International Cooperation on e-Logistics in APEC 15-16 Jun, 2004 Chang Ryong, Kim / Director e-Business Policy Division Ministry of Commerce, Industry and Energy Republic of Korea

CONTENTS Background of e-Logistics New Subject for Discussion in APEC Let us Reach an Agreement Pain Points facing us What’s Going on in Korea Applications with KILC Expansion of KILC Services :Model for APEC APEC centric Visibility Belt One Example under APEC e-Logistics Procedures for follow-up

Background of e-Logistics  Logistics can be referred to economy in creation and movement of value. Movement of cargo Manufacture Destination Origin Movement of information Consume Movement of money Value Creation Value Satisfaction Movement of people Development and Growth of Global Economy Separation of trade & logistics Paperless trade Paperless logistics Integration of trade & logistics Advent of e-Logistics

New Subject for Discussion in APEC  For APEC prosperity, various efforts have been made until now. Realizing paperless trade Protection of cargo & ship Promoting the e-commerce Strengthening of security Improving the transportation system Developing communication system Securing cyber security Securing cyber security paradigm shift What do you say to adding “this” to our efforts? e-Logistics

Let us reach an agreement  First of all, we need to talk about “what e-Logistics is all about”  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 Report Analysis Optimization Optimization booking schedule Evaluation booking Report document finance finance document Visibility Visibility rating & routing rating & routing compliance compliance allocation allocation contract contract forecasting forecasting Planning Planning Execution Execution

physical cargo tracking zone Pain Points facing Us  Remedy for status quo thru diagnosis to be visibility based on e-Logistics -Tracking data provided after delay or irregularities of cargo and sending them in different (phone/fax/mail) and not in consistent way, turning out not to be so useful -Supply visibility data with different way and format -Booking to forwarder & shipping lines by phone, fax, mail not by data or EDI -Traditionally reluctant to give cargo data to customers Inland Airport Legacy Exporter Forwarder -Not in a position to create data Warehouse Landport Importer -Logistics data(Visibility) not supplied by data -Not provided with proper and timely data -Exporter contacts forwarder, shipping line, customs broker, warehouse respectively for visibility data Railroad Seaport physical cargo tracking zone -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?

What’s going on in Korea  KILC (Korea Integrated Logistics Consortium) representing e-Logistics  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 Industry MP Industry MP Industry MP Industry MP Industry MP electronics car textile oil tools Single access, requesting logistics service such as booking, visibility Korea Integrated Logistics Consortium(KILC) Platform Single connection, receiving service request, providing visibility data

End to End, Real & Near Time  Getting started with global visibility service in e-Logistics  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 P/O Issue P/O Accept Goods Issue Pick Up Shipment B/L Issues Transport Transfer Import Arrival, Customs- Release Inland Cartage Delivery Invoice Goods Receipt Account Payable End to End, Real & Near Time Shipper Goods Issues Consignee Goods Receipt Global Visibility Supplier/ Factory DC/Buyer Integrated & Centralized Pick Up Connection Delivery Trucker Export clearance Import clearance Trucker Build up Forwarder Break down Departure Arrival Forwarder Terminal Terminal Airlines Carrier

Event management by monitoring  Basic Functionalities served by global visibility Booking - From importer/ exporter to forwarder - Automatic upload of booking data from application, or manual input Cargo tracking - by container number - by Bill of lading - by P/O - by item number Inventory control - at rest(stock) - in motion - simulating inventory status Adaptor/Interface - data upload from legacy - versatile adaptor - data input - system connection 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

 KILC functioning as a Single Window for e-Logistics  End to end & seamless gateway for importer/exporter & logistics service provider  International & domestic logistics service enabler  Easily & cheaply accessed and globally connected marketplace e-Logistics Single Window Reasonable Price Easy Access Wider Connection More than 30 domestic B2B e-Marketplaces Importer Existing EDI based VANs Legacy System of Enterprise Global e-MPs GTNexus Domestic Logistics International Logistics INTTRA e-Logistics(B2B) e-Logisframe(B2G) CargoSmart Global Visibility Backbone Traxon Exporter Internet WEB ASP Connection Logistics Service Providers

Applications with KILC  One Example of Visibility now in service : data connection  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 SCM:Production, Inventory Commercial Invoice SCM:Delivery, Shipment [HP Singapore] [HP GLOBAL] [HP KOREA] Visibility Monitor Visibility Monitor ATHENA Commercial Invoice VISIBILITY in KILC Import Clearance Cargo in & out of W/H Transportation Status upload upload [Customs Broker] [Bonded Warehouse] [Inland Transportation]

 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                                                                                                    APL Hanjin NYK Wan Hai CP Ships  Senato Lines Booking, Visibility  confirm/ B/L Info  booking GTNexus KILC shipping instruction(S/R):ANSI 305  visibility  freight receipt invoice:ANSI 310  visibility  Status Details:ANSI 315 Korea Customs -Vessel Arrival/Departure -In & Out Terminal Gate -In & Out Bonded Area -In bond Transportation  Visibility  booking About 35 touch point data supplied: -Vessel, Container, Rail, Warehouse, Gate, Customs On-line Trade Portal  booking request by data Freight Forwarder  visibility(GTNexus + Customs)

Expansion of KILC Services : Model for APEC  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 On Line Trade Portal Importer Exporter EDI Docu Booking Visibility Logistics Touch Points on line booking CargoSmart  visibility Member Shipping Line  on line booking Visibility Data  booking relay  booking KILC by UN/EDIFACT, ANSI X.12, etc., E-MPs Member Shipping Line Forwarder  on line booking  visibility  visibility  visibility Member Shipping Line  visibility  booking INTTRA Im/exporter  visibility

Import frome-MPs region  Visibility data from Korea thru KILC to e-MPs  KILC positioned to supply visibility data on export & import cargo Export to e-MPs region CargoSmart  B/L (manifest) data  customs clearance  ingate at terminal  on board vessel  vessel departure Member Shipping Line customs KILC E-MPs customers Member Shipping Line Import frome-MPs region  B/L(manifest) data  vessel arrival  container unloading  Outgate from port  bonded transportation  customs clearance Member Shipping Line KTNET INTTRA

APEC centric Visibility Belt  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 Visibility Belt Visibility Visibility Visibility Belt Visibility Visibility Visibility Visibility Visibility Visibility Centralized connection options Individual connection

 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 Country A Country B Country A Country C VANs Visibility Visibility Visibility Visibility Users Touch Points Country C Country B Country D Logistics Service Providers Users Visibility Visibility Visibility Users Users

 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

One example under APEC e-Logistics  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 China Export Korea Import Customs Office B2G data Visibility Visibility by KILC Vessel Arrival E & P International KTNET Visibility Unloading Logistics Touch Points B/L Receipt Terminal Outgate Port of Shanghai CY Ingate Truck Location Forwarder ICD Ingate Customs Clearance Document Cleared B2B data

Setting up sub-committee Procedures for follow-up  Some practical steps for implementing e-Logistics in APEC  Need to talk about “possibility of e-Logistics” as a new paradigm Setting up sub-committee  To work out a master plan for APEC, 2005  Discussion on the necessity of e-Logistics  To decide how to implement visibility  If turning out to be necessary,  To select volunteers for pilot service  It needs to standardize the e-Logistics  To carry out pilot service  To continue building up visibility belt

Questions? Thank You!!!