2005/SOM1/ECSG/PPP/005
e-Logistics In APEC
Purpose: Information
Submitted by: Korea
First Public-Private Partnership Dialogue on
Paperless Trading
Seoul, Korea
22 February 2005
e-Logistics in APEC
I am very happy to present the e-Logistics issue here again after Santiago Chile. I hope that
this will lead to an opportunity for applying it to the e-commerce including trade and logistics in APEC.
Lately there have been substantial discussion and tangible outcome regarding e-Trade
around the international communities like APEC and ASEM. Furthermore, real trade messages are
being exchanged between trading partners in the international businesses though in its very initial
stage. As the possibility of realizing e-Trade is looming ahead, it has been raised that it will be more
helpful to talk about e-Logistics with e-Trade and implement them at the same time.
It is very clear that the basic objective of e-Logistics is to convert the existing paper-based
business processes into being electronic ones just as e-Trade has been trying to improve the manual
and duplicate jobs into system driven automated process. In e-Trade, trade relevant paper documents
such as invoice, packing list and purchasing order are being gradually exchanged with trading
partners by EDI messages and other data format.
For import & export or international commerce across to border to be completed in time or on
time, it is needless to say that trade should be interconnected with logistics in terms of business
processes and data.
It is generally said that there are four conditions for e-Logistics to be realized and applied in the
working fields.
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To enhance the overall level of the in-house information system along with upgrading it,
including ERP in logistics industry’s players consisting of freight forwarder, shipping line,
warehouse, trucking company, distribution center and terminal
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To activate the information channel for the logistics service providers to communicate with
their counterparts and customers domestic and abroad not using phone or e-mail but
system based data
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To connect trade and logistics processes with data to realize the seamless integration,
eliminating dual paper jobs and satisfying customers’ needs
With such conditions satisfied, it is time to advance one step further to apply e-Logistics in the
industry. With regard to this, three tasks await to be dealt with.
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on line booking process
Booking is regarded as a border line dividing trade and logistics, which reflects the
significance and role of booking. Ironically until now, booking has been done manually
with fax, phone and e-mail causing its data re-input in the system and blocking the re-use
of the data. It is called a pain point that needs to be addressed for reforming and
improving the trade and logistics services.
The fulfillment of the above mentioned conditions will surely lead to the on line booking
from manufacturing companies to carriers. It is usually between exporter/importer and
freight forwarder or shipping lines and between freight forwarder and shipping lines or air
lines.
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global visibility platform
On line booking no doubt facilitates the business process for logistics service providers to
execute delivering cargo across the border in time or on time. Just as freight forwarders
and carriers require the booking process by data, exporter and importer desperately need
the cargo status information on whether their cargo are moving as planned or delayed or
arriving on time. The cargo tracking and tracing data, referred to as visibility in e-Logistics,
are generally inputted into the legacy system or ERP and utilized to monitor and manage
their cargo. In return for on line booking by data, logistics service providers are willing to
collect the cargo status data from end to end process and send them to their customers,
which makes it unnecessary for customers to call and access many logistics sites.
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e-Logistics three-tiered service functionalities
With on line booking and global visibility into operation, it’s getting easier to think about
the three-tiered e-Logistics service suites. They are planning, execution and evaluation
functions. Planning overlooked and neglected relatively until lately is expected to
contribute to streamlining and rationalizing the profit leaking business processes.
Generally speaking, planning has on line contract, forecasting, allocation, rating, routing
and compliance. Execution, which deals with moving cargo based upon the planning,
contains schedule, booking and visibility. And finally evaluation is a feedback process with
the planning and execution for optimizing the whole logistics processes.
e-Logistics is a relatively new concept in global markets, gaining weight in the global eMarketplaces such as GTNexus, INTTRA, CargoSmart and so on. Accordingly its service model has
yet to be standardized to satisfy the ever-growing demand and to catch up with paradigm.
As of now, the standard characteristics and identity regarding e-Logistics are not established
enough for logistics industry to understand and prepare themselves for applying it to their businesses.
Meanwhile e-Logistics has been presented officially to the international conferences such as ASEM in
Korea, APEC e-commerce alliance in Yantai and also APEC Paperless trade subgroup in Chile,
paving the way for discussing and reaching some agreement with members.
In this context, Korea hopes to lead the e-Logistics to an industry standard and expand it to
more substantiated working business model for promoting and facilitating commerce among APEC
economies.
With this opportunity, I’d like to suggest the following three issues for us to proceed.
 To exchange various views and opinions regarding the above mentioned e-Logistics definition and
also raise something new or additional point of view.
 To understand what e-Logistics is all about and to extract the common standard model and identity
mutually agreed in ASEM community
 To find out the way e-Trade and e-Logistics in APEC can be pushed for being integrated service
model for increasing trading volume and also ensuring its transparency in APEC members
It is no wonder that there is a wide difference in understanding e-Logistics among APEC members
under the circumstances that APEC economies have not yet reached a full common understanding
and agreement about e-Trade. It will helpful that member volunteers start to talk about the one cyclical
circulation of import and export embracing trade and logistics simultaneously. It will be made clear to
formulate the entire process of international trade business.
With this background, it is recommended that global visibility be built up among volunteers
after consulting with each other to begin with. Trading partners will be able to enjoy the information
aggregately collected and shared through a single window concept with convenience and efficiency.
Korea has been developing KTNET e-Logistics Platform and operating global visibility in the
real transactions during the past three years. Korea is willing to share the visibility products with our
members in terms of technology and business experience for further and easy expansion.
The ultimate objective of e-Logistics in APEC is to unite the APEC economies electronically
for making the international trading faster, easier and securer. It will be able to meet the multiple
purposes pursued by APEC ranging from promoting e-Trade, facilitating inter-APEC trading volume to
achieving security issues.
As far as I understand, Taiwan has already developed its own visibility platform and tried to
connect with KTNET for cargo status data. In this regard, I suggest that Korea and Taiwan set up a
virtual task force team and draw a visibility model for the demonstration and operation. This may be
one of the ways to make e-Logistics and visibility platform more visible in APEC members.
Along with this practical activity, Korea has a plan to study the present condition of some
potential members willing to take steps with us for e-Logistics, and present the short, mid and longterm milestones to proceed together in APEC.
Thank you for listening and looking forward to discussing the issue while you are here in
Korea for reaching consensus to some extent.