1 Forum on e-Business Interoperability and Standardization Digital Trade and Transportation Network Friday 14 May 2004

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Forum on e-Business Forum on e-Business

Interoperability and Interoperability and

StandardizationStandardization

Digital Trade and Transportation Digital Trade and Transportation

NetworkNetwork

Friday14 May 2004

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Digital Trade and Digital Trade and Transportation NetworkTransportation Network

Background

DTTN Role and Requirements

DTTN Interconnection Example

DTTN Standards Group and the Way Forward

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Background of DTTN (1)Background of DTTN (1)

Chief Executive: Policy Address 2001

“Develop into a logistics hub to link the mainland with the world …..

development of an inter-modal system …. To speed up the flow of

goods and information ….. strengthen HK’s competitive advantage

as a supply chain base”

Hong Kong Logistics Development Council (Logscouncil)

40 public and private sector members to “Implement logistics

polices”, and provide forum for “Logistics Hong Kong”

Supported by five project groups

Physical-Logistics, Electronic-Logistics,

Human Resources-Logistics, Marketing-Logistics, SME-Logistics

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Background of DTTN (2)Background of DTTN (2)Accenture Report November 2002

“Study for the development of a Digital Trade and Transportation

network (DTTN) system to support the development of Hong Kong

as an international logistics hub”

Project benefits of HK$11.8 billion from investment of HK$3 billion

over 17 years

Logscouncil April - July 2003

Request private sector proposals for DTTN

Three proposals submitted

Recommends Government commences discussions with Tradelink

with a view to Tradelink establishing the DTTN

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The Role of the DTTNThe Role of the DTTN

Neutral, stable, reliable, state-of-the-art e-

platform to facilitate HK / PRD, regional

and global information flow and service

integration Stimulate innovative value added services

Catalyst to promote SME e-business adoption

HK e-logistics hub of choice

Improve competitiveness of Hong Kong

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DTTN 3-Layer ModelDTTN 3-Layer Model

Value-added services such as multi-modal integration, distribution & transportation management

Value-added

Services

Core Messaging

Infrastructure

Standards and Protocols

Open, neutral, secure, reliable and shared electronic infrastructure messaging

Local and international standards for security, trade documents, codes, protocols

Layer 3

Layer 2

Layer 1

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DTTN Core Messaging Infrastructure

Community Role of the DTTNCommunity Role of the DTTN

Sellers

CarriersCarriers Portals-Inttra-GTNexus-CargoSmart

Buyers/Buying Offices

FreightForwarders

TerminalsInsurance

Institutions

Banks & Financial

Institutions

Inspection Agencies

ValueAddingService

Providers-Tradelink

Regional/GlobalServiceProviders* Bolero* TradeCard* PAA

Government&

Agencies (via ASP)Document

Exchange &Transformation

CommunicationsGateway

UserManagement

SecurityServices

Reporting

WebServices

~53,000 import / export traders

~132,000 Pan-Asian

traders

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Business ProcessesBusiness Processes

Prepare deliveryPrepare deliveryEstablish sales / purchase contract

Establish sales / purchase contract

Obtain insurance coverage

Obtain insurance coverage Process L/CProcess L/C

Arrange inspection

Arrange inspection

Apply license/permit/ certificate

submit notifications

Apply license/permit/ certificate

submit notifications

Arrange / execute transportation

(single or multi-modal)

Arrange / execute transportation

(single or multi-modal)

Presentation to financial

institutions

Presentation to financial

institutions

Submit tradedeclaration

Submit tradedeclaration

Payment & receipt

management

Payment & receipt

management

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DTTNCo Core ServicesDTTNCo Core Services

Reliable delivery – local, China, globally

Encryption / decryption & signature verification

Documents / audit trails on-line for 2 years / off-

line for 7 years

Document format validation and transformation

Core implementation of the DTTN adopted XML

canonical format for 60 business documents in

the 10 trade & logistics business flows

Business Documents (1)Business Documents (1)# Documents Processes Parties Mode1. Sales order/ purchase order Establish purchase / sales

contractSellers, Buyers All

2. Insurance application form Obtain insurance coverage Sellers, Buyers,Insurance Institutions

All

3. Insurance policy/ certificate Obtain insurance coverage,Presentation to financialinstitutions

Sellers, Buyers,Insurance Institutions,Banks

All

4. Open/ floating insurancepolicy

Obtain insurance coverage Sellers, Buyers,Insurance Institutions

All

5. Declaration on shipmentdetails and insured amountagainst open/ floatinginsurance policy

Obtain insurance coverage Sellers, Buyers,Insurance Institutions

All

6. L/C application form Process L/C Banks, Buyers All7. L/C Process L/C, Presentation to

financial institutionsBanks, Buyers, Sellers All

8. L/C amendment request Process L/C Banks, Buyers, Sellers All9. Packing list Prepare delivery, Arrange /

execute transportation,Presentation to financialinstitutions

Forwarders, Carriers,Buyers, Sellers, Banks

All

10. Commercial invoice Prepare delivery, Arrange /execute transportation,Presentation to financialinstitutions, Payment &Receipt Management

Forwarders, Carriers,Buyers, Sellers, Banks

All

Business Documents (2)Business Documents (2)# Documents Processes Parties Mode11 Inspection arrangement

requestArrange inspection Inspection Agencies,

Buyers, SellersAll

12 Inspection arrangementnotice

Arrange inspection Inspection Agencies,Buyers, Sellers

All

13 Inspection certificate Arrange inspection,Presentation to financialinstitutions

Inspection Agencies,Buyers, Sellers, Banks

All

14 Licence/ certificate/ permitapplication form

Apply licences/ permits/certificates, submitnotification, Preparedelivery, Arrange / executetransportation, Presentationto financial institutions

Government &Agencies, Sellers,Buyers, Forwarders,Carriers, Banks

All

15 Licence/ certificate/ permit Apply licences/ permits/certificates, submitnotification, Preparedelivery, Arrange / executetransportation, Presentationto financial institutions


All

16 Notification Apply licences/ permits/certificates, submitnotification, Preparedelivery, Arrange / executetransportation, Presentationto financial institutions


All

17 Advance shipping notice Prepare delivery, Arrange /execute transportation

Sellers, Buyers,Forwarders, Carriers

All

18 Shipping instruction/ orderform

Arrange / executetransportation

Sellers, Forwarders,Carriers

Air

19 Confirmation of shippinginstruction/ order form



Air

20 Shipping order/ bookingrequest



Sea

Business Documents (3)Business Documents (3)# Documents Processes Parties Mode21 Booking confirmation

noticeArrange / executetransportation


Sea

22 Cargo receipt/ cargoreception slip


Sellers, Forwarders All

23 Empty container order/transport set


Sellers, Forwarders,Carriers, Terminals

All

24 Draft master bill of lading Arrange / executetransportation


All

25 Manifest Arrange / executetransportation

Carriers, Terminals All

26 Master air waybill Arrange / executetransportation, Presentationto financial institutions

Sellers, Buyers,Forwarders, Carriers,Banks

Air

27 House air waybill Arrange / executetransportation, Presentationto financial institutions

Sellers, Buyers,Forwarders, Banks

Air

28 Pre-alert package Arrange / executetransportation

Forwarders, Carriers All

29 Cargo arrival notice Arrange / executetransportation

Buyers, Forwarders All

30 Shipment arrival notice Arrange / executetransportation

Buyers, Forwarders All

Business Documents (4)Business Documents (4)# Documents Processes Parties Mode31 Container inventory

informationArrange / executetransportation

Carrier, Terminals Ocean,Road

32 Container maintenancestatus



33 Trucking companyinformation



34 Equipment interchangereceipt


Forwarders, Carriers,Terminals

Ocean

35 Export consignment detailsform


Forwarders, Terminals Air

36 Reception check list Arrange / executetransportation

Forwarders, Terminals Air

37 Bill of lading Arrange / executetransportation, Presentationto financial institutions


All

38 Sea waybill Arrange / executetransportation, Presentationto financial institutions


Sea

39 House bill of lading Arrange / executetransportation, Presentationto financial institutions


Sea

40 Surrender notice for telexrelease / telex release


Bank, related parties Sea

Business Documents (5)Business Documents (5)# Documents Processes Parties Mode41 Departure notice Arrange / execute

transportationSellers, Buyers,Forwarders, Carriers

All

42 Company guarantee Arrange / executetransportation, Presentationto financial institutions

Buyers, Forwarders,Carriers

All

43 Detention notice 1 Arrange / executetransportation

Forwarders, Carriers,Terminals, Government& Agencies

All

44 Detention notice 2 Arrange / executetransportation

Forwarders, Carriers,Terminals, Government& Agencies

All

45 Delivery order (D/O) Arrange / executetransportation

Buyers, Forwarders,Carriers, Terminals

All

46 Release order Arrange / executetransportation

Buyers, Forwarders,Carriers, Terminals

All

47 House D/O Arrange / executetransportation

Buyers, Forwarders,Terminals

All

48 Transhipment notification Arrange / executetransportation

Sellers, Forwarders,Carriers, Terminals,Government &Agencies

All

49 Bill of exchange Presentation to financialinstitutions

Banks, Buyers, Sellers All

50 L/C collection letter Presentation to financialinstitutions

Banks, Buyers, Sellers All

Business Documents (6)Business Documents (6)

# Documents Processes Parties Mode51 Document arrival notice Arrange / execute

transportationForwarders, Buyers All

52 Trade declaration Submit Trade Declaration Sellers, Buyers,Government &Agencies

All

53 Invoice from insurancecompany

Payment & ReceiptManagement

Sellers, Buyers,Insurance Institutions

All

54 Invoice from inspectionagency


Sellers, Buyers,Inspection Agencies

All

55 Invoice from freightforwarder


Sellers, Buyers,Forwarders

All

56 Invoice from carrier Payment & ReceiptManagement

Sellers, Buyers,Carriers

All

57 Invoice from trucker Payment & ReceiptManagement

Sellers, Buyers All

58 Invoice from terminal Payment & ReceiptManagement

Forwarders, Carriers,Terminals

All

59 Payment instruction Payment & ReceiptManagement

All All

60 Payment confirmation Payment & ReceiptManagement

All All

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DTTNCo’s Facilitation for Trade DTTNCo’s Facilitation for Trade or Application Service or Application Service

Providers Providers Trade Service Providers as Direct “Face” to customer

– Agreement between Service Provider and DTTN (authorization,

information access, interconnection, billing) Single Window and Single Sign-On to all Trade and

Transportation related Services & Service Providers via

DTTN (SAML) Seamless Integration with Web Services Integration

– Authorization checks

– Direct access to DTTNCo Information for seamless application

integration into logistics service providers services (SOAP) Core support for ebMS V2.0 and canonical XML formats to

facilitate cost effective, reliable. guaranteed document

exchange

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DTTN Interconnection DTTN Interconnection Example Example (Purchase to Delivery)(Purchase to Delivery)

Buyers(Overseas)

DTTN

1. PO (X 12)

Sellers(In China)

BuyingOffices

Forw arders

ApplicationService

Provider 1

ApplicationService

Provider 2

1. PO (W eb)

2. SO, CI,PL (W eb)

6. Shipment Status(W eb)

Physical Delivery

1. PO (XM L)

2. SO, CI, PL (XM L)

5. BL (EDIFACT)

2. SO, CI, PL (EDIFACT)

5. BL (XM L)

5. BL (W eb)

6. Shipment Status (EDIFACT)

4. Shipment Status(X 12)

SO - sh ipping orderCI - com m ercial invo icePL - packing listBL - b ill o f lading

ApplicationService

Provider 3

Carriers

4. M aster BL, Shipm ent Status(EDIFACT)

3. M aster SO (EDIFACT)

3. M aster SO4. M aster BL

Shipment Status

4. M aster BL,Shipment Status

(EDIFACT)

3. M aster SO(EDIFACT)

6. Shipment Status(W eb Services/XM L)

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DTTN Standards Group DTTN Standards Group 1. Define and recommend standards for

adoption by DTTN and where appropriate

their trading partner communities

1. Business related standards to facilitate

information and application integration

(i.e. document structure / format

standards)

2. Protocol specifications

2. Representative of HK’s trade and

transportation industry and their trading

partners

3. Links with standards related organizations

4. Pragmatic, open approach

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The Way Forward for HK’s The Way Forward for HK’s DTTNDTTN

1. Appoint non-exclusive DTTN service

provider

2. Define and endorse standards

3. Confirm interest of potential DTTN

participants to assist in defining specifics

of DTTN pilot services

4. Develop and implement the DTTN

5. Implement DTTN Interconnections by

Logistics Industry

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Spearheading Hong Kong's Development of

Electronic Commerce