DTTN’s experience on facilitating SME’s participation in trade

Mr Stephen Cheung, Senior Vice President, Business Development, Tradelink/DTTN

Regional Policy Forum on Trade Facilitation and SMEs in Times of Crisis

20-22 May 2009, Beijing, China

AgendaAgenda

Tradelink (B to G) Highlights

Digital Trade and Transportation Network (B to B)

Established inSep 1988

Government becomesa shareholder

Granted exclusive franchise (1997– 2003)to provide e-submission services for certaintrade-related documents

Selected by the Government as the developerand operator of DTTN

1992

2003

1988

19942004

Granted license (2004-2009) to continue provisionof government document e-submission services

2005

Publicly listed and traded on the Main Board of The Stock Exchange of Hong Kong

About TradelinkAbout Tradelink2008

Tradelink Beijing Established

Being granted license to continue

provision of GETS II (2010-16)

The HK SAR Government

Key players in the trading sector, including trade associations, terminal operators & financial institutions

43.80%43.80%

12.29%12.29%

Public Shareholders

43.91%43.91%

Digi-Sign CertificationServices Limited

Digital Trade and Transportation Network

Government and Industry Expert SupportGovernment and Industry Expert Support

100%100% 100%100%

The digital express link to business partners worldwide

Building trust in electronic services with Digi-Sign security solutions

Services Details

Production Notification (PN) e-lodgment of notification to the Trade & Industry Department about cut-and-sewn garments manufactured in HK

Notifications under Textiles Trader Registration Scheme (TTRS)

e-submission of notification to the Trade & Industry Department for textile trading under TTRS

Certificate of Origin (CO) e-application for CO to the Trade & Industry Department or other government approved organisations

Dutiable Commodities Permit (DCP) e-application for DCP to Customs for import, export, manufacturingor storage of dutiable commodities

Electronic Cargo Manifest (EMAN) (excluding road mode)

e-submission of manifests for air, rail, water cargo to the CensusDepartment and the Trade & Industry Departmente-receipt of notice / voucher from Customs ande-communication with other government departments

Import or Export Declaration (TDEC) e-lodgment of import or export declaration with Customs

TradelinkTradelink’’ss Government ServicesGovernment Services

Document checking and validationSecure communication channel7 x 24 electronic interfaceDocument status trackingHotline & onsite technical support and other customer services“Paper-to-electronic” conversion service

LogisticsServicesProviders

Importers

Exporters

Freightforwarders

Carriers

Manufacturers

Trading Com

munity

Trading Com

munity

e-confirmation e-confirmation

SecuritySolution

Government ServicesGovernment Services

The HKSAR The HKSAR GovernmentGovernment

TradelinkTransaction fee

+Gov’t fee

+e-submission of

trade related documents

Gov’t fee+

e-submission of trade related documents

Over 54,000 registered users including manufacturers, importers, exporters, freight forwarders, logistics services providers, and carriers

Steady transaction volume – over 20 million per annum

Dedicated customer services: hotline, onsite technical support, 20 customer services centres, training support, and direct sales team

Customer loyalty program - customer magazine , e-newsletter , luncheon seminar and round-the-year loyalty program

Our Substantial Customer BaseOur Substantial Customer Base

Established development Centre in Guangzhou in 2007Beijing Branch office opened in 2008Tianjin JV company in 2008Recognised service provider under the CEPA framework

Our Vision for the China marketTo facilitate international trade between China and the rest of the worldDevelop an one-stop e-trade platform in mainland for the

– Operation and management of the modernized logistics parks

– E-finance services– International connection（via DTTN)

China MarketChina Market

PanPan--Asian EAsian E--Commerce Alliance (PAA)Commerce Alliance (PAA)

Customer base: over 250,000 organizations

Established in July 2000 by TradeLink(HK), Trade-Van (TW) and CrimsonLogic(SG)

Now 9 member economies

Jointed by three new members from Australia,Philippines and Japan in 2007

Common StrengthsLocal market leader in e-commerceStrong & close relationship with local gov’tMass customer baseLong years of experiences on electronic document exchange, customs declaration, manifests, certificate of origin, licenses services

To provide secure, trusted, reliable and value-adding IT infrastructure and facilities to promote intra-regional trade

115,000 Customers

KoreaKTNET

JapanTEDI

China CIECC

TaiwanTrade-Van

MalaysiaDagangNet

Hong KongTradelink

MacauTEDMEVSingapore

CrimsonLogic

ThailandCAT

10

Digital Trade & Transportation Network

(DTTN)

Key Milestones of DTTNKey Milestones of DTTN

Dec 2005

2H 2006

With 3600+ registered customers

Dec 2004DTTN Limited incorporated

Pilot run

Full Commercialization

2003

Tradelink awarded by the Governmentas developer and operator of DTTN

2001Formation of LOGSCOUNCIL

2008

2009

Becomes Tradelink’swholly owned subsidiary

Objective of DTTNObjective of DTTN

Suppliers

TaxAuthority Truckers Carriers Terminals

Warehouses

Trade Associations

InspectionAgencies

TradeAssociations

Forwarders

Buyers

InsuranceInstitutions

Manufacturers

Forwarders

Airlines

BanksInsuranceInstitutions

Customs BuyersManufacturers

Carriers

Sellers

Banks

Key Functions of DTTNKey Functions of DTTNAn e-Business CONNECTOR for the Entire Supply Chain

connects all parties along the supply chain to achieve “system-to-system integration”.

A Mega Electronic DATA STORE

stores data online for 2 years and offline for 7 years

A Super Electronic Document CONVERSION ENGINE

supports “any-to-any” transformation of data format and communication protocols

Data Inheritance Feature- Common data can be inherited between documents- Web portal services

Community Role of the DTTNCommunity Role of the DTTN

Electronic message transformation services

Statistical and analytical reporting servicesData inheritance services

Information security services

Electronic message routing servicesPortal services

Sellers InspectionAgencies

Banks &Financial

Institutions

FreightForwardersBuyers

Government& Agencies Carriers Insurance

Institutions Terminals

DTTN Key Services Offering

DTTN to Support the Whole SupplyDTTN to Support the Whole Supply--ChainChain

Purchase Process Purchase / Sales Order, Order Confirmation

Packing List / ASN, Commercial Invoice,Inspection Certificate, InsuranceDelivery

Booking, Shipping Order, Arrival Notices,Transport Documents - Master / HouseWaybill - Sea / Air, Cargo Receipt,Transport Set, EIR, Delivery / Release Order

Local and OverseasTransportation

Government Trade DocumentsExport / Import License,Customs Clearance,Certification of Origin etc.

Financial Settlement Letter of Credit, Company Guarantee, Bill of Exchange,L/C collection Letter; Document Arrival Notice

Support over 80 major documents related to trade, logistics and finance for both import and export business processes

How to Connect with DTTNHow to Connect with DTTN

Option 1: Direct Integration

A simple direct connection with internal application systems (e.g. FMS/ERP/SCM etc.) using the existing interfaces with no or minimal system changes

Option 2: Standard Excel Spreadsheets

Easily customizable according to

your needs

Link with Your BuyersLink with Your BuyersBuyers

• Data Transformation• Verification of digital

signature• Encryption / Decryption• Dispatch the ack / error msg

• Prepare the PO by using the Excel Form and send to XX via DTTN electronically.

• Prepare the PO by using the existing internal application system & send to the XX via DTTN electronically

• Receive the PO Confirmation from XX via DTTN electronically

• Receive PO & the data will go directly into the internal ERP System

• Generate & return the PO Confirmation to the buyers electronically

Suppliers

Internal SystemElectronic Document Conversion Engine

(Type 1) Excel Form User

(Type 2) Direct Integration User

18

DTTN is well received and supported by the industry …

Excerpt of DTTN Participants in Excerpt of DTTN Participants in different industriesdifferent industries

Excerpt of DTTN Participants Excerpt of DTTN Participants -- ForwardersForwarders

Excerpt of DTTN Participants Excerpt of DTTN Participants -- OthersOthers

22

Success Cases Sharing

Customer Success Case Customer Success Case DTTN as UNIQUE gateway between DTTN as UNIQUE gateway between Tyco & TycoTyco & Tyco’’s partners for document exchange s partners for document exchange (Purchase to Delivery)(Purchase to Delivery)

5. Master SO(EDIFACT)

Buyer

1. Sales Order (X.12)

Forwarder

Tyco

1. Sales Order (SAP)

4. Shipping Order, CI, PL (SAP)

4. Shipping Order, CI, PL(File Format: XML)

SO - shipping order/ 落貨紙CI - commercial invoice / 商業發票PL - packing list / 提單BL - bill of lading / 裝箱單

Carriers

5. Master SO(File Format: XML)

7. Tyco Invoice (X.12)

6. Invoice(File Format: XML)

6. Invoice (SAP)( (

Suppliers

2. EDI – Purchase Order

3a. DN “EDI” (Excel)

3a DN “EDI” (SAP)

6. Invoice (CSV)

3b. DN “Drop Ship” (Excel)

3b. DN “Drop Ship”

(File Format: XML)

7. Tyco Invoice (SAP)

Goods Delivery

TDSTDS

FreightForwarder

FreightForwarder

Otto International AsiaBuying Office

Otto UKBuyer

1. Purchase Order

2. Purchase Order10. Clean Document set

3. Purchase Order7. Bill of Lading

4. Invoice, Packing List, Shipping Order8. Invoice, Packing List, Bill of Lading

5. Invoice, Packing List,

Shipping Order

6. Bill of Lading

9. Invoice, Packing List, Bill of Lading

11. Invoice

, Packing

List, Bill o

f Lading,

e/CO

11. Invoice

, Packing

List, Bill o

f Lading,

e/CO

12. Invoice, Packing List, Bill of Lading,

e/CO

12. Invoice, Packing List, Bill of Lading,

e/CO

Suppliers

Physical

Data

Reference Cases Reference Cases Buyer Management ServiceBuyer Management Service

FreescaleFreescale –– A SellerA Seller--Driven Case Driven Case

ShippingDept - Admin

ShippingDept - Operators

1 Sales Information

TDS3 Confirmed SLI

9 Shipping Cartons + INV + PL + SLI

8 Printed Ship Label

FreightForwarders

4 SLI + INV

5 SLI + INV

6 AWB/SWB

7 AWB/SWB

10 Generate TDEC

2 Draft SLI

Physical

Data

11 Trade Declaration

FreescaleSales Backend

Tradelink ValuNet

The Digital Express Link to your Business Partners Worldwide

www.tradelink.com.hk

www.hk-dttn.com