Development of a luggage Service Level Agreement for Air France-KLM

The Blockchain Xdev developed a blockchain MVP to trace luggage and manage the performance of contractors of Air France-KLM

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“We chose Blockchain Xdev for the development of a blockchain MVP, that they carried out from start to finish. From identifying the industry’s pain points, to showcasing how blockchain could be deployed as a solution for our use case, until the final stage of the application’s development.”

Iris Taguet Zinti
Blockchain Program Manager Air France-KLM

Air France-KLM is a major player in global air transport. Its main activities are passenger and cargo air transport and aircraft maintenance.

The journey of luggage is complex. From the moment a passenger checks-in at her departure airport, to the moment she collects her bag at her arrival. Luggage is loaded, dispatched, transported, unloaded, re-loaded… by multiple teams, both part of an airline’s organization and their external contractors. Each contributor relies on their IT infrastructure, making it difficult to reconcile data, trace a bag and identify responsibility in the case of a delivery failure. This inevitably results in time-consuming and, sometimes conflictual negotiations.

Blockchain technology brings transparency and accountability into the process and offers an opportunity to build a system of trust and collaboration.

The challenge

Increase transparency and accountability in the workflow of Air France-KLM’s luggage service

The outcome

A shared, common infrastructure to improve the workflow and reward of contractors.

The solution

A blockchain-based platform that can be integrated to each contractors’ existing IT system through APIs

A billing system based on each contributor’s performance

In order to improve overall efficiency, Air France-KLM and its contractors put in place a bonus/penalty system directly based on the subcontractor’s role in the success/failure rate of luggage delivery.

A blockchain platform to monitor performance in real time

The Blockchain Xdev developed a blockchain-based platform to provide all actors with a shared information system, bringing transparency and accountability to the entire process.
Air France-KLM monitors the entire workflow in real time via a performance dashboard. In case of failure, the company is able to identify the team responsible by tracing the bag in the system. And manage actions and an incentive to encourage the ultimate objective: an increase success in delivery rates.

Seamless integration

The solution can be integrated on each team’s existing IT systems via APIs to enable easy adoption of the technology. It includes a top layer dashboard so Air France-KLM can monitor KPIs and build the bonus/penalty system for its contractors. The reward system will be implemented through a smart contract, enforcing clear, transparent rules. The solution builds trust in the system, favoring successful collaboration.

Efficiency and transparency

  • Multiple teams and organizations are able to share and reconcile information to streamline the workflow, with a seamless integration with their own IT systems.
  • Air France-KLM can monitor the performance of the entire workflow via a real-time dashboard
  • The transparent bonus/penalty system is built on an immutable data source and calculation algorithms.
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