Traceability in the air freight of cargo - An approach to enhance logistics efficiency

Abstract

Air cargo can be defined as anything other than persons and luggage traveling by air. Air cargo plays a prominent role for international manufactures with internationalized production networks, allowing firms to respond more effectively to competitive forces in global markets. When considering the air cargo industry globally, it is a large supply chain of cargo carrying airlines, freight forwarders, airport logistics handlers, and ground handlers, with all actors depending on each other for successfully conducting business. A low-performing chain link therefore affects all actors severely. In this thesis the main objective is to analyze efficiency and traceability of air cargo in its related operations based on a case study at Landvetter airport (GOT). The case study has been conducted in collaboration with major companies: Airport Authority, Shipper, Forwarder, and Ground Handling Agents. By combining theoretical findings with interviews, study visits, survey, and internal documents from the involved companies, essential information and details has been collected with respect to the efficiency and traceability aspects. A value stream mapping was created based on the gathered information with a purpose of creating an overall view of the air cargo flow based on each company, creating a ground from which improvements can be proposed. In addition, all information attributes shared throughout the flow were gathered and analyzed to create a recommendation for mandatory information in the air freight of cargo. The analysis revealed factors affecting the efficiency and traceability level as well as the supply chain links most suitable to improve. The cause of inefficiencies and lack of traceability was concluded to be a lack of standardization in information exchange as well as inefficient logistical operations. A recommendation is given regarding mandatory and voluntary information attributes to exchange in the information flow. Further, suggestions are given regarding improvements, including investments in technology and utilizing other terminals for more efficient logistics while keeping a high level of traceability.