Driving Cost

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Driving Cost Efficiencywith the

• Digital Trade Transportation Network (DTTN)

Terry Chow / Manager, Strategic Account
Sales Digital Trade and Transportation Network
Limited
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Agenda

• Why e-Logistics still not a norm?
• What can DTTN do?
• Who is DTTN?
• How does DTTN work?
• Where can use DTTN?
• Questions Discussion

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Agenda

• Why e-Logistics still not a norm?
• What can DTTN do?
• Who is DTTN?
• How does DTTN work?
• Where can use DTTN?
• Questions Discussion

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There are lot of processes different parties
communities involved in the Supply Chain
Chamber of Commerce
Outbound Logistic
Freight Forwarder
Receive PO
Production
Inspection
Insurance
Customs
Terminal
Payment
Tax Authority
Banks
Sellers
Insurance Institutions
Carriers
Truckers
Trade Associations
Forwarders
Manufacturers
Terminal
Customs
Warehouses
Inspection Agencies
Suppliers
Buyers
Airlines
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There are a lot of different documents
Purchase Process
Purchase / Sales Order, Order Confirmation, etc.
Delivery
Packing List / ASN, Commercial Invoice, Inspection
Certificate, Insurance, etc.
Local OverseasTransportation
Booking, Shipping Order, Arrival Notices,
Transport Documents - Master / House Waybill -
Sea / Air, Cargo Receipt, Transport Set, EIR,
Delivery / Release Order, etc.
Government Trade Documents
Export / Import License, Customs
Clearance, Certification of Origin, etc.
Financial Settlement
Letter of Credit, Company Guarantee, Bill of
Exchange, L/C collection Letter, Document Arrival
Notice, etc.
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Estimated Documents Volume
Based on Accentures estimation in the DTTN
Report published in November 2002.
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There are differentmessage formats and protocols
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Not everyone is using one single standard
Terminals
Carriers
Airlines
Warehouses
Truckers
Trade Associations
Sellers
Inspection Agencies
Insurance Institutions
Forwarders
Manufacturers
Buyers
Banks
Tax Authority
Customs
Suppliers
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Agenda

• Why e-Logistics still not a norm?
• What can DTTN do?
• Who is DTTN?
• How does DTTN work?
• Where can use DTTN?
• Questions Discussion

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The DTTN ConceptA common digital platform to
facilitate document exchange
Tax Authority
Truckers
Carriers
Terminals
Forwarders
Buyers
Suppliers
Sellers
Airlines
Insurance Institutions
Warehouses
Trade Associations
Manufacturers
Inspection Agencies
Banks
Banks
Customs
Carriers
Insurance Institutions
Buyers
Forwarders
Trade Associations
Manufacturers
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DTTN Interconnection Example(Purchase to
Delivery)
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Value Proposition -The Trade and Logistics
Community

• To bridge the Digital Gap, which in return will
  facilitate the e-business adoption, especially
  amongst the SMEs.
• Reduce IT cost by maintaining a single digital
  link to a common platform that provides
  interconnection with many trading partners
• No need to change the existing system to cater
  for requirements of different trading partners
  for electronic documents exchanges
• Minimal financial resource investments for SMEs
  to participate in e-business digital supply
  chains

DTTN can help YOU to maximize the benefits of
e-logistics by utilizing a common, cost
effective infrastructure
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Estimated Workload Saving for theAir Export
Shipment Process
Saving on work load only. Extra cost and saving
incurred due to typing error not quantified.
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Estimated Workload Saving for theAir Export
Shipment Process (contd)

• Assumed take up rate 35
• Apply monthly plan discount and based on volume
  to select least cost monthly plan

Net Saving Cost Saved - DTTN monthly payment
Monthly Saving
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Agenda

• Why e-Logistics still not a norm?
• What can DTTN do?
• Who is DTTN?
• How does DTTN work?
• Where can use DTTN?
• Questions Discussion

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Development Roadmap of DTTN

• Government becomes directshareholder of DTTN
  Limited
• 51 by Tradelink
• 21 by Government
• 28 by industry associations
• 15-year operating agreement signed

Full commercialization
2006
Future Becomes major e-platform for trade
and logistics community in the region
Aug 2005
by end of 2005
Pilot run
2003
Tradelink selected by the Governmentas developer
and operator of DTTN
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What are we aiming for?

• Vision
• To offer an open, neutral, secure and reliable
  community e-platform to facilitate information
  flow and service integration to link Hong Kong
  with the Mainland, and the world.
• To be a catalyst to promote electronic business
  adoption, especially by SMEs.
• To help improve the overall competitiveness of
  Hong Kong
• Objectives
• e-platform for trade and logistics communities in
  Hong Kong and beyond
• single window for practitioners to enhance
  supply-chain efficiency

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DTTN Governance Framework

• Operating Agreement between Government DTTN Ltd
  signed August 31, 2005 that assures the DTTN will
  be operated in the interest of the community and
  in accordance with the seven Guiding Principles.
• Neutrality
• Non-exclusivity
• Transparent, accountable, responsible operations
• Minimum Intervention in internal operations
• Facilitate and respect market force
• Easy to access and use
• Improve overall competitiveness of Hong Kong

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Community Role of the DTTN
Sellers
InspectionAgencies
Banks FinancialInstitutions
Buyers
Freight Forwarders
Government Agencies
Carriers
InsuranceInstitutions
Terminals
DTTN Key Services Offering
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Agenda

• Why e-Logistics still not a norm?
• What can DTTN do?
• Who is DTTN?
• How does DTTN work?
• Where can use DTTN?
• Questions Discussion

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What DTTN Does?

• An e-Business CONNECTOR for the Entire Supply
  Chain
• connects all parties along the supply chain from
  buyer all the way through to forwarders, banks
  and government.
• A Super Electronic Document CONVERSION ENGINE
• supports any-to-any transformation of data
  format and communication protocols
• A Mega Electronic DATA STORE
• stores data online for 2 years and offline for 7
  years

E-Document Audit Trails
DTTN Database
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DTTN to Support the Whole Supply-Chain
Support over 80 major documents related to trade,
logistics and finance for both import and export
business processes
Purchase / Sales Order, Order Confirmation
Packing List / ASN, Commercial Invoice,Inspection
Certificate, Insurance
Booking, Shipping Order, Arrival
Notices,Transport Documents - Master /
HouseWaybill - Sea / Air, Cargo
Receipt,Transport Set, EIR, Delivery / Release
Order
Export / Import License,Customs
Clearance,Certification of Origin etc.
Letter of Credit, Company Guarantee, Bill of
Exchange,L/C collection Letter Document Arrival
Notice
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DTTN Connection Options

• Direct Connection A simple direct connection
  with internal application systems (e.g.
  FMS/ERP/SCM etc.) using the existing interfaces
  with no or minimal system changes
• Via Application Service Provider
• Standard Excel Spreadsheets easily customizable
  according to your needs

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Case SharingDocuments Flow in a Procurement
Process
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Case SharingDocuments Flow in a Shipment Process
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Case SharingDocuments Flow in a E-Payment Process
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Agenda

• Why e-Logistics still not a norm?
• What can DTTN do?
• Who is DTTN?
• How does DTTN work?
• Where can use DTTN?
• Questions Discussion

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Excerpt of DTTN Participants
Viking Transportation
Lun Kee
In-Services Asia
Bull Transportation
Carrier Others
Apparel Group
Shipper
Sunflower
Fang Brothers
Stallion Freight
LSP
LSP
Hanshin Freight
Eagle Global Logistics
Worldwide Logistics
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GTNexus INTTRA Connected Carriers
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TRAXON Connected Airlines
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As an international logistics hub at the
doorstep of Southern China, Hong Kong is uniquely
positioned to develop an e-infrastructure which
facilitates information flow of the supply chain
and promotes regional integration. The DTTN is
our response to this opportunity, and will enable
Hong Kong to climb further up the value chain.
All participants in this common platform,
particularly logistics SMEs, will benefit.Ip
Shu Kwan, G.B.S. JP, Secretary for Economic
Development and Labour,The Government of the
Hong Kong Special Administrative Region
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DTTN Connecting Hong Kong to the World

• DTTN is extending our reach with partners around
  the world to establish a Mega Network
• Pan Asian E-Commerce Alliance
• Singapore, PRC, Thailand, Korea, Japan, Macau,
  Malaysia, Chinese Taipei
• Other Regions
• Australia, France, Spain, Mexico, United States,
  The Netherlands, etc.

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ACT NOWto benefit from being an early mover on
this state-of-the-art platform!

• For more information
• Tel/Fax [phone]
• Email info_at_hk-dttn.com
• www.hk-dttn.com