Singapore TradeNet : A Tale Of One CityGroup 14

Singapore- Location

Singapore: Trade Documentation

Facts

Cargoes being shipped

Valuation

Dates

Location

TDB’s Problem

• Handle 10000 declarations everyday• Synchronize with other agencies having own

rules and procedures• At least 4 to 20 forms required for each shipment• Physically submit the forms • 2 day tunaround period• Errors in documents• Cost 4 to 7% of value of goods• Inability to bring new labour

Solution – TradeNet System Structure

TradeNet SNS

Local Host Computer

TDB

Customers

Port Authorities

InternationalBanks and Insurance

Traders

TradeNet SchematicApplication toInterface

Translator to EDIFACT

Communications IBM PC-IE

Information Exchange Interface

Information Exchange Engine

Application Host

Session Manager

UserAnd

SystemMonitor

Msg. BD Help DB XactionsDB

Billing DB

Initiation: the necessary trigger

• Discovery of use of IT found as solution

• Education • Creation of NCB• Creation of GCP• Allignment of goal : External Trade as

major goal– Trade streamlining• Tradenet Steering Committee

This led to..

• Redution in number of forms• Proposal of tradenet • Development of prototype

Building tradenet

• RFI from vendors• Pricewaterhouse study of market• Pricewaterhouse study of potential

applications• Request for proposal• Visit of existing EDI insatllations in US,

Europe• Creation of SNS• IBM Review• Contract between SNS and IBM

Execution

• IBM execution–TAMPA Engine–CSA- information exchange –Two procedural steps• Creation of ECP• Inclusion of SNS professionals in early

phase of development

Reasons for successful implementation

– IBM advantage• Management commitment- fast decision

making• Clear agreement • Expertise and team work

– Necessary background systems already in place

–Modularity in system design

Additional initiatives

• Low tax rate for computer hardware

• Facilities of service centres

Cost to company

• Direct costs– One time connect charges: $375–Monthly cost :$15– Net Usage: $ 0.25/ Kb– Computer hardware: $ 2000– Software cost: $2000

• Indirect costs– Changes in procedures and protocols– New way of doing business for small firms

Huge Success

• High subscription• Freight forwarder’s perspective– Speedy transactions– Efficient truck utilization– Automatic transfer of information– Improved service

Huge Success

• Custom and Excise perspective– Preapproval helped in companies

responsibility– Faster payments

• TDP’D perspective– Foreign investment to economy

• Business perspective– Faster transactions– Consolidated shipments– Basic info already present on own

systems– Banking and insurance ease

Future

• Extend EDI to every sector• Medinet • International trade facilitation

Thanks

• M Sadique Quraishi B09091• Balachandran B09076• Gaurav Sharma B09080