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Etihad Cargo Enhances Export Control and Regulatory Compliance
Technology Category
- Analytics & Modeling - Natural Language Processing (NLP)
- Analytics & Modeling - Machine Learning
- Functional Applications - Remote Monitoring & Control Systems
Applicable Industries
- Transportation
Applicable Functions
- Logistics & Transportation
- Quality Assurance
Use Cases
- Predictive Maintenance
- Regulatory Compliance Monitoring
- Remote Asset Management
- Track & Trace of Assets
Services
- System Integration
- Data Science Services
- Software Design & Engineering Services
The Challenge
With its growing network and global security concerns, Etihad Cargo heightened its cargo rules and policies to strengthen its compliance with global regulations. However, the company realized its risk of compliance violations was heightened because of its manual and ad hoc screening processes. Companies like Etihad Cargo must ensure that no parties in a shipment transaction are on a sanctioned or restricted list and that cargo doesn’t violate any laws — such as those governing dual-use or regulated goods — for the countries of export and import. “Aside from being labor-intensive, navigating the constantly changing regulations and export and import requirements often requires coordination across multiple parties and compliance checks,” said Andre Blech, Director of Operations and Delivery at Etihad Cargo. Etihad Cargo’s goal was to reduce risk exposure and streamline regulatory compliance by automating cargo screening through a single platform to reduce manual efforts. Most importantly, the company needed a solution and partner that could grow with them, adapt to changes in business processes, perform systems upgrades and quickly integrate new compliance regulations as they emerge.
About The Customer
From its home base in Abu Dhabi, Etihad Airways flies passengers and cargo to destinations in the Middle East, Africa, Europe, Asia, Australia and North America. As a result of fast growth and demand for international shipments, the company’s cargo and logistics arm, Etihad Cargo, also augments its dedicated cargo aircraft by adding belly cargo to its passenger planes. With flight routes crisscrossing the globe, the safety and security of Etihad’s passengers, crew and equipment are top priorities. Etihad Cargo carries a range of commercial and personal cargo, including animals, luxury goods, precious cargo, and automobiles. The company sets high standards to ensure the goods it moves are compliant with government regulations. Etihad Cargo adheres to all International Air Transport Association (IATA) regulations pertaining to cargo and restricts some cargo based on the company’s social responsibility policies, especially regarding live and protected animal species. The carrier also has Pharma and Fresh certifications from IATA’s Center of Excellence for Independent Validators (CEIV).
The Solution
Etihad Cargo decided to partner with e2open to streamline its cargo screening process, enabling the carrier to stay abreast of ever-evolving trade regulations and automate the screening of shipments. This was necessary to provide best in class compliance safeguards for Etihad Cargo’s customers while reducing shipment processing costs. Etihad Cargo implemented e2open’s Export Management application. Paired with the robust trade content contained in e2open’s Global Knowledge application, the company would be able to streamline and automate its cargo screening to enhance compliance and minimize risks. E2open’s cargo screening capabilities include a configurable risk assessment matrix that logistics providers can implement for added security if needed. The matrix provides comprehensive transaction screening, delivering a transaction risk score and visibility into the three primary screening areas: dual-use or restricted goods, destination controls and restricted parties. Additional screening capabilities help companies gauge transaction risks related to the cargo destination’s proximity to various conflict zones. The automated system will simultaneously improve efficiency by streamlining workflows, minimize the risk of fines and penalties and reduce the time and potential delays associated with screening cargo. As a result of these changes, Etihad Cargo expects shipments to consistently arrive on time, thereby increasing customer satisfaction. “Our partnership with e2open, which shares our vision for a truly digital logistics supply chain, increases Etihad Cargo’s service quality to customers, who benefit from the increased efficiency of real-time verification,” said Blech.
Operational Impact
Quantitative Benefit
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