1 / 14

Feb 2009 Storage Charges update

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

jolene
Télécharger la présentation

Feb 2009 Storage Charges update

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 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

  2. Current Status Fully implemented or scheduled Automation not used, manual calculation, admin overhead No current plans to charge for storage • 3.5.1 AP Upgrade approved by PPRB • All CN live from 1 Feb • HK – May • MY 2 Mar, TW 16 March HHP

  3. Revenue • Storage Charge revenue from IAS was 1.04m EUR in 2008* * Estimated unbilled storage was 2.4m EUR in 2008

  4. Current charge regimes • CN implemented from 1 Feb

  5. Deployment Notes • New charging CO’s are setting longer free periods (7 days including free weekends) which moves the revenue baseline downwards

  6. Revenue Per Mo SC interfaced to billing systems from IAS IAS Interface report for charge code SC with CO’s using storage automation

  7. Revenue Opportunities Est Rev PA for CO’s not charging storage 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 *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

  8. BACKUP SLIDES

  9. Risks and issues Advantages Risks Recommendation • Reduces storage period disputes • Allows customer some time to • provide paperwork • Aligns 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 Free Days Holiday Charges No charge for holidays Charge for weekends 5 EUR / day unless ACW*’s charge less Minimum • Assured revenue minimum 0.05 EUR Kg/Day unless ACW’s charge less Per Kg 100% write off in the event of a DHL clearance Error or delay in cargo arrival notification • Must have audit trail • Clear guidelines Write off • Provides avenue for dispute • resolution *ACW = Airline Cargo Warehouses

  10. Risks and issues Advantages Risks Recommendation • 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 • CO’s can maintain current • Local reporting Charge Codes Local Policies Set regional “floor” on Parameters. Allow CO’s to exceed, but not go below • Stay in line with local market • Support local reporting • 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 *ACW = Airline Cargo Warehouses

  11. 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 √ 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 *ACW = Airline Cargo Warehouses

  12. 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

  13. Issues – Storage Charges • 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 • System capability • Administrative and clerical work • Payment Dispute • Customer queries

  14. 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 GL IAS ACA Billing *Day 0 counts as 1 day

More Related