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Client overview

• MAB Kargo, also known as MASkargo, is the air cargo arm and subsidiary of the Malaysia Aviation Group (MAG) that provides scheduled freighter services, ground handling and airport services to more than 100 destinations worldwide.
• MAB Kargo aims to reinvent itself and capture additional market share in the air cargo industry, with a goal to increase sold capacity by 40% over the next five years.

Objectives

• Optimize air cargo space utilization by upgrading manual pallet and unit load device (ULD) build planning and loading processes that result in underutilized assets, missed revenue opportunities and shipment damage
• Cement position as an industry leader by investing in advanced technologies and solutions to capture greater global market share through process and technology improvements
• Boost efficiency and growth by maximizing capacity and revenue by working with a solution provider who can help the company overcome industry challenges

Solution

• Implementing Unisys Logistics Optimization™, which combines pre-trained AI models with a diverse compute program that includes quantum and classical computing, to generate highly efficient cargo configurations in near-real-time
• Integrating the logistics planning solution into the company’s operational workflow to optimize capacity, safety and on-time performance
• Using pre-trained AI models to automate manual planning processes while considering a range of factors — weight, product-specific handling requirements, delivery service level agreements (SLAs) and more — when creating build plans
• Leveraging diverse computing methods that apply the appropriate compute platform for each use case, optimizing for accurate results in near-real-time

Why Unisys?

• Applied Unisys’ deep understanding of air cargo processes as a result of its 40+ years of experience in the industry. These insights have culminated in the development of a process-centric planning solution that solves operational concerns.

Results

• Reducing ULD planning time by about 83% per flight — from 30 minutes to just 5 minutes — freeing up about 166,250 hours a year from their planning team
• Increasing capacity utilization by 5% in project’s initial phase, which translates to more than $5.5 million in potential annual revenue uplift
• Enabling planners to optimize the end-to-end ULD planning life cycle by dynamically replanning builds in near-real-time when disruptions occur
• Setting the stage for increased revenue by providing visibility into available cargo space, empowering the sales team to proactively fill planes and drive revenue growth
• Opening the door to additional anticipated results, including reduced ground handler labor, claims and damages; minimized risk of non-compliance due to human error; and improved fuel efficiency, carbon footprint and on-time performance

MAB Kargo's quest for air cargo efficiency

In an industry where every inch of space and every minute counts, air cargo companies are always looking for ways to optimize operations and stay ahead of the competition. For MAB Kargo, a subsidiary of the Malaysia Aviation Group (MAG), the quest for efficiency and profitability led it to seek out innovative solutions that could transform the way it does business.

With a presence in more than 100 destinations worldwide, MAB Kargo is on a mission to cement its position as an industry leader and capture additional market share. The company provides scheduled freighter services, ground handling and airport logistics through its freighter fleet and cargo belly space capacity on MAG aircraft. Its goal is to increase sold capacity by 40% over the next five years.

Overcoming challenges with Unisys Logistics Optimization

Like many in the industry, MAB Kargo faced the complex challenge of optimizing air cargo space utilization. Manual unit load device (ULD) build planning and loading processes were time-consuming, often leading to underutilized assets, missed revenue opportunities and even shipment damage. MAB Kargo needed a solution to boost efficiency and growth by maximizing capacity and revenue.

MAB Kargo is partnering with Unisys to deploy the Unisys Logistics Optimization solution. The company’s leaders hope this will optimize capacity, safety and on-time performance. “Unisys didn't just sell us software — they brought decades of air cargo industry experience to optimize processes specifically for our business. That deep domain knowledge is invaluable,” said Mark Jason Thomas, chief executive officer of MAB Kargo.

Seamlessly integrating the next-gen solution

To bring the solution to life, Unisys made it a priority to integrate Unisys Logistics Optimization efficiently with MAB Kargo’s existing systems, helping ensure a smooth flow of data for optimization without disrupting ongoing operations.

Unisys drew upon its extensive experience in the air cargo industry to pretrain the solution’s optimization models, enabling a faster speed to value. Business users at MAB Kargo can customize model parameters or objectives to match unique business rules, constraints and requirements.

Seeing early results

The initial outcomes are impressive. With Unisys Logistics Optimization, MAB Kargo is:

• Reducing ULD planning time by ~83% (from 30 minutes to just 5 minutes) per flight, freeing up about 166,250 hours a year from their planning team
• Increasing capacity utilization by 5%, translating to over $5.5 million in potential annual revenue uplift
• Enabling planners to optimize the end-to-end ULD planning life cycle by dynamically replanning builds in near-real-time when disruptions occur

Maximizing revenue and profitability

Unisys Logistics Optimization offers a multifaceted approach to driving revenue and profitability for air cargo companies. By optimizing capacity utilization, MAB Kargo is gaining visibility into available cargo space that can be sold to customers. This is empowering its sales team to proactively fill planes and drive revenue growth.

The increased efficiency and reduced labor requirements achieved through the solution allow airlines to operate more cargo flights with fewer people, further enhancing profitability. This is particularly valuable in an industry facing a shortage of skilled workers, as it enables airlines to scale their cargo operations and utilize a larger portion of their fleet for cargo services with an existing headcount.

Navigating compliance complexities

In addition to optimizing capacity and reducing planning time, Unisys Logistics Optimization helps air cargo companies navigate the complex landscape of compliance issues. The software considers crucial factors, such as weight and balance, dangerous goods segregation, product-specific handling requirements and special cargo restrictions.

"By considering these elements during the loading process, the solution minimizes the risk of human error and ensures adherence to necessary regulations and guidelines," says Jeff Smullin, director of emerging solutions, Enterprise Computing Solutions, Unisys. "This, in turn, helps air cargo companies avoid potential penalties, damages and liabilities that could arise from noncompliance, ultimately providing a more efficient and secure shipping experience for their customers."

Achieving liftoff for a promising future

As the partnership progresses, MAB Kargo expects to experience more benefits, including increased revenue by providing visibility into available cargo space — empowering MAB Kargo's sales team to proactively fill planes and drive revenue growth. Other anticipated results include reduced ground handler labor, claims and damages; minimized risk of noncompliance due to human error; and improved fuel efficiency, carbon footprint and on-time performance.

MAB Kargo CEO Mark Jason Thomas praised the partnership, stating, "Investing in advanced technologies like Unisys Logistics Optimization is allowing us to cement our position as an industry leader. The solution's ability to replan in near-real-time gives us the agility to manage disruptions and maximize our assets."

With Unisys Logistics Optimization, MAB Kargo is poised to reach new altitudes in air cargo efficiency and profitability, setting the stage for future success in an increasingly competitive industry. This innovative solution empowers air cargo companies to focus on growth, confident in their ability to fill planes and drive business results.

To learn more about how you can slash your capacity planning time, visit Unisys online or contact us today.