Introduction to Singapore s Trade and Logistics Information Systems

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1 Introduction to Singapore s Trade and Logistics Information Systems UNESCAP Expert Group Meeting on Logistics Information Service Systems Desmond Tay 10 December vcargo Cloud Pte Ltd All rights reserved. All information contained in this presentation is disclosed to you on the basis of a prospective relationship and is proprietary to vcargo Cloud and may not be used, disclosed or reproduced without the prior written consent of vcargo Cloud. 1

2 Agenda Landscape of Trade and Logistics Information Systems in Singapore TradeXchange Initiative Q&A

3 Landscape of Trade and Logistics Systems in Singapore TradeXchange Cargo Community Network TradeNet PORTNET

4 Landscape of Trade and Logistics Systems in Singapore Cargo Insurance TradeXchange Cargo Community Network Ground Handlers Airlines Importers Exporters Freight Forwarders 3PLs Trade Finance TradeNet Shipping Lines Port Operators OGAs Customs Hauliers PORTNET

5 Landscape of Trade and Logistics Systems in Singapore Cargo Insurance TradeXchange Cargo Community Network Ground Handlers Airlines Importers Exporters Freight Forwarders 3PLs Trade Finance TradeNet Shipping Lines Port Operators OGAs Customs Hauliers PORTNET

6 Beginnings with Singapore TradeNet Launched in 1989 Today handles > 9 million permits (100% declarations) Reduces approval time from 2 days to 10 minutes Reduces number of documents from 35 to 1 Cost only S$2.88 per transaction

7 Beginnings with Singapore TradeNet The objective is to enable government agencies to receive trade and Customs documentation electronically for processing and approval.

8 Enhancements of Singapore TradeNet 1990 Electronic CO 2003 Web base electronic CO (Nonpreferential CO with various chambers) Advance Clearance for Courier and Express Shipment System (ACCESS) was developed 2007 Launch of TradeXchange 2015 Tender for new TradeNet, TradeXchange and Customs solution 2012 Launch of e-

9 About TradeXchange Owned by Singapore Customs Economic Development Board of Singapore Infocomm Development Authority of Singapore Launched in 2007 Public Private Partnership

10 TradeXchange Schematic Overseas Links CCN & PORTNET Singapore Customs TradeXchange Trading Community VAS End User Systems TradeNet 35 CAs

11 TradeXchange Connectivity Other Networks Regulatory Systems in Other Countries Overseas Links CCN & PORTNET Commercial Systems Singapore Customs TradeXchange Trading Community VAS End User Systems TradeNet 35 CAs Government

12 TradeXchange Business Model Overseas Links CCN & PORTNET Singapore Customs TradeXchange Trading Community VAS End User Systems TradeNet 35 CAs Value Added Services Provider Neutral Platform

13 TradeXchange Value Added Services 1 Trade Permit Preparation Service 2 Permit Return Service 3 Integrated Multimodal Solution 4 Title Registry 5 Others

14 Trade Permit Preparation without TradeXchange SHIPPERS 1. ERP 2. Manual (MS Office) FREIGHT FORWARDERS 1. Commercial Invoice 2. Packing List 1 Manual Entry 2 Fax Hard Copy TRADENET FRONT END 3 CUSTOMS EXPORT 1. Export Goods Declaration 2. Customs Release

15 Trade Permit Preparation with TradeXchange SHIPPERS 1. ERP 2. Manual (MS Office) FREIGHT FORWARDERS 1. Commercial Invoice 2. Packing List 2 Verify and Submit 1 TRADENET FRONT END 3 CUSTOMS EXPORT 1. Export Goods Declaration 2. Customs Release

16 Problems in Air Cargo Industry Average air shipment generates more than 30 documents, handled by various stakeholders in the supply chain. Inefficient use of time to re-enter data during information transfer Errors during data translation from one document to another Lack of ability to track and trace data flow in real-time Lack of ability to trace data source for verification

17 IATA e-freight e-freight aims to take the paper out of air cargo and to replace it with the exchange of electronic data and messages.

18 IATA e-freight e-freight aims to take the paper out of air cargo and to replace it with the exchange of electronic data and messages. Launched in 2006 FEB 2015 Penetration rate of 26.9% globally for e-awb

19 initiative from MOU signed 2010 supported by Infocomm Development Authority of Singapore (ida) International Air Transport Association (IATA) Singapore Aircargo Agents Association (SAAA) Singapore Logistics Association (SLA) Singapore National Shipper s Council (SNSC)

20 The Logistics Institute Asia Pacific JUL 2010 Air Freight Process Productivity Study (AFPPS) to examine the potential costs and benefits gained from adopting e-freight. JUL 2011

21 The Logistics Institute Asia Pacific JUL 2010 Air Freight Process Productivity Study (AFPPS) to examine the potential costs and benefits gained from adopting e-freight. JUL 2011 ANNUAL SAVINGS BY FREIGHT FORWARDERS AND SHIPPERS S$18.4 million 1.7 million man-hours

22 CAAS and IDA issued a Call-for-Collaboration to invite companies to develop solutions to integrate key ICT systems, business processes and data for Awarded to 3 service providers vcargo Cloud Innosys Kewill Subsequently a fourth provider, CCN

23 Technical Committee chair Technical Committee was established to develop a common set of data standards over a few months secretariat committee members

24 Technical Committee Commercial Invoice Packing List Shipping Instruction Standards developed by the Committee leveraged IATA s Cargo-XML standards Certificate of Origin Master Waybill 10 documents defined by committee House Waybill House Manifest Customs Declarations Customs Release Dangerous Goods Declaration

25 Interoperability Standards

26 Interoperability Standards

27 Interoperability Standards Commercial Agreement cross platform charges business models Technical Agreement message specifications communication protocol Service Level Agreement processing time and bandwidth data ownership and privacy

28 Launch launch by Minister of State for Ministry of Transport and Ministry of Finance JUN early adopters at the point of launch with a total of 37 companies signed up

29 Air Cargo Export Process Before SHIPPERS FMS FREIGHT FORWARDERS 4 Manual Entry 1 1. Commercial Invoice 2. Packing List 3. DG Declaration 4. Shipping Instructions 5. Certificate of Origin Manual Entry 2 Manual Entry 3 CARGO COMMUNITY SYSTEM Fax Hard Copy Proprietary point-topoint EDI integration TRADENET FRONT END CUSTOMS EXPORT AIRLINES & GROUND HANDLERS 1. Master Air Waybill 2. House Manifest 3. DG Declaration Physical Cargo Flow Document Flow 1. Export Goods Declaration 2. Customs Release

30 Air Cargo Export Process With ERP SHIPPERS FREIGHT FORWARDERS 1 1. Commercial Invoice 2. Packing List 3. DG Declaration 4. Shipping Instructions 5. Certificate of Origin 2 FMS TRADENET FRONT END 3 CARGO COMMUNITY SYSTEM 4 CUSTOMS EXPORT AIRLINES & GROUND HANDLERS 1. Export Goods Declaration 2. Customs Release 1. Master Air Waybill 2. House Manifest 3. DG Declaration Physical Cargo Flow Electronic Document Flow

31 Platform

32 A Typical Case Study SHIPPER FORWARDER Shipper ERP ASN / Commercial Invoice Shipment Detail 3PL Shipper Permit Details E-freight Platform Flight / Shipping Details Freight Mgt System Declaration Manifest / Packing List Airlines / GHA vdeclarant Portal Freight Forwarder WMS MAWB / HAWB CCP CUSDEC (EXP) Airline 3PL Singapore TradeNet

33 Success Story: DGF-Avago Integration Published in the Case Study Report by CAAS

34 Success Story: DGF-Avago Integration

35 Success Story: DGF-Avago Integration used to require 1 hour to complete a declaration for Avago. now takes just a few minutes as 95% of the data is already populated when received. As a result, shipments are processed faster and compliance with AED is more assured.

36 THANK YOU Any Questions? For more information, please contact: Desmond Tay Managing Director 2013 vcargo Cloud Pte Ltd All rights reserved. All information contained in this presentation is disclosed to you on the basis of a prospective relationship and is proprietary to vcargo Cloud and may not be used, disclosed or reproduced without the prior written consent of vcargo Cloud. 36

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