As e-commerce continues to expand its reach across the globe, The Netherlands’ flag carrier airline has taken a bold step to position itself as an integral logistics partner. Find out why KLM Royal Dutch Airlines has partnered with e-commerce leader 12Send and learn what each company stands to gain from the partnership.
Situation: 12Send Aims to Provide Same-Day Delivery Across Europe
Understanding the growing need to provide either same-day or 24-hour delivery to customers across Europe, 12Send launched as a logistics solution for e-commerce and consumer-facing retailers. This new company aimed to streamline door-to-door shipping services for intra-Europe deliveries, provided that all duties have been paid and that the contents aren’t in a prohibited category, such as live plants or tobacco.
In need of an effective shipping partner, 12Send approached KLM and began testing its same-day delivery services on select routes, including Amsterdam to Barcelona, Madrid, London, and Stockholm. Though the tests proved successful, KLM determined that the airline needed to commit to substantial infrastructure upgrades in order to gain an even greater return on investment (ROI).
Approach: KLM Partners With 12Send and Establishes E-Commerce Hub
KLM has long maintained a hub at Amsterdam Schiphol Airport, where the airline has a major commercial and cargo presence. Though KLM already had a cargo sorting system in place, the airline referenced its test routes with 12Send and data from its partner Air France to determine how best to upgrade this system to improve its e-commerce cargo handling.
The airline hired Lödige Industries and Vanderlande to design a sorting system that could handle postal mail, express shipments, and pharmaceutical packaging. The system closely echoes the one that partner Air France has deployed in its Paris hub, but KLM’s system faced the added challenge of insufficient space.
In July 2017, KLM debuted its new cargo sorting system, which enables the airline to sort 2,000 items per hour heading to over 70 destinations from its Schiphol hub. To make adequate use of limited space, KLM completely rebuilt one of its three cargo warehouses. The airline opted to build vertically, taking care to leave room for growth as the e-commerce market continues to expand.
Impact and Advantage
Perhaps the biggest impact from KLM’s debut of its new cargo sorting system is the airline’s clear commitment to e-commerce. As the executive vice president of KLM Cargo, Marcel de Nooijer, states, “E-commerce is a fast-growing branch in the cargo industry … This system is faster and smarter, allowing us to better serve our customers.” Since the airline has left room for expansion in its new cargo sorting facility, it could continue to position itself as the top e-commerce shipping company in Europe.
In the future, this commitment to e-commerce and innovative shipping solutions could also enable KLM-Air France to expand its market share. The airline partnership is already the fifth-largest air cargo carrier in the world, and Schiphol is the continent’s third-busiest air cargo hub. By fulfilling a need in the air cargo sector, KLM has demonstrated its commitment to innovation, a forward-thinking move that could provide a significant return.
