How to improve the delivery accuracy in the cargo handling

The main business for airfreight companies is to deliver shipments rapidly, punctually, and with the highest quality possible. Lufthansa has established a delivery accuracy rate of 98%, which means that 98% of all shipments shall ar-rive on time. To date, the SAS Cargo terminal at Gardermoen, which handles Lufthansa Cargo’s shipments, has not achieved this level of accuracy. There-fore, the purpose of this thesis is to document and demonstrate the current shipment handling flow by utilizing flowcharts, to monitor the flow of informa-tion, to identify areas with critical problems, and finally, to propose a plan for improvement.

The Business Process reengineering method (BPR), has been utilized as a guide to structure the work. The information was gathered with assistance of existing SAS flowcharts, observations of the actual handling flow, personal interviews, and statistics from the Lufthansa IT system. The information was analyzed with existing theories as problem areas were identified. The general factors isolated in the terminal that decreased delivery accuracy were: decreased numbers of available staff, low motivation and insufficient training of the employees, and inefficient communication between the terminal departments.

The primary conclusion obtained from this study reveals that LHC and SAS Cargo do not have a systematic collection of information for identifying under-lying problems and their causes. It is therefore recommended that a structured approach to collect and analyse the missing information is conducted by using a seven step method. This method provides an adaptive flexibility by employing different tools and different methods as they are needed in each step.

Author: Cohen, Magnus

Source: Luleå University of Technology

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