Transportation & Logistics - Summer 2016 Volume 2 - 5

Air Cargo

Summer 2016 Volume 2

PLUGGING
the Leaks
Revenue leakage can be found across the air cargo
shipment lifecycle.
- By Ganesh Vaideeswaran

Revenue leakage presents a common challenge to cargo carriers around
the world. However, the potential to use
technology to save these lost revenues is
also one of the industry's single greatest
growth opportunities.
In a marketplace where increased
competition and slowing growth are
the norm, fuel costs have placed an
immense strain on profitability for air
cargo carriers. Now that the decline in
oil prices has alleviated that pressure,
carriers are focused on securing every
possible dollar of revenue by eliminating
other costs from their business.
Preventing revenue leakage can
provide the key to boosting business
growth. Revenue leaks afflict every stage
of the shipment lifecycle - from quoting
and contract management, to reservations, capacity management, operations
and billing - and can severely impact
the bottom line. Experience with cargo
carriers worldwide shows that losses
exceeding 3 percent of total revenues
are far from unusual.
In a global survey, "Accenture 2015
Air Cargo Research: Taking Off for Higher Profitability," the report underlines
the challenges facing this sector. In their
drive towards increased profitability,
carriers are continuing to struggle with

slow growth and process inefficiencies,
while increasing their focus on pricing
and capacity utilization.
Recent research confirms that cargo
carriers want and need better tools
to help optimize revenues: only one
in four air cargo corporate executives
surveyed by Accenture feel that they're
able to optimize revenue for their
business, despite an ongoing economic
recovery which has driven an increase
in freight volumes.

Need for Better Pricing
Carriers are struggling to maintain price
integrity. Inaccurate and inconsistent
pricing is one of the principal causes
of revenue leakage across the industry.
Accenture's survey found that half of
all air cargo companies (54 percent) are
actively seeking better pricing and reservations software to improve real-time
visibility into utilization and price
integrity across the quote-to-cash cycle.
The research outlines key areas that
air cargo carriers are looking at in order
to transform their business:
* More efficient business processes:
53 percent of respondents chose
"achieving process efficiencies"
as one of their top three business
challenges. This includes optimizing
capacity, as underutilizing capacity
can lead to revenue leakage. Nearly
40 percent of respondents point to
process automation and improving
software tools as twin priorities to
manage this challenge.
* Price integrity: Inaccurate and
inconsistent pricing is one of the
principal causes of revenue leakage

// Although freight volumes have been
increasing, many air cargo executives feel
opportunities are slipping away from them.

SUMMER 2016 VOLUME 2 TLIMAGAZINE.COM

5


http://www.TLIMAGAZINE.COM

Table of Contents for the Digital Edition of Transportation & Logistics - Summer 2016 Volume 2

Contents
Transportation & Logistics - Summer 2016 Volume 2 - Cover1
Transportation & Logistics - Summer 2016 Volume 2 - Cover2
Transportation & Logistics - Summer 2016 Volume 2 - 1
Transportation & Logistics - Summer 2016 Volume 2 - Contents
Transportation & Logistics - Summer 2016 Volume 2 - 3
Transportation & Logistics - Summer 2016 Volume 2 - 4
Transportation & Logistics - Summer 2016 Volume 2 - 5
Transportation & Logistics - Summer 2016 Volume 2 - 6
Transportation & Logistics - Summer 2016 Volume 2 - 7
Transportation & Logistics - Summer 2016 Volume 2 - 8
Transportation & Logistics - Summer 2016 Volume 2 - 9
Transportation & Logistics - Summer 2016 Volume 2 - 10
Transportation & Logistics - Summer 2016 Volume 2 - 11
Transportation & Logistics - Summer 2016 Volume 2 - 12
Transportation & Logistics - Summer 2016 Volume 2 - 13
Transportation & Logistics - Summer 2016 Volume 2 - 14
Transportation & Logistics - Summer 2016 Volume 2 - 15
Transportation & Logistics - Summer 2016 Volume 2 - 16
Transportation & Logistics - Summer 2016 Volume 2 - 17
Transportation & Logistics - Summer 2016 Volume 2 - 18
Transportation & Logistics - Summer 2016 Volume 2 - 19
Transportation & Logistics - Summer 2016 Volume 2 - 20
Transportation & Logistics - Summer 2016 Volume 2 - 21
Transportation & Logistics - Summer 2016 Volume 2 - 22
Transportation & Logistics - Summer 2016 Volume 2 - 23
Transportation & Logistics - Summer 2016 Volume 2 - 24
Transportation & Logistics - Summer 2016 Volume 2 - 25
Transportation & Logistics - Summer 2016 Volume 2 - 26
Transportation & Logistics - Summer 2016 Volume 2 - 27
Transportation & Logistics - Summer 2016 Volume 2 - 28
Transportation & Logistics - Summer 2016 Volume 2 - 29
Transportation & Logistics - Summer 2016 Volume 2 - 30
Transportation & Logistics - Summer 2016 Volume 2 - 31
Transportation & Logistics - Summer 2016 Volume 2 - 32
Transportation & Logistics - Summer 2016 Volume 2 - 33
Transportation & Logistics - Summer 2016 Volume 2 - 34
Transportation & Logistics - Summer 2016 Volume 2 - 35
Transportation & Logistics - Summer 2016 Volume 2 - 36
Transportation & Logistics - Summer 2016 Volume 2 - 37
Transportation & Logistics - Summer 2016 Volume 2 - 38
Transportation & Logistics - Summer 2016 Volume 2 - 39
Transportation & Logistics - Summer 2016 Volume 2 - 40
Transportation & Logistics - Summer 2016 Volume 2 - 41
Transportation & Logistics - Summer 2016 Volume 2 - 42
Transportation & Logistics - Summer 2016 Volume 2 - 43
Transportation & Logistics - Summer 2016 Volume 2 - 44
Transportation & Logistics - Summer 2016 Volume 2 - 45
Transportation & Logistics - Summer 2016 Volume 2 - 46
Transportation & Logistics - Summer 2016 Volume 2 - 47
Transportation & Logistics - Summer 2016 Volume 2 - 48
Transportation & Logistics - Summer 2016 Volume 2 - 49
Transportation & Logistics - Summer 2016 Volume 2 - 50
Transportation & Logistics - Summer 2016 Volume 2 - 51
Transportation & Logistics - Summer 2016 Volume 2 - 52
Transportation & Logistics - Summer 2016 Volume 2 - 53
Transportation & Logistics - Summer 2016 Volume 2 - 54
Transportation & Logistics - Summer 2016 Volume 2 - 55
Transportation & Logistics - Summer 2016 Volume 2 - 56
Transportation & Logistics - Summer 2016 Volume 2 - Cover3
Transportation & Logistics - Summer 2016 Volume 2 - Cover4
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue4
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue4A
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue3
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue3a
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue2
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue2b
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue2a
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue1a
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol7issue4
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol7issue3
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol7issue2
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol7issue1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017fall_vol2
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017fall_vol1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017summer
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017spring
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017winter
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016fall
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016summer_vol1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016summer_vol2
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016spring
http://www.nxtbook.com/nxtbooks/phoenix/tli_2016winter
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015fall_v2
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015fall
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015summer
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015spring
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015winter
http://www.nxtbook.com/nxtbooks/phoenix/tli_2014fall
http://www.nxtbook.com/nxtbooks/phoenix/tli_2014summer
http://www.nxtbook.com/nxtbooks/phoenix/tli_2014spring
http://www.nxtbook.com/nxtbooks/phoenix/tli_2014winter
http://www.nxtbook.com/nxtbooks/phoenix/tli_2013fall
http://www.nxtbook.com/nxtbooks/phoenix/tli_2013summer
http://www.nxtbook.com/nxtbooks/phoenix/tli_2013spring
http://www.nxtbook.com/nxtbooks/phoenix/tli_2013winter
http://www.nxtbook.com/nxtbooks/phoenix/tli_2012fall
http://www.nxtbookMEDIA.com