Blog / Blog Details

At Toruz Systems, we have a deep understanding of the issues impacting ground and cargo handling. Here’s a look at the main challenges we see:

1. Revenue Leakage and Billing Errors

Revenue leakage is a major problem, often resulting in a 1-10% loss of station revenue. Typically, stations lose around 1-5%, but in severe cases, it can reach up to 10%. This often happens due to gaps between actual services and invoiced ones, driven by factors like:

• Mismatch Between Operational Data and Contracts: Complex terms in ground handling agreements (SGHAs) can lead to underbilling when ramp or warehouse data doesn’t align with contract terms. Examples: Missing delay charges, outdated pricing, or billing errors based on aircraft type.
• Missed Service Capture: Busy airport environments can lead to inaccurate recording of additional services, such as delay charges. Examples: Manual entry errors, outdated software, or unrecorded services assumed to be part of the turnaround rate.
• Pricing Errors: Outdated or misaligned systems can cause incorrect pricing, leading to lost revenue.
• Lost Documentation: Misplaced records like ramp or cargo sheets mean unbilled services and lost revenue.

2. Lack of Data Utilization and Analytics

Although data is a valuable asset, many ground handlers underuse it, missing out on opportunities to improve profitability and customer satisfaction. Key issues include:

• Underutilized Operational Data: Data insights on service frequency and delays can help ground handlers negotiate more favorable contracts. Example: Not knowing the revenue split by service or delay frequency for a carrier, making it difficult to negotiate pricing for specific services or delay penalty clauses.
• Missed Upsell Opportunities: Without analytics, ground handlers miss out on identifying additional upsell opportunities for clients.
• Inadequate Performance Monitoring: Lack of monitoring leads to SLA penalties and dissatisfied customers.

3. Planning and Rostering Challenges

Labor costs make up around 70% of a ground handler’s expenses, making efficient planning and rostering essential. Many companies, however, still rely on manual or Excel-based systems, causing inefficiencies such as:

• Suboptimal Resource Allocation: Manual rostering often leaves staff idle during quiet times or understaffed during peak periods, affecting both profitability and labor utilization.
• Employee Expertise: Skilled employees spend too much time on repetitive tasks rather than high-value work.
• Labor Shortages: With high employee turnover and limited labor supply, effective resource management is crucial.

At Toruz, we tackle these challenges using artificial intelligence to drive improvements in customer satisfaction, revenue, and profitability.