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International Cooperation on e-Logistics in APEC
15-16 Jun, 2004
Chang Ryong, Kim / Directore-Business Policy Division
Ministry of Commerce, Industry and EnergyRepublic of Korea
CONTENTS
Background of e-LogisticsNew Subject for Discussion in APECLet us Reach an AgreementPain Points facing usWhat’s Going on in KoreaApplications with KILCExpansion of KILC Services :Model for APECAPEC centric Visibility BeltOne Example under APEC e-LogisticsProcedures for follow-up
3
Background of e-Logistics Logistics can be referred to economy in creation and movement of value.
Orig
in
Destin
ati
on
Manufacture Consume
Movement of cargo
Movement of information
Movement of money
Movement of people
Value CreationValue Creation Value SatisfactionValue Satisfaction
Development and Growth of Global Economy
Separation of trade & logistics
Paperless trade
Paperless logistics
Integration of trade & logistics
Advent of e-Logistics
4
New Subject for Discussion in APEC
Protection of cargo &
ship
Protection of cargo &
ship
For APEC prosperity, various efforts have been made until now.
Strengthening of security
Strengthening of security Improving the
transportation system
Improving the transportation
system
Promoting the e-commerce
Promoting the e-commerce
Realizing paperless
trade
Realizing paperless
trade
Developing communication
system
Developing communication
systemSecuring
cyber security
Securing cyber
security
Securing cyber
security
Securing cyber
security
What do you say to adding “this” to our efforts?
e-Logistics
paradigm shift
Let us reach an agreement
PlanningExecution
Report
rating & routing
contract
forecasting
allocation
compliance
booking
documentVisibility
finance
Optimization
PlanningExecution
Evaluation
rating & routing
contract
forecasting
allocation
compliance
booking
documentVisibility
finance
schedule
Analysis
Optimization
Report
3 tiered seamless logistics service concept and model Pre-planning step emphasized for minimizing errors and irregularities of logistics Data originated in customers shared and reused to the last analysis step Visibility supplying cargo status data functioning as a backbone
First of all, we need to talk about “what e-Logistics is all about”
6
Pain Points facing Us
Remedy for status quo thru diagnosis to be visibility based on e-Logistics
Legacy ForwarderExporter
Inland
Warehouse
-Where is my cargo? - Will it arrive on time? -Will it arrive in time? - Will will it be delayed, how long?-What happened to it? - Do I have to change delivery time, or transfer transportation mode?
-Booking to forwarder& shipping lines byphone, fax, mail not bydata or EDI
-Logistics data(Visibility) not supplied by data
-Exporter contacts forwarder, shipping line, customs broker, warehouse respectively for visibility data
physical cargo tracking zonephysical cargo tracking zone
-Supply visibility data with different way and format
-Tracking data provided after delay or irregularities of cargoand sending them in different (phone/fax/mail) and not in consistent way, turning out not to be so useful
Railroad
Airport
Seaport
Landport Importer
-Traditionally reluctant to give cargo data to customers
-Not in a position to create data
-Not provided with proper and timely data
7
What’s going on in Korea
Ind
us
try
MP
Ind
us
try
MP
Ind
us
try
MP
Ind
us
try
MP
Ind
us
try
MP
Korea Integrated Logistics Consortium(KILC) Platform
Single connection, receiving service request, providing visibility data
Single access, requesting logistics service such as booking, visibility
Public e-Marketplace specialized in e-Logistics Commonly used by more than 30 e-Marketplaces Funded and developed by government and private logistics industries Supporting trading companies in accessing logistics services and providers Functioning as on-line information gateway for global logistics
KILC (Korea Integrated Logistics Consortium) representing e-Logistics
car
textil
e
oil
tool
s
ele
ctro
nic
s
8
Getting started with global visibility service in e-Logistics
End to End, Real & Near Time
Global VisibilitySupplier/Factory
Export clearanceImport clearance
Goods Issues
Integrated & Centralized
Connection
DC/Buyer
Pick Up
Build up
ArrivalDepartureForwarder
Terminal
Airlines
Carrier
Break down
Terminal
Forwarder
Trucker
Delivery
Goods Receipt
Trucker
P/OIssue
P/O Accept
Goods Issue
Pick Up Shipment B/L
Issues Transport Transfer
Import Arrival,
Customs- Release
Inland Cartage
Delivery Invoice
Account Payable
Goods Receipt
Shipper Consignee
Intelligent and pro active track & trace platform; the backbone of KILC Data connection by uploading from legacy, inputting, connecting with abroad Booking from customers to logistics service providers possible by on-line Pre-alert, event management, inventory(in motion & at rest)control provided
9
Basic Functionalities served by global visibility
Booking - From importer/ exporter to forwarder - Automatic upload of booking data from application, or manual input
Adaptor/Interface - data upload from legacy - versatile adaptor - data input - system connection
Inventory control - at rest(stock) - in motion - simulating inventory status
Cargo tracking - by container number - by Bill of lading - by P/O - by item number
Pre-alert - Sending pre-alert to touch points involved in each import/export activity by mail, data, mobile
Pipeline - Easily building up pipeline from door to destination composed of various touch points
Event management by monitoring - Notifying, fixing, and managing irregular cargo flows from origin to destination
connectivity -Connection with various VANs, systems, e-Marketplace in domestic or abroad
Booking by data
Event management by monitoring
Global connectivity
Global Visibility Backbone
e-Logistics(B2B) e-Logisframe(B2G)
Domestic Logistics International Logistics
Internet WEB ASP Connection
Logistics Service Providers
Importer
Exporter
Glo
bal e
-M
Ps
GTNexusGTNexus
INTTRAINTTRA
CargoSmartCargoSmart
TraxonTraxon
Existing EDI based VANs Legacy System of Enterprise
More than 30 domestic B2B e-Marketplaces
Easy Access
ReasonablePrice
WiderConnection
e-Logistics Single Window
End to end & seamless gateway for importer/exporter & logistics service provider International & domestic logistics service enabler Easily & cheaply accessed and globally connected marketplace
KILC functioning as a Single Window for e-Logistics
11
VISIBILITY in KILCVISIBILITY in KILC
ATHENA
[HP GLOBAL] [HP KOREA]
[Customs Broker] [Bonded Warehouse][Inland Transportation]
Import Clearance Transportation Status
One Example of Visibility now in service : data connection
SCM:Production, InventorySCM:Delivery, Shipment
[HP Singapore]
Commercial Invoice
Commercial Invoice
Vis
ibility
M
on
itor
Vis
ibility
M
on
itor
HP(Headquarter, Korea), logistics service providers connected with KILC Data uploaded and shared with trading partners Real time cargo status data created and supplied for customers Cargo delay, on time, in time detected on the WEB Efforts, time and cost for cargo tracking obviated or minimized
Cargo in & out of W/H
Applications with KILC
upload upload
12
Visibility Connection with Overseas e-Marketplace KILC connected with GTNexus, an e-Marketplace for container liner shipping KILC and GTNexus exchanging booking and visibility data with each other Korea’s customers supplied with visibility data in North American markets
Senato LinesSenato LinesHanjinHanjinAPLAPL CP ShipsCP ShipsNYKNYK Wan HaiWan Hai
On-line Trade Portal Freight Forwarder
confirm/B/L Info
booking request by data
GTNexus KILC
b
ookin
g
shipping instruction(S/R):ANSI 305
freight receipt invoice:ANSI 310
Booking, Visibility
booking
visibility
About 35 touch point data supplied:-Vessel, Container, Rail, Warehouse, Gate, Customs
Status Details:ANSI 315
V
isib
ility
visibility(GTNexus + Customs)
Korea Customs
visibility
-Vessel Arrival/Departure-In & Out Terminal Gate-In & Out Bonded Area-In bond Transportation
Log
istic
s T
ou
ch
Poin
ts
Member Shipping LineMember Shipping Line
Member Shipping LineMember Shipping Line
Member Shipping LineMember Shipping LineE-M
Ps
On Line Trade Portal
Importer Exporter
EDI Docu
Booking Visibility
Forwarder
KIL
C
on line booking
on
line
bookin
g
on line booking
booking relay
by UN/EDIFACT,ANSI X.12, etc.,
booking Vis
ibility
D
ata
visibility visibility
visibility
visibility
Im/exporter
b
ookin
g
visibility
vis
ibility
Interconnection of booking & visibility with KILC & e-MPs Booking from Korean customers thru KILC to e-MPs Visibility data from e-MPs to Korean customers thru KILC Enhancing collaboration with e-Logistics service paradigm
Expansion of KILC Services : Model for APEC
CargoSmart
INTTRA
Visibility data from Korea thru KILC to e-MPs KILC positioned to supply visibility data on export & import cargo
Export to e-MPs region
Import frome-MPs region
customs
B/L (manifest) data customs clearance ingate at terminal on board vessel vessel departure
B/L(manifest) data vessel arrival container unloading Outgate from port bonded transportation customs clearance
KIL
C
Member Shipping LineMember Shipping Line
Member Shipping LineMember Shipping Line
Member Shipping LineMember Shipping Line
customers
KTNET
E-M
Ps
CargoSmart
INTTRA
15
APEC centric Visibility Belt
VisibilityVisibility
VisibilityVisibility
VisibilityVisibility
VisibilityVisibilityVisibilityVisibility
VisibilityVisibility
VisibilityVisibility
VisibilityVisibility
Vis
ibilit
y Belt V
isibility
Belt
Centralized connection
Individual connection
To facilitate the movement of cargo in APEC region with e-Logistics To develop standardized visibility by country with mutually agreed consent or to use the existing similar system To exchange cargo status data with the representative visibility gateway To develop visibility belt along the pacific rim
Transparent cargo flow ensured by real/near time monitoring
op
tion
s
16
Visibility Connection under consideration Individual and representative visibility system connected one one : short term - Newly developed visibility - Modified existing system providing visibility functions Centralized visibility connection : long term - Simple connection and transfer of individual visibility - Visibility data conversion as single window
Visibility
Country ACountry A Country BCountry B
Country CCountry C
VANs
Logistics Service Providers
Touch PointsVisibility
Visibility
Country ACountry A
Country BCountry B
Country CCountry C
Country DCountry D
Visibility Visibility
Visibility Visibility
UsersUsers
UsersUsers
UsersUsers
UsersUsers
17
Visibility Data Standardization under discussion
Standardize the visibility data scope upon user’s requirements & LSP’s capacity Visibility data vary by country & service provider Examples as follows;
Empty outgate from ocean terminal (CY or port) Empty outgate from Inland or interim point Full ingate at ocean terminal Full ingate at inland or interim point (CY or port) On board vessel at the port of loading Full container discharged at port of discharge Full container from ocean terminal (CY or port) On rail Off rail
Customs released Carrier released Vessel departure from port of loading Full container discharged from transshipment Vessel departure from transship point Container available notice Empty & full container delivery Vessel estimated time of arrival & discharge Vessel arrived at port of discharge Container loading & unloading
18
One example of Visibility between China and Korea Trade volume between two countries on the sharp increase Collaborative and complementary relationship resulting in mutual benefits Visibility centric e-Logistics surely contributing to commerce & trade growth
Vessel Arrival
Unloading
Terminal Outgate
CY Ingate
ICD Ingate
Customs Clearance
B/L Receipt
Truck Location
Document Cleared
Vis
ibility
by K
ILC
KTNET
Forwarder
Customs Office
Log
istic
s T
ou
ch
Poin
ts
Korea ImportChina Export
E & P InternationalE & P International
Port of Shanghai
B2G data
B2B data
One example under APEC e-Logistics
VisibilityVisibility
VisibilityVisibility
19
Some practical steps for implementing e-Logistics in APEC
Procedures for follow-up
Discussion on the necessity of e-Logistics
If turning out to be necessary,
It needs to standardize the e-Logistics
Setting up sub-committee
To work out a master plan for APEC, 2005
To decide how to implement visibility
To select volunteers for pilot service
To carry out pilot service
To continue building up visibility belt
Need to talk about “possibility of e-Logistics” as a new paradigm
Questions?
Thank You!!!