Ramco Systems made its entry into the air cargo business with an agreement between the firm and Modern Logistics. Both firms are leading players in their separate fields of business, with the former having a global grasp. As per the agreement, Modern Logistics is to provide maintenance tasks and engineering solutions. This includes the management of materials, management of flight operations, checking on quality and compliance to regulations. They also have accounting and financial duties. The agreement between the two firms clearly lays out all these duties and roles.
Modern Logistics, through its VP, expressed the need to have state-of-the-art services in the maintenance of safety, efficiencies in operation and compliance with regulation, as concerns aviation industry. Ramco Systems are famous for their compliance to the requirements in this industry and their use of advanced technology. They are also flexible and constantly make the necessary changes in accordance with various business needs. Modern Logistics expressed confidence in the new partnership and the ability of Ramco Systems to deliver, even in the future.
The CEO of Ramco systems noted the important role of the agreement for the firm, especially as they enter into the Brazilian market of air cargo carriage. This will give Ramco Systems a competitive edge in the supply chain and improve its technology. Furthermore, its operations will involve management through paperless processes and consequently, improvement efficiencies in operation and spurring growth of the firm.
Through implementation of the set goals with its partner, Ramco Systems expects its new structure to penetrate the market and create a new segment in the Brazilian market. He also noted that the firm had identified an economic niche that was befitting for them. The firm’s aviation suite is such that it can cater for a significant reduction of overhead costs. This will be effective in providing engineering solutions and introduction of best practices in operations of maintenance. The firm expects to begin freight operations through cargo airplanes in the first six months of 2014. This will work hand in hand with several logistic centers that will serve as well stocked distribution centers.
Modern Logistics, on the other hand, has already started on its plans to build its supply chain. This involves broadening of its local and international market. The best and most effective way of doing so is through integration of ground and air modes of transport. The logistic centers in Brazil are strategically located, and this is one of the boosts to the firm’s effort of reaching out to regional and international markets. The platform so created will aid to improve business activities in Brazil and maximize on their market potential. This will be through the cost effective solutions that will be available through its partnership with Ramco Systems.
Most of the logistics centers of Modern Logistics are located in industrial areas or in areas where the market is growing. These centers are IT-compliant and fully fitted with technological facilities. The firm will control Boeing 737-400 in the transfer of cargo in medium and long routes. The routes will be connecting logistic centers, and this will make the distribution extremely cost effective. Ramco Systems will make significant profits from this new venture. Modern Logistics will also grow and broaden its clientele base. The use of modern technology reduces costs of operation. This means that the cost of carriage can be lower than that of competitors. This will win the two firms a significant market share.
References
Ramco Systems. Modern Logistics Takes Off with Ramco Aviation Series 5.6. Retrieved from
http://www.aviationpros.com/press_release/11315499/modern-logistics-takes-off-with-ramco-aviation-series-56
