News From Air Cargo Industry
Cargo Worker fine-tunes its USP
All-in solutions covering the entire service range in air freight from pick-up to delivery is Cargo Worker’s unique selling proposition. A biz model that seems to work, as next year’s forecast illustrates. It predicts the doubling of the agent’s annual turnover and unabated stable profit margins. Founded in 2005 and headquartered at Frankfurt airport’s CargoCity South service provider Cargo Worker 24 GmbH now intends expanding its geographical reach.
At first sight it is more than astonishing that an enterprise like Cargo Worker 24 GmbH even exists. “If the processes in air freight would be fully integrated we would more or less be kind of obsolete,” admits Hendrik Bender, Head of Sales and Logistics Development and member of Cargo Worker’s management board. Since trucking, handling of shipments, IT systems, security controls or warehousing are anything but directly linked to everyday’s cargo transactions a firm like his makes sense, is the consequence when taking a second glance at it.
So the key question is what business model Cargo Worker is pursuing and offering the market that obviously spurs the firm’s success. “We offer the market a variety of value-added services based on strong IT-linkage with our clients,” states Bender. These single source or all-in-one solutions include road feeder services, the handling of air freight, including dangerous goods, warehousing, packing and repacking of shipments, security controls of air freight from hand-search to scanning, human resource and administrative services, and disposal and recycling activities. “Each of these different steps can be electronically monitored and are therefore absolutely transparent for both our clients and us,” notes manager Bender.  
The above mentioned functions are inherent parts of supply chains in air freight, but they are normally performed by a multitude of players. This leads to additional costs, delays the flow of goods, and requires a high level of coordination between all parties involved.
By early realizing these immanent deficits that characterize the cargo industry even today veteran Peter Foerster came up with his integrated approach. This was back in 2005. Ever since, his firm’s activities are burgeoning and revenues are growing twofold. “There is a lot of demand out there to streamline processes, avoid unnecessary costs and speed up the throughput of goods,” says Foerster.
Meanwhile, Cargo Worker 24 is collaborating with a selected number of dedicated partners, like Expeditors, UTI or Lufthansa Cargo. The benefits for customers are evident: lower fix costs, accurate planning processes, and higher utilization of ground infrastructure, emphasizes Cargo Worker’s founder.
Optimizing synergies has proven to be his firm’s recipe for success. To illustrate this assertion Hendrik points at the window that separates his office from Lufthansa Cargo’s warehouse in Frankfurt airport’s CargoCity South. “We are responsible for handling their entire shipments.  In Lufthansa’s 18,000 sqm comprising warehouse we are able to serve other clients.” This is done with the same technical equipment, the same IT-System called INCA, and the same staff which otherwise is actively engaged in Lufthansa Cargo’s ground handling biz. The greater the efficiency, the lower the costs, is his credo driving him and his enterprise further ahead. 
The model Cargo Worker is offering the market in Frankfurt, which also includes services level agreements with clients and constantly monitored performance figures will be extended to other sites in 2013. In Germany, stations are projected at the airports of Hamburg, Leipzig/Halle and Munich; in addition Amsterdam and Paris (CDG) will be the initial two locations Cargo Worker intends to establish in neighboring countries. “Due to this envisaged expansion we expect our annual turnover to double from currently ten million euros to twenty million by the end of next year,” Herr Bender predicts. The service provider expects to achieve this through pure organic growth. Its trump cards are logistics clients like Expeditors that operate global supply chains and need local partners together with infrastructure to conduct their biz. “So when collaborating with airlines or forwarders at airports like Charles de Gaulle or Hamburg we complement their business by adding clients like Expeditors to their portfolio,” states Hendrik.
Besides growing organically Cargo Worker intends to widen its reach by taking over other firms. “We intend to acquire a security service provider soon that is active at European and U.S. airports,” announces the manager. It would be the last gap to be filled in the service portfolio Cargo Worker is offering the industry.
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