ANA (All Nippon Airways Co., Ltd) – Client Voice

Movie - Cargo Handling Operations Support for ANA (3:16)

Overview

Implementation of Pay-As-You-Go Model to Address Business Trends

All Nippon Airways Co., Ltd (ANA), one of the leading airlines of Japan, expanded their Okinawa base to manage the export cargo business. ANA has achieved a remarkable speed in shipping domestic cargo to the major cities of Asia within a single day. This high quality service is supported by CargoMethod, NTT DATA’s solution that manages export cargo operations.

CargoMethod links with Nippon Automated Cargo and Port Consolidated System (NACCS), which is a system for online processing of customs procedures, related administrative systems, and related private services regarding cargo clearance. It provides rich functionality to improve effectiveness and promptness in the field. By introducing a new pay-as-you-go model, which allows cost based on the volume of cargo handled, CargoMethod can provide a flexible response to the needs of the rapidly changing export cargo business.

Common Business Concerns

  • Strict adherence to safety requirements for cargo handling operations with time and space constraints
  • Demand for flexible, optimum IT investments suited to a dynamic business
  • Economic downturn has impacted business

Desired Outcomes

  • Effective handling of operations to be performed based on thorough quality management and safe and quick cargo shipping
  • Introduce a flexible system (pay-as-you-go) that enables payment based on the volume of cargo, which will help reduce costs even during an economic downturn

Background and Business IssuesExport cargo business must promptly address sudden changes in cargo bookings

ANA is a proactive and continuously expanding export cargo business. In October 2009, ANA opened a cargo hub in Okinawa to handle the increasing cargo shipping volume to China and various other countries in Asia. Masato Nakamura from the Intelligence Support Division of ANA, states, “If a jet departs with its cargo late night from one of the main [Japan] domestic airports to various countries in Asia via Okinawa, our speed and service quality ensures next day delivery of the cargo at offshore.”

At Japan domestic airports, the mass movement of export cargo must be achieved within a limited time. Any delays can adversely affect other scheduled flights. Furthermore, high volatility is one of the main features of the export cargo business. External environment factors like major increases or decreases in cargo volume due to business trends and seasonal variations can affect the business.

In such situations, CargoMethod, by NTT DATA, supports ANA’s business capabilities.

Takahiro Goto
Manager
Cargo & Flight Maintenance Systems
Portfolio Management
Innovation & IT Strategy
ALL NIPPON AIRWAYS CO., LTD.

Masato Nakamura
Intelligence Support
Cargo Marketing & Services
ALL NIPPON AIRWAYS CO., LTD.

Toshiaki Kanno
Logistics Systems
Chief Expert
ANA Systems Co., Ltd.

Why Choose CargoMethodHow CargoMethod supports flight scheduling, safety, and busy field sites

NTT DATA, with a strong record of trade logistics (based on NACCS), developed a user friendly export cargo handling system and supported day-to-day operations at ANA to provide high quality service. Export Cargo Handling System, a predecessor of CargoMethod that NTT DATA designed from scratch, had been used at ANA since 1999. However in 2013, ANA desired a packaged solution to reduce cost and respond to global economic conditions.

Takahiro Goto, Manager of Cargo & Flight Management Systems, Portfolio Management, Innovation & IT Strategy Division of ANA said, “We thought that sharing the ownership of an excellent packaged solution with a service provider would save us cost instead of developing an in-house exclusive system.” He also said that installation of a packaged solution would need to be reviewed by ANA from end to end. After comparison with many other competitors, ANA selected the CargoMethod by NTT DATA.

Close-knit system linkages such as NACCS for customs procedures are implemented in CargoMethod. CargoMethod incorporates time restraints and the safety requirements of scheduled flights. Furthermore, the solution improves the cargo payload and can be implemented for all airline companies.

Toshiaki Kanno, Chief Expert of Logistics Systems Division of ANA Systems Co. Ltd., when explaining benefits of installing CargoMethod said, “By using this system, our staff can continue with their work while sharing information as if they are having a conversation. The system is extremely useful in case of urgencies and supports busy field sites to adhere to strict schedules.”

Implementation FlowCreate new billing Model based on cargo volume

By installing CargoMethod, ANA seeks to reduce cost and enhance functionality by migrating to packaged products. The new fee system of CargoMethod, pay-as-you-go based on the volume of cargo handled (weight on board), is largely different from the previous system.

The cargo business is subject to acute variations and cargo volume varies due to external factors such as business trends. Therefore NTT DATA, sought to improve software pricing by creating a pay-as-you-go business model where cost is based on the volume of cargo handled. Customers only pay software usage charges and fixed maintenance charges every month. This does not include software installation cost which can be handled by NTT DATA at the customer’s request. The customer manages the hardware. By making software charges pay-as-you-go to adjust to a recent economic slowdown, cost savings were achieved. According to the pay-as-you-go cargo model, the usage fee will be less when cargo volume is low and when the yen is weak, the usage fee will be levied on the volume of goods.

Mr. Goto also appreciates introduction of pay-as-you-go and said, “Pay-as-you-go model based on the volume of cargo handled is a billing model that could be achieved because of NTT DATA. NTT DATA is an expert in export cargo business and we believe that this is a win-win relationship for both of us. System installation with a small start is possible and CargoMethod can be easily installed.”

Implementation Impact and Future ViewsSafe and quick cargo shipping and the strategic use of cargo data

ANA has been using CargoMethod since March 2013. With regard to the impact upon business operations, Mr. Nakamura of the Information Support Team says, “The high service quality of our export cargo business at ANA is due to CargoMethod, which supports through flexible system linking and numerous functions. We would like to use it actively for the expansion of future business.”

Also, commenting on the development structure of NTT DATA, Mr. Kanno said, “In addition to being a system of global standards and supporting conditions specific to Japan such as customs regulations, CargoMethod can be evolved into a more user-friendly system in the future.”

On a global scale, a large amount of cargo data is stored by cargo export businesses. This data can be collected and analyzed to use strategically. NTT DATA’s big data processing technology will also function effectively towards the strategic use of such cargo data.

In conclusion, Mr. Goto said, “If CargoMethod’s pay-as-you-go service is introduced in most airline companies, all cargo from Japan will reach overseas customers properly and quickly. The entire Japanese export cargo service will be highly appreciated and eventually it will enhance the competitiveness of Japan. I hope that it will spread widely in future.”

Customer Summary

Name

All Nippon Airways Co., Ltd.

Head office

Shiodome City Center, 1-5-2 Higashi Shinbashi, Minato, Tokyo

Establishment

April 2, 2012

Capital

10,000 million Yen

No. of employees

13,731 (As on March 31, 2013)

Main business
  1. 1Scheduled air transportation business
  2. 2Nonscheduled air transportation business
  3. 3Air carrier usage business
  4. 4Other ancillary business

Client Overview:

Client Company : All Nippon Airways Co., Ltd (ANA)

Primary Business Unit: