1. 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

2. 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

3. 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

4. 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

5. 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

6. 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?

7. 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

8. 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

9. 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

10.  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

11. 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]

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
                                                                                                  
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)

13. 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

14. 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

15. 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

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
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

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 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

19. 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

20. Questions?
Thank You!!!