Case Study

Case Study

Menzies Aviation Cargo (worldwide)

Formed in May 2000, Menzies World Cargo (MWC) is Heathrow’s largest independent cargo handler. Having grown through a mixture of acquisition and organic growth, MWC knew that if it wanted to stay ahead in the highly competitive market of cargo ground handlers it would need to offer its customers a service that differentiated it from its competitors.

MWC identified that, as a handling agent, it needed to be able to offer its airline customers reliable and measurable service and the ability to handle the unique products offered by the airlines such as Express or different types of cargo that may require special handling. However in order to achieve this MWC would need to implement a system that would allow it to proactively manage the cargo handling process and achieve higher levels of efficiency and reliability. But there were no such products available at that time.

Stephen Koller, Global IT Director, takes up the story. "At one point in time we were operating four different handling systems that had been inherited along with the companies MWC had acquired.

Not only were they incompatible with each other but none of them offered thefunctionality in the cargo handling processes we were looking for. "Because traditionally many airports or airlines have handled cargo themselves, products have developed in line with their business processes.

But with the increase of service companies within this market, combined with the airlines themselves making further demands to reach the service levels that they promise their customers, we needed a system that placed more emphasis on event management. "We wanted a system that would help to eliminate human error by automatically prioritising work according to the various services levels demanded by the different airlines.

In addition to this, it was also important that there was a form of alert system that would notify staff when tasks were overdue."

Having spent 18 months drawing up the specification required by the new system, MWC searched the market for a suitable product that provided the functionality required and was able to integrate easily into their existing legacy systems. After a lengthy review of the products available MWC chose HERMES, as it provided much of the functionality needed and its ability to integrate easily into a heterogeneous environment made it a clear winner. HERMES was ready for its first trial at London Heathrow by April 2002, only a few short months from the beginning of its development in October 2001. "HERMES Logistics Technologies allowed us to launch a complete air cargo handling solution, in extremely short timescales," says Stephen Koller, global IT director of Menzies Aviation, MWC’s parent company. "I frankly don’t think this would be possible with any other solution on the market. HERMES’ productivity is superb and the ROI is remarkable. "HERMES has provided MWC with the consolidation of three previously incompatible Unix and Windows-NT based systems, into a complete cargo management system that runs on Sun Microsystems’ Solaris operating system and an Oracle database. It was HERMES Logistics’ ability to integrate with our existing legacy systems has been critical to the success of the project."

HERMES' first task for MWC was to handle the cargo movements of one of Heathrow’s most demanding airlines – Lufthansa – in terms of both product offerings and levels of service required. Within the three-month trial, compliance with the airline’s service levels rose to in excess of 99 percent and errors were reduced by 80 percent.

HERMES has now been rolled out in many of Menzies Aviation’s facilities around the world and is supporting some of the world’s best-known airlines.

Charges for handling services are automatically accrued by HERMES and in addition to this,

HERMES also automatically feeds cargo process information into MWC’s ERP system and is able to accommodate for differing billing rates and the varying service delivery standards. This has improved billing accuracy and ensures that no chargeable activity is missed. The complete system has provided MWC with a comprehensive management system that is able to handle and control all aspects of the cargo operation.

By streamlining the business process MWC have been able to achieve greater customer satisfaction, whilst increasing its profitability at the same time. Des Vertannes, managing director of MWC sums up his opinion of the entire project, "The partnership between HERMES Logistics and Menzies staff has helped ensure that HERMES exceeds our requirements.

We are now able to provide our clients a more value-added package that differentiates us from the competition. Our clients no longer think of us as a supplier, but as a partner who is able to help them develop their business, particularly in the areas of niche logistics such as valuable, shock-proof or even dangerous cargo." Today, HERMES is considered the most contemporary Ground Cargo Handling System available, which has been developed to specifically address every aspect of running a modern, efficient and commercially profitable ground handling operation.

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