Case Study : Cargo Solutions
Unparalleled Consistency in Forecasts and Optimized Values
Profitability. Delivered
We Helped a Large North American Carrier Enhance Forecasts, Allotments, and Work Flow Consistency in order to Improve Total Profitability.
A leading North American carrier decided to scale its capacity management and optimize its allotment and networks. They were on the lookout for a solution that could powerfully combine performance with revenue management and ensure real-time interfaces to leverage the reservation systems to optimal levels.
The Problem
The client was relying on a legacy system that was archaic and hard-coded. It presented limitations in terms of technical upgrades and scalability, further preventing profitability and growth. They were on the lookout for a solution that didn’t just empower them with cutting-edge technologies but also add value through robust strategies for network enhancements and profitability.
Our Solution – RTS Velocity
We provided a single source of truth in terms of forecasts and optimized values, to all the analysts across the globe using AI/ML based algorithms and streamlined workflow and thus providing consistency and improving profitability.
With real-time interfaces in place, the recommended values including authorized capacities and allotments were in sync with the airline’s reservations system. We helped them move from leg/segment optimization to O&D optimization, using O&D allotments instead of flight-specific allotments, and use of network optimization recommendations instead of blocking space on each flight based on the region.
Additionally, every booking was evaluated for operational feasibility and commercial viability along with cross sell/upsell capabilities which helped the sales team maximize their overall network contribution.
Our Process
The leadership team on both sides worked closely involving the cross-functional teams including the business team, sales executives, and technology folks by pre-planning these activities and preparing the teams ahead.
The implementation began with an intense scoping study through onsite sessions with all the stakeholders. Team RTS identified the gaps, and prioritized to resolve them. The overall implementation was divided into three phases considering time to market with.
Phase 1
CAPACITY MANAGEMENT
Phase 2
ALLOTMENT MANAGEMENT
Phase 3
NETWORK MANAGEMENT
Each phase had several integration touch points with the airline’s third-party systems, enhancements, user acceptance testing, training, and go-live support. Some of these were identified as part of the initial risk assessment that includes meeting timelines for integration of RTS Velocity with third-party systems such as reservation systems and also changes in business processes to take advantage of the industry best practices based on various suggestions from RTS.
The leadership team on both sides worked closely involving the cross-functional teams including the business team, sales executives, and technology folks by pre-planning these activities and preparing the teams ahead.
The Results
Our solution came out as the winner because of its robust capabilities not only in capacity management but also in allotment management and network management. The airline was extremely pleased with the realization of revenue benefits as well as productivity improvements along with the level and speed of support, the flexibility, and subject matter expertise from RTS.
.