IT Opportunities
Remain Amid Sluggish Trade Prospects
THERE is positive news on PC sales in Asia despite
sluggish trade prospects caused by the US economic slow-down.
”Despite concerns about the US economic slowdown
rippling through to other parts of the world, the PC
market in Asia continued to steam ahead in the first
quarter,” said Bryan Ma, Director of Asia/Pacific
Personal Systems Research at International Data Corporation.
“That doesn’t mean that Asia is in the clear
though; any further tightening in the US may negatively
impact a number of export-heavy markets in the region
later in the year. But for now, IDC believes that the
Asia/Pacific PC market is on track for 17% growth in
2008, especially if portable PCs continue their relentless
push into the market.”
IDC’s preliminary results show that the Asia/Pacific
(excluding Japan) PC market grew 19% year-on-year to
17 million units in 1Q08. This was 2% ahead of forecasts,
with portable PCs being the primary contributor. Nearly
every country posted double-digit sequential growth
in this form factor, allowing total portable PCs to
grow 54% year on year. Lenovo remained the top PC vendor
in the region despite the seasonal Lunar New Year slowdown.
Indeed, portable PCs beat forecasts in China as well
as in many Southeast Asian countries as vendor efforts
in promoting to consumers intensified, particularly
in Singapore and Thailand. In addition, many vendors
were able to import units into Indonesia despite the
ongoing customs issues there.
“As predicted, the IT Show in Singapore produced
stellar results,” said Reuben Tan, Senior Manager
of Asia/Pacific Personal Systems Research at IDC. “But
even more activity came from the retail channels and
student purchases, thus pushing the Singapore PC market
to 15% year-on-year growth. Commercial activity was
less vibrant, but at least the market can breathe a
sigh of relief going forward that the government’s
Standard Operating Environment tender has finally been
awarded.”
Kathy Sin, Research Manager of Asia/Pacific Personal
Systems Research at IDC, said, “Hong Kong’s
PC market came in close to expectations this quarter
despite the flu outbreak in March. As long as the US
economy does not pinch the local economy too much, portable
PCs should continue to push the market ahead, especially
when university student buying kicks in later this year.”
Meanwhile, I recently came across a news article at
SupplyChainBrain.com featuring an interview with Joe
Reedy, the Vice President for Sales & Marketing
of American Airlines Cargo. My attention was caught
by the respondent’s remarks indicating that IT
opportunities represent a tangible solution to mitigate
the impact of economic, security and fuel cost problems
bugging the US airfreight industry.
When asked what the airfreight industry can do to add
value to his company’s services or to boost customers’
productivity, he replied that “If our customer
satisfaction levels are high, there are certain products
that customers are likely to continue to use even with
the rising costs of fuel. Perishables and electronics,
for example, are likely to continue to use airfreight…the
feedback we get from customers is to continue to focus
on the level of service we’re providing, so we’re
investing in technology, trying to eliminate service
issues.
When further asked about specifics, he was quoted saying,
“We’re investing quite a bit in our web
sites and electronic booking, for instance. There’s
much more of that than in the past. Five years ago,
perhaps five percent of our transactions were done on
the web, and now over 40 percent of booking transactions
are handled that way. We’re trying to free up
people, we’re eliminating phone calls, increasing
track-and-trace.”
Another question focused on security. The interviewer
asked: “Security must be like fuel — added
costs passed on to the consumer. Some transportation
industry groups want the government to pick up more
of the tab for security. What about in the air cargo
arena?” Reedy answered that American Airlines
Cargo is actively engaged with US government transportation
security agencies and with customers and the trade industry
to make sure that changes are made to provide security
that don’t interrupt the needs of customers and
the service levels needed by customers.
“What is needed by our customers, who are mostly
forwarders, is to make sure that the programs that we
are required to implement are done so efficiently. It’s
not just about cost of the transaction itself. The real
question is, what do these security measures do to the
level of service we can provide? For instance, does
it change the amount of time we need in advance of the
shipping to perform that screening? Does it change the
products themselves that we offer? If cut-off times
are changed dramatically, well then what is it that
you are offering as an air cargo product? So we’re
very focused on those issues.”
(Leo V. Morada has more than 20 years of professional
IT management experience in the Philippine ports industry.
He can be contacted at email address lmorada3f1@yahoo.com.)
Table
1 |
Asia/Pacific
(ex. Japan) PC Shipments by Vendor, 1Q08 (Preliminary)
vs 4Q07 and 1Q07
|
Rank
|
Vendor
|
1Q 2007 Market
Share
|
4Q 2007 Market
Share
|
1Q 2008 Market
Share
|
Year-on-Year Unit
Growth |
1 |
Lenovo |
15.80%
|
19.60%
|
16.40%
|
23.70%
|
2 |
Hp |
13.80%
|
13.90%
|
15.10%
|
30.40%
|
3 |
Dell |
7.20%
|
8.40%
|
9.10%
|
50.10%
|
4 |
Acer |
5.60%
|
6.50%
|
7.20%
|
52.40%
|
5 |
Founder |
5.10%
|
5.10%
|
4.00%
|
-7.20%
|
|
Others |
52.40%
|
46.50%
|
48.30%
|
9.90%
|
|
Total |
100.00%
|
100.00%
|
100.00%
|
19.40%
|
Source: IDC, April 2008
|
|
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IATA Final Countdown to 100%
e-Ticketing
I RECEIVED a copy of this IATA press release early
last month and I am sharing this with our readers due
to the timeliness of its subject matter.
The International Air Transport Association (IATA)
has already began an important countdown — 100
days to 100% e-ticketing. “In 100 days the paper
ticket gets put in a museum. On June 1, 2008 we will
achieve 100% electronic ticketing,” said Giovanni
Bisignani, IATA’s Director General and CEO.
IATA began the drive to 100% e-ticketing as part of
its Simplifying the Business program in June 2004 with
the dual goals of making travel and shipping more convenient
and more cost efficient. The program began with five
(5) projects — Bar Coded Boarding Passes (BCBP),
Common Use Kiosks for Self Service (CUSS), RFID for
aviation, e-ticketing and e-freight with annual industry
savings of US$6.5 billion. It has since expanded to
include the self-service oriented Fast Travel project
and an industry Baggage Improvement Program.
“E-ticketing is the flagship project of Simplifying
the Business. While a paper ticket costs US$10 to process,
e-ticketing reduces that cost to US$1. The industry
will save over US$3 billion each year by offering the
passenger a better service. There is no better win-win
proposition,” said Bisignani.
When the program began in June 2004, only 18% of tickets
issued globally were e-tickets. Today e-ticketing penetration
is over 93%. “It is an incredible industry success
story. When we began over 28 million paper tickets were
issued each month. We have reduced that number to less
than 3 million,” said Bisignani.
Challenges remain. E-ticketing penetration in Africa
is only 83% and has reached 84% in Middle East North
Africa (MENA). The real concern is Russia and CIS, which
is at 54% due to a late start while the government changed
legislation to allow for e-tickets. “Combined,
these regions represent 8% of total volume. IATA’s
150 experts are working with the airlines in these regions
to close the gap quickly. If we can bring the convenience
of e-ticketing even to small remote island airports
with no electricity, I am confident that with some hard
work in the final stretch we will be successful,”
said Bisignani.
Consumers can anticipate more convenient travel in
an electronic world. 100% ET eliminates lost tickets,
makes itinerary changes easy and enables a wide array
of self-service options.
“We are entering a new age for air travel. The
consumer has spoken. They love the convenience of e-ticketing
and now want to combine it with self-service options
to have more control over their journey,” said
Bisignani. “We are already seeing the ET effect.
Online and kiosk check-in are at all time highs. Even
newly introduced mobile phone check-in is rapidly gaining
popularity. IATA is pushing Simplifying the Business
to the next level with its FastTravel project. FastTravel
will bring a wide array of self-service options, in
a streamlined process, from reservation to arrival.”
I also checked the IATA website (www.iata.org) and
retrieved some fact sheet information about e-ticketing.
An electronic ticket (ET or e-ticket) holds the information
previously held on a paper ticket in an electronic record.
It requires a new database, integrated with the airline’s
passenger service systems, that interfaces with all
partners for real time processing of passengers by ground
handlers and interline partners.
Benefits to customers or air travelers consist of the
following:
• No more lost tickets
• No need to physically receive tickets from travel
agents or airlines
• Easier handling of itinerary changes especially
for last-minute travel decisions
• More effective use of internet capabilities
for booking travel and check-in
Benefits to airlines are as follows:
• Savings of at least US$3 billion per year with
100% eticketing:
- An e-ticket costs US$1 to process versus US$10 per
paper ticket
- In 2005, IATA alone processed 315 million paper tickets
• Retention of interline revenue as the whole
industry implements ET together
• Continued access to IATA distribution and settlement
systems
There are also benefits to travel agents:
• Better customer service over a wider area
• Cost of ticket printers, maintenance, and ticket
distribution eliminated
• No cost or liability of ticket-stock control
• Greater flexibility in managing branch operations
IATA’s role in accelerating ET implementation
include the following:
• Engaging airlines monthly to identify ET problems
and deliver support as appropriate
• Providing monthly reports on airlines’
ET progress in each BSP
• Sharing knowledge through the StB support portal:
FAQs, presentations, access to experts and training
materials
• Assisting airlines that wish to eliminate paper
tickets earlier than 31 May 2008
• Ensuring ET capability for ground handling
• Supporting carriers with own reservation, ticketing,
and departure systems
• Providing customized implementation-support
to IATA member airlines through the ET Buddy System.
Leo V. Morada has more than 20 years of professional
IT management experience in the Philippine ports industry.
He can be contacted at email address lmorada3f1@yahoo.com.
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Tracking Airline ULDs LET me
start
today's column by defining a ULD.
Unit Load Device or ULD is a common term for aluminum
metal pallets or containers used by airlines to load
luggage, freight, and mail on wide-body aircraft and
specific narrow-body aircraft. They allow large quantities
of cargo to be bundled into large units. Since this
leads to fewer units to load, it saves ground crew time
and effort, and helps prevent delayed flights. Each
ULD is manifested separately so that its contents can
be tracked.
ULDs come in 2 types: pallets and containers. ULD pallets
are rugged sheets of aluminum with rims designed to
lock onto cargo net lugs. ULD containers, also known
as cans and pods, are fully enclosed containers made
of aluminum or combination of aluminum (frame) and plastic
(walls) and, depending on the nature of the goods inside,
may or may not have refrigeration units built-in
All ULDs are identified by their ULD number which is
a three-letter prefix (identifying its type) followed
by a 4- or 5-digit serial number to uniquely identify
it from others of the same type, and ending with a two-character
(alpha-numerical) suffix identifying the ULD’s
owner (if an airline, same as IATA designator codes).
For example, AKN 12345 TG means the ULD is a forkliftable
LD3 with unique numbers 12345 and its owner is Thai
Airways.
How Do Airlines Track ULDs?
According to air cargo transport industry reports, many
airlines generally employ a legacy manual system to
track ULD movement. Since each ULD is identified via
a two-character alphanumeric IATA code specific to each
airline, embossed or etched on its metal sides, an airline’s
cargo-booking system has a built-in module to keep ULD
stock updated. When a ULD is moved from one flight to
another, a ULD Control Message (UCM) is sent to that
airline’s central computer, updating it with the
container’s location.
This type of legacy inventory system and the kind of
ULD tracking system it normally incorporates has a number
of disadvantages.
Human intervention is required to read, record and
relay the ULD number by a UCM. But the system can reject
the UCM due to human error, such as the wrong format.
ULD tracking is also limited to the inside and outside
of an aircraft, overlooking ill-defined points around
an airport’s perimeter. Finally, industry practitioners
point out that there is no way to reconcile a ULD that
leaves the system at one airport and reappears at another.
Many others already point out that here is a lack of
centralized data, with no visibility into other airlines’
tracking systems when ULDs are interlined (that is,
passed from one airline to another).
A Quick Review of Technology Solutions To Track ULDs
In June 2007 it was announced by CHAMP Cargosystems
SA that 28 of the world’s leading cargo carriers
were switching to the new web-enabled and Java-based
version of its ULD Manager System. The company was originally
created as a partnership between SITA and Cargolux Airlines
International and is now considered the world’s
largest supplier in information technology dedicated
to the Air Cargo Industry.
The new CHAMP ULD Manager is described as unique in
that it is able to capture photographic images of units
which have suffered damage, allowing carriers to control
costs of repairs through third parties and, because
it’s available via the Internet, it does not require
any special equipment or data lines to access. Enhanced
features of the industry-compliant CHAMP ULD Manager
include pro-active monitoring and alerting of low stock
levels and overdue units, full integration with industry
standard messaging and compatibility with bar coding
and RFID technologies.
Another solution was developed by a company called
Information Builders and is described is a web-based
tracking system called WebFOCUS. One of its strong points
is reportedly to track airline ULDs being used by another
airline. This scenario is described in this manner:
A customer in Dallas, Texas who needs to move cargo
to Moscow, for example, may call American Airlines.
American will fly the cargo container to Europe, but
since American doesn’t fly to Moscow, it will
transfer the container to another airline that does.
By the time American sees its container again, it may
have gone around the world and passed through the hands
of several other airlines on its way.
With help from Information Builders, the Interline
ULD Control system is moving to the Internet, and the
International Air Transport Association (IATA) has replaced
paper reports with digital files that can be accessed
and downloaded from the Web. Thus, airlines can now
enter data about cargo containers’ transfers by
filling in a form at a Web site maintained by IATA.
That data is stored in an Oracle database running on
a Windows server. When they need to get reports on where
their cargo containers are, airlines can download the
data from the Web site.
How about RFID? It was reported last year that RFID
adoption in the airline industry has lagged behind retail
and other sectors. RFID could potentially be used to
track ULDs and other ground-handling equipment, as well
as time-definite (TD) cargo shipments, passenger baggage
and spare aircraft parts. An automated RFID-based tracking
solution could not only address most of the prevalent
problems airlines face in ULD management, but also emerge
as the inflection point for RFID’s adoption in
that industry, leading to its wider usage in more applications.
So far, one the most interesting solutions I’ve
read about is the one developed by Sat-Tag Limited.
It makes use of Google Maps application in order to
display airport detailed locations and superimpose the
ULD locations within the map itself.
Who knows – tracking airline ULDs and shipping
line containers may actually be using similar technology
platforms and architectures.
(Leo V. Morada has more than 20 years of professional
IT management experience in the Philippine ports industry.
He can be contacted at email address lmorada3f1@yahoo.com.)
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