Key challenges
A major challenge for the logistics provider was being able to increase Singapore’s competitive advantage as a major transit hub, and address capacity breaches which impede current operational efficiency.
Additionally, the scarcity of airside footprint at Changi Airport presented a significant challenge to physically accommodate the forecast growth in eCommerce parcels.
The client therefore needed the expertise to envision how a partnership between a parcel carrier and an airfreight ground handler would deliver commercial and qualitative benefits.
Our approach
The end-to-end process was redesigned to maximize process efficiency, including a state-of-the-art automated sortation facility to handle import, export and transit articles with AI-based item-level screening for dangerous and prohibited goods detection.
The facility also encompassed an automatic bag buffer, sortation to flight, air container build-up, auto container buffer storage and retrieval to seamlessly connect with dynamic flight departure times.
An implementation road map was developed and provided to the client with multiple concurrent workstreams to expedite benefit realization, including an investment case with multiple tranches of capex deployment and key financial evaluation metrics.
The results
Overall, the project delivered a number of significant results, including:
- 37% reduction in processing cost per unit.
- A flexible, scalable and agile solution.
- >15% internal rate of return solid business case investment.