printed fabric garments. In 2000, the company expanded its offerings to include non-textile products. Today, with over 350 stores across India, Fabindia stands as the largest private platform showcasing traditional crafts and knowledge. A significant portion of its products originates from villages nationwide, where Fabindia collaborates closely with artisans, providing support in design, quality control, financing, and sourcing raw materials. Fabindia's mission is to provide customers with a range of natural, craft-based products and a lifestyle that champions alternatives to mass-produced goods, all while fostering sustainable livelihoods in rural areas. Lessons Learned: Building an Adaptive and Resilient Supply Chain The COVID-19 pandemic disrupted our supply chain, particularly impacting our core apparel business despite an uptick in home sales. However, thanks to our enduring partnerships with all our suppliers, we chose not to cancel orders and remained committed to our agreements. These relationships, cultivated over decades, are built on mutual understanding and trust, transcending mere transactions. This bond of trust between Fabindia and its suppliers proved invaluable in navigating the pandemic's challenges. Consequently, our performance now exceeds pre-COVID levels, highlighting the robustness and adaptability of our supply chain in facing future adversities. Seamless B2B, B2C, and D2C Operations Over the last six decades, Fabindia has nurtured and expanded its ecosystem. Artisans from diverse regions of India meticulously craft our products, which are then transported to our warehouses and retail outlets. Our longstanding relationships with craft-based vendors, developed over many years, have enabled us to implement Closer to Trend (CTT) buying practices. This includes strategic planning for seasonal purchases and maintaining an Ideal Stock Quantity (Perennials) well in advance. We closely monitor On-Time-In-Full (OTIF) performance throughout the supply chain to ensure the freshness of products across all sales channels. Our seamless omni-channel fulfillment covers Business-to-Business (B2B), Business-to-Consumer (B2C), and Direct-to-Consumer (D2C) channels, facilitated by Warehouse Management Systems (WMS), Order Management Systems (OMS), and a robust Transportation Management System (TMS). Omni-Channel strategies for Growth Whether catering to internal customers (B2B) or external customers (B2C/D2C), our warehouse and logistics team collaborates closely with the business teams to ensure an exceptional overall customer experience. We continuously identify areas for improvement and diligently work to enhance them. Central to our efforts is maintaining efficient dispatch to delivery Turnaround Times (TATs), providing transparent delivery timelines to customers, and ensuring a superior last-mile delivery experience. Our omni-channel fulfilment capabilities have been honed through meticulous operational and infrastructure preparations tailored to the specific requirements of each channel. Our focus on inventory management, fulfilment processes, and customer service standards has enabled us to effectively manage growth across all channels. We've established omni-channel fulfillment capabilities that allow customers to place orders through in-store tablets, as well as via the website and app. Fulfilment for B2B, B2C, and D2C orders is managed through best-in-class Warehouse Management System (WMS) and Order Management System (OMS), supported by a robust Transportation Management System (TMS). Nevertheless, challenges arise in managing fulfilment TATs that differ among channels. Maintaining optimal inventory levels across multiple channels, without excess or shortages, is especially challenging due to the diverse demand patterns observed in each channel. Cost Optimisation Strategies: Balancing Quality and Services To tackle the challenge of increasing input costs, we've put in place several strategies. First, we're optimising our internal processes to cut costs without compromising quality. Second, we're working closely with our logistics partners to lessen the impact of these rising costs. Our partners are key in helping us streamline operations and come up with creative solutions during tough times. We've found success in reducing transportation expenses by consolidating shipments at our warehouses, optimising routes, and negotiating with suppliers. Our logistics partners ensure on-time delivery and minimising disruptions, which improves overall efficiency and cost-effectiveness. Our goal is to shield consumers from extra financial burdens while maintaining the quality and reliability of our products and services. This proactive approach to cost management, combined with our strong partnership with logistics experts, helps us achieve these goals. Enhancing Efficiency in Supply Chain The Fashion Supply Chain's complexity stems from managing a wide range of unique product variations (SKUs). To tackle this, technology and automation have become crucial for enhancing efficiency. Product Lifecycle Management (PLM) software offers detailed insights into each stage of a product's life, optimising development processes. Vendor portals, like Advance Shipping Notice (ASN) systems, improve inbound visibility from vendors to warehouses, speeding up receiving processes. WMS tracks inventory in real time, guiding storage and retrieval for efficient omni-channel fulfilment. Automated sortation systems rapidly sort large inventories based on various attributes like size and shipping speeds. TMS provides complete visibility of in-transit stocks, automating shipping processes for cost savings, visibility, and faster deliveries. Merchandise planning tools aid in precise stock planning, boosting sales and reducing markdowns. OMS consolidate orders from multiple platforms and automate their fulfilment. These technologies, integrated into our omni-channel supply chain, have optimised warehousing and logistics, enhancing efficiency, accuracy, and agility with comprehensive visibility across the process chain. Integrated Systems for enhanced Visibility Implementing a WMS, Put-to-Wall sortation system, and robust TMS has strengthened our ability to consistently achieve OTIF performance across our omni-channel fulfilment operations. Seamless inventory visibility throughout the supply chain enables us to optimise operations and anticipate potential delays. As our volumes grow and our domestic and international presence expands, we actively collaborate with new automation and technology vendors to stay ahead of industry advancements. In our omni-channel supply chain, we've leveraged technology across various areas to enhance warehousing and logistics, leading to improved efficiency, accuracy, and flexibility. Integration of WMS, sortation systems, OMS, and TMS with our Enterprise Resource Planning (ERP) solution has provided complete visibility throughout the process chain. Continuous Improvement Culture: Collaborative Solutions Efficient logistics management is critical for ensuring timely and cost-effective operations, directly impacting customer satisfaction. Our logistics partners oversee a range of functions, including transportation, warehousing, inventory management, order fulfilment, and distribution. Third-party Logistics (3PL) providers come into the picture as strategic partners that offer benefits such as optimising supply chains, cost efficiency, and improving customer satisfaction. Through close collaboration, we align with our 3PL partners to understand warehouse processes and pursue shared strategic objectives. Our company fosters a culture of continuous improvement, actively seeking feedback and collaborating on innovative solutions. Key performance metrics with our 3PL partners include order and inventory accuracy, productivity per person, and space utilisation. Similarly, with transportation partners, metrics like on-time delivery and accuracy are crucial. We regularly monitor carrier performance scorecards to ensure customer satisfaction. Collaborating with 3PL partners indeed allows us to leverage their expertise, network, and resources, optimizing our logistics operations. To efficiently manage omni-channel (B2B, B2C and D2C) fulfilment, we strategically utilise diverse transportation modes such as containerised Full Truck Load (FTL), Express Cargo (Surface), Air Cargo, and various last-mile delivery options for Same Day Delivery (SDD) and Next Day Delivery (NDD). Foundations for Renewed Success In today's business landscape, supply chain management is pivotal due to factors like Customer Satisfaction, Innovation, Strategic alignment, and Cost Efficiency. These elements underscore the importance and value of a well-managed supply chain in modern businesses. My two cents of advice for new and aspiring supply chain professionals are: Gain practical knowledge: Seek hands-on experience in Procurement, Warehousing and Logistics through internships or entry-level roles to understand supply chain operations better. Foster a solution-oriented mindset: Develop problem-solving skills to tackle complex challenges in the supply chain effectively. Strengthen interpersonal skills: Effective communication and collaboration with cross-functional teams are crucial for success in supply chain management. Embrace technology and automation: Stay updated on new technologies and automation to optimise supply chain processes and improve efficiency. Prioritise sustainability: Focus on integrating sustainable practices into the supply chain and explore ways to implement best practices.

Admin May 2, 2024 0

We continue to focus on implementing advanced inventory management systems to monitor and adjust inventory levels in real-time

Providing robust, resilient, sustainable infrastructure to ensure operations is the prime focus

SAF will require a massive increase in production so as to meet demand

The entire aviation industry stakeholders are taking advantage of the conveniences air mobility offers

To remain profitable and create value for customers, the air freight supply chain has to effectively build on criteria such as quality, innovation, efficiency, speed, reliability with the vision to be open to all sectors and offer innovative products, services and operations that can help the industry flourish. The explosive growth of on-line shopping alone will keep the air cargo sector very healthy in 2022 and beyond, and carriers like Turkish Cargo are starting to use big data research in creative ways to increase cargo yields and introduce more velocity into shipper’s supply chains. While economies of scope are characterised by efficiencies formed by variety, economies of scale are instead characterised by volume. Economies of scale, for instance, helped Turkish Cargo maintain sustainable success within its air cargo operations conducted to all over the world. According to Fatih Ciğal, the airline’s Senior Vice President of Cargo Marketing, they continue to script success with more effective solutions by developing and using new technologies and innovative approaches. One of the significant examples of these approaches, he says will be the SmartIST, one of the biggest and most modern air cargo facilities in the world. Excerpts from an insider with Upamanyu Borah. CARGO AVIATION IN A POST-PANDEMIC WORLD Air cargo capacity has become even more valuable, since half of the world’s capacity was supplied by passenger aircraft. From the data point of view, difference between the growth rates of demand and supply kept the rates higher. In 2020, this difference was roughly 10 percentage points, but now it increased to 15 percentage points. We expect this situation to continue until mid-2022. The past years have resulted in a modal shift from sea to air, and the entire aviation industry stakeholders are taking advantage of the conveniences air mobility offers to customers. In this context, Turkish Cargo had come up with new strategies and took necessary actions during the pandemic. Our operations worldwide have provided a global air bridge via our cargo facilities at Istanbul Airport. We have been carrying time- and temperature-sensitive products such as medical supplies and other essentials to meet the needs of the market and customers with offering faster and reliable shipping across a worldwide network. Today, we boast a huge cargo fleet comprising 24 freighters further supported by belly and PaxFre flights in order to meet the increasing demand with efficiency in network management. CRISIS OFTEN SPAWNS THE BEST INTERVENTIONS THROUGH DISTORTIONS The issues, experienced currently by the air cargo industry can be listed under a few main topics.  These are digitalisation, capacity, security and safety, liberalisation, sustainability and intra-industry cooperation. I consider one of the most important challenges to be digitalisation. In the last five years, the industry has been involved with virtual integrations due to digital developments. Within this framework, even Turkish Cargo has been adapting activities to the new market dynamics in terms of network and fleet. We have been enhancing the overall service and network coverage offered to customers. MAKING TECHNOLOGY WORK HARDER FOR OWNSELF The future of air cargo is based on technological developments and digital transformation, and Turkish Cargo has been attaching great importance to digitalisation which has enabled the company to overcome challenges during the pandemic and adapt operations and services. Within this framework, Turkish Cargo took good steps towards digitalisation with a WhatsApp Chatbot called ‘Cargy’ which is offering customers opportunity to learn about their AWB status and tariff inquiries based on O&D via WhatsApp with 24x7 access from their phones. One of the processes that we have been conducting and investing into is RPA technology, and therefore integrating software robots which we call metal collars into our business processes. Turkish Cargo has also enhanced services in partnership with WebCargo in order to provide a brand-new channel to customers for smoother, easier and faster reservation. Customers can book from anytime and anywhere and get fast responses to their inquiries. In this context, we have been receiving very positive feedbacks from our customers and sector partners. SEAMLESS MOVEMENT OF GOODS AND INFORMATION Being highly competitive, the air cargo industry requires innovative and digital solutions to meet the needs of customers for an enhanced speed and efficiency. Within this framework, digitalisation strategy is one of the key points to ensure digital transformation. Providing end-to-end digitalisation to cover all processes is both critical and essential. Significantly, Turkish Cargo's most recent investment in this development path is the new cargo terminal project at Istanbul Airport ‘SmartIST’ which will be offering smart warehouse systems, work orders integrated with the use of augmented reality and voice directed warehousing, unmanned ground vehicles, RPA robots, IoT and other technological advancements to propel Turkish Cargo to the future. A SHARP, RATIONAL AND CONSISTENT APPROACH TO REFORMS TO HELP THE INDUSTRY CRUISE What is significantly observable is that airlines have started to make use of their freighter fleet more actively and the orders for freighters have also increased worldwide. We are of the opinion that such solutions will provide significant contributions to the offerings around current needed capacity to the industry. Along with global warming, quest for clean energy prompts the search for alternative resources with respect to environmentally-hazardous fuels to curb carbon emissions. Investment in this field by companies will place significant burden into financials coupled with the Air Cargo Carbon Footprint (ACCF) programme implemented by IATA for the purpose of accomplishment of its projects under the sustainability heading. Revenue-decreasing factors may be encountered in the field, such as reduction of the tonnages being carried (due to fuel consumption) and modernisation of fleet due to the risks of sanctions by the regulatory and supervisory supranational organisations. Looking into such issues, companies have managed to reduce fuel costs further, in particular with the increase at the factory-fresh and younger freighter fleet during recent years. Two per cent of global carbon emissions are generated purely by aviation, given the fact that the share of aviation is lower as compared to that of maritime transportation which constitutes 4 per cent of global carbon emissions. However, air cargo is the only mode of transport within which carbon emission per shipment is the highest. All stakeholders of the air cargo industry have therefore set the foot forward to play a key role in the accomplishment of carbon emission targets they have set for themselves and subsequently for the aviation industry. ENOUGH SCOPE FOR OFFERINGS AND CAPACITY TO BLOOM AND GROW Turkish Cargo has been operating one of the world's largest airfreight networks and stands as the fastest growing air cargo brand in the world. We are proud to say that we transport 1 each 20 shipments transported worldwide and we further aim to adapt rapidly to the new market dynamics by acting proactively in order to take the right position in the industry. Turkish Cargo increased global market share to 5.4 per cent according to September 2021 data and reached 97 international destinations with cargo freighters. This means the world's largest network of cargo freighters. As we target to become one of the top three air bridges of the world, we continue to expand our network and fleet along with services offered to meet the needs of customers.

Admin February 11, 2022 0

Metro cities are no longer the only places where warehousing shows huge demand

We continue to realise our ambitions across the full extent of the business

We are focussed on positioning ourselves well to capitalise on the future growth

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