5.a.i Knowledge - Success Stories - SpiceJet V1 · Training was provided to SpiceJet staff at the...
Transcript of 5.a.i Knowledge - Success Stories - SpiceJet V1 · Training was provided to SpiceJet staff at the...
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CaseStudy
SPICEJETinitiatesDoor-to-Doorservice:
Double-digitgrowthenabledbynewmulti-segmentbusinessmodel
DEPLOYMENT:NewDelhi,India
©2017SmartKargo|QuantumIDTechnologies.AllRightsReserve
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Overview
SpiceJet,oneofIndia’smostinnovativeaircarriers,becamethefirstcommercialairlinein
theIndianmarkettolaunchDoor-to-Door(D2D)serviceforitsBusiness-to-Business(B2B)
customersegment.SmartKargohadoriginallyimplementedanend-to-endCargoERP
solutionforitsAirport-toAirportbusinessinAugust2015.Understandingthatthe
technologycapabilitytosupportanexpandedbusinessmodelwasavailabletotheminthe
SmartKargosolution—theSpiceJetteambeganplanningtoimplementandlaunchtheD2D
concepttotakeadvantageoftherevenuegrowthopportunitythatthenewmodelcould
enableviatheadvancedshipper-to-recipienttechnology.
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BusinessChallenge
Itiswell-knownthatthetraditionalwholesaleAirport-to-Airport(A2A)Cargo
businessmodel,thatistraditionallyadoptedbytheglobalaircarrierstomarket
theirunusedbellyspaceontheirscheduledservice,hasreducedtheAirCargo
businesstoacommodity-levelenterprise—onethatcompeteslargelyonprice
withothercarriersforallotmentsandspace-to-filltheunusedbellycapacityon
itsflights.
SpiceJet,thenumbertwoaircarrierinIndia,soughttoincreaseitsvalue
propositiontoitscustomersbytakingadvantageofSmartKargo’send-to-end,
shipper-to-recipientcapability—gainingashareoftherevenuethatiscurrently
ownedbytheintegratorsinthemarketduetochangingretailmodelsdrivenby
eCommerce.Atthesametime,SpiceJetwaskeentosafeguardtheirtraditional
wholesalebusinessmodel(A2A)withForwardersand3PLs.
SpiceJetDeploysSmartKargo
Inearly2016,SpiceJetgavethegreenlighttodeploytheSmartKargoD2D
functionality.InMarch2016,SmartKargodeliveredthesystemandMobileapp
forlaunchofSpiceJetD2Doperations—onlyafewmonthsafterthedecisionto
deploywasmadebytheSpiceJetmanagementteam.
TrainingwasprovidedtoSpiceJetstaffatthebranchlevelandapprox.250staff
weretrainedfortheD2Dprocess.WiththelaunchofD2Dservice,SpiceJet
demonstratedforward-lookingleadershipfortheirdomesticshippers—
leadershipwhichtranslatedintoahigherstandardofcustomersatisfaction.
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Moreimportantly,theircustomerswereabletomakethemostofgrowing
opportunitiesinIndiaforD2Ddelivery.
TheSmartKargocloud-basedsolutionprovidedSpiceJetwiththeflexibilityto
expandcustomer-facingcapabilityquickly,allowingboththeairlineandits
customerstoincreasescopeofservicesandincreaserevenues.
SpiceJetwasableto“white-label”theSmartKargoofferingasSpiceJetExpress,
tosignificantlygrowtheirCargorevenues.OpportunitiestocaptureB2C
eCommerceopportunitiesalsoexist—aswellasthecapabilitytosupportthe
airline’sexistingExpress/CourierbusinesswithFirstMile/LastMileservice.By
extendingdirectservicestoshippers,theopportunityfortheairlinetoestablish
afranchiseforconsumerD2Dinthefutureisalsoapossibility.
SeamlessIntegration
SmartKargoreceivedthegoaheadfromSpiceJettodelivertheD2Dsolution
earlyin2016,andinnotime,turned-onthecapability.InMar2016,the
SmartKargoteamdeliveredboththeERPandtheMobileappsforend-to-end
D2Doperations.
SmartKargoprovidedsupportthroughoutIndiainphase1anddeployedourstaff
tokeylocationsinDelhi,Mumbai,Bangaloreetc.forlocaltrainingandto
monitortheoperationflow.Laterin2016,weconductedabusiness-process
consolidationfortheSpiceJetTeam,whichwasdeliveredinMay2017.
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KeyChallenges
Beingafirstofitskind,SpiceJetfacednumerouschallenges.
• SpiceJetwaslookingforanoperatingplatformthatprovidesboththe
traditionalAir-to-Airfunctionalityandcouldbeextendedtosupport
door-to-doorfunction.
• Multi-Levelconsolidationandtheabilitytocreatemotherbagsatthe
warehouselevelwasanabsolutenecessity.
• Manydriverscarriedalow-costandroidsmartphoneandthesolution
wouldhavetoworkonthosedevices
• Sincemanypickupanddeliveryareaswereoutofcellphonenetwork
coverage,anysolutionneededtoworkinanofflineoronlinemode.
KeyBenefitsofSmartKargoSolution
Theintegratedend-to-endsolutionhassuccessfullyallowedSpiceJettoextend
theirvaluechainbyprojectingtheirownbrandinthebusiness-to-business(B2B)
byservingcustomerswiththeDoor-to-DoorservicethatSmartKargoenables—
matchingtheproductandserviceofferingsoftheintegrators.
SpiceJetrealizedafewimportantbenefits,including:
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• SolutioncansupportbothAirandTruckshipments
• SolutionhasabilitytoconsolidateattheWarehouse(Motherbagging)andattheAirport(Masterassociation)
• SolutionenablesFirstandLastmilepick-upanddelivery,withoptimizedrouting(dispatchedorself-assignedviamobileapp)
• Solutionfacilitatesrobust,flexible,end-to-endhandling
• Solutionprovidesend-to-endtrackinginrealtime
• SolutionisfullycompatiblewithIATAstandards
• SolutionprovidesanadvancedPlatformtocompetewithIntegrators
• Solutionprovidesincreasedrevenue
• Solutionandmobileapplicationscanbeintegratedanddeployedrapidly
TheSmartKargoApproach
SmartKargoisanintegratedsystemoffunctionalitycomponentsthatwork
togethertomeetthevariedneedsofallpartnersinthecargochain,from
shipper to recipient. Although airlines are the principal users, Shippers,
EcommerceOperators,FirstandLastmileTransporters,groundhandlers,
salesagents,andothersalsousethesystemto increaserevenues, lower
costs,andimprovecustomerservice.
ThedevelopersofSmartKargo,ateamofITengineersandexpertstrained
atMIT,workedcloselywithairlinecargoveteranstobuildasystemthat
leverages threepivotal factors—Cloudcomputing,mobileplatforms,and
data analytics. As a cloud-based, Software as a Service (SaaS) solution,
SmartKargo customers pay only for what they need and use. After a
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modest implementation fee, customers pay based on their air cargo
volumes—a simple and transparent approach. SmartKargo delivers
visibility and transparency enabled by real-time data and simple user
interfaces—fromshippertorecipient.
ExceedingCustomerExpectations
SmartKargo’s system architecture is flexible, which yields two key
benefits.First,itcanbeeasilyandquicklyadaptedtomeetspecificcarrier
needs; and second, itwill evolve tomeet the future needs of both the
industryandspecificcustomers.
After implementation, SmartKargo delivers a package of additional
programming per year, as needed. SmartKargo’s existing customers
reportsignificantimprovementsinROIandkeyperformanceindicators,in
threemaindimensions:
• Higheryields,resultingfromSmartKargo’smoreaccuratecapacity
utilizationanddynamicpricingcontrol
• Highertonnage,resultingfromreal-timeinterfaceswiththe
passengersystem,aswellasGSAabilitytoaccessthesystemfor
bookings
• Higherflownasbooked(FaB),becausebetterinformationproduces
greateraccountability
We invite you to join the forward-looking airlines inNorthAmerica, South
America, Europe, and Asia that are seeing how SmartKargo can increase
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cargo revenues and improve customer service. Bottom line, SmartKargo
delivers greater efficiency, more flexibility and increased revenue
opportunityviareal-time,actionabledata.
“Yoursolutionhasenabledourbusinesstoexpand
quicklyintoDoor-to-Door.Inthefirstthreemonths,we
increased
ournumberofAWBsthreefold.Yearoveryear,wehave
morethandoubledTotalCargoRevenuesacrossthe
board.”
—AjaySingh,CEO,SpiceJetAirlines
Ifyouhavequestions,we’dbedelightedtoanswerthemanddemonstratehow
SmartKargocanhelpdriveyourbusinesstonewheights.BecauseSmartKargoisso
advanced,ithelpstoseeitin action.
Formoreinformationorademo,pleasecontacttheSmartKargosalesteamvia