ADDING A NEW DIMENSION TO

AIR CARGO OPERATIONS

THE WNS SOLUTION FOR END-TO-END AIRLINE CARGO MANAGEMENT
01 COPYRIGHT © 2016 WNS GLOBAL SERVICES | WNS.COM
DETERMINANTS OF PROFITABILITY
IN AIR CARGO OPERATIONS
The air cargo sector is at the cusp of a Volume fluctuation, which is intrinsic to
quiet turnaround with demand picking the air cargo sector due to its cyclical
up across markets in Asia-Pacific, pattern of business, has now intensified.
Europe, North America and the Middle This instability can be attributed to an
East. The International Air Transport uncertain global business environment
Association (IATA) estimates growth to and disruptions due to natural disasters,
accelerate over the next few years even disease outbreaks and geo-political
as global trade on the whole remains developments. Even as the variability
subdued. Also, we are witnessing factor increases, airlines must keep
matured e-Commerce shipments across operating costs in check, and aim for
the above markets with tight delivery higher levels of efficiency, customer
and service-level expectations. These service and profitability. Profitability will
are welcome news for the airline depend on how airlines improve the
industry that had, until recently, seen utilization of belly space and the air
below-par performance or, at best, just cargo load factor. Airlines also need to
tentative signs of recovery. look at additional sources of growth and
revenues for the same asset base (belly
However, to consolidate these gains and
capacity), including express or priority
improve performance and profitability,
shipment offering and next-day delivery
airlines need to overcome challenges
(including door-to-door). Some of the
around cost, service and space
more innovative airlines have started, or
optimization.
already taken steps to broaden their
revenue base from traditional cargo
operations.

THE AIR CARGO SECTOR – SOME KEY TRENDS

?The emerging markets ?At the top-tier air cargo ?Accelerating ?Aircraft utilization rates
and regions are expected market, integrators are urbanization will drive have started to show
to deliver the fastest taking an increasing trade and air freight solid improvement,
growth in air cargo share of the business however, will continue to
volumes over the next be challenged by ever-
five years, led by the increasing capacity
Middle East and Africa

COPYRIGHT © 2016 WNS GLOBAL SERVICES | WNS.COM 02

WNS AIR CARGO MANAGEMENT AND
SERVICING CAPABILITIES
SECURING A FIRM HOLD ON AIR CARGO REVENUE WITH END-TO-END WNS SOLUTIONS

The WNS-SmartKargo (a WNS partner) learning to offer airlines and others an

Cargo Management suite - powered by a easy-to-use, customizable solution. The
100 percent Cloud-based, integrated platform also offers instant business
cargo management platform – is a intelligence, sophisticated data
comprehensive set of solutions aimed at analytics, and comes with a full-featured
accelerating revenue growth for airlines’ mobile app for smartphones. The WNS-
cargo business. This IATA-compliant, SmartKargo Cargo Management suite
state-of-the-art platform provides effectively tackles the three major
players, across the cargo value chain, a constraints: rising costs, poor service
variety of capabilities that meet their and inefficient space utilization,
unique requirements. It harnesses the providing a seamless and top-notch
benefits of the recent advancements in experience to clients.
cloud computing, mobility and machine

03 COPYRIGHT © 2016 WNS GLOBAL SERVICES | WNS.COM

WNS, in partnership with SmartKargo, cash flow and gain access to real-time
offers end-to-end cargo services under data
several broad categories: Cargo
§
Cargo Finance and Accounting
Revenue Management, Cargo and Mail
solutions build higher efficiency into
Revenue Accounting, Cargo Finance
the receivables and payables
and Accounting, Mobility and Business
processes
Intelligence.
§
Tech-enabled, real-time analytics- §
Mobile Application via smartphones
driven Cargo Revenue Management or tablets provide improved customer
system provides airlines better efficiency and loyalty
visibility into demand and space
availability, thereby facilitating optimal To plan, identify and execute
utilization of aircraft space and time, transformation solutions for clients,
that results in increased revenues and WNS leverages the proprietary Business
operational efficiencies Process Re-engineering (BPR)
methodology – ADAPT – which follows a
§
Cargo and Mail Revenue Accounting five-phase methodology, combining the
solution offers airlines all the tools art and science of process management,
needed to improve recovery, maximize technology transformation and risk.

YOUR JOURNEY - TRANSFORMING CARGO OPERATIONS WITH WNS

NEXT BEYOND
UNTIL NOW
With WNS + SmartKargo ++ WNS (F&A)

COLLABORATIVE
Challenges ENHANCED Offering
Next-gen Solution

§
Legacy systems §
Advanced Cloud-based §
Better control and visibility
cargo reservation system into F&A cargo operations
§
Lack of integration
with simple interface
§
Best-in-class F&A practices
§
Laborious change
§
Instant business leading to superior business
management
intelligence and outcomes
sophisticated data analytics
§
Cutting-edge F&A tools,
technology, benchmark
assessments and analytics
§
Full-featured mobile app

§
Improved revenue and
better customer service

§
Greater efficiency and more
flexibility

§
Instant information for
better decisions

ADAPT – WNS’ Business Process Re-engineering (BPR) methodology

COPYRIGHT © 2016 WNS GLOBAL SERVICES | WNS.COM 04

CARGO REVENUE MANAGEMENT – ENSURING
PROFITABILITY THROUGH SPACE OPTIMIZATION
The volume of cargo space available in continuously assess the situation and
an aircraft changes by the hour, make quick decisions with timely,
continuing right up to the time of accurate information.
departure. How well an airline optimizes
belly-space, directly determines revenue Business Intelligence derived from
growth and profitability. The WNS- instant access to shipment information
SmartKargo Revenue Management provides real-time decision support,
capability provides airlines an integrated which results in increased revenues and
product and service capability to operational efficiencies

CARGO REVENUE MANAGEMENT SERVICES OVERVIEW

MIS
Space Load
Schedule Booking Audit
Utilization Planning

Worldwide
§ Block space
§ Extra cargo
§ Cargo load plan
§ Data mismatch
§
schedule agreements space generation fixing
Key Activities

updates Confirmation &

§
Aircraft
§ alternatives
configuration Premium products
§
Special products
§
(AVI / HUM)
Optimization
Support Activities

Weekly
§ Rate updation
§ Real-time
§ Cargo priority
§ Last-Minute Space
§
maintenance Offload
§ updates to booking Availability Reports
re-booking customers Flight yield
§
optimization
Truck movement
§
planning
ULD Inventory Management – Imbalances / Damages

Aircraft Change
§ Forwarder
§ Load Factor
§ Cargo 2000
§ Global & Regional
§
Management
Performance

Reports Incentive Report Performance and Performance

Reports Alert Management
Forwarder
§
Booked Versus
§ Performance
Flown Reports Analysis
Offload Analysis
§

Cargo Loyalty Program

05 COPYRIGHT © 2016 WNS GLOBAL SERVICES | WNS.COM

The WNS-SmartKargo Cargo across Web channels
Management Suite facilitates the
optimum utilization of aircraft space Pre-flight audit services – Enables
§
and time with the below services: speedy and accurate billing on arrival
Scheduling – Enables accurate and
§ with the use of a reporting tool that
timely upload and maintenance of eliminates billing inefficiencies
flight schedules six months prior to
Tracking and inventory management –
§
departure
Optimizes utilization and reduces
Offloads / Re-booking – Conducts re-
§ imbalances with smart inventory
booking of offloaded consignments on management, and tracking of ULD
the next available flight and provides stocks
real-time update of consignment
Value added services from WNS:
status
Performance management reporting –
§
Flight optimization – Facilitates
§ Analyzes and ascertains areas of
decision-making regarding improvement to help clients evaluate
acceptance / rejection of booked the performance of freight forwarders
consignments with the help of a in specific regions
comprehensive flight load plan
Application development – Leverages
§
Rate updates– Manages business
§ a range of technologies to develop
processes related to the automatic sophisticated applications that
updation of rates, including updating facilitate innovation in business
the client’s pricing database and processes
automating the publishing of rates

CARGO AND MAIL REVENUE ACCOUNTING –

IMPROVING CASH FLOW THROUGH REVENUE
RECOVERY
The end-to-end cargo and mail revenue billing and accounting, resolution of
accounting solution from WNS can be a disputed invoices, and claim settlement
potent revenue protection tool for any between airlines. With access to real-
airline company. It facilitates revenue time and accurate sales and revenue
generation through data management of information, the solution allows airlines
reservation and financial systems, to maximize cash flow and reduce costs.

COPYRIGHT © 2016 WNS GLOBAL SERVICES | WNS.COM 06

CARGO AND MAIL REVENUE ACCOUNTING SERVICES

CARGO ACCOUNTING

Net data capture Invoicing Billing support

Rate sheet maintenance

§ Flown processing exceptions
§ Investigation and resolution of
§
Audit of surcharges
§ discrepancies
Generation of provisional
§
Air WayBills (AWB)
§ invoices Monitoring of outstanding items and
§
provision of support to stations to
Accounting control list clearance
§ Error resolution
§ ensure timely billing
Generation of station performance
§ Generation of final invoices
§ Maintenance of reference data,
§
reports Data uploading
§ including SPA filing, Agent
Post-invoicing queries
§ information, flight set-up, etc in
revenue accounting system
Interline
§

Mail Revenue Accounting

Monthly Cycle

Conformance Data input Invoicing Rebilling Inter-airline claims

Reconciliation of
§ Manually updating
§ Billing /
§ Resolution of
§ Settlement of claims
§
uplifted mails vs. the revenue accounting for disputed invoices between airlines
accounted mails accounting uplifted mail through air company
database invoices

End-to-end revenue accounting solutions

The following are the various services as over-billing and re-charges, and
WNS offers in this segment: generates bills to other airlines
Net data capture – Enables the host
§
Billing Support – Monitors client
§
airline to identify revenue by capturing
system to ensure that all billing is
the net rate of all the cargo it has
carried out in a timely manner,
carried and also helps ensure
highlights areas where revenue is not
surcharges are accurately levied on
being invoiced and also manages
agents
reference data in the revenue
Cargo billing and processing – Clears
§ accounting system
flown processing exceptions and
Mail revenue accounting – Manages
§
ensures billing accuracy; prepares
end-to-end mail revenue accounting
provisional and final invoices that are
such as dispatching information to
sent to the stations or uploaded to
post offices, chasing non-conforming
Cargo Account Settlement System
stations and mail investigation, re-
(CASS)
charging rejected invoices and
Cargo interline – Examines client’s
§ processing mail interline invoices
transactions with other airlines such from other airlines

07 COPYRIGHT © 2016 WNS GLOBAL SERVICES | WNS.COM

CARGO FINANCE AND ACCOUNTING (F&A)
SOLUTIONS – BUILDING EFFICIENCY IN
ACCOUNTING PROCESSES
CARGO F&A VALUE CHAIN

Business Operating & Receiving & Dispute Management +

Quote Onboarding Customer Service
Activities Managing Cash Application & Loss Management

Cargo billing input (quantity, size, rate etc.) Disputes (flown processing, SPA, Rates, interline disputes)

Flown processing Cargo interlining

Market intelligence
§ MDM update
§ Billing input +
§ Receiving + Apply
§ Flown processing
§
Tendering / RFP
§ (Customer master) Validation cash Interline payment
§
Customer Id
§ Reference data
§ Accounting for
§
Value Chain

Selection /
§ Collections
§
Screening Interline set-up
§ maintenance receipt
Investigation &
§
Contracting
§ Customer training
§ Invoicing
§ Query handling
§ Reporting
Credit check
§ A/C Accrual
§ Recovery
§
Security deposit
§ Query + Dispute
§
management
Customer portal
§
access

Revenue per unit /

§ Time to
§ DSO (Service to
§ Auto cash apply rate
§ Demand reduction
§ Industry-
Business Metrics

specific
Benchmarking operationalize bill cycle) % Disputes
§ Demand deflection (cargo)
§
Capacity utilization
§ Delinquency (%)
§ Customer
§ Cost to service
§
Cost
§ DSO
§ experience
Customer
§
Customer
§ Cost + Demand
§ satisfaction
experience reduction

DSO | Cost to Operate | % EDI / Electronic | Self-service

COPYRIGHT © 2016 WNS GLOBAL SERVICES | WNS.COM 08

MOBILE APPLICATION–
PROVIDING END-TO-END AIR CARGO
MANAGEMENT FROM SMARTPHONES OR TABLETS
Following are the benefits for the Air relative to other options and can
Cargo business from the mobility provide integration with existing
solution: systems to provide quick wins for the
Increased productivity for customers,
§ business and the customer
yielding an enhanced customer
Customer self-service yields
§
experience and thus, loyalty to the
increased efficiency, reduced costs,
airline
operational integrity and data-driven
In a relatively commoditized industry,
§ insights that can influence efficiency
technology facilitation is a significant in the operational environment
differentiator, enabling the leadership
A ‘future-ready’ platform facilitates
§
team to demonstrate digital
revenue generation with new lines of
transformation in their organizations
business, such as door-to-door
The SmartKargo solution greatly
§ delivery, same-day delivery for urgent
assists in this process by providing or specialty products and eventually
quick-to-market implementations consumer e-Commerce via the
technology layer inherent in the
SmartKargo solution

09 COPYRIGHT © 2016 WNS GLOBAL SERVICES | WNS.COM

?WNS – LEADING THE WAY IN AIRLINE CARGO
§
Close to two decades of experience in managing end-to-end
travel operations, with 18 years in Cargo Revenue Accounting
alone
§
More than 30 travel clients, including global airlines, travel
agencies, Global Distribution System (GDS) providers, car rental
companies and hotels (three clients in CRA)
§
World-class solutions for the air cargo industry
§
More than 300 cargo specialists managing 3 Million client
transactions (i.e. cargo operations on 150,000+ flights a year)
§
More than three million cargo process transactions per year
§
Award-winning domain university for creation and retention of
critical process knowledge through eLearning and facilitator
aided trainings
§
In-depth knowledge of IATA regulations
§
Process maturity framework to guide process improvement
initiatives to improve the maturity level of the processes
compared to the air cargo industry leaders
§
The only service provider with experience of working on
operations and revenue management activities in the air cargo
sector

COPYRIGHT © 2016 WNS GLOBAL SERVICES | WNS.COM 10

SUCCESS STORIES – TESTIMONY TO
WNS EXCELLENCE

Case study # 1 Case study # 2

Robust plan to improve Streamlining Cargo Revenue

operational efficiency of Accounting, Improving
cargo warehousing process Profitability

A top European airline sought to The revenue accounting processes

define and improve the capacity of a leading European airline were
levels and processes of its suffering due to inefficiencies in its
warehouses. WNS deployed its non-standardized, legacy system.
Value Innovation Program to WNS took over the end-to-end
identify capacity planning and revenue accounting processes of
process design as major areas for the client and delivered significant
improvement. WNS proposed a benefits, including:
range of solutions that helped the §
An incidental recovery of GBP 0.5
client to: Million annually
?Maximize revenue and reduce
§
§
Manual processing of ~25,000
customer dissatisfaction by
AWBs per month with an
ensuring demand inflow and
accuracy of ~98.65 percent
product mix balance
§
Monthly revenue of ~GBP 55
Enable accurate decision-making
§
Million
through real-time MIS and stop
revenue leakages due to failure §
Billing accuracy of an average
of freight recovery from airside 99.67 percent

§
Reduced turnaround time in
interline billing from four
months to one month

§
80 percent reduction in mail
rejection volumes

§
An anticipated benefit of USD
370,000 (per annum) through
CNS disputes resolution

11 COPYRIGHT © 2016 WNS GLOBAL SERVICES | WNS.COM

WNS (Holdings) Limited (NYSE: WNS) is a
leading global Business Process
Management (BPM) company. WNS offers
business value to 200+ global clients by
combining operational excellence with deep
domain expertise in key industry verticals,
including banking and financial services,
consulting and professional services,
healthcare, insurance, manufacturing,
media and entertainment, retail and
consumer packaged goods,
telecommunications and diversified
businesses, shipping and logistics, travel
and leisure, and utilities and energy. WNS
delivers an entire spectrum of business
process management services such as
customer care, finance and accounting,
human resource solutions, research and
analytics, technology solutions, and
industry-specific back-office and front-
office processes. WNS has delivery centers
world-wide, including China, Costa Rica,
India, the Philippines, Poland, Romania,
South Africa, Sri Lanka, UK and US.

To learn more, write to us at

[email protected] or visit us at www.wns.com

COPYRIGHT © 2017 WNS GLOBAL SERVICES