Aviation Logistics Knowledge Lecture – Agent Performance

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Aviation Logistics Knowledge Lecture – Agent Performance

Statistical agent performance, this action, in the airline company, there is a saying, called statistical agent performance. The simplest and crudest way to count agent performance is to see how much the agent delivers each month. The delivery volume here can be assessed according to the contract, or it can be assessed according to its usual cargo volume compared with the cargo volume of the agent at the same destination. To put it bluntly, it is to set a baseline.


Let’s start with a simple, how to assess agent performance without contract constraints. If Agent A has handed in 5T FRA to Airline X, how does this weight work? We know that it is meaningless to count a number alone. It is said that there is no harm without comparison. Therefore, if agent A is on Airline Y and also pays 20T FRA, then the agent performance of Agent A on Airline X must be poor. How do you know how much this agent is delivering on other airlines? Very simple, the airline will go to the cargo terminal, right? Seeing your goods at the freight station and handing over more to other homes, it will be very clear. Besides, it is necessary to know how much goods are delivered by agent A, and there are too many channels. When the goods are put into the warehouse, it is public, right? There is no secret channel for you to enter the warehouse alone. It was already sky-high when it came in. So don’t spend time thinking about it.


However, having said that, each agent will have its own strategy. If Agent A pays more to Airline Y than Airline X, it proves that he wants to be Airline Y (or simply that Airline Y has a lower price). This strategy is to make one product well before doing the other, which is indeed a good way. But the opportunity cost here is that Airline X may directly cut off the delivery qualification of Agent A, or limit the position in the future. Then if agent A really wants to be a good airline company Y, this will not be a big problem. It’s just a better approach, don’t sign Airline X first, but directly do Airline Y and then Airline X.


Speaking of which, my friends may ask, if I am already the owner of Airline Y, do I still need to sign for Airline X? Even if I go to sign with Airline X, Airline X will doubt my loyalty. Friends who have this question, you are great, because you have already thought of one step ahead. In fact, neither of these two questions has a clear answer, it depends on how you view them. If there is something wrong with the service or other aspects of Airline Y, or it needs to be reshuffled, then definitely sign another airline. As for what Airline X thinks, it depends on the reason you talk to X. If Y wants to shuffle, then X must also welcome A over. Only an inspection period will be given, and after the inspection period, there will be further cooperation. Because X does not know how loyal A is. And loyalty can only be measured by actual volume. Of course, Agent A may be thinking, I don’t want to put all my eggs in the same basket, how can I find a backup plan? But this thought made him rot in his stomach. No one likes to be a spare tire, right?


Now let’s talk about how the airline company counts agent performance when there are contract constraints. It would be fun if Agent A was both the BSA agent for Airline X and the BSA for Airline Y. Both sides of the BSA are done, of course there is no problem, if only one of them is completed, it will be very troublesome. The first question of the airline is: why the BSA on the opposite side is paid in full, but my BSA is not paid? Just don’t pay attention to me? Usually there are many reasons to tell the airline at this time, but all the reasons will be very pale. Because the data is in front of you, it is useless to say anything. At this time, it is to see which airline agent A wants to do well. As I said before, if you want to become a big Y airline company, you should really promote the routes you want to do first. So how do we think about which airline to choose? First of all, it depends on where the goods in your hands are mainly going. To give a negative example: If our main force is the Middle East, then it is impossible for me to sign an American airline, right? Of course, there are also some small partners here who are based on the needs of airlines. As long as they want to sign with which airline, they will go to which line. This kind of small partner has relatively big ambitions. If it is done, it is indeed worthy of admiration, but the difficulty is quite high. Because there is no goods there, just because the airline has this demand, it will be more time-consuming and laborious to open the resources here alone. Long-lasting output is required, and there are enough cattle X sales. After all, in addition to expanding the source of passengers, the requirements for customs clearance at the destination, the requirements for different goods in different places, the unclear rules for different light and dark, and the lack of analysis of routes and service capabilities are all very easy. suffer.


The next thing to consider is whether the service of this airline can keep up, and will there be various factors that affect the quality of service? What would be the factor? For example, how often do planes break down? When the goods are in transit, there are often inexplicable damages, or even out of stock? What is the relationship between the destination cargo terminal and the airline? And so on, these can affect the quality of service. The quality of service will also directly affect the confidence of customers. So this is also to be considered.


Another very important thing is the way the airline plays. Is this airline flying all cargo planes or passenger planes? What is the type of flight? How much is the payload? Do you sign for BSA, Soft Block, contract rate, or ordinary receipt? This factor is very important because not all airlines are suitable for all agents, airlines and agents are choosing each other. Airlines with simple and transparent gameplay, fairness, and stable service will of course be more popular. Agents with continuous and stable availability of goods will definitely be more popular with airlines. As an agent, the specific content to consider will probably be:

  • How long is the EQ of the contract?
  • What is the Pivot for each board?
  • How is Dead freight calculated?
  • Does the airline’s main destination match my main route?


These are all things to consider. The factors that affect the above are some of our own data, including but not limited to:

  • Where are the goods I have on hand?
  • What was the average monthly shipment volume to this destination over the past year?
  • What is the projected monthly increment for this destination?
  • How will the off-peak season of the year be affected?
  • Is the route I signed suitable for long-term development? For example, what is the relationship between the two countries?


Another important thing is our familiarity with the airline staff. This is vulgar to say, but it is cruel. If you are not familiar with the airline staff, they can obviously chase the pivot for you, but they can completely ignore it. At this time, the relationship with the airline comes into play. Of course, we certainly do not advocate that the cooperation between airlines and agencies is based on this fragile human (interest) relationship. But in the current situation, we still have to think about it a little bit.


In fact, many small partners will realize that the logic behind understanding the airline’s gameplay is to see if the goods at hand can satisfy this gameplay. Yep, that’s actually the most important thing. If I receive an average of 3 tons of goods per week, but in terms of EQ, the contract is to write a single flight EQ, then I may have to figure out how to collect the goods on the same flight, because there is no guarantee that the goods will catch up with the flight on the BSA board. . Or in the same situation, the average is 3T a week, but it is mainly for buying goods, which may not be enough pivot. Also, what is the range of losses I can afford if it is off-season? Can you earn it back during the peak season? All of these factors can influence our choice of airline. Therefore, don’t think about this problem too simply, you must think clearly before you can make a decision.


Next, let’s talk about what measures the airline will take after the above assessment standards are in place? The obvious one is to make corresponding adjustments in the future positions of the agent. If an agent fails to deliver during the off-season, it is definitely impossible to find a position during the peak season. At this time, the airline company will take out the agent performance of the year, check the off-season of the year one by one, how each agent performs, and assign positions according to the performance. In the same way, if you have paid a lot in the peak season, and there is no goods at all in the off-season, or the volume of goods varies greatly, then the next peak season will be goodbye.


There is also a situation, if the agent has to pay BSA in the off-season, in addition to the position in the peak season, it is very likely that there will be additional capacity. That is, after paying the BSA, you can still have additional positions. If you can have additional positions in the peak season, then you are an uncle, and the price will rise at will! But this has a premise, that is, you have to top your position during the off-season. Don’t let people think that you only think of people in the peak season, and you don’t see people in the off-season. This situation is not only in the low and peak seasons when there are obvious differences. Even if the agent with good performance is in normal times, if there is a large amount of goods temporarily, or there are goods to be added, then the chance of getting additional positions is also much greater. .


OK, having said this, I hope to help you understand how airlines measure agent performance and the significance of agent performance statistics. The most important thing is that after understanding, we have to adjust our strategy accordingly, and finally reach the best and largest airline. I hope this article can inspire you. See you next time.


NB: Karron is owner the “NatureCalls” Wechat Official Acccount.

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