Global e-Commerce Logistics - Massive Opportunity Ahead - PowerPoint Presentation

1.

2. Global e-Commerce Logistics - Massive Opportunity Ahead The Rise of Cross-Border e-Commerce, Collaborative Communities and Logistics Marketplaces

3. E-commerce Industry at a glance Retail e-commerce sales worldwideGlobally, e-commerce, market is worth around $22.1 trillionGlobal e-commerce Sales Will Double in Less Than 5 YearsGlobal internet connectivity, coupled with a growing shift toward the convenience of “e-tail,Major e-Commerce markets – China, USA, Japan, Germany

4. The evolution of retail logistics1970s Direct Store replenishment by suppliers or wholesalers1980s 'CENTRALIZATION' of deliveries through retailer distribution centers1990s The rise of global sourcing2000s E-commerce model involving parcel networkSuppliersShopsMainly domestic suppliersRetail distributions centersShopsOverseas supplierDomestic supplierRetail import centerRetail distribution centerShopsE-fulfillment centerParcel hubSortation centerParcel delivery centerLocal depot (urban logistics)ReturnsCustomer homeCollection pointDelivery Point* Based on non-food distribution in developed markets

5. Role of Logistics in e-commerceFirst and Last Mile Delivery ManagementReduce cost per delivery, maximize delivery personImprove Attempt to Delivery Ratio, reduce failed attemptsMarket Place and Drop ShipmentIntegrated logistics systems for inventory visibility Data Integration between varied systems of stakeholdersDirect shipment from vendor to customer Cash Management and Reverse LogisticsCash Collection and deposit as well repatriationManaging customer returns, warranty execution, Return to originVisibility across Order Life cycle Data Integration between varied systems of stake holders Visibility across supply chain from warehouse to door delivery

6. Logistics Value Chain: Complexity in operations

7. Air Cargo Cross Border e Commerce Supply ChainLSP (Cargo agent)– First MileAir Cargo AggregatorAirport HandlerBag AcceptanceAttach AWB Security ScanningManifestOn Ramp OperationLoadingAirport HandlerUnloadingOn Ramp OperationManifestBag level WarehousingBag Level DeliveryLSP (Cargo Agent) – Last MileOrigin CountryDestination CountryOrigin Customs1234Destination Customs567

8. Air Cargo Stakeholders - Interactions 48. Pouch 49. Air Waybill FWB 54. Customs Fees 55. Customs Release Imports 13. Air Waybill2. L/C ApplicationImporter’s Bank 3. L/C Application 4. L/C Notification 5. Invoice & Packing List 6. Invoice & Packing List 1. Purchase Order/Sales Contract43. Air Waybill FWB44. House Waybill FHL45. Flight Manifest FFMImporterTransporterInsuranceAirlineAirport AuthorityAirport AuthorityCustomsCustomsCB/FFCB/FFCTOCTO 14. Air Waybill 15. Credit Note 16. Debit Note 28. Receipt27. Transport Order 24. Invoice & Packing List 25. Air Waybill 26. Certificate of Insurance 10. Invoice & Packing List 11. Letter of Instruction 12. L/C Instruction 64. Handling Fees 19. Booking 20. Air Waybill FWB 21. House Waybill FHL 38. MRN 36. ACI 37. MRN 35. Flight Manifest 50. Invoice 51. Air Waybill 52. House waybill 53. Import Goods Declaration 56. Custom Release Import46. Freight Arrival Notice47. Handling Forwarder 60. Consignee Receipt 58. Receipt61. Air Waybill62. Customs Fees63. Handling Fees 59. Receipt 22. Air Waybill FWB 23. House Waybill FHL 30. Export Goods Declaration. 31. Customs Release Exports 29. Cargo Receipt FOH 32. Pouch 33. Customs Rel. Exp.Pouch Content:House Waybill(Paper)InvoicePacking ListCertificate of OriginRegulatory Documents 34. Cargo Acceptance 17. Invoice & Packing List 18. Debit Note 57. Transport Order 7. Certification Request 8. Invoice & Packing List9. Certificate of Conformity 39. Pouch 40. Air Waybill FWB 41.House Waybill FHL 42. Flight Manifest FFM ExporterTransporterExporter’s Bank

9. An example of the current documentation and information flow in Air Cargo Exports ERP SystemsManufacturer Freight Forwarder/3PL ProviderDocumentation SystemCustoms Airport Cargo HandlerAirline3rd Party DEOAirline SystemInvoicePacking ListSLISDDGMAWBHouse ManifestOther shipment docsMAWBHouse ManifestFlight ManifestEstimated 118 copies, 258 signatures, 22 hours of key-punching during exports clearance processSource: IATAPre-alerts for Overseas AgentsHouse Manifests, Invoice, Packing ListsCarting Order , Charges receipts, MAWB, Booking Lists, ManifestsDeclarations, ManifestCargo Arrival, Release OrderTerminal Receipt

10. Maritime Stakeholders - Interactions63 Payment Confirmation64. Gate OutShipping LineCustoms48. IGM48. IGM 16. HBL2. L/C ApplicationImporter’s BankExporter’s Bank 3. L/C Application 4. L/C Notification 5. Invoice & Packing List 6. Invoice & Packing List 1. Purchase Order/Sales Contract Exporter Importer 17. HBL 18. Credit Note 19. Debit NoteCB/FF 10. Invoice & Packing List 11. Letter of Instruction 12. L/C Instruction 20. Invoice & Packing List 21. Debit Note 7. Certification Request 8. Invoice & Packing List9. Certificate of ConformityShipping Line 13. Booking 14. SLI 15. MBLInsurance 22.Invoice & Packing List 23. MBL 26. Shipping Bill No. 24. Certificate of Insurance 25. Shipping BillCustoms28. Transport OrderTransporter29. Receipt30. Gate In31. Container Weighment32. De-stuffing + Carting Tally 27. Carting RequestICD/CFS 37. CLP 38. Movement Request 39. Forwarding Note40.Pre Load List41. WTR42. Train Summary 43. Payment Confirmation 44. Gate OutWarehouse33. Storage of Cargo34. Allocation of Empty Container Port46. Cargo Manifest47. CAN49. Via Rail49. Via Road-TJO-Train Summary -WTRICD/CFS53.Container Inspection54. Gate In55.Weighment56. Seal Cutting56.1 FCL56.2 LCLCB/FF45. Pre- Arrival Notice 50. Clearing Payment51.DOWarehouse58. Customs Examination-Stored in Bonded Area 59. Out of Charge57. De-stuffing62. Receipt65. ReceiptTransporter61. Transport Order52. BOE Port44.1 Port wise Document35. Stuffing 36. Inspection & LEO60. Loaded/Re-stuffing Delivery66. Consignee Receipt67. MBL68. Handling Fees

11. Collaborative Technology Platforms : Single Window and Cargo Community Systems

12. An end to end Digital Platform from Origin to Destination12

13. An end to end Digital Platform from Origin to Destination34

14. Collaborative Technology Platforms connecting the Logistics Value Chain

15. United Nation Recommendation no 33 for Single WindowLevel 1 : Paperless Customs + e-Payment for Customs Duty + e-Customs Duty + e-Container Loading List + and electronic risk-based inspectionLevel 2 : Connecting Other Government Back-end IT systems, and e-Permit Exchange with Paperless Customs SystemLevel 3 : e-Documents Exchange among Stakeholders within the (air, sea) port communityLevel 4 : An Integrated national logistics platform with also traders and logistics-service providers information exchangeLevel 5 : A regional information-exchange systemSWPaperless CustomsOther Regulatory Bodies for E-Permits/e-Certificates ExchangePort-Community Information ExchangeNational e-Logistics PlatformA regional information-exchange system or cross-border paperless tradeTradersBanks for various kinds of e-paymentInsurance CompaniesFreight Forwarders and Logistics Service ProvidersAirlinesDuty Free ZonesAir Port Authority Port Authority etc.Ship AgentsTerminal OperatorsInternetImporter/Exporter/Customs Broker/Representative/other StakeholdersNote that in many countries, Level 3 was being developed before Level 2.

16. Electronics goods Exports from China ( to India)Electronics Goods ExporterChina Company RegistrarBusiness RegistrationMinistry of Commerce China Foreign Trade RegistrationChina Electronic Standardization InstituteProduct CertificationChina Certification Center for Quality System of Electronic Industry (CCQE)Quality StandardizationChina chambers of commercreCertificates of Origin (COO)Freight Forwarder / Customs BrokerFile Customs declarationGet Published RatesMake bookingTransporterLast MileConsignment NoteCargo Terminal Carting OrderTerminal Charge CreationSecurity and AcceptanceCustoms FacilitationAirlineAccept BookingIssue AWBManifest filingBusiness ProcessTrade ProcessLogistics ProcessChina CustomsCategory allocation & Customs CertificateIdentify BuyerIdentify Logistics Service ProviderApprove declarationRelease OrderManifest acceptanceChina Customs3Marketplace1Regulatory Single Window2Cargo Community Platforms

17. Multimodal Trade Facilitation Platform- UPLIFTRailwaysCustoms BrokerShipper /ConsigneeForwarderTransporterLinerAirlinesCustodian/Ground HandlerBankCustoms BrokerTransporterForwarderWeb PortalCustoms Single WindowCustomsInternal SystemUPLIFT AdapterInternal SystemUPLIFT AdapterUPLIFT - A Multi-modal Trade Facilitation Platform

18. Components of Logistics Single Window - ACS & PCSInvoice Packing ListManufacturer Air Cargo Community SystemERP Systems Freight Forwarder/Broker3PL ProviderDocumentation SystemImports goods declaration, Terminal Storage Charges,CAN, DOCAN, DO, FFM, FSUAirline SystemMAWB/House Manifest FSUMAWB House ManifestFlight ManifestAirlineCUSTOMSCargo HandlerImports Cargo declaration, Import manifest, Customs Release OrderShipping Bills & other declaration doc Carrier booking Waybills,Status updatesExport Cargo declaration Exports manifest Cargo arrival Customs Release Order ACSGate PassTruck NumberCustoms DocumentBooking with Terminal Operator for space allotment Document Validation Allowed for ShipmentTime for ShipmentCFS CustomsTerminal GATEPort SecurityPort CustomsShipping BillPORT AuthorityTerminal Operator 1Terminal Operator 2EIR Carting Approval ManifestEIR ApprovalYard ManagementTransport MovementCustoms BrokerPhysical Flow of Cargo Digital Information Flow of Cargo PCSPort Community System

19. Connecting stakeholders at Mumbai Airport on a collaborative platform100+ Airlines 2000+ Agents 13 Statutory Bodies including Customs 500+ truckersExporterForwarderCHAMunicipal Corporation of Grater MumbaiChamber of CommerceCustoms and Allied regulatorsAirlineBanksBooking/Transport/TrackingDocumentation/ClearanceDuty PaymentsCertificatesOctroi docsJob infoPaymentsPaymentsBooking/Documentation/TrackingLoading instructions, ManifestLandside AreaAirside AreaUnregulated Cargo OperatorsCargo TerminalCargo Terminal Operator Processes:Receipt of Cargo, Weightment, Screening, Storage, Palletization, Customs Inspection, Airside movement, Aircraft LoadingRegulated Cargo ServicesGMAX: Empowering unregulated operators to transact digitally e-Booking, e-AWB, e-Customs, e-Chamber fo Commerce etc.ExporterMunicipal Corporation of Grater MumbaiChamber of CommerceCHAForwarderBanksAirlineUnregulated Cargo OperatorsLandside AreaAirside AreaCargo TerminalCargo Terminal Operator Processes:Receipt of Cargo, Weightment, Screening, Storage, Palletization, Customs Inspection, Airside movement, Aircraft LoadingRegulated Cargo ServicesDocument handled ( including copies)Avg Queue Time for document/paymentsAirport CountersAverage time per export doc handlingAverage time per import doc handlingAccuracy of dataWaiting time for Export TrucksAvailability of data to stake holdersParameter1281 hr 20 minutes928 minutes22 minutes85%2 hours+Through Mail, calls and in personPre GMAX24Nil16 minutes8 minutes94% +30 minutesPortal, EDI, App, On DemandPost GMAXCustoms and Allied regulators

20. Accelerating container movement a Container Digital ExchangeGate PassTruck NumberCustoms DocumentBooking with Terminal Operator for space allotment Document Validation Allowed for ShipmentTime for ShipmentCFS CustomsTerminal GATEPort SecurityPort CustomsShipping BillPORT AuthorityTerminal Operator 1Terminal Operator 2EIR Carting Approval ManifestEIR ApprovalYard ManagementTransport MovementCustoms BrokerPhysical Flow of Cargo Digital Information Flow of Cargo ForwarderShipping LinePort Terminal OperatorPort OperatorPort SecurityContainer Depot(CFS/ICD)CustomsCustoms BrokerShipper / ConsigneeInvoice & Packing ListDO & MBLEIR & Terminal FeeEIR & Port FeeEIR & MBLInvoice & Packing ListInvoice & Packing ListCertificate of OriginInvoice & Packing ListCustoms Declaration Files (SB)Invoice & Packing ListInvoice & Packing ListScenario without CODEXScenario with CODEX15 CFS/ICD1Mn TEU/annum12 Vessel Operators400 Agents500+ Exporter/Importers300TransportersContainer dwell time from 2.5 hours to 25 minutes Document copies for port entry reduced from 15+ to 2One common information highway connecting allShipment visibility based on rightsShipment related documents made available for approvals & processing Improved capacity planning at terminalNo separate application required by Shipper, CFS/ ICD for operationsMobile App enabled on- the-go trackingEliminated possibility of un-cleared shipment Business Benefits

21. Digital Corridor- Powering Regional Single Windows

22. Trade Facilitation Platforms: Full Services Play Exporter/ShipperForwarderCustoms BrokerTransporterRailwaysContainer DepotWarehouseExport CustomsExport Port/AirportCarrierImport CustomsContainer DepotWarehouseForwarderCustoms BrokerTransporterRailwaysImporter/ConsigneeAir OceanImport Port/Airport National Single WindowCustomsAir Cargo Community(ACS)Airport Community Systeme-Manifest | e-DOContainer Digital Exchange (PCS)e-Manifest | e-DO | e-VGM | UCCHome CountryDestination CountryDigital CorridorCustoms Single WindowAir Cargo CommunityPort CommunityLogistics Single WindowRegulatory Single WindowRail/Road Community Platform

23. Digital Air Corridor between India & Netherland 321A Digital Air Corridor is being established between Mumbai and SchipholUses Blockchain.Connects exporters, importers, agents, ground handlers, Airlines from both stations to have real time visibility of the shipment

24. Digital corridor- India -NetherlandIndia- Kale’s GMAXExport/ImportCustoms :Customs clearance, COO, ManifestParticipative Government Agency- License and PermitsSecurity Certification AgenciesCustoms InformationImport/ExportCustoms : Customs clearance, COO, ManifestParticipative Government AgencySecurity Certification Agencies Shipment DocumentsStatus of cargo at airportDigital Corridor enabled by BlockchainNetherland- CargonautShipment DocumentsStatus of cargo at airport

25. Digital Air Corridor - Exports Information FlowOrigin HandlerCarrierExport CustomsFOH – Freight On HandRCS – Receive from Shipper4. MAN – Shipment Manifestation5. DEP – Shipment Depart3. Customs ReleaseViewAir Cargo Community SystemFreight ForwarderShipperAir Cargo Community SystemFreight ForwarderConsigneeViewInformation Exchange Flow- ExportsDestinationOrigin

26. Digital Air Corridor - Import Information FlowDestination HandlerCarrierImport CustomsARR – Flight ArrivedRCF – Receive from Flight3. NFD – Notification for DeliveryDEP – Shipment Depart6. DLV – Shipment Delivered5. CCD – Shipment Custom ClearedViewAir Cargo Community SystemFreight ForwarderShipperAir Cargo Community SystemFreight ForwarderConsigneeViewInformation Exchange Flow- ImportsDestinationOrigin

27. Marketplace Model for Multi Modal Logistics

28. Trade Facilitation Platforms: Full Services Play Exporter/ShipperForwarderCustoms BrokerTransporterRailwaysContainer DepotWarehouseExport CustomsExport Port/AirportCarrierImport CustomsContainer DepotWarehouseForwarderCustoms BrokerTransporterRailwaysImporter/ConsigneeAir OceanImport Port/Airport National Trade PlatformAir Cargo Community(ACS)Airport Community Systeme-Manifest | e-DOContainer Digital Exchange (PCS)e-Manifest | e-DO | e-VGM | UCCLogistics Single WindowLogistics MarketplaceRail/Road Community PlatformLogistics Services repositoryDemand Supply matchPrice Discovery

29. COMPLEX TRADE LOGISTICS SECTORCOMPLEX TRADE RULESEXPORT PROMOTION BOARD /CHAMBER OF COMMERCEMULTIPLE PERMITS &CERTIFICATIONSMULTIPLE GOVERNMENT AGENCIESSEVERAL COMMODITIESBILLION $MARKET SIZELARGEEMPLOYMENT BASEMULTIPLE LOGISTICS AGENCIESDISCONNECTED IT PLATFORMSBANKS & INSURANCE AGENCIES 36 LOGISTIC SERVICES MANY WAREHOUSES/DEPOTS

30. LOGISTICS e MARKETPLACE- CONNECTING THE FRATERNITYPlan end to end shipment route1Select Freight Forwarder/Broker4aExchangeeContract4eInvoice Generation4bMonitor Physical Flow of Goods4cBook ocean freight4dPay electronically4fBook air freight4gBook truck/Rail2Book warehouse3Check availability5Rate enquiry6Book Other Logistics services7Book Packaging Services8Online Grievance Redressal9View trade analytics10Service Provider RatingAvailabilityPrice DiscoveryTrack & Trace ShipmentDigilocker ePaymentFEATURESSTART

31. Logistics MarketplaceDashboardExporter/Importer listGlobal TendersGlobal Trade NewsPromotionsExport/Importer GuidelinesExporter/ImporterInvoicePacking ListFreight ForwarderRFQAgent Rating on SLABooking sentRates Scheduling Booking ConfirmationCarrierCustoms BrokerTransporterList of CBsList of TransportersTransit InsuranceCargo Community SystemsBooking sent & confirmRegulatory Single WindowFind AgenteTrade PortalRates Scheduling Booking ConfirmationRFQBookingBooking sentRFQeMarket Place for Exports/Imports

32. Logistics Community Technology Framework ModelCustoms AuthorityMinistry of Trade and CommerceOther Participating Government AgenciesRegulatory Single WindowNational Trade Logistics PlatformLogistics Single WindowPartner CountriesCustoms, Ports and AirportsFreight ForwarderCustoms BrokerContainer DepotWarehouseTruckerPortAirportsShipping LineDigital CorridorExchange Cargo StatusExchange DocumentsExchange Customs Information12Trade Market PlaceExporters/Importer MarketplaceLogistics Service Provider DatabaseServices offeredRates and schedulesOptimized transportation plansBookings on CarriersService Provider Work ratingsTrade AnalyticsbExisting Trade Facilitation Infrastructurea

33. Blockchain : Powering Digital Logistics Trade Platforms

34. E-Certificate of Origin- Moving towards BlockchainFreightForwarder / Customs AgentManual in person CoO approval at ChambersPrints & Submits & carries in personExporterCoO + invoice + packing list is applicableVerify/Approve/ Reject Invoice & Packing List Rejected documents sent back to ExporterApproved documents stamped and handed over to FF/Custom AgentRejected Invoice & Packing List sent back tInvoice/ Packing ListOriginating CountryDestination CountryCustomsDocument submitted on Blockchain networkVerification, authentication and issuance on Blockchain networkTransmission on Blockchain network with digital signature

35. Terminal OperatorShipping LineShipper/ BrokerCargoWeighment at Container Depot/ weighbridgeContainer DepotWeighment at Shipper premises/Registered weighbridgeFactory Stuffed ContainerVGM information of the containers that shippers providedVGM information when a terminal operator weighs a packed container on behalf of the shipperVGM information of the containers that shippers providedProvide VGM information of the container to be loaded to carrier or terminal operatorLower risk of data loss/damageIncreased SecurityInformation in advance Loaded container is weighed to gain VGM. Information is electronically sent to Shipping Lines and Terminal OperatorsFaster & Simpler workflow eVGM-Process FlowVessel operatorShipper

36. ePhyto is short for “electronic phytosanitary certificate”. ePhyto is the electronic equivalent of a paper phytosanitary certificate. The National Plat Protection Organisation(NPPO) of exporting countries issue phytosanitary certificates which need to be directly made available for the NPPO of the importing country. ePhyto is produced, transmitted and received in XML.Faster & Simpler workflow Lower risk of data loss/damageTime & cost savingIncreased SecurityInformation in advanceE-Phyto flowchartXML data transmittingFeedback if anyNPPO of exporting countryNPPO of importing countryProviding dataFeedback if anyImport processFeedback if anyImportersExportersBlockchain in E-Phyto certificate

37. Thank You