CaseStudy

SPICEJETinitiatesDoor-to-Doorservice:

Double-digitgrowthenabledbynewmulti-segmentbusinessmodel

DEPLOYMENT:NewDelhi,India

©2017SmartKargo|QuantumIDTechnologies.AllRightsReserve

Overview

SpiceJet,oneofIndia’smostinnovativeaircarriers,becamethefirstcommercialairlinein

theIndianmarkettolaunchDoor-to-Door(D2D)serviceforitsBusiness-to-Business(B2B)

customersegment.SmartKargohadoriginallyimplementedanend-to-endCargoERP

solutionforitsAirport-toAirportbusinessinAugust2015.Understandingthatthe

technologycapabilitytosupportanexpandedbusinessmodelwasavailabletotheminthe

SmartKargosolution—theSpiceJetteambeganplanningtoimplementandlaunchtheD2D

concepttotakeadvantageoftherevenuegrowthopportunitythatthenewmodelcould

enableviatheadvancedshipper-to-recipienttechnology.

BusinessChallenge

Itiswell-knownthatthetraditionalwholesaleAirport-to-Airport(A2A)Cargo

businessmodel,thatistraditionallyadoptedbytheglobalaircarrierstomarket

theirunusedbellyspaceontheirscheduledservice,hasreducedtheAirCargo

businesstoacommodity-levelenterprise—onethatcompeteslargelyonprice

withothercarriersforallotmentsandspace-to-filltheunusedbellycapacityon

itsflights.

SpiceJet,thenumbertwoaircarrierinIndia,soughttoincreaseitsvalue

propositiontoitscustomersbytakingadvantageofSmartKargo’send-to-end,

shipper-to-recipientcapability—gainingashareoftherevenuethatiscurrently

ownedbytheintegratorsinthemarketduetochangingretailmodelsdrivenby

eCommerce.Atthesametime,SpiceJetwaskeentosafeguardtheirtraditional

wholesalebusinessmodel(A2A)withForwardersand3PLs.

SpiceJetDeploysSmartKargo

Inearly2016,SpiceJetgavethegreenlighttodeploytheSmartKargoD2D

functionality.InMarch2016,SmartKargodeliveredthesystemandMobileapp

forlaunchofSpiceJetD2Doperations—onlyafewmonthsafterthedecisionto

deploywasmadebytheSpiceJetmanagementteam.

TrainingwasprovidedtoSpiceJetstaffatthebranchlevelandapprox.250staff

weretrainedfortheD2Dprocess.WiththelaunchofD2Dservice,SpiceJet

demonstratedforward-lookingleadershipfortheirdomesticshippers—

leadershipwhichtranslatedintoahigherstandardofcustomersatisfaction.

Moreimportantly,theircustomerswereabletomakethemostofgrowing

opportunitiesinIndiaforD2Ddelivery.

TheSmartKargocloud-basedsolutionprovidedSpiceJetwiththeflexibilityto

expandcustomer-facingcapabilityquickly,allowingboththeairlineandits

customerstoincreasescopeofservicesandincreaserevenues.

SpiceJetwasableto“white-label”theSmartKargoofferingasSpiceJetExpress,

tosignificantlygrowtheirCargorevenues.OpportunitiestocaptureB2C

eCommerceopportunitiesalsoexist—aswellasthecapabilitytosupportthe

airline’sexistingExpress/CourierbusinesswithFirstMile/LastMileservice.By

extendingdirectservicestoshippers,theopportunityfortheairlinetoestablish

afranchiseforconsumerD2Dinthefutureisalsoapossibility.

SeamlessIntegration

SmartKargoreceivedthegoaheadfromSpiceJettodelivertheD2Dsolution

earlyin2016,andinnotime,turned-onthecapability.InMar2016,the

SmartKargoteamdeliveredboththeERPandtheMobileappsforend-to-end

D2Doperations.

SmartKargoprovidedsupportthroughoutIndiainphase1anddeployedourstaff

tokeylocationsinDelhi,Mumbai,Bangaloreetc.forlocaltrainingandto

monitortheoperationflow.Laterin2016,weconductedabusiness-process

consolidationfortheSpiceJetTeam,whichwasdeliveredinMay2017.

KeyChallenges

Beingafirstofitskind,SpiceJetfacednumerouschallenges.

• SpiceJetwaslookingforanoperatingplatformthatprovidesboththe

traditionalAir-to-Airfunctionalityandcouldbeextendedtosupport

door-to-doorfunction.

• Multi-Levelconsolidationandtheabilitytocreatemotherbagsatthe

warehouselevelwasanabsolutenecessity.

• Manydriverscarriedalow-costandroidsmartphoneandthesolution

wouldhavetoworkonthosedevices

• Sincemanypickupanddeliveryareaswereoutofcellphonenetwork

coverage,anysolutionneededtoworkinanofflineoronlinemode.

KeyBenefitsofSmartKargoSolution

Theintegratedend-to-endsolutionhassuccessfullyallowedSpiceJettoextend

theirvaluechainbyprojectingtheirownbrandinthebusiness-to-business(B2B)

byservingcustomerswiththeDoor-to-DoorservicethatSmartKargoenables—

matchingtheproductandserviceofferingsoftheintegrators.

SpiceJetrealizedafewimportantbenefits,including:

• SolutioncansupportbothAirandTruckshipments

• SolutionhasabilitytoconsolidateattheWarehouse(Motherbagging)andattheAirport(Masterassociation)

• SolutionenablesFirstandLastmilepick-upanddelivery,withoptimizedrouting(dispatchedorself-assignedviamobileapp)

• Solutionfacilitatesrobust,flexible,end-to-endhandling

• Solutionprovidesend-to-endtrackinginrealtime

• SolutionisfullycompatiblewithIATAstandards

• SolutionprovidesanadvancedPlatformtocompetewithIntegrators

• Solutionprovidesincreasedrevenue

• Solutionandmobileapplicationscanbeintegratedanddeployedrapidly

TheSmartKargoApproach

SmartKargoisanintegratedsystemoffunctionalitycomponentsthatwork

togethertomeetthevariedneedsofallpartnersinthecargochain,from

shipper to recipient. Although airlines are the principal users, Shippers,

EcommerceOperators,FirstandLastmileTransporters,groundhandlers,

salesagents,andothersalsousethesystemto increaserevenues, lower

costs,andimprovecustomerservice.

ThedevelopersofSmartKargo,ateamofITengineersandexpertstrained

atMIT,workedcloselywithairlinecargoveteranstobuildasystemthat

leverages threepivotal factors—Cloudcomputing,mobileplatforms,and

data analytics. As a cloud-based, Software as a Service (SaaS) solution,

SmartKargo customers pay only for what they need and use. After a

modest implementation fee, customers pay based on their air cargo

volumes—a simple and transparent approach. SmartKargo delivers

visibility and transparency enabled by real-time data and simple user

interfaces—fromshippertorecipient.

ExceedingCustomerExpectations

SmartKargo’s system architecture is flexible, which yields two key

benefits.First,itcanbeeasilyandquicklyadaptedtomeetspecificcarrier

needs; and second, itwill evolve tomeet the future needs of both the

industryandspecificcustomers.

After implementation, SmartKargo delivers a package of additional

programming per year, as needed. SmartKargo’s existing customers

reportsignificantimprovementsinROIandkeyperformanceindicators,in

threemaindimensions:

• Higheryields,resultingfromSmartKargo’smoreaccuratecapacity

utilizationanddynamicpricingcontrol

• Highertonnage,resultingfromreal-timeinterfaceswiththe

passengersystem,aswellasGSAabilitytoaccessthesystemfor

bookings

• Higherflownasbooked(FaB),becausebetterinformationproduces

greateraccountability

We invite you to join the forward-looking airlines inNorthAmerica, South

America, Europe, and Asia that are seeing how SmartKargo can increase

cargo revenues and improve customer service. Bottom line, SmartKargo

delivers greater efficiency, more flexibility and increased revenue

opportunityviareal-time,actionabledata.

“Yoursolutionhasenabledourbusinesstoexpand

quicklyintoDoor-to-Door.Inthefirstthreemonths,we

increased

ournumberofAWBsthreefold.Yearoveryear,wehave

morethandoubledTotalCargoRevenuesacrossthe

board.”

—AjaySingh,CEO,SpiceJetAirlines

Ifyouhavequestions,we’dbedelightedtoanswerthemanddemonstratehow

SmartKargocanhelpdriveyourbusinesstonewheights.BecauseSmartKargoisso

advanced,ithelpstoseeitin action.

Formoreinformationorademo,pleasecontacttheSmartKargosalesteamvia

sales@smartkargo.comorwww.smartkargo.com.