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
Whats Going on in Korea
Applications with KILC
Expansion of KILC Services :Model for APE
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

Consume
Movement of money

Value Creation

Destinatio
n

Origin

Movement of information

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.
Protection of
cargo & ship Promoting the
e-commerce
Improving the
transportation
system

Realizing
paperless
trade

Developing
communication
system
Securing
cyber
security

Strengthening
of 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
booking
schedule
booking
Evaluation
Report
document
document finance
Visibility
rating
rating && routing
routing
compliance
allocation
contract
forecasting

Execution
Execution

Planning
Planning

Pain Points facing Us

Remedy for status quo thru diagnosis to be visibility based on e-Lo

-Booking to forwarder
& shipping lines by
phone, fax, mail not by
data or EDI

Legacy

Exporter

-Logistics
data(Visibili
ty) not
supplied by
data

-Supply
visibility data
with different
way and
format

Inland

Airport
-Not in a
position to
create
Warehouse data

Forwarder

-Exporter
contacts
forwarder,
shipping line,
customs broker,
warehouse
respectively for
visibility data

-Tracking data provided after delay or irregularities of ca

and sending them in different (phone/fax/mail) and
not in consistent way, turning out not to be so useful
-Traditionally
reluctant to give
cargo data to
customers

Landport

Importer

-Not provided
with proper and
timely 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?

Whats going on in Korea

KILC (Korea Integrated Logistics Consortium) representing e-Logis

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

electronics
Industry MP

tools
Industry MP

oil
Industry MP

textile
Industry MP

car
Industry MP

Single access, requesting logistics service such as booking, visibility

Korea Integrated Logistics Consortium(KILC)

Platform
Single connection, receiving service request, providing visibility data

 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 online
Import
P/O Pre-alert,
P/O
Goods
Pickmanagement,
B/L Transport
Arrival, Inland
Delivery
Goods
Account
event
inventory(in
motion
& at
rest)control
Shipment
Issue
Accept Issue
Up
Issues TransferCustoms- Cartage Invoice Receipt Payable
provided
Release
Shipper

Goods Issues

End to End, Real & Near Time

Goods Receipt

Global Visibility

Supplier/
Factory

DC/Buyer

Integrated
&
Centralized

Pick Up
Trucker

Consignee

Connection

Delivery

Export clearance
Import clearance Trucker
Forwarder

Build up
Departure

Break down
Arrival

Terminal
Airlines
Carrier

Forwarder

Terminal

 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

Pre-alert
- Sending prealert to touch
points involved
in each
import/export
activity by mail,
data, mobile

Event management
by monitoring
- Notifying, fixing,
and managing
irregular cargo flows
from origin to
destination

Adaptor/Interface
- data upload from
legacy
- versatile adaptor
- data input
- system
connection

Pipeline
- Easily building
up pipeline from
door to
destination
composed of
various touch
points

Booking by data
Event management by monitoring
Global connectivity

connectivity
-Connection with
various VANs,
systems, eMarketplace in
domestic or abroad

 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

Wider
Connection

Easy
Access

Reasonable
Price

More than 30 domestic B2B e-Marketplaces

Existing EDI based VANs

Legacy System of Enterprise

Domestic Logistics

International Logistics

e-Logistics(B2B)

e-Logisframe(B2G)

Global Visibility Backbone

Exporter

Internet WEB ASP Connection

Logistics Service Providers

Global e-MPs

Importer

GTNexus
INTTRA
CargoSmart
Traxon

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
SCM:Production,
Inventory
Efforts, time
and cost for
cargo tracking
obviated
or minimized
Commercial
Invoice
SCM:Delivery, Shipment

[HP Singapore]

[HP GLOBAL]

[HP KOREA]

Commercial Invoice

VISIBILITY in KILC
Import Clearance

Cargo in & out of W/H Transportation Status

upload

[Customs Broker]

Visibility Monitor

Visibility Monitor

ATHENA

upload

[Bonded Warehouse] [Inland Transportation]

11

 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
APL
Koreas customers supplied with visibility data in North American
Hanjin
NYK
Wan Hai
CP Ships
Senato Lines

markets
Booking, Visibility

confirm/
booking
B/L Info

GTNexus

KILC

shipping instruction(S/R):ANSI 305

visibility

visibility

freight receipt invoice:ANSI 310

Status Details:ANSI 315

booking

booking request by data

Visibility

About 35 touch point data supplied:

-Vessel, Container, Rail, Warehouse, Gate, Customs

Korea Customs
-Vessel Arrival/Departure
-In & Out Terminal Gate
-In & Out Bonded Area
-In bond Transportation

visibility(GTNexus + Customs)
On-line Trade Portal

Freight Forwarder

12

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
EDI

Docu

Booking Visibility

on line booking

CargoSmart

visibility

by UN/EDIFACT,
ANSI X.12, etc.,

visibility

booking
Member
Member Shipping Line
visibility

visibility

Member
Member Shipping Line

Forwarder
booking

visibility

Im/exporter

INTTRA

visibility

Visibility Data

on line booking

booking relay

E-MPs

KILC

on line booking

Member
Member Shipping Line

Logistics Touch Points

Importer Exporter

 Visibility data from Korea thru KILC to e-MPs

KILC positioned to supply visibility data on export & import carg

Export to e-MPs region

Member
Member Shipping
Shipping Line
Line

E-MPs

B/L (manifest) data

customs clearance
ingate at terminal
on board vessel
vessel departure

KILC

customs

CargoSmart

Member
Member Shipping
Shipping Line
Line
customers

Import frome-MPs region

KTNET

B/L(manifest) data
vessel arrival
container unloading
Outgate from port
bonded transportation
customs clearance

Member
Member Shipping
Shipping Line
Line

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

Vi
sib
i

Visibility
Visibility

Visibility

Visibility

elt
yB

Visibility

Visibility

it
bil

Visibility

i
Vis

lit
y

Be
lt

Transparent cargo flow ensured by real/near time monitoring

Visibility

options

Centralized connection
Individual connection

15

 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

Visibility

Visibility

Country B

Country D

VANs
Users
Touch Points

Visibility

Users Logistics Service

Providers

Visibility

Country C

Users
Visibility

Visibility

Users

Visibility

16

 Visibility Data Standardization under discussion

Standardize the visibility data scope upon users requirements & LSPs
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

17

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
Visibility
Visibility

Vessel Arrival

Customs Office

Unloading
B/L Receipt

Logistics Touch Points

Visibility by KILC

E & P International

B2G data

KTNET

Terminal Outgate
CY Ingate
Truck Location

Port of Shanghai

ICD Ingate
Customs Clearance

Forwarder

Document Cleared
B2B data

18

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, 200

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

19

Questions?

Thank You!!!