Menzies has selected Wipro Ltd, a leading technology services and consulting company, to deliver an innovative air cargo handling solution to support Menzies’ air cargo transformation and growth plans. The first locations to benefit will be Bucharest in Romania, Wellington, Christchurch, and Auckland in New Zealand and Macau in China. GHI caught up with Robert Fordree to find out more.
GHI: Congratulations on your recent partnership with Wipro Ltd, can you explain the reasoning behind Menzies’ decision to select them?
Robert Fordree: Transforming our air cargo services has been a priority for us over recent years to support our growth ambitions. We started looking at innovation in our sector and warehouse management systems of the future. There are two or three global providers that most ground handlers and airlines use, but we wanted to stand out so we started looking beyond the usual suspects. Wipro is a global technology company and already has some major airline customers, but they were looking for a way to break into the cargo handling market. We looked at their capability, their infrastructure and the developers, and we thought it was a good mix. So as a result of our RFP we started to work with them on developing their existing solution, which was principally for airlines, and we looked at ways we could turn that into a handling solution for us. They’ve invested a lot of time and effort in getting to where we are today.
GHI: To what extent will Wipro’s new product improve efficiencies?
RF: We believe it will 100% improve efficiencies. Most of the issues with congestion and backlogs are down to warehouse infrastructure, space and labour availability so this new system will help with that. It will help with transparency and understanding where potential labour efficiencies could be made and how to utilise warehouse space better. Obviously it’s not a magic bullet to change things fundamentally, but it will significantly help and build on what exists already.
GHI: How easy is this new system to use for warehouse workers?
RF: Not every stakeholder within the cargo supply chain is going to have the same operating system – anyone who thinks that is wrong – there are always going to be differing operating platforms that need to talk to each other. But we needed a system that integrated far better with other systems, whether it be with other handlers, truckers, airports, forwarders or airlines so the decision to select this solution was two-fold. Firstly, we wanted to be able to integrate with multiple systems and secondly to address the current labour challenges. We wanted to invest in a new system that was going to be easy to use and familiar to what people have outside of work. This was a really important element for us and we’re pleased with the look and feel of Wipro’s system, which is similar to apps our employees use every day.
GHI: Would you agree that the pandemic accelerated the adoption of digital solutions in the air cargo industry?
RF: It definitely accelerated developments. Are we seen as an e-commerce provider? No, but the reality is that we contribute towards e-commerce every day. When your doorbell rings with a deliver, there is a likelihood that at some point Menzies has been involved in the transfer of those parcels somewhere around the world. So we have to embrace technology that allows us to develop further our e-commerce business. Because of the transparency required from consumers, we needed to move to an operating system that can share data. Of course, we have to be careful with data protection but equally we need to be transparent with our customers and their customers about where the cargo is, and the Wipro system is going to take us to the next level to achieve this in a safe and secure way.
GHI: It looks like this partnership with Wipro fits well with Menzies’ global tech transformation plan, would you agree?
RF: Following Agility’s acquisition of Menzies and the subsequent integration with National Aviation Services, we are now the largest aviation services provider by number of countries served. Accelerating growth is at the heart of the new Menzies and we have ambitious plans to continue growing our air cargo business. Four years ago, Menzies had 32 cargo locations around the world, now we have 75. We needed an IT operator that could support rapid growth and onboarding new locations at pace. It usually takes between six to 18 months’ lead-time before we go live at a new location, but during the pandemic some customers were asking if we could be ready in 30 days. Wipro’s size and resource played a major part in our decision as they can support both our growth ambitions and rapid implementation.
GHI: Are you cautiously optimistic about the performance of air cargo in 2023 despite weakened demand due to the economic climate?
RF: We can’t sugarcoat that this year is going to be very difficult for everyone. Global tonnage is down considerably compared to last year and the heights seen during the pandemic were a total anomaly. Each generation of cargo professionals has something different to deal with in terms of the global economy and geopolitical events. In this post-pandemic era, we have the war in Ukraine and evolving manufacturing bases around the world. That said, we don’t see anything other than a cyclical change with global volumes. This year will continue to be a challenge and it will be 2024 before we expect the economy to recover and volumes start to increase again.
Long-term, the global economy is going to be less reliant on China for manufacturing than it has been in the past. Other countries in the region are set to invest in manufacturing that will remodel traditional routes for air cargo and our team based in Singapore are focused on new business opportunities off the back of this.
GHI: Why were the five stations in China, New Zealand and Romania chosen first to trial Wipro’s new air cargo handling solution?
RF: We wanted to start small and take any learnings into the global roll-out. We have a very aggressive timeline to implement the new system in all locations by the end of 2024.
GHI: What other innovations are Menzies working on?
RF: Following the successful launch of ‘Mimi’, our robotic assistant currently at our London Heathrow facility, we are now looking at wildlife tracking technology that supports operations with X-ray screenings and technology to help us with the build process for exports. The latter is especially good for the new generation of employees who won’t have decades of experience in a warehouse. By working with technology, it helps them plan export loads and maximise capacity on aircraft. Technology will never replace people fully, we will always need highly trained and talented colleagues. The role of technology is to complement and make their job easier and more effective. As mentioned earlier, we are in a really challenging position in terms of recruiting a younger generation because they don’t see our industry as attractive as other sectors. But as we roll out our new technology capability, we believe we are going to attract a generation that will want to work with us, a generation that has technology at the forefront of their minds who will start to think about innovation that can help us to evolve further. Wipro will help us attract future talent, embrace cutting edge technology, and fortify our position as the leading cargo handler in the market.
