Rhoda Kellner FHDSCM Dissertation 2020[73]

FIATA HIGHER DIPLOMA IN SUPPY CHAIN MANAGEMENT The dynamic value add of the “in-house” Freight Forwarder to the SCM solutions for the Aerospace industry customer.

R Kellner SAAFF Final Assessment II DECLARATION I, Rhoda Kellner declare that: (i) The research reported in this dissertation, except where otherwise indicated, is my original research. (ii) This dissertation has not been submitted for any degree or examination at any other university. (iii) This dissertation does not contain other persons’ data, pictures, graphs or other information unless specifically acknowledged as being sourced from other persons. (iv) This dissertation does not contain other persons’ writing unless specifically acknowledged as being sourced from other researchers. Where other written sources have been quoted, then: a. Their words / phrases have been rewritten but the general Information attributes to them have been referenced. b. Where their exact words / phrases have been quoted, then these words / phrases have been placed inside quotation marks and referenced. (v) This dissertation does not contain text, graphics and tables copied or pasted from the internet, unless specifically acknowledged and the source being detailed in the dissertation and in the reference sections. Signed: _____________________________________________ Date: ______________________

R Kellner SAAFF Final Assessment III SUPERVISION AND EXAMINATION This paper is submitted for final evaluation by Mr Mark Goodger, FIATA validated trainer for the FIATA accredited training organisation, Global Maritime Legal Solutions(PTY) Ltd, and The South African Association of Freight Forwarders (SAAFF) in pursuance of the FIATA HIGHER DIPLOMA SUPPLY CHAIN MANAGEMENT. The paper has accordingly covered the following SCM modules of the FIATA Higher Diploma in Supply Chain Management: 1. Supply Chain Management 2. International transport Management 3. Global purchasing 4. Financial Management 5. Contract Management 6. Production and Operations Management 7. Global Marketing Management Title of the Dissertation: The dynamic value add of the “in-house” Freight Forwarder to the SCM solutions for the Aerospace industry customer. STUDENT : Rhoda Kellner - ID number 8408200152087 SUPERVISOR : Mr Mark Goodger - ID number 5901095243089

R Kellner SAAFF Final Assessment IV Abstract Supply chain management has evolved significantly over the last three decades, and specifically within the services delivered by an “In - House” Freight Forwarder. This has driven the need for the expanded role of the freight forwarder within the supply chain management environment of their customers. This dissertation is written to provide insight and knowledge on a rather specialised service within this industry; however, the information is easily applicable to anyone from the forwarding sector working strategically within the framework of supply chain management. The aerospace industry is an ever growing and very demanding vertical. Add in the challenge of services to a low-cost airline and this is magnified significantly. It is with this challenge in mind that this paper, will be informative & relevant to global Forwarders. The Paper will cover extensive dynamics when working in-house at/for various aerospace industry clientele, addressing problem-solving experiences, gained along the journey. This dissertation will take you through a history of the aerospace industry and then make refence to a 2-part case study. Various critical aspects of supply chain management services will be discussed specifically with reference to the role of the freight forwarder within these functions and the solution-based approach taken to the benefit and value add towards this industry clientele and their challenges.

R Kellner SAAFF Final Assessment V Table of Contents DECLARATION II SUPERVISION AND EXAMINATION III ABSTRACT IV TABLE OF CONTENTS V CHAPTER 1 – THE AEROSPACE INDUSTRY 1 1.1 INTRODUCTION 1 1.2 THE HISTORY AND GROWTH OF THE AEROSPACE INDUSTRY 1 CHAPTER 2 - CASE STUDY 4 2.1 SAFAIR OPERATIONS: 4 2.2 FLYSAFAIR: 7 2.3 SOLUTIONS TO THE SAFAIR CHALLENGES: 8 CHAPTER 3: THE FREIGHT FORWARDERS IN-HOUSE APPLICATION OF SCM PRINCIPALS LEADING TO SOLUTIONS. 10 3.1 SUPPLY CHAIN MANAGEMENT 10 3.2 ROLE PLAYERS 13 3.3 THE FREIGHT FORWARDER 15 CHAPTER 4: 3PL AND LOGISTICS NETWORKS 20 4.1 RISK IDENTIFICATION: 21 4.2 CORE VS NON-CORE FUNCTIONS: 22 4.3 LAYERS TO LOGISTICS SERVICE: 24 4.4 LOGISTICS NETWORK STRATEGY: 24 CHAPTER 5: GLOBAL PROCUREMENT MANAGEMENT IN THE SUPPLY CHAIN 27 5.1 THE ROLE OF PROCUREMENT IN THE SUPPLY CHAIN 27 5.2 SUPPLIER SELECTION AND EVALUATION – CRITERIA 28 CHAPTER 6: INVENTORY AND WAREHOUSING 33 6.1 WAREHOUSE LOCATION, TYPE AND LAYOUT: 34

R Kellner SAAFF Final Assessment VI 6.2 INVENTORY MANAGEMENT: 39 6.3 DANGEROUS GOODS 43 CHAPTER 7: IT AND THE USE OF INFORMATION SYSTEMS 45 7.1: TECHNOLOGICAL ADVANCEMENTS APPLIED: 46 7.2: SOFTWARE SOLUTIONS: 48 CHAPTER 8: SECURITY IN THE SUPPLY CHAIN 50 CHAPTER 9: CONTRACT MANAGEMENT AND QUALITY CONTROL 53 9.1 THE IMPORTANCE OF CONTRACTS IN SCM: 53 9.2 INCOTERMS 53 9.3 THE IMPORTANCE OF A SLA AS A TOOL FOR QUALITY CONTROL 55 9.4 QMS AS A TOOL FOR THE FF IN SCM 56 CHAPTER 10: THINKING AHEAD: SOLUTIONS FOR FUTURE GROWTH AND SUSTAINABLE SCM SOLUTIONS. 57 CONCLUSION 58 GLOSSARY OF TERMS AND DEFINITIONS 59 BIBLIOGRAPHY 61

R Kellner SAAFF Final Assessment 1 Chapter 1 – The Aerospace industry 1.1 Introduction Boeing and Airbus, are well known aircraft manufacturing brands and are two of the market leaders within the aerospace industry. There are of course other industry manufacturers that are competitive within their own respective global markets, however on an international scale, Boeing and Airbus have a well-established advantage, and are also key role players in the supply of military aircraft, although their core business lies in the commercial business segment. 1 In the next section of this paper, there is a brief history provided of the aerospace industry, however, keep in mind that over time as these machines have been constructed to attain greater distances at greater speeds, the demands have increased on a global level to support this endeavour. An aircraft on the ground does not earn revenue. Therefore, the freight forwarder must take on a more centralised service role within the supply chain environment, in order to maintain global standards and expectations. The service to be provided is thus to mitigate the risk and avoid the circumstances where an aircraft is unprofitable when it is on the ground, and not in the air transporting passengers and cargo and therefore not generating an income. 1.2 The History and growth of the Aerospace industry Anyone familiar with the aerospace industry, will know of the famous Wright brothers, who through many trials and much research and development, were able to demonstrate that an aircraft is capable of powered and sustainable flight. Their ingenuity was noticed by the likes of J.P Morgan and Company2 in 1906, and later by the US Army who contracted the brothers to provide the first military aircraft in 1908. In 1909 the first assembly line for aircraft was initiated. World War I, led to further expansion in production capacity, and in France alone, 1500 planes manufactured, were for military purposes and this totalled to 75% of the number of manufactured aircraft during the war. The French government ordered a further 4000 aircraft to be manufactured during the war and to be in active service by 1918. Even in these early days, the value of these machines was evident and understood, in that those possessing more aircraft, had an added advantage over their adversaries. In the USA, the government enlisted automobile manufacturers to be begin the large-scale production of aircraft, as the USA aircraft manufactures had little experience in mass1 https://www.investopedia.com/ask/answers/050415/what-companies-are-major-players-airline- supplybusiness.asp 2 J.P Morgan & Co was a commercial financial banking institution that had been funding the transportation sector since 1892 when the company was involved in the finance of the New York Railroad.

R Kellner SAAFF Final Assessment 2 production procedures. By the end of WWI, USA factories, had the production capacity to turn out 21000 airplanes per year. 3 In this example alone, one can see how the aerospace industry influenced the trend of using production lines to turn out large numbers of standardised items. Once the practical application of the airplane was realised, the world of logistics expanded tremendously. The first recorded airfreight cargo was that of a 91 kg package of silk for the opening of a retail store, which flew in the USA from Dayton to Columbus, Ohio, in 1910. Image 1: November 7th, 1910. Wright Model B airplane, carried 10 bundles of fabric4 Many airlines were thus founded and began operations in the 1920s, which led to the development of a company called National Air Transport, which later became one of the many organisations that merged to become United Airlines. By the end of 1931, more than 500 tonnes of freight had been carried by air. United Airlines commenced its air freight delivery service in 1940, however the core focus of the organisation was still on passenger services. Four major airlines at the time, formed a company called Air Cargo Inc. 5 in 1941, which had the singular purpose of delivering the supporting ground transportation needs, for the cargo freight solutions. The company operated during most of WWII, which was another driving event for the Aerospace industry, due to the need for faster and more powerful aircraft servicing cargo that could be conveyed by this mode. The delivery of many resources essential to the war effort, from troops to supplies, such as ammunitions, was reliant on the use of aircraft transportation. Throughout this period the growth in aircraft technology was exponential and this resulted in larger, more sophisticated aircraft with greater passenger and cargo capacity, capable of 3 https://www.britannica.com/technology/aerospace-industry/History 4 https://www.ohiohistory.org/learn/collections/history/history-blog/2015/august-2015/first-air-cargo-shipment 5 The 4 major US carriers included United Airlines, American Airlines, Trans World Airlines, and Eastern Airlines to accommodate their ground transportation needs.

R Kellner SAAFF Final Assessment 3 traveling faster and over longer distances. Many further technological developments experienced, were as a direct result of these unsettled times, and the continued technological evolution, such as the invention of the jet propulsion engine, which was later utilised for commercial purposes. The International Air Traffic Association was founded in 1919, and its successor, IATA6 , was founded in 1945, by a group of 57 airlines. It now has 290 member airlines, and primarily deals with the appropriate conduct of air transportation today, which has a far reaching impact on all safety standards critical for the sector. 7 “Our mission is to represent, lead and serve the airline industry”.8 By the early 1960’s the “all-freight” carriers, were negotiating contracts with railroad companies, to offer door-to-door cargo delivery services. This was potentially the start of multimodal transport incorporating the air mode. The prominent passenger airlines & manufacturers thereof, were identified as the problematic source of competition for the “freight-only” carriers. These passenger organisations, extended their services and profitability with minimal additional resource application, by applying a dynamic utilisation of the already available space, for cargo conveyance purposes. In 1968 Boeing developed the four engine Boeing 747, which was the first wide body aircraft, capable of transporting, pallet load units, in the cargo hold of the fuselage9 , this transformed the air cargo industry by offering an increased handling service capacity with less physical handling required. The advancements in the capabilities of the aircraft, combined with the boom in technological growth, sent the world of aircraft development and air cargo utilisation into a new era. In 1994 FedEx launched fedex.com as the first transportation website, to offer online package status tracking, enabling customers to conduct business via the internet, along with software that allows customers to process and manage shipping bookings, directly from their computers. 10 The internet was a revolutionary turning point, in that real-time flight tracking data was available at the click of a button. This led to increased visibility throughout the supply chain, however, the substantial growth of the air cargo industry was largely driven by the increase in global commerce and need for speed in delivery. 11 The role of the emerging freight forwarder, throughout the history of service provision to the aerospace industry, is just as interesting. Evolving from a 3rd party clearing agent, to that of a 6 IATA – The International Air Transport Association 7 https://en.wikipedia.org/wiki/International_Air_Transport_Association 8 https://www.iata.org/ 9 Fuselage, central portion of the body of an airplane, designed to accommodate the crew, passengers, and cargo. It varies greatly in design and size according to the function of the aircraft. 10 https://about.van.fedex.com/our-story/history-timeline/timeline/ 11 https://www.freightwaves.com/news/flashback-friday-the-history-of-air-freight

R Kellner SAAFF Final Assessment 4 vital partner and key role-player throughout the SCM environment. The freight forwarder, is now a driving force within the supply chain for this industry, working with all the necessary role players and stakeholders to facilitate the realisation of, customer goals, as well as realising and improving their own organisational service objectives. The case study as reflected below is thus important in reflecting the service dynamics of an “In House” freight Forwarder and will clearly articulate the component of service delivery and value add in that specialised supply chain dynamic. Chapter 2 - Case Study This case study is twofold, each portion focuses on the 2 core business offerings, provided by Safair, a local South African aviation company and the service support provided by the forwarder. These are: Safair Operations – Case study 1, and Fly Safair – Case study 2, as addressed below. 2.1 Safair Operations: Many are not aware that Safair did not commence its core operations as a low-cost passenger airline in 2013, rather it has a long-standing history, beginning with Safair Operations, which had been conducting business since 1965 as an aviation charter company. During the evolution of its services, the company identified a gap in the market, a niche offering of aerospace services to humanitarian aid and relief cargo clientele, such as the Red cross, the United Nations, and the World Food Program. These operations are conducted with the use of a very special fleet of aircraft consisting of Lockheed L100-30 Hercules12 aeroplanes. It is notable that Safair has ordered the latest version of these to replace the older Hercules aircraft in the near future. Production of these existing Hercules aircraft ended in 1992, therefore, there is a limited number of parts and equipment suppliers, that have the necessary components required by Safair, in order to maintain and operate these complex machines. The additional greater challenge, is that these parts and equipment, are not typically required in a first-world metropolitan13 area, but rather that they must be sourced and delivered to thirdworld areas, such as the below, where the project could be situated. 12 The Lockheed L-100 Hercules is the civilian variant of the prolific C-130 Hercules military transport aircraft made by the Lockheed Corporation, the L-100-30 is a later model which has a greater load capacity. 13 Relating to or denoting a metropolis or large city often inclusive of its surrounding areas

R Kellner SAAFF Final Assessment 5 - Bamako, Mali (West Africa) - Juba, South Sudan (East Africa) - Lubumbashi, Democratic Republic of Congo (Southern Africa) - Mogadishu, Somalia (East Africa) - Entebbe, Uganda (Central Africa) Safair, has an outstation, serving as a central hub in Entebbe, Uganda, which serves as the organisation’s distribution centre into most of Africa. As you can very well imagine, each of these destinations, present varying challenges, however, the most prominent being, that the geographical locations make the freight service delivery options, very challenging from a delivery point of view. Secondly, the a socio-political14 circumstances, need to be taken into consideration, as there are many challenges that effect various aspects of the supply chain and services required. Safety and security are a considerable concern from a resource and service delivery point of view. What makes the Hercules aircraft so unique, is their versatility aided by their ability to land on short runways, on rough terrain, as well as being able to land on ice covered landscapes. Therefore, the organisation has been involved with many fascinating projects, such as paradropping15, relocation of wildlife such as Black Rhinos, aid and relief work, to name a few. 16 Some of these projects are planned well in advance, with outstations being opened to handle year-long contracts, however, some require rapid service solution action, with little to no warning, such as the disaster relief aid projects, which would need to be planned and executed within a matter of days or even hours, depending on the severity of the situation, such as a natural disaster, which could only be predicted to a certain extent One can appreciate the role of the forwarder, who must be on hand to immediately react and provide solutions. There are technician’s that accompany the aircraft in a support capacity to ensure that there are minimal to no operational maintenance delays, which could result in an AOG17 scenario. The accompanying technician has an extensive fly-away kit, which is on board, and ensures the availability of important and regularly needed aircraft parts, such as tyres. All other spares will 14 Combining social and political factors 15 Paradropping: This is the delivery of goods by paradropping them from aircraft which involved the use of parachutes to slow the items down before impact with the ground. 16 https://www.safairoperations.com/about 17 “Aircraft on Ground” or AOG is a term in aviation maintenance, indicating that a problem is serious enough to prevent an aircraft from flying. This results in the urgent need for parts to rectify the situation as soon as possible

R Kellner SAAFF Final Assessment 6 be ordered through the Safair procurement team, which is based at the head office, situated at ORT International airport in Johannesburg. These spares will often, need to be sourced and sent as a cross-trade18 , directly to their intended destination. For example, through the Safair operations base in Entebbe. Therefore, the parts would be ordered from Miami USA and flown to Entebbe, Uganda, without having to go through additional South African transit customs import and export procedures. This is a very common logistical service delivery solution provided, as this saves time and money, however, this approach requires strict supervision and seamless flow of information to ensure that goods arrive at their destination within a specific time frame. Essentially Safair is utilising 2 central distribution centres, each catering to specific aircraft. The EBB19 station houses mostly Hercules aircraft parts, while the JNB20 warehouse, predominantly retains the Boeing spares. Image 2 below, is of an aircraft from the Safair fleet branded with the UN logo. The likes of which operate out of Entebbe, Uganda. Image 2: Safair registered Lockheed L-100-30 Hercules: Photo from the internet 21 It is a specific requirement that the forwarder must understand all the technical criteria of the aircraft operated and in so doing must, be able to convey cargo delivery solutions to the customer. These criteria, by way of example are reflected below in image 3, illustrates the load capacity of the Lockheed L100-30 Hercules aircraft. Examples below: 18 Cross-trade: A shipment that flies from origin to destination without passing though the county where the order was placed, or where the purchasing company is based. 19 EBB – Entebbe International Airport, Uganda IATA code 20 JNB – Johannesburg International Airport, South Africa IATA code 21 https://www.jetphotos.com/photo/7673322

R Kellner SAAFF Final Assessment 7 - Capable of carrying bulk liquid transportation of up to 24 000 l of fuel - 20 000 kg for more than 1200 nautical miles - Large vehicles and oversized cargo - Cargo and passenger load combinations22 Image 3: Image courtesy of the Safair Operations website23 2.2 FlySafair: FlySafair, which is the low-cost airline component eluded to earlier, was launched in 2013, with the intent to operate 10 daily flights between Cape Town and Johannesburg. At the time this route, was the 10th busiest domestic route in the world, it is now ranked at 11th 24. There was a one-year operational commencement delay, due to an interim court order, filed by a competitor, however, the inaugural flight took place on the 16th of October 2014. The current 22 https://www.safairoperations.com/hercules-l100-30 23 https://www.safairoperations.com/hercules-l100-30 24 https://www.forbes.com/sites/ericrosen/2019/04/02/the-2019-list-of-busiest-airline-routes-in-theworld/#13cad6271d48

R Kellner SAAFF Final Assessment 8 fleet is made up of 16 aircraft, with another 3 on order25, which are expected to join the fleet in 2020. FlySafair in its service expansion, currently operated flights along the following routes, including return options. 26 - ORT Johannesburg – Cape Town - ORT Johannesburg – King Shaka Durban - ORT Johannesburg – East London - ORT Johannesburg – Port Elizabeth - ORT Johannesburg – George - Cape Town – Lanseria - Cape Town – Durban - Cape Town – East London - Cape Town – Port Elizabeth - East London – Durban - Durban – Port Elizabeth The profit margins of a low-cost airline are naturally very modest. The market dynamics for these airlines are driven from suppressed economic conditions, where customers are willing to trade-off between the full-service carriers’ superior offering, and the reduced price of a lowclass airline ticket. In an interview with Elmar Conradie, CEO of Safair. He stated 27 “Now, more than ever, it’s essential that carriers focus on keeping their cost per seat as low as possible,” “It’s essential that we drive efficiencies across all aspects of our business to remain competitive.” 2.3 Solutions to the Safair challenges: In first looking at the SCM challenges faced by Safair Operations, it is significant to acknowledge that the SCM dynamics are ongoing, and evolve, depending on demand, meaning that as a critical partner, the freight forwarder, needs to look at multiple scenarios, developing strategies in a team’s approach with these customers. Therefore, engaging with, or around, these potential problems and challenges. The focus must be on planning and decision making which will be discussed in detail later in this paper. 25 https://en.wikipedia.org/wiki/FlySafair 26 https://www.flysafair.co.za/travel-tools/flight-schedules?dateFrom=2020-03-30&dateTo=2021-03- 30&airportFrom=&airportTo= 27 https://www.iol.co.za/business-report/companies/flysafair-turns-profit-in-2016-7491858

R Kellner SAAFF Final Assessment 9 There needs to be open and transparent sharing of information, as problem solving will need to be conducted across many overlapping functions of the supply chain. Below is an extract from the GMLS FHDSCM presentation, summarising the importance of teams with the context of SCM and the resultant benefits Slide 69 from the GMLS FHDSCH presentation Performance measurement is vital. Delivery must be on time, at the right time and price. Therefore, the “In House” service solution will be provided for in Chapter 3. Effective communications also lead to the efficient transportation of goods, which, without the connection between the various role players, would not be possible. The freight forwarder is strategically placed at the centre of this communication and acts as the intermediary between suppliers, freight agents and their client, and their customers client’s. All to ensure that the deadlines, to be met, are communicated and that orders are handled in an efficient and costeffective manner, appropriate to the level of urgency. As mentioned in part one of the case study, Safair, makes use of strategic cross-trade shipments to avoid incurring unnecessary expenses and ensuring the most efficient movement of goods, thereby saving time which is a very limited resource in the aerospace industry. In this paper, there are added examples and solutions throughout, that are relevant to the separate chapters and sub chapters. One must keep in mind, that the goal is to effectively maintain the Hercules aircraft, situated in challenging areas and keeping expenses to a minimum for the Boeing fleet, of the low-cost airline. The goal is to have a sustainable business that is efficiently run, with little to no waste of resources across the supply chain. A thread usually breaks where it is thinnest 28 The above statement is therefore key to supply chain solutions. 28 Basque saying of unknown origin

R Kellner SAAFF Final Assessment 10 Chapter 3: The Freight forwarders in-house application of SCM principals leading to solutions. 3.1Supply Chain Management As briefly mentioned during the introduction, the role of the freight forwarder has changed exponentially over the last few decades. There has been a distinct shift from the role of logistics management to that of supply chain management. This can be highlighted by the following definitions for each of these functions. What is Supply Chain Management (SCM)? Supply chain management (SCM) is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms, to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.29 What is Logistics Management? Logistics management is the process of strategically managing the procurement, movement and storage of materials, parts and finished inventory (and the related information flows) through the organization and its marketing channels, in such a way that current and future profitability are maximized through the cost-effective fulfilment of orders. 30 With an “in house” service delivery approach, the freight forwarder exceeds its previous role of being a chink in the chain, they are now seen as a global, value-adding partners across the chain. With reference to the quotation provided earlier by Elmar Conradie, CEO of Safair, the company needs to drive efficiencies across all aspects of their business, to retain and gain competitive advantage. The statement is true for all companies looking to create a sustainable future. A freight forwarder must apply the exact same business principal to their own organisational practices, and by doing so, they should align their objectives to those of their clients and client’s clients, therefore becoming partners and reaching beyond the scope of being a 3rd party service provider. 29 https://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management-scm 30 https://scm.ncsu.edu/scm-articles/article/logistics-management

R Kellner SAAFF Final Assessment 11 Through the understanding of supply chain relationships, and the importance that these have on an organisation’s performance, one can understand that that these relationships are vital for laying the foundation for excellent business practices. An in-house freight forwarder, must have a detailed comprehension as to the nature of their client’s business, and this ultimately means they need to understand the goals that the organisation wishes to achieve. For example, understanding the fact that not every item can be kept in stock and that this will ultimately result in AOG type shipments, which are a reality of the aerospace business. Holding stock influences the cashflow of an organisation, the impact of which can be far reaching should the stock become redundant. There are many managerial decisions that must be considered when discussing the inventory requirements of an organisation. The lead times as depicted below, are expected from the client and must be strictly adhered to by the freight forwarder. The logistics manager would be responsible for ensuring that this information is passed on to the FF for all air freight import and export shipments. These would also be expressly stipulated in the SLA31 which will be discussed further in Chapter 9. The chosen routing can ultimately lead to the failure or success of the supply chain, as this factor impacts cost, transit time and handling. The FF would present the options and cost to the company, for the logistics manager to make the best decision. Bearing in mind that the FF must swiftly present the ultimate choice of solution’s, to the customer for selection, based on cost, urgency and other such factors. In reference to the below prescribed and agreed lead times, please note a definition of the word consolidation from Hinkelman (2000) p49. “(shipping) The combination of less than truck load (LTL) shipments of cargo from a number of shippers at a centrally located point of origin by a freight consolidator and transporting them as a single shipment to a destination point. Consolidation of cargo often results in reduced shipping rates. (Hinkelman, 2000)” 32 31 SLA – Service Level Agreement 32 Hinkelman (2000)

R Kellner SAAFF Final Assessment 12 PRESCRIBED LEAD TIMES England and most of Europe to / from Johannesburg: - AOG: Cargo delivery is expected within 24 hours of being ready for pick up - Critical: Cargo delivery is expected within 2-3 working days of being ready for pick up - Normal: Cargo is on the next consolidation (typically a weekly service) USA and other origins to / from Johannesburg: - AOG: Cargo delivery is expected within 48 hours of being ready for pick up - Critical: Cargo delivery is expected within 3-4 working days of being ready for pick up - Normal: Cargo is on the next consolidation The contractual expectation is made abundantly clear, and the onus is on the logistics manager to ensure that the freight forwarder and their partners strictly adhere to these service levels as a critical factor in the SCM process. Also, a primary role of the freight forwarder, is to use industry expertise and provide the client with calculated options to deliver the best possible service at a competitive price. This is good business practice and value-added service, which as an industry norm, is expected from the scope of a freight forwarder, especially taking into consideration the level of competition present within the logistics environment. With the FF offering a door-to-door solution to the client, via a single point of contact, this reduces and possibly eliminates the need to contact various intermediaries. This streamlines all information flows and reduces most inefficiencies for the client; however, this does require a highly skilled team on the side of the FF, to offer this solution to their customer. All the while considering the importance of the team concept. Every organisation will have to determine their ideal internal structure depending on their operational requirements. The Logistics and procurement functions have traditionally been one department, as they work so closely together, however, there has been a trend to separate these two departments and rather have the management oversee communications between the two departments. This reduces potential task overlap and is designated to clearly identify boundaries of responsibility.

R Kellner SAAFF Final Assessment 13 3.2 Role players There are many role players within the supply chain, and this can vary significantly depending on various influencing factors, such as the company structure, nature of the product and whether the functions are seen as core vs non-core, therefore, which should rather be outsourced to 3rd party operators. Langley et al. (2008)33 described SCM as an art and a science of integrating the flows of products, information and financials through the entire supply chain pipeline from the supplier’s supplier to the customer’s customer. This would only be possible if the various role players are aligned and take a goal orientated approach. We can now look at 2 models to highlight this change over time depicting the progression towards an integrated supply chain. Porter’s 1985 value chain model, illustrates the various role players and functions in terms of Primary and Support Activities. This model, whilst still relevant and functional to some organisational structures, may not be applicable to all organisations, due to the procurement function being a support activity instead of a primary activity, as it is seen in the more modern models. Many of the primary activities may also be 3 rd party functions such as warehousing or fleet management. Most companies utilizing the value chain model have a more “company centric” view to increase the businesses productivity and better allocate various resources. Image 4: Porter’s Value Chain Model34 33 Managing Supply Chains – a Logistics approach 34 https://moonwelfarefoundation.blogspot.com/2018/12/what-is-value-chain-analysis-value.html

R Kellner SAAFF Final Assessment 14 In contrast we can now look at the Integrated Supply chain model, highlighted in image 5 below. This image depicts a more holistic view of the supply chain and shows the 3 critical flows of SCM, pertinent to making an organisation more competitive in the global marketplace. - Information - Product - Finances Image 5: Integrated Supply Chain35 The various role-players are now connected via a communication network, which facilitates effective communication sharing, in order to reach common objectives. As per Langley et al. (2008) “The extended enterprise perspective of supply chain management, represents a logical extension of the logistics concept, providing an opportunity to view the total system of interrelated companies for increased efficiency and effectiveness.”36 Based on the that statement, one can clearly see how the FF fits into the supply chain picture, with a central point of contact for information sharing and communication facilitation purposes. The FF can take on a lead role at various intersecting points of the supply chain, specifically with reference to the import and export functions working critically within and between teams. The various role players throughout the SCM may include: Suppliers Distribution centres Manufacturers Freight Forwarders Distributors Customs authorities Wholesalers Statutory organisations Retailers Airlines / shipping lines End users Consolidators / groupages operators Warehouses Ground handlers / Port authorities Transportation companies Packers / Fumigators 35 https://www.procurious.com/procurement-news/where-does-your-supply-chain-begin-and-end 36 Managing Supply Chains – a Logistics approach

R Kellner SAAFF Final Assessment 15 3.3The Freight forwarder The FF has been recognised as an essential service provider to the global business community. Also known as the “travel agent” to the cargo industry. Their role is critical to the success of SCM, in that they have the knowledge and expertise, to ensure that the correct documents are in place to facilitate and expedite the flow of goods from end-to-end. In addition, there are various complexities surrounding the popular use of multi-modal transport, and the FF is a key factor in the management and application of the various carriers and intermediaries. Their role, predominantly in emerging markets, is to create a harmonised logistical ecosystem in order to bring about the best efficiency for the client. The freight forwarder must have hindsight, foresight and insight. FIATA (International Federation of Freight Forwarders Associations) is an organisation, that represents over 40 000 FF globally, and describes freight forwarders as the “Architects of Transport”. Below are their main objectives taken from the FIATA website37: • to unite the freight forwarding industry worldwide • to represent, promote and protect the interests of the industry by participating as advisors or experts in meetings of international bodies dealing with transportation • to familiarise trade and industry and the public at large with the services rendered by freight forwarders through the dissemination of information, distribution of publications, etc. • to improve the quality of services rendered by freight forwarders by developing and promoting uniform forwarding documents, standard trading conditions, etc. • to assist with vocational training for freight forwarders, liability insurance problems, tools for electronic commerce including electronic data interchange (EDI) and barcode Logically the In-house FF must abide by these objectives The SCM environment is ever changing, and the FF aids their clients in remaining up to date in all changes and progressions that could potentially inhibit their client’s growth and service requirements. The best possible solutions to various challenges are presented to their clients, therefore the FF ensures that the right product, is delivered at the right time, at the right place, in the right condition, and ultimately at the right price. All the while taking into consideration any legal and compliance obligations. 37 https://fiata.com/about-fiata/objectives.html

R Kellner SAAFF Final Assessment 16 Ideally the FF, must be ahead of the market in terms of information technology and the most up to date physical cargo handling trends, in order to offer their customers efficient and effective service standards. This service from an “In House” point of view, ensures immediate information and capacity for the customer to make decisions, as per the below benefits of utilising an on-site FF. One-stop communication shop Availability of shipment status information Dedicated on-site personnel Queries can be expeditiously attended to Cargo handling supervision Inventory location information Less strain on the client’s resources Financial understanding and negotiations for rates Organisational capacity awareness for cargo bookings Statistics and reporting capabilities Training and skills are maintained at the FF cost Expert advice readily available Communication with Intermediaries Continuous education and training are critical to keeping current, on various innovations and developments. A FF must have a good understanding of Geography considerations, and be able to advise their clients on the most cost effective or expeditious trade lanes. Ultimately, they need to be an indispensable partner for all stakeholders in the international trade environment. The role of the in-house freight forwarder, is to act as a one-stop-shop and arrange all the required logistical services that the client may need, whilst ensuring the process remains under strict control to ensure the cargo’s safely throughout the entire supply chain. This paper will go into more detail in a later chapter, on the role of information technology, however, it needs to be mentioned now, that a critical role of the FF will always be to ensure communication is smooth and that information is transparent, reliable, timeous and readily available to the various interested role-players. 38 38 Cargo Talk Magazine Vol XVIII issue 10, article: The unsung heroes of logistics

R Kellner SAAFF Final Assessment 17 Image 6: Diagram from GMLS Incoterms training course – slide 35 As per the above image we highlight that the in-house freight forwarder would be situated in or alongside the purchasing department at the client’s premises. This gives them access to information that is critical to the service offerings expected, such as the surrounding elements in the image. - Freight agents: Naturally, the in-house FF, is ideally placed, to manage all functions, or aspects involved throughout the SCM process, therefore dealing with the various key role-players as previously mentioned. - Modes of transport: The in-house FF, must have the knowledge and experience to offer their client advice on the most efficient mode of transport, depending on the nature of the cargo, and the urgency of the situation. For example, with enough planning, Safair imported various 40ft containersfrom France that contained new seats for several aircraft in their fleet. This would never have been a realistic airfreight option given the volumetric and unstackable nature of the cargo, and taking into consideration the expense of airfreight.

R Kellner SAAFF Final Assessment 18 - Banking requirements: The FFs involvement, would be crucial if there is an LC39 involved, since the client would have to ensure that all documentation meets with the bank’s approval for the financial institution to release original documents. The FF would be responsible for double checking all the documents to ensure smooth operational flow of the goods and provision of the correct documentation. - Exports: Any FF would have the expertise to facilitate all export procedures from doorto-door. This would include being able to assess a project or situation and applying solution-based practice, in order to ensure the process is carried out optimally. - Import Control: Any freight forwarder, would need to effectively communicate with all role players to ensure the smooth flow of goods and information. This would include understanding the tracking options and ensuring that customs clearance procedures are executed seamlessly. Furthermore, this encompasses the understanding of all other statutory organisation obligations and facilitating the adherence thereto. - Marine insurance: This is a crucial advisory role of the freight forwarder as often the client would have blanket insurance, however, if a certain shipment is of a sensitive or high value nature, then it would be expected of the FF, to ensure that the cargo is adequately covered, therefore the appropriate recommendation should be made to the client. A marine insurance policy is part of the contract management process, which will be discussed in more detail later in this paper. - Customs duties: The nature of the aerospace industry is very time sensitive. As an example, often pre-alert documents are available from the UK in the evening, and the in-house FF needs to be able to offer after hours clearance services, to ensure there are no delays. It is critical to have the training and experience to deal with any manner of customs stops or queries. From understanding the required documents or overseeing physical cargo examinations. Alternatively, the in-house FF, would work alongside a customs clearance department, depending on the size of the freight agent organisation. - Central Control: This is the primary motivation behind having an in-house presence as a representative for the FF. The central contact person eliminates any uncertainty regarding whom to contact for information, regardless of the origin or destination of the cargo. Here the “one-stop-shop” approach is a key element of the role of the FF throughout the SCM process. 39 LC – Letter of credit which is documentary tool used as a payment mechanism used in international trade as a form of guarantee between various parties.

R Kellner SAAFF Final Assessment 19 - Costings: Very often the freight controller is asked to consult on a project, and part of this would entail a feasibility costing to ensure that the endeavour is financially viable. One must be aware of the financial position of the client to ensure that all decisions are in line with their capacity, therefore, not put any undue pressures on the capital resources of the organisation. Offering a client options regarding pricing, and lead times, will allow the company to make informed decision based on researched alternatives. - Stock control: Specifically, regarding the aerospace industry, this function would typically be undertaken at the client’s premises, where the in-house FF, would verify if cargo has arrived or has already been dispatched. The FF would be immediately aware of all cargo crossing the threshold of the client’s warehouse. Any warehouse manager will have made decisions regarding the layout of the facility to ensure that this supports the operational requirements of the organisation, this too will be discussed in further detail, in a later chapter. - Shipping Department: The central FF contact, provides an immediate go-to for the shipping department, often managing the function in-line with the purchasing team and becoming a hub for any shipment related information requirements. This department provides a vital support function to many other departments and works together with the purchasing team, throughout the SCM process. - Shipping Expertise: Understanding the nature of the client’s business, coupled with knowledge and innovative thinking, allows the FF to provide a wide range of information and advice on any number of key aspects within the SCM process. Trust is very important here and the client needs to be 100% sure that they are getting timely statistics and information that is relevant and useful. - Forwarding: Global forwarding is a crucial aspect to the supply chain management process. This is the ultimate link in the facilitation chain and is key for information system development and procedure efficiency. The in-house FF should only consider a shipment complete once there is a signed POD available, whether in hard copy or digital format. - Other Government departments: The nature of the industry and cargo will have an impact on the number of statutory organisations party to a shipment. For example, a small aviation squib40 needs to have an import permit from ITAC41 as well as be inspected by the SAPS42 explosive division. 40 Aviation squib is a small explosive device which is situated in the discharge valve of various aerospace goods such as fire extinguishers and any of the inflatable devices. 41 ITAC: International Trade Administration Commission 42 SAPS: South African Police Service

R Kellner SAAFF Final Assessment 20 Chapter 4: 3PL and logistics networks In Chapter 3, it was briefly discussed that each organisation needs to decide on the internal organisational structure depending their operational requirements. This is equally relevant to the Freight Forwarder. Predominant factors will be based on what the company deems primary or secondary functions. Therefore, the question is; What can be outsourced to support the organisation’s primary functions, whilst maintaining existing standards for outsourced functions? Effectively the goal is to replace functions within the organisation without any external party even realising that there has been a change. Regardless of the organisational and supply chain structure, there must be room for flexibility and innovation, as any rigidity will hinder problem-solving approaches. A Global freight forwarding organisation operates as one company, and not as a sum of its parts. Therefore, any weakness that negatively effects the end client, will rest on the organisation in its entirety. There is no passing the buck onto another party. The FF is often acting as a carrier throughout the SCM process, offering an end-to-end logistics solution to their customer, therefor, the selection process for any third parties must consider the SCM and organisational goals. Chapter 5, will deal with the procurement function within the supply chain, and the importance of successful sourcing of suppliers. In this chapter we are looking at a similar approach, however from the freight forwarder’s perspective, in terms of identifying areas where certain functions can be outsourced and the evaluation criteria involved in that process. Please consider the following definitions from de Villiers et al. (2012) 43: Third-party Logistics (3PL) refers to the management structure where a third party fulfils certain roles and responsibilities in the provision of logistics services between the suppliers and client or customers. This can also be known as contract logistics or outsourcing. It is identified that third parties may exist to fulfil other company obligations, which may be organisational functions, not specifically related to logistics, such as human resource management, which is a typical function of the organisational structure. Again, make reference to Porters Value Chain model, as depicted by image 4 on page 13, which has a generic view of primary and secondary functions, any of which may be outsourced depending on the core elements of focus for an organisation. Fourth-party Logistics (4PL) is used when a company outsources the entire management of its supply chain including all assets, planning and management of the process. 43 Strategic Logistics Management

R Kellner SAAFF Final Assessment 21 4.1 Risk identification: Part of the process to identifying primary and secondary functions, is identifying risk areas. This will have an impact on the choice to outsource, as the decision would simultaneously be a choice to mitigate certain risk factors. In order to mitigate any risk factors, they must first be identified. The below figure 7 represents a matrix, which would be used in the planning process. Each function is evaluated, according to several criteria, and based on the outcome thereof, the below matrix is applied. Image 7: From the internet, Outsourcing-decisions 44 Any function, that forms part of the core business offering from an expertise and execution point of view, will have to be retained in-house, to ensure the highest level of control and excellence. Any function that is secondary, would be considered for outsourcing, as the risk in allowing another organisation to handle the responsibilities, would be minimal. The final decision, is based on the question of risk and if the company can afford to direct resources to the function, or alternatively make the strategic decision to pull the resources and rather redirect efforts to another, more critical department. 44 https://www.eft.com/strategic-frameworks-outsourcing-decisions-part-two

R Kellner SAAFF Final Assessment 22 4.2 Core vs non-core functions: As mentioned above, risk will influence this decision, however, the goal is to be competitive with other freight forwarders. Therefore, an organisation must identify areas to which available resources will be directed, and which functions would be efficiently outsourced to value-add experts, therefore, providing an equal or superior service. Image 8: Freight forwarder’s global network process 45 The above image depicts the general freight forwarding process, from the pickup at the shipper, to the delivery to the recipient. Any of these functions may be outsourced. Further auxiliary activities, are involved in the running of a company, such as the finance, IT, and human resources functions. Senior management would look at the corporate objectives and formulate a strategic plan, while taking into consideration the advantages and disadvantages of outsourcing, which are summarised in the following table. Table 4.1 Outsourcing benefits and disadvantages 46 45 https://www.yusen-logistics.com/en/about-us/company-profile/about-our-company 46 Strategic Logistics Management Outsourcing Advantages Disadvantages Spreading the risk Loss of control Exploiting logistics to gain competitive advantage Lack of cost justification Ability to focus on core activities Inflexible systems Off-balance sheet financing Adverse employee relations Gaining access to sophisticated technology Change in management

R Kellner SAAFF Final Assessment 23 When we analyse the various FF functions in conjunction with the points in the previous table, we can draw the following conclusions, to name a few: - Warehousing: Although most FFs have a warehouse on site, they may choose to outsource additional space to increase capacity, as it may not always be a viable option to expand on the same premises. Choosing another geographical location, for warehousing can add value in reducing delivery times for clients closer to a second location and this can act as a DC47 If the warehousing is outsourced, then the FF will have to consider the negative risk implications, such as loss of control, which can be mitigated by having an on-site representative managing inbound and outbound movement, as well as stock control functions. The FF may act as supervisor for the client’s warehouse staff. - Transportation: There is a growing trend for FFs to outsource their transport needs, not just for specialised vehicles such as refrigerated or tail-lift trucks, but for the entire fleet. The outlay in capital and human resources may not be worth the relative convenience of having a company-owned fleet. One of the clear benefits is the lack of depreciating items on the balance sheet as the associated cost would now be variable and directly recovered under each shipment or load. - Customs clearance: This area is more commonly held within the company for security and control purposes. The risk of not having control where the revenue authority is concerned, is not a responsible option. The company would oversee staff training to ensure they are qualified to process all customs related duties. - Sales and customer service: In this case the trend has been to refocus the sales and customer service team, to be more integrated, therefore, work closely with the operations teams, to ensure that the most relevant and accurate information is reaching the client, with the most competitive rates. The sales team is rarely an outsourced function as most companies understand the need and importance, to not only retain current business, however, ensuring the constant development of the client pool by brining on additional accounts. - Overseas agents / Foreign freight forwarders: Although most FFs are part of global organisations, they may still choose to make use of other networks that may be better suited to their business offering. For example, any company specialising in the aerospace industry, would investigate a freight forwarding network, that understands that vertical and the associated challenges. A logistics network offers a crucial support function to the FF involved in the forwarding function. These network partners will have a thorough understanding of the procedures and legislation in their respective countries. This is a mutually beneficial relationship and is the cornerstone in logistics integration. 47 Distribution Centre

R Kellner SAAFF Final Assessment 24 4.3 Layers to logistics service: Image 9: Layers to Logistics Service 48 As per the above diagram, each layer involves increasing levels of service and supply chain integration, and many organisations offer variations of these layers. For example, many 3PL organisations, such as freight forwarders, are expanding their scope and evolving, in order to offer 4PL services. The 1PL and 2 PL levels are handled on a transactional basis, whereas the 3PL and 4PL alliances are manged via contractual agreements. Therefore, showing the trend from single events to dynamic long-term relationships. The 4PL entity is more often as a result of a JV49, or a long-term contract between two or more companies. 4.4 Logistics Network Strategy: The logistical channel provides the link between the various role players who were mentioned in chapter 3, making it a key component throughout SCM. Logistics networks can be simple or complex, depending on the planning and design involved, however, some of the decisions would be regarding transportation, inventory and location strategies all centred around customer service goals, with the intention of providing the best possible service at the lowest possible cost. Ultimately this comes down to the best resource allocation to minimise waste and maximise efficiency, thereby increasing profitability. 48 https://transportgeography.org/?page_id=4512 49 Joint Venture

R Kellner SAAFF Final Assessment 25 In order to make any decisions for the company, the FF will look at the network and divide the various aspects into the following 3 categories: - Strategic: From this point of view a company will evaluate existing vs future company goals in order to plan for increased capacity, based on forecasted growth. An example of this would be increasing a fleet of vehicles or adding an additional warehouse in a new geographical location. This involves long term vision and strategic planning for the organisation. - Tactical: These are short-term decisions, involving organisational review on planning and policies which would typically occur on an annual basis. This would involve the evaluation of service providers, customer service levels and any existing contracts. - Operational: These choices effect the day-to-day operational running of the company. The daily optimisation of resources is a priority, such as the load and delivery schedule, warehouse and inventory space allocation, fleet maintenance etc. The above decisions will involve evaluation of various cost categories, and will most certainly include several trade-offs. There are many methodologies that can be used as a guideline to initiate a process, in order to make the best possible decision, based on accurate and researched information. When referring to the case studies there are relevant examples that highlight the importance in ensuring that the logistics network is efficiently run and best serves the end client. After the considerable growth of the FlySafair fleet, their upper management sourced a supplier that would provide parts supply and repair services, for the Boeing 737 aircraft. This leading supplier, has their head office situated in Chicago, USA, however, most of the parts are being imported from Europe, mainly the UK and Belgium. The freight forwarder used their track record in the aerospace industry as well as a recommendation from Safair, who advised the supplier that they would prefer the use of their nominated freight forwarder for all the Safair shipments, from pick up to final delivery. Although the incoterms are DAP50 , with all charges billable back to the suppliers Chicago office, and as such, the supplier had the authority to make the decision on their nominated carrier / freight forwarder, and are therefore under no obligation to use Safair’s preferred FF. After much negotiation and a few trial shipments, which were greatly successful, the supplier signed a contract with the preferred freight forwarder to act as their agent for all Safair related shipments. Once this was an established working relationship, the contract was renegotiated to include all the South African clients for the supplier. Therefore, multiple organisations working together as a team to increase market share and offer increased customer service. This also meant that the in-house FF could provide doorto-door service and control the last mile effectively. 50 The seller bears all risks involved in bringing the goods to the named place of destination or the agreed point within that place. In this Incoterms® rule, therefore, delivery and arrival at destination are the same.

R Kellner SAAFF Final Assessment 26 Below are a few examples of the types of decisions and planning that must be initiated by the FF: Tactical: A service level agreement, must be in place to ensure that the overseas freight agent offers the same extended level of service expected throughout the network. The overseas agent is able to provide a contact to be in call 24/7, which allows for tremendously quick response times and efficient access to information. Operational: Planning consolidations is another practice which is especially valuable when coming into peak season, such as during the December months when there are two primary concerns: - Less available cargo capacity due to an increase in passenger and luggage demands, and - Due to passenger demand, the airlines frequently add additional flights to their existing routes. Therefore, increasing the need for maintenance and the associated aircraft parts during this high demand season. As a result, cargo-hold space, would have to be pre-booked with the airlines based on demand forecasting51. A general rule is to check the demand over that peak period for the previous two years, and add a percentage, to account for the annual forecasted increase in demand. This strategy proved useful for export from South Africa and is also required from the other main export origins. This planning was crucial to ensure that throughout this demanding time, shipments would continue to move seamlessly with only the typical industry challenges to contend with. Again, communication and planning are key to ensure a well-coordinated and executed process. Planning is of the utmost importance and by early November all the forecasting and pre-bookings would have to be concluded. Communication is once again key between various role-players to ensure that all parties are aligned and working to achieve mutually beneficial goals. 51 Demand Forecasting is a technique used to estimate probable demand in the future. This is based on an analysis of past trends and taking into account current market conditions.

R Kellner SAAFF Final Assessment 27 Chapter 5: Global Procurement management in the Supply Chain 5.1 The role of procurement in the supply chain Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. 52The effective procurement of goods and services, has a critical impact on any organisation in terms of competitive advantage. Goods or services procured may be raw-materials, work-in-progress or a finished product, ultimately the pricing must be competitive for an organisation to markup and make a profit. Any company involving procurement as a function, has a choice to make, when developing the organisational structure. They can either choose to manage their own procurement team and take on the sourcing duties etc, or alternatively, that organisation may choose to make use of 4PL services, thereby deciding to focus on their core business offering, primarily that of product development and marketing. Therefore, they could choose to outsource or contract out most, if not all, of the SCM responsibilities. There are typically long-term contracts in place between the parties, as 4PL is seen as a supply chain integrator and acts as a single interface between clients and the comprehensive scope of supply chain services. 4PL would be beneficial in the following ways, according to de Villiers et al. (2012)53 - The single point of contact would manage all aspects of the supply chain, including any service failures, which would also include the associated cost implications - Address operational failures as the single point of contact allows for a holistic approach and identification of areas for improvement. - Realise revenue opportunities by selling supply chain services to external clients. - Retain corporate supply chain knowledge - Improve accountability The purchasing function can also be viewed from 2 perspectives, that of an organisation purchasing from external suppliers, and that of a global organisation moving stock between branches. Therefore, there may be internal and external suppliers, which is specifically mentioned due to the case study chosen, as Safair is often moving inventory between their warehouses to service the global fleet. Either way the procurement function is seen as inbound logistics activity 52 https://en.wikipedia.org/wiki/Procurement 53 Strategic Logistics Management

R Kellner SAAFF Final Assessment 28 In chapter 3 it was discussed that SCM involves various role players. It is crucial to understand that the organisational structure will vary depending on the complexity and scope of the organisation. For example, a company needing raw material will have an additional production layer to their company structure, vs an organisation that is acting as a wholesaler and is procuring a finished item, or range of items. This will, therefore, effect the storage and transportation functions further down the supply chain, which will be explained further in later chapters. Below are the various steps of the procurement process as per Langley et al. (2008), also stating that the successful completion of these steps is beneficial to both the seller and buyer, making this a critical step in the planning stages of the supply chain. Understanding that the freight forwarder must be consulted, to ensure that proposed lead times are realistic, and that transportation costs fall within the costing parameters. A costing must be done early on to ascertain the landed cost per unit, which would be executed for every product. 1) Identify or evaluate needs 2) Define and evaluate user requirements 3) Decide whether to make or buy 4) Identify the type of purchase 5) Conduct a market analysis 6) Identify all the possible suppliers 7) Pre-screen all possible sources 8) Evaluate the remaining supplier base 9) Choose a supplier 10)Receive delivery of the product or service 11) Make a post purchase performance evaluation 5.2 Supplier selection and evaluation – criteria Sourcing is the process of selecting the most efficient vendor for the supply of goods or services. Naturally, the evaluation criteria for these vendors and suppliers will be selected based on a predetermined set of analytical criteria which the organisation deems important. A useful assessment tool is the SCA – Supplier Capability Assessment, which can be used to assess a supplier product quality and methodologies, therefore assist in determining if the supplier should be utilized and the associated risks involved.

R Kellner SAAFF Final Assessment 29 As per the GMLS FDHSCM learner material, the following are a list of situations where the Supplier Capability Assessment may be utilised. 54 ▪ Conduct an assessment on any type of supplier. ▪ Conduct an assessment of an existing or new supplier. ▪ Conduct an assessment based on a significant change in supplier's scope. ▪ Conduct an assessment based on a supplier transferring a product to another location. ▪ Drive supplier development and improvement. ▪ Provide a basis for rating, why a supplier shall, or shall not be recommended for use. ▪ Monitor suppliers that have issues regarding: − Performance − High Risk − Restrictions − Corrective Actions When it comes to the actual supplier evaluation and selection, a strategic approach must be adopted in order to impartially review and nominate the best possible candidate/s. Part of the selection process will be to determine if multiple suppliers are needed, as this contributes to the management approach. A multitude of suppliers will require more control, that needs to be exercised in order to ensure that the procurement process runs smoothly. When considered from the supplier’s point of view, this works both ways. If one supplier is selected then the purchasing organisation’s business will be more valuable to that seller, which could translate to increased competitive advantage through heightened buying power. Ultimately the supplier will be more willing to go the extra mile should there be special or urgent order requirements. This process will also be easier to manage from a FF’s perspective as having fewer suppliers would reduce the points of contact depending on the incoterms and the logistical procedures in place. 55 The below are some tools that may be used when Identifying potential suppliers: - 4PL providers - Recommendations - Directories - Trade associations - Business advisors - Exhibitions - Trade Press: trade magazines would be useful, and there are often online versions that can be subscribed to that are pushed through via e-mail. 54 GMLS FHDSCM Learner guide 55 https://www.infoentrepreneurs.org/en/guides/supplier-selection-process/

R Kellner SAAFF Final Assessment 30 What to look for in a supplier: Some of the below traits will be more important to some organisations than to others, depending on product or service specification priorities. If an evaluation form is used, then the various criteria can be weighted depending on their importance in the selection process. The following criteria are from Langley et al. (2008)56, with a few additional points. * The freight forwarder would be reviewed or consulted. Quality: - Technical specifications - Chemical and physical properties * - Design - Product life - Ease of repair - Maintenance - Dependability Reliability: - On-time delivery * - Performance history and warranties Capability: - Production capacity - Technical capability - Management - Operating controls - Labour relations Financial: - Price - Financial stability Desirable qualities: - Vendor attitude - Training aids - Packaging * - Vendor location * - Integration and communication capabilities * - Partnership approach * - Logistical channels * 56 Managing supply chains, a logistics approach

R Kellner SAAFF Final Assessment 31 Image 10: Steps to develop a supplier selection system57 The above has a generic approach to the supplier selection process, however, please take note that there is no singular approach superior to others. Organisations may choose to use another approach, depending on their setup or selection criteria. A key component in the above diagram is the need for continuous review, complacency is also a risk factor. The FF should be consulted in the final selection process, and in the sales agreement drafting phase. Having the knowledge and ability to offer possible improvements such as negotiating an alternate incoterm, which may be more suitable to the supply chain. They may have additional input regarding the geographical location, and the effect this may have on the transportation availability and routing options. Therefore, it is wise to consult all available resources, to gather as much information as possible, so that, the selection decision is made, based on accurate and impartial selection criteria. In reference to the case study: Safair’s the purchasing function is managed by a purchasing manager who has a team where each member works on a project and is responsible for a few aircraft. This ensures, that each project runs smoothly, and there is accountability and a clear view on responsibility. 57 https://www.intechopen.com/books/industrial-engineering/supplier-evaluation-and-selection-in-automobileindustry

R Kellner SAAFF Final Assessment 32 As briefly mentioned in the case study, Safair has a second base of operations in Entebbe, Uganda, which supports the Safair operational requirements by being closer to many of the Middle and Northern African countries and the associated projects in those locations. Image 11 below, is shown to highlight the need for a supply chain coordinator to efficiently cater for the client’s needs. As such, Safair has opted for a hub-and-spoke supply structure, which provides for reduced shipping needs, especially cross-trade shipments which can be costly. This model represents the various suppliers on the left, and this cargo is consolidated as much as possible, depending on the nature and urgency of the cargo, before shipping to Safair’s warehouse in Johannesburg. Here the shipment is split and allocated to either the maintenance hangar, therefore, Johannesburg stock, or goods that will be further distributed to the Entebbe out-station. These parts will be added into the weekly export to Uganda, where they will be made available, and distributed, to maintain the various Safair aircraft throughout Africa and the middle east. The exception being for urgent or large cargo, which may be sent directly to EBB from the USA or LHR, depending on the trade-off between cost and time. The freight forwarder needs to coordinate with the various suppliers to ensure the Safair procurement and logistics strategy is realistic and efficiently executed. Image number 11: Hub and Spoke distribution system, Diagram from the internet. 58 58 https://medium.com/@flexspace/how-the-hub-and-spoke-warehousing-model-will-transform-thetransportation-industry-of-india-post-accab58a59ab

R Kellner SAAFF Final Assessment 33 Reverse logistics is also a prominent aspect of the aerospace industry, due to the steady flow of parts being sent for maintenance or overhaul. The most extreme of this situation, is where an aircraft engine will be sent to the likes of Boeing in the UK, and the replacement engine will be imported. Careful planning is crucial as these engines require specialised and dedicated handling. An 8-point lashing technique is mandatory for the safe transportation if these very valuable items. Boeing requires that the engine arrive at their repair facility on a specifically allocate date. If this is missed, then a new repair date must be requested which can mean days or weeks delay. Customs compliance and control must also be executed in tandem of the above. Chapter 6: Inventory and warehousing When an aircraft is grounded, it is not generating revenue or profit, it is only generating costs. These machines are made up of 367000 parts59 , which cannot all be kept as inventory due to the cash flow restraints that such stock imposes. Various parts have different flying time capabilities, which equates to the life span before it will need to be serviced, repaired or scrapped. Safair has the added benefit of having its own maintenance team on-site. These engineers and technicians are based at the Safair complex, which is located within ORT International airport. As a result, the warehouse is already situated at the optimal location, to meet the timeous demand on parts required, for use at the maintenance hangar, and for aircraft at the terminals being turned around for the next flight. Safair has committed to a 25-minute turnaround time, to which they are extremely strict. All the staff are efficiently trained, and they also have the expectation that the in-house freight forwarder is also aware of these timelines in support of the team. At the Safair warehouse, where all the parts are stored, the team makes use of numbered bins where all stock is inventoried according to a numerical system. From time-totime the technicians will be waiting at the stores for the import shipments to arrive. Parts will then be taken straight to the maintenance hangar; therefore, the stock will not even be checked into stock, this is known as cross docking.60 Throughout this chapter, the discussion on warehouseing is directly related to the freight forwarder as well as their clients. It serves a crucial function in the day-to-day operational running of any freight forwarding organisation. Therefore, please keep this in mind. 59 http://www.nbcnews.com/id/36507420/ns/business-us_business/t/hundreds-suppliers-one-boeing-airplane/#.XeTv7sJ7ltc 60 Cross docking: A system where products for store orders are not put away into the warehouse racking for later picking but are processed into store orders on arrival

R Kellner SAAFF Final Assessment 34 6.1Warehouse location, type and layout: Warehousing performs certain key functions within the logistics chain, and within the scope of SCM, as per de Villiers et al, (2012).61 - Warehousing helps to maintain a level of service to the customer as it assists in the availability of goods. - They can be a link between producer and supplier and between producer and customer, therefore providing an intermediary function. - The 3 basic functions of warehousing are movement and storage of goods, and information transfer. Warehousing is defined as any system of storing products at any point in the logistics system from their point of origin of goods (the raw material warehouse) through production (a workin-progress warehouse or production warehouse) to their point of consumption (a finished goods warehouse or a distribution centre). The original role of the warehouse has changed from that of a storage facility, to a key function within the supply chain. This is due to various strategies such as postponement. Postponement strategy: The final product is complete, except for the packaging or final labelling. A simple example are brights which are cans with no labels. Therefore, the product is mostly ready, and the production cycle only needs to be concluded based on payment or final delivery etc. There are various factors to take into consideration when choosing the location site of a warehouse 62 . - Construction vs Rentals, this would also include rates and taxes costs - Workforce availability, labour skills and costs - Roads, highways and traffic flows - Proximity to Airports, rail depots and ports - Market and local environmental factors including proximity to prominent clientele - Building availability and utility costs The location decision would be undertaken by top management, in order to resolve key challenges such as reducing the product life cycle, shorter delivery lead times, increased SKUs63 and increasing customers’ expectations in terms of service quality. 61 Strategic logistics management 62 https://articles.cyzerg.com/choosing-a-warehouse-location-7-critical-criteria-to-consider 63 Stock keeping unit

R Kellner SAAFF Final Assessment 35 The image to the right neatly, represents the objective of warehousing and the role that it plays within the supply chain. A warehouse manager should always consider the desired outcome when tasked with the responsibility of running a warehouse. Image 12: Objective of warehousing64 There are many different types of warehouses, which have different names, depending on the functional roles within the supply chain. A warehouse can also have multiple functions, for example, a warehouse at a FF’s facility where various items in different stages of completion are stored. These could range from raw materials, finished goods, or component parts which provide manufacturing support. The services also differ from consolidators for exports, and deconsolidators for import shipments. Below are some of the types of warehouses: - Manufacturing support warehouse - Breakbulk warehouse - Mixing warehouse - Consolidation warehouse - Climate controlled warehouse - Refrigerated warehouse - Controlled humidity warehouse - Distribution centre - Reverse logistics warehouse Warehouse layout is another factor that needs to be carefully planned and scrutinised, before being implemented, due to its direct impact on operational efficiency. The following are some key considerations to be examined during the planning stages: - Level of customer service, as this relates directly to lead time goals - Product and workflow, the movement of goods and people impact the efficiency of the warehouse - The lowest operating cost, which is achieved though ensuring that the available space is utilised to its fullest potential. 64 Warehouse practices

R Kellner SAAFF Final Assessment 36 When planning the layout design one of the key considerations is; which is the most functional product flow layout, within the available space? The following are some of the typical design types, the I, U and L shapes, each having their own advantages and disadvantages. The Ushaped design is very common, and this is also utilised at the Safair warehouse. Images, 13, 14 and 15: Warehouse design template options 65 In reference to the case studies: With the growth of its low-cost airline, Safair top management made a crucial decision to have the warehouse staffed and operational 24/7. The parts warehouse at Safair, is known as the stores, and is a well-functioning part of the receiving, dispatch, and inventory functions, along with being a distribution centre. This is where the FF has their in-house offices and staff placement. As with all warehouses, the processes are regularly evaluated, and the following solutions cited below, were brought forward and later implemented. 65 https://www.logisticsbureau.com/spotlight-distribution-centre-design/

R Kellner SAAFF Final Assessment 37 The scale being used to weigh the packed export cargo was outdated and could only accommodate cargo up to 100 kgs. It was a manual commercial weight balance scale that made use of movable weights that would slide along a horizontal metal frame, as the weights were moved the horizontal arm would straighten and be parallel to the floor once the weight balanced. This process took time, and was very often out by a few kgs, which was problematic when building export consolidations as each part of the shipment could have a weight error, contributing to the final weight being incorrect. The resultant VOCs66 were an unnecessary strain on multiple resources. After communicating this to the Safair Logistics manager at the time, the choice was made to upgrade to a digital industrial scale. The previous concern was removed altogether, with the added benefit being that heavier cargo can also be weighed on the digital scale, and bulky cargo can also be manoeuvred with a forklift onto the flat, unrestricted scale. Image 16: Manual scale with movable weights.67 Image 17: Heavy duty industrial scale 68 The receiving and dispatch areas are also separated and clearly marked, which facilitates the smooth movement of incoming and outgoing goods. As a vehicle with import cargo is offloaded, the dispatch area would be readying the export cargo for loading. This is consistent with the U-shaped design depicted in image 14 on the previous page. 66 VOC - Voucher of Correction required by Customs department 67 https://ak.blakustensvardshus.se/item/4000424413401 68 https://www.industry-plaza.com/industrial-scale-c20-r1-a-range-p132014150.html

R Kellner SAAFF Final Assessment 38 The benefit of having an in-house FF, is the value add of being on-site, therefore, be able to identify and rectify any discrepancies immediately. For example; should the number of boxes on an export dispatch note be inaccurate, or the incorrect import cargo be handed over by the airline. These instances do occur, however swift action is imperative to ensure that the immediate minor error does not develop into a larger query. If cargo is received damaged, then there is a person available to physically inspect, and document any irregularities. Therefore, be in the position to verify the extent of the damages and ascertain if the contents have been compromised. A clear administrative and reporting process must be in place to ensure that the correct information is communicated further to the respective parties to address any claims. The freight-forwarder must ensure that any 3 rd party service providers, such as DG69 packers, have the same time-driven need, to expedite services where possible. The FF previously made use of a DG packing company that had rather strict office hours. This was not aligned with the demands and needs of an aerospace client; therefore, another recommended packer was given an opportunity. This DG packer realized the importance in offering a quick and efficiency service, sometime being needed outside of typical office hours. Advantages of nominating the alternate DG packer: - Packaging warehouse is closer to Safair’s premises - Available for extended work hours including weekend packing requirements - A team is sent on site to quote and pack large items, including but not limited to custom built crates. - Pre-existing partnership between the groupage operator and the DG packer (also located at the same street). - Open to synchronisation, allowing for Safair to arrange delivery to the DG packers. The groupage operator would collect from the DG packers and deliver to the airline. The benefit to the FF is an efficient use of resources as this freed up the FF’s fleet which allowed for further flexibility and quick reaction times for other shipments. Therefore, in allowing the role players to focus on their core functions, and managing the process efficiently, the turn-around time on the packing, customs clearance and airline-acceptance of urgent DG cargo, was reduced to 2-3 hours. Collaboration to enhance resource distribution is a primary goal between role-players throughout the SCM process. 69 Dangerous Goods

R Kellner SAAFF Final Assessment 39 6.2Inventory Management: There are many inventory management methods that may be utilised, based on the operational needs of an organisation. An organisation may also employ a combination of techniques. - Bulk shipments: purchasing inventory in bulk, often at a discounted price. However, there are various risks in keeping inventory - ABC Inventory management will be discussed further on page 41, in short this categorises inventory in order of importance - Backordering, a company first receives payment then orders goods, which is positive for cash flow but can be problematic if the supply fails - Just in time (JIT), goods are replenished just before running out which requires strict management of reliable suppliers - Consignment: Goods are placed in stock however ownership is retained by the wholesaler until the retailer sell the goods which can be greatly beneficial to the retailer as they do not have to tie up capital - Drop shipping and cross-docking, means that the supplier can ship directly from their premises to the end user. This is very common in Aerospace due to the multiple project locations. Slide 45 from the GMLS FDHSCM presentation. As previously mentioned, a Boeing 747-400 has upwards of 367000 parts, as a result not all these parts can be kept in inventory. These parts are considerably expensive; therefore, a lowcost airline cannot substantiate, keeping every item in stock. For this reason, JIT70 is a very popular approach to inventory management in the aerospace environment. For example, a part can be ordered in the UK at 15:00 and be in the Safair warehouse by 11:00 the following morning. This is a common occurrence and requires a dedicated AOG team. All parties including the airlines understand the time sensitive nature of AOG cargo. 70 JIT – Just in Time

R Kellner SAAFF Final Assessment 40 Definition of Just in time (JIT): This is an inventory management method whereby materials, goods and labour are scheduled to arrive or be replenished exactly when needed during the production process. 71 JIT Inventory management72 Pros Cons Lower Inventory holding cost Problems fulfilling orders in time Improved cashflow Minimal room for errors less deadstock Risk of stockouts In order to make use of JIT, as a workable inventory management technique, communication and visibility are key. AOGs are an unfortunate reality within the scope of the aerospace vertical. These parts are needed immediately to get an aircraft back in the air. One of the earliest solutions regarding AOG parts, was to source them from the UK if at all possible, even if the unit cost was higher, it could be delivered to Safair the following morning, so the price if the item would be a trade-off to sourcing a cheaper part from the USA that would typically take an extra 24 hours to arrive in South Africa. There are currently 5 direct flights between London Heathrow and OR Tambo International Airport. All these options allow for greater choice which in turn translates to greater flexibility. I have already mentioned that the Safair warehouse has a dispatch area. This designated space was further demarcated according to destination. At Safair the night shift would often pack the export goods set aside by the dayshift. On coming into the office in the morning, the freight forwarder can walk through the dispatch area and plan the exports accordingly. This provides an opportunity for consolidations, which greatly reduces costs by talking advantage of economies of scale. By weeks end, all bookings are already made, and the commercial invoices can be added to the software program for export clearance. At the end of the week, the only outstanding task for the FF is the SARS customs clearance. The groupage operator will generate the final AWBs and deliver all cargo to the airlines. As the week progresses, the in-house FF will base instructions and recommendations to other team members to ensure optimal allocation of resources. Recommendations will be made to Safair, such as choosing to hold a shipment for an extra week, especially if coming up to one of the crucial weight breaks. For example if the current packed chargeable weight is at 425 kgs, the recommendation would be to hold the export, therefore rather add to the consolidation until a + 500 kgs rate can be used, which is cheaper per/kg and thus allows the client to enjoy further benefits of economies of scale. 71 https://www.merriam-webster.com/dictionary/JIT 72 https://www.tradegecko.com/inventory-management/techniques-process

R Kellner SAAFF Final Assessment 41 Naturally AOGs shipments are the exception, and they take precedence over all other duties. Lastly, having knowledge on which airlines permit a split MAWB73. The likes of SAA for example allows for DG and Genco74 to be sent as one shipment, providing that the lines on the AWB, are split to ensure that the two different cargo categories can be billed according the rates for each. This would allow for even greater economies of scale, as there would only be one charge applicable for delivery, clearance and handling, rather than duplicate charges for various shipments. Flexibility is a critical aspect of the supply chain, as it is an ever-evolving flow of process, information and funds, therefore, there must be room for change withing the scope of SCM. One of the advantages in using a combination of holding inventory and making use of JIT inventory managements techniques, is that there is little chance of the bullwhip effect. The purchasers may increase their orders, in anticipation of the peak-season, which may lead to over ordering of safety stock75 . However, through the application of forecasting techniques this risk is significantly reduced. There is a pull-based supply chain in the Aerospace industry which also reduces the bullwhip effect, which is also known as a demand driven supply chain. The Safair purchasing team is reliant on their engineers and technicians to be efficient in their maintenance assessments, thereby making greater use of the consolidations and ensuring the items are in stock as needed. Success can only be measured on the collective team effort. An accurate measure of inefficiencies within the Aerospace industry can be determined on examination of AOG shipments. All role players work together to keep this to an absolute minimum, especially within the framework of a low-cost airline. There is no room for unnecessary expenses. There are 2 main types of parts inventory within the aerospace industry. - Consumables, which as the name suggests, are used up and cannot be reused. - Receivables, which are items that can be serviceable or not. Meaning that they can be sent for repair or not depending on the condition. There might even be a need to overhaul these receivables. 73 MAWB – Master Air Waybill 74 General Cargo, not restricted or regulated due to the nature of the goods 75 Safety stock is held to protect against the differences between forecast and actual consumption.

R Kellner SAAFF Final Assessment 42 The inventory cycle in the aerospace industry, is influenced by many external and internal factors such as wear and tear, peak season demands and growing fleet requirements. Therefore, this is not a simple task to determine the ROP76 due to the vast number of component parts. The reorder point, is the level of inventory which triggers an action to replenish that inventory stock, therefore it is a minimum amount that should be held before a new order takes place. As per the below sawtooth diagram, when the stock level reached point A, an order should be triggered to replenish the stock, ideally before the on-hand stock reaches the safety stock levels at point B Image 18: Sawtooth diagram for ROP 77 Another factor adding to the inventory complexity at Safair, is the multiple-aircraft fleet. The inventory challenges are broad, and the key is early identification of maintenance needs, allowing for well-run aircraft that are not typically undependable. High levels of inventory in any organisation effects the cashflow which can lead to constraints on further procurement needs. Safety stock, is referred to as the level of extra stock that is maintained to mitigate the risk of stockouts78 caused by the uncertainty in supply and demand. Adequate safety stock levels permit business operations to proceed according to plan.79 Safair makes use of safety stock for some of the typical consumables such as tyres which need to be replaced regularly. 76 ROP: Re-order point 77 http://www.oracleug.com/user-guide/oracle-inventory/reorder-point-planning 78 Stock out is a shortfall in raw material or packaging 79 https://en.wikipedia.org/wiki/Safety_stock

R Kellner SAAFF Final Assessment 43 An ABC analysis is a realistic inventory management system. The aim of which is to isolate items that require strict control and understand that is it not cost effective to analyse every stock item when so many different parts are kept as inventory. Therefore, it would be useful to divide the inventories into 3 classes and manage them accordingly. The following figure is an example of an ABC analysis. Table is from slide 76 of the GMLS presentation for FHDSCM ABC Inventory management80 Pros Cons Aids in demand forecasting by analysing a product's popularity over time Could ignore products that are just starting to trend upwards Allows for better time management and resource allocation Often conflicts with other inventory strategies Helps determine a tiered customer service approach Requires time and human resources Enables more accurate inventory optimisation Fosters strategic pricing 6.3Dangerous Goods As a value-add role-player, the in-house FF goes through the highest level of IATA DGR81 training to be able to advise the client on DG related matters. This is critical within the aerospace industry, as aircraft parts and equipment, are often used items which are being exported for repair. The FF needs to understand the difference between dangerous goods and dangerous articles, which could be items containing residue of a reactive agent, such as fuel or oil which has been drained from the item. This would fall under category 9 of miscellaneous dangerous articles, and the consequences of an organisation miss declaring dangerous goods are extreme. The SACAA82 is a very strict authority that regularly conducts audits of Airline operational and warehouse procedures, including quality record keeping, ensuring that all safety standards are being adhered to. 80 https://www.tradegecko.com/inventory-management/techniques-process 81 DGR – Dangerous Goods Regulations 82 SACAA – Civil Aviation Authority

R Kellner SAAFF Final Assessment 44 Below is a brief summary of the flight incident that occurred in Miami in 1996. ValuJet flight 592, a DC-9 Aircraft, had a regularly scheduled flight between Miami and Jackson Atlanta. This flight crashed into the Miami everglades less than 10 minutes after take-off, killing all 110 people on board. The pilots had turned the aircraft back to Miami when there was a report of instrument failure and then fire on board. This crash was the beginning of the end for ValuJet, which could not recover from the media and financial crisis which ensued. After a lengthy investigation, the ultimate cause of the disaster was ruled as mishandling of the packaging and shipment of oxygen generators, within the cargo hold of the aircraft. The O2 generators had not been packed and secured with the correct safety caps, which resulted in them igniting just after take-off, resulting in the on-board fire which ultimately destroyed the control cables resulting in the loss of control, and the subsequent nosedive into the shallow water. 83 A chemical O2 generator produces oxygen via an exothermic reaction which causes the units to burn up to 260 °C, furthermore the O2 being generated further fuelled the fire. A ValuJet Airlines DC-9-32 at Washington Dulles International Airport in May 1995. One year later, this plane crashed just west of Miami. Image 19: 84 Although it is the responsibility of the shipper, to properly declare the nature of the goods, they often work with the FF to outsource the packaging to a professional company, to ensure the highest standard of handling. The FF is an extra point of observation and control, and it is crucial for the FF to be correctly trained in awareness of Dangerous goods, to be in the position to add further value and compliance throughout the supply chain. 83 https://www.washingtonpost.com/news/retropolis/wp/2018/04/06/the-fbi-is-still-searching-for-a-fugitivemechanic-involved-in-a-horrific-1996-valujet-crash/ 84 By (unknown) - AirLive.net, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=68278729