Billable Vaccines Workgroup: Administration Fees January 15, 2012.
0 Feb 2009 Storage Charges update Storage fees are standard for on airport warehouses GSOP ACA bond...
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Transcript of 0 Feb 2009 Storage Charges update Storage fees are standard for on airport warehouses GSOP ACA bond...
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Feb 2009 Storage Charges update
• Storage fees are standard for on airport warehouses
• GSOP ACA bond management provides billable storage amounts to all AP billing
systems
• Charging storage encourages customers to engage the clearance process
Storing shipments is a cost to the business
Inventory, tracing and follow up
Customers incentivized to use us for free storage
Storage goes directly to the bottom line
Implementation is simple
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Current Status
No current plans to charge for storage
Automation not used, manual calculation, admin overhead
Fully implemented or scheduled
3.5.1 AP Upgrade approved by PPRB
All CN live from 1 Feb
HK – May
MY 2 Mar, TW 16 March
HHP
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Annualised Storage '000 EUR @ Jan 09 BER
14 €
511 €
7 €62 €
252 €
159 €
91 €129 €
45 €
IN TH PH KR MM ID SG VN CN
Revenue
Storage Charge revenue from IAS was 1.04m EUR in 2008*
* Estimated unbilled storage was 2.4m EUR in 2008
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Current charge regimes
CN implemented from 1 FebMin (LCY) Min (EUR) Per KG (LCY)
Per KG (EUR)
Free DaysCharge Hols?
Charge Wknds?
MinPer KG
Start Date
JP - -KR ?10,000 5.63 € ?60 0.03 € 5 N N ?20,000 ?500 1/23/08CN ¥50 5.20 € ¥0.50 0.05 € 5 N N 8/1/09TW NT$200 4.32 € NT$2.00 0.04 € 5 N N 3/17/09HK - - 5/1/09PH Php448.51 6.70 € Php1.67 0.02 € 3 N N 10/26/07IN INR 40.00 0.58 € INR 2.33 0.03 € 3 N Y 1/12/07
TH ฿100 2.04 € ฿1.25 0.03 € 2 Y Y 1/1/08SG $20 9.88 € $1.00 0.49 € 4 Y Y 8/21/08MM $0.50 0.35 € $0.05 0.04 € 3 N N 1/23/08
MY MYR 10 2.06 € MYR 0.50 0.10 € 2 N N 2/3/09
ID - 700 0.05 € 3 Y Y 7/9/07AU - -VN 150,000 ₫ 6.15 € 2,500 ₫ 0.10 € 4 N N 9/1/09NZ $5 2.06 € 0.06 ₫ 0.02 € 3 N N 2/1/08BD - -LK LKR 2.5 0.02 € LKR 0.10 0.00 € 3 N N Manual
Fees at Jan '09 BER= CO SMT has decided not to charge storage fees= Fees are calculated manually= CO still discussing internally - no agreed structure and / or date
Surcharge (Cold/Secure Storage
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Deployment Notes
New charging CO’s are setting longer free periods (7 days including free weekends) which moves the revenue baseline downwards
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5 € 4 € 3 €
11 € 11 € 10 €
16 € 14 € 13 €
8 €9 €
6 €
51 € 56 €
29 €
12 € 9 €
33 €
3 €4 €7 €
0 €
20 €
40 €
60 €
80 €
100 €
120 €
08 Mo Avg Jan Feb
Sto
rag
e R
even
ue
VN
CN
SG
ID
MM
KR
PH
TH
IN
Revenue Per Mo
SC interfaced to billing systems from IASIAS Interface report for charge code SC with CO’s using storage automation
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Est Rev Potential PA
383 €
226 €
344 €
115 €
161 €
128 €
59 €
23 €
€ 0€ 25
€ 50€ 75
€ 100€ 125
€ 150€ 175
€ 200€ 225
€ 250€ 275
€ 300€ 325
€ 350€ 375
€ 400
JP AU BD NZ MY TW HK BN
('000
)
Revenue Opportunities
Est Rev PA for CO’s not charging storage
*Note – based on total AP SC revenue divided into shipments >72 hrs to clear for CO’s billing storage. The per hawb SC amount is then applied to non SC charging CO’s >72 hour clearance as an indicator of potential revenue
Based on avg rev/stored shipment for CO’s charging X shipments > 72 hrs clearance from SMART COA.
(>72 hrs + No Clearance) X Avg RPS SC for
CO’s with Storage Charges
There is 1.15m EUR of unbilled potential storage revenue in 2009
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Risks and issues
Free Days
Holiday Charges
Minimum
Write off
Per Kg
Advantages Risks RecommendationReduces storage period disputesAllows customer some time to
provide paperworkAligns with apt cargo warehouse
Standards Allows for time when formals often can’t be cleared due to Custom’s hours
Loss of revenue Combined with holiday
& weekend can result in
long free periods
2 days free. Higher if
all other cargo warehouses are
No charge for holidays
Charge for weekends
Assured revenue minimum
Provides avenue for dispute
resolution
Must have audit trail Clear guidelines
5 EUR / day unless ACW*’s charge less
0.05 EUR Kg/Day unless
ACW’s charge less
100% write off in the event of a DHL clearance
Error or delay in cargo arrival notification
*ACW = Airline Cargo Warehouses
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Risks and issues
Charge
Codes
Local
Policies
Advantages Risks Recommendation CO’s can maintain current
Local reporting
Revenue difficult to track Added headcount to create
receivable Inability to view in CREST
going forward
Use already in-built standard charge codes in
IAS
Set regional “floor” on
Parameters.
Allow CO’s to exceed, but
not go below
Stay in line with local market Support local reporting
*ACW = Airline Cargo Warehouses
Inconsistency of image to
customers Difficulty of implementing
change
• Implement consistently
• No additional headcount or new operations procedures
• Lay groundwork for more cost recovery in future
• Use same work instructions everywhere while allowing rate variances above a regional floor
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Next Steps
Draft Policy & work instructions Finalise policies RO GSOP Review system setups CO Ops Programs / IT Agree Revenue reporting (Use IAS to report or report in CREST) Communicate to
Ops Notify broker turnovers via handouts Commercial Customers Finance Revenue reporting,set up of IAS code and SAP/LAS mapping
*ACW = Airline Cargo Warehouses
IT Set up “SC” standard storage charge in all IAS/ACA instances (Done) Reset Storage charge interface flag in CO ACA Configure invoices to print SC on invoices
√
6088 Misc Other income 321940 Other miscellaneous income
√
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Next Steps – Phase 2
Other non core cost recovery
Review success of program at year end CO revenue reports Charge structure
Revisit structure and increase fees (reduce free days, increase minimums, raise per kg rate?) Add fees for other non core cost drivers
Personal Effects clearances Broker and documentation turnovers
Within the existing systems and processes we have today
*ACW = Airline Cargo Warehouses
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Issues – Storage Charges
o System capability
o Administrative and clerical
work
o Payment Dispute
o Customer queries
ACA & IAS automate this
calculation.
No added headcount is
required
Create a fair & equitable
charge structure that defuses
common challenges
Notify prior to start via
handouts at collection
counters and mail
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What is a Storage Charge?
The amount charged for storing a shipment in bond.
(# Days – Free days*) X (Kgs X Unit Fee)
Specific credit accounts can be exempted
Fee can be written off
ACA IAS
GL
Billing
*Day 0 counts as 1 day