Enhancing the cargo value chain for KLM Cargo with regard to the acceptance process, trucking schedule and data communication

Abstract

In recent years, the playing field of KLM Cargo has become increasingly dynamic and competitive. To remain competitive, KLM Cargo has to improve the delivery performance of the cargo in terms of timeliness and overall quality of the cargo (such as quality of the documentation, packaging, labeling and checks performed), which will reduce re-work / correction costs. Using the method of in-depth case study for the trade lane Denmark – Amsterdam, the current situation is analyzed, identifying the bottlenecks in the supply chain of the cargo. For the identified bottlenecks, structural solutions are designed, implemented and monitored for the specific case of Billund and Copenhagen. The bottlenecks identified are the acceptance procedure, trucking schedule, data communication all having an effect on the arrival performance at the Amsterdam hub. The newly implemented solutions result in an increase in the arrival performance of 30%. However, to increase the arrival performance to the desired level, continuous improvement on all 3 areas is needed.