WEEKLY NEWS crew pairing, and


AIR CARG O WEEK


to employ, and there are potential changes around casual labour and flexibility, further increasing costs. The air passenger sector has a well-established process of optimising operations, revenue management,


crew rostering, resulting in


greater ef ficiency and lower costs for air travellers. Optimisation technology can also benefit air cargo similarly and is undoubtedly worth adopting. Still, the more significant opportunity is to look across the supply chain from manufacturer to customer and consider cost reduction and value creation. Supply change optimisation is a technically demanding


challenge, and traditional solutions are unable to deal with the scope, scale, and details required. However, recent advances in optimisation and AI mean that hitherto unsolvable problems can now be addressed. For example: • The choice of carrier can be optimised, considering the cost structure, timetable, reliability and other factors for each leg of a journey. • The timings of a journey can be adjusted, within constraints, to minimise cost. • Aggregation and disaggregation can be organised to make maximum use of available capacity. • The optimisation process created detailed schedules that link to timetables, enabling optimal mode changes. To be useful and deliver the maximum business benefits,


supply chain optimisation must consider all the complexities and complications and address the real problem, creating practical solutions. A recent project brought these ideas to life. A supplier of high-


INTEGRATED SUPPLY CHAIN OPTIMISATION


BY Alan DORMER, Managing director of Opturion 02


COMPANIES are increasingly turning to supply chain optimisation through advanced technologies to mitigate increasing costs, most recently due to NI changes in the budget. Automation and data analytics can streamline operations, reduce inef ficiencies,


and enhance productivity, enabling businesses to manage growth without additional staf f. By adopting proven technology, firms can maintain service levels and customer satisfaction while controlling labour costs. The budget has increased NI contributions and costs for all


employers, particularly impacting those that employ relatively unskilled workers, such as air cargo. Each worker now costs more


technology products had gradually of f-shored production due to cost pressures. All that remained on-shore was the manufacturer of products with short customer delivery times. However, the on-shore factory was sub-scale and becoming inef ficient and potentially uncompetitive. The customer proposed an analysis of the previous decision, and a model of the complete supply chain, in some detail, was built. Some exciting conclusions emerged, including: • Previous decisions to of f-shore should have considered the overall impact on costs. • There were opportunities to reduce costs in the supply chain through better decisions. • Airfreight was attractive in the broader scheme of things for products requiring short delivery times, even though that option had been initially discounted on cost grounds. To summarise, supply chain optimisation significantly benefits


Did You Know ? INFLUENZA MASS KILLER BY Michael SALES


WINTER’S unwanted menace is with us again, causing pain, splitting headaches, and aching bones. Over several centuries, influenza has caused around one billion deaths and ranks highly amongst the world’s most prolific killers. Historically, diseases amongst humans,


animals, and plants have been nurtured by ignorance and a total lack of basic hygiene and carried by travellers and merchants, as were the infamous Black Death outbreaks of the Middle Ages. The disease has always been part of human and animal existence since prehistoric times and is with us today, an even greater risk increased by mass travel and climate change. The 1830-1831 epidemic originated in


China, but by the 1840s had spread to France and Western Europe, while the 1889–1890 pandemic, or Russian flu, was a worldwide killer of about one million victims, fading away by 1895. The 1918–1920 Spanish flu was a deadly global influenza pandemic caused by the H1N1 subtype of the influenza; a virus, or avian-borne flu, which caused 50 million deaths worldwide. Starting in Hong Kong and spreading throughout China and then into the United States, the Asian flu became widespread in England, where, over six months, 14,000 people died. A second wave followed in early 1958,


causing an estimated one million deaths globally. In this case, a vaccine was developed,


effectively containing the


pandemic. Hong Kong flu was caused by the H3N2 strain of the Influenza A virus, a genetic offshoot of the H2N2 subtype. From


13th July 1968, the flu spread rapidly to the Philippines, India, Australia, Europe, and the United States. It resulted in the deaths of over one million people, including 500,000 residents of Hong Kong, approximately 15 percent of the population. Officially registered deaths of the Covid-


19 pandemic are 7,010,681, but different estimates go as high as 18 million. Researchers found that the probability of a pandemic with a similar impact to Covid- 19 is about 2 percent in any year. This means that the probability of experiencing a pandemic similar to Covid-19 in one’s lifetime is about 38 percent. The aviation industry has successfully delivered many billion doses of frozen and dry ice-packed doses globally and is capable of repeating this performance in the event of any future pandemics.


the air cargo sector. The first identifies occasions where air freight is the most time and cost-ef fective, and the second enables ef ficient execution across the entire chain, not just each leg. Increasing productivity and customer value will allow the sector to manage higher employment costs and remain competitive.


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