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   Vol. 17 No. 41
Monday July 9, 2018

KPI Gets It On American

      “Multimodal 2018” was a very worthwhile, really big show and conference. Now in its 11th year, this year’s edition was held at the Birmingham NEC, May 1-3, 2018. In the general sweep of the 2017 first half conference slate, you may have missed it.
      The effects of disruptive new technologies in logistics and developments arising from modal shift were on the agenda.
      For the record, Multimodal 2018 attracted over 9,000 specialists.
      Workshop and seminar programs featured speakers gathered from every mode of transportation alongside hundreds of exhibitors from leading logistics companies.
      One panel featured the always cool and very straight-to-the-point Tristan Koch, Managing Director Cargo – Europe, Africa, Middle East and Indian subcontinent for American Airlines Cargo.
      Here, Tristan shares some additional thoughts with far-reaching global impact from the session titled “Developing Key Performance Indicators (KPI).”

FlyingTypers:  What are your views on the impact and importance of KPIs?
Tristan Koch:   We all agree on the need for what might be termed proper end-to-end data to make decisions. The problem in the past has been the definition of end-to-end. It isn’t enough for these small-scale, vested interests in one part of the supply chain to share data among themselves. Industry standard KPIs—where every part of the chain can benchmark itself against the next in a transparent way—are clearly the way forward. That's the primary reason for supporting CargoIQ.
      CargoIQ members working together to define the processes behind air cargo, measure success, and continuously improve the value of airfreight for customers will drive its success in the future. So for me, it is a hugely important step forward in the ongoing development of this industry simply because it helps level the playing field.
FT:  How broad has the search been in developing KPIs in terms of shippers and service providers?
Tristan Koch:  We at American have been active in the CargoIQ project. It must be driven by a global industry body like IATA in order to achieve its goal and to gain important credibility, which makes all players want to participate. That includes shippers, forwarders, airlines and manufacturers.
      The collaboration between all members has produced these commitment KPIs that will allow us all to speak the same language moving forward—something that has been sorely lacking in this industry. Individual shippers and service providers have long had their own standards and that’s something to be applauded. But overall leadership and commonality for the industry was always lacking. That’s where CargoIQ comes in.
FT:  What value has this initiative added to your overall effort? What is expected value in future?
Tristan Koch:  In real terms, it provides consistency and shows the level of trust apparent within all parts of the end-to-end process. That means we can use CargoIQ as an important benchmarking tool for our day-to-day operations.
      It’s already being used by all of our top forwarder customers and we are encouraging others to get on board. It allows us to compare our performance against what our forwarders ask of us, and also to compare ourselves against our competitors. Our sales team can also use it for reporting purposes, so it has a real practical benefit.
      To continue adding value, we participate in the bi-annual working group meetings and have participants in both the Smart Data working group and the Training Tools and Materials task force to ensure that they can deliver for everyone.
FT:  Do you have some ideas for what should come next?
Tristan Koch:   That’s always a hard one. This industry as a whole has a bit of a reputation for starting projects and then not seeing them through to conclusion. So I think the first thing is to continue supporting CargoIQ in its efforts to create a set of standardized KPIs. As we discussed in our session in Birmingham, there are always going to be some anomalies. But it’s about getting the general principle right, because that's what gives you the base to move onto the next level.

If You Missed Any Of The Previous 3 Issues Of FlyingTypers
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Vol. 17 No. 38
Toward A Complete Blendship At AA Cargo
Chuckles for June 25, 2018
Serenade for Jessica
Vol. 17 No. 39
Tariff Watch As Deadline Looms
Chuckle for June 28, 2018

Planning For The U.S.-China Dance

Vol. 17 No. 40
Effervescence Of Jean-Claude
Chuckles for July 3, 2018
Update On The East
Dancing As Fast As I Can
Unfolding India Cargo Plan

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