e-global Logistics Harald Lundestad February 14, 2001

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1 e-global Logistics Harald Lundestad February 14, 2001

2 Learning objectives Definition of e-global Logistics Types of e-global Logistics Software Trends in e-global Logistics Software Software Vendors Application Deployment Strategies

3 Definition: e-global Logistics e-global Logistics refer to the Internet technologies that streamline the process of moving goods and funds across borders

4 e-global Logistics Solutions

5 Three Sub-Sectors in e-global Logistics Global trade compliance and landed cost solutions as related to the process of clearing customs Global transportation management solutions as related to the process of transporting goods internationally Global trade settlement solutions as related to the process of settling the transaction financially

management solutions as related to the process of transporting goods internationally

6 Global Trade Compliance and Landed Cost Solutions Export Trade Compliance A software solution that maintains export regulations and automates the process of restricted/denied party screening, boycott/embargo screening, trade licensing, and trade data validation Import Trade Compliance A software solution that maintains import regulations and automates pre-entry filing, complete duty determination, customs entry filing, and post-entry claim and reconciliation through liquidation Landed Cost A software that calculates the landed cost (including international duty and taxes, and assessorial fees)

software solution that maintains import regulations and automates pre-entry filing, complete duty determination, customs entry filing, and post-entry

7 Global Transportation Management Solutions Trade documentation A software that generates trade documents (invoice, packing list, certificate of origin, etc.) electronically International Transportation Portals A portal where shippers and carriers conduct spotmarket freight auctions International Transportation Management Software Software solutions that manage and execute transportation contracts, manage yields and prices, optimizes routes and equipment utilization and track and trace cargo

) electronically International Transportation Portals A portal where shippers and carriers conduct spotmarket freight

8 Global Trade Settlement Solutions Settlement Documentation IT solutions that produce and reconcile trade documents in compliance with the settlement criteria Secure Documents Exchange A technology platform that can ensure the secured trade information exchange and shipment title exchange over the Internet Financing and Monetary Exchange Solutions to finance the international trade

A technology platform that can ensure the secured trade information exchange and shipment title

9 Other Global Logistics Software International Warehouse Management Software Software solutions that automate the receiving, pick-andpack, kiting, merge-in-transit consolidation FTZ (Free trade zone) and Duty Draw Back Management IT solutions that can facilitate the qualification of duty drawbacks and the utilization of free trade zones Reverse Logistics IT solutions that facilitates returns and repairs International Supply Chain Planning IT solutions that facilitate the planning and optimization of a global supply chain

facilitate the qualification of duty drawbacks and the utilization of free trade zones Reverse Logistics IT solutions that

10 e-global Transportation Management Outlook Source: Stephens Inc.

11 Grand Vision of Global Supply Chain Management

12 Global Supply Chain Portal (Vastera s Partnership Map) Source: Stephens Inc. and Vastera

13 Managing Multi-Modal Freight Movement

14 S s ț p Linking Materials Flow and Information Flow (TCMS) Wag o / Vehicle ns s M anufacturer T rain S te vedore S hip L ine A gent Chain Man age m ent Vesse l depa rture (VESD EP) B o o ti a o king(c OP R AR)/Confirm n tow ag e Instru ctio n (MO VIN S) For ca C O R ) ( A I Ta l l y R G ate re port (C O DECO ) Mas ter p e ng (CO PR A R) relim in a ry bo o king Bo oki /BA PLIE) D am ag l an;ba y pla n e r epo rt M a nifest (IF T MCS)/ ETA EO R ) Manife st (IFTMCS) Ve ss el arriv al E TA C O) t ( CO DE er (COR o rd por Re lea se t Ga t e r e or Da mage rep S tevedo re Term ina l/ W are house R oa d Re quest for tr ansp or t Tra nsp or t statu s / C o n firm ati on inform ation (IF TSTA ) L in king P roduction pro g nos is, Pro duction statu s ite m s, u nits, wagon s, vehicles S ta tu s r e port (IF T S TA ) Available w ago ns Tr an spo rt in stru ctions (IF T M IN ) B oo ki ng (IF T M B F ) /C o nfirm ation (IFTMBC) Un loading confirm. V U n it s Wag ons eh icle s List of arriving w agons ( IF T STA) t, P relim ina r king Fo re ca s y b oo i n g i s Sa i l n tr. Booking confirm ation us rep ort ( IF TS TA ) S tat T an sp.in s t r. (I FTMIN) r M ster p lan, Ba y plan (BAPL I N) a A) t i ons IFTST Ha n d l in g or d er, we igh t s pec if i ca S t uf fin g o rder ( CO S T O R) Arr iv al info ( IF T S T A ) / S ta tu s ( A v a i la ble u nits G a te r e p o rt ( CO DE CO) Damag e re p o rt IN ) C) I FTM MB st r uc tion ( le s Bo ok i ng ( I FTMBF) / Co nfi rmation (IFT A va il e v eh i c Tra ns p o rt in a b l (I FTS TA ) S tat us De v n ( TA ) a ila ble h ic l es, wa gins un it s I FTS ia t io A v v e Cu stom er / Availa ble units Source: Marintek/LogIT Tr Wa gons/ a s in Veh l ic es U nits O rd er/c onf irm ation Delivery adv ice/co nfirmatio n

an;ba y pla n e r epo rt M a nifest (IF T MCS)/ ETA EO R ) Manife st (IFTMCS) Ve ss el arriv al E TA C O) t ( CO DE er (COR o rd por Re lea se t Ga t e r e or Da mage rep S tevedo re Term ina l/ W

15 e-global Transportation Management Companies

16 Four Strategies for Choice of Application Deployment Manual Good old way Excel, , fax In-house Make your own Purchased Buy ready made system May need to be modified to suit your business processes Application Service Provider (ASP)/Hosted Lease a system Annual subscription + transaction fee

May need to be modified to suit your business processes Application

17 Manual Pros: Low initial setup costs Cons: Time consuming High transaction costs Suitable for transport chains with low frequency of shipments

18 In-house Pros: Tailor-made for your specific need Cons: Expensive to make Time to Market is long Suitable for very special transport chains with high frequency of shipments

19 Purchased Pros: Proven solution Cons: Often very high license fee You may have to alter the way you perform your business processes......or you may have to do expensive modifications of the software Suitable for standard transport chains with high frequency or high value shipments

.....or you may have to do expensive modifications of the software

20 ASP / Hosted Pros: Cheap. No license fee, only subscription and transaction fee Time to market is short Cons: Standard solution, you will not get more than max 60-70% functionality Customization is expensive Integration with legacy systems may be problematic Suitable for very standard transport chains, especially when frequency is low or difficult to predict

Standard solution, you will not get more than max 60-70% functionality Customization is

21 Summary Definition of e-global Logistics Internet technologies that streamline the process of moving goods and funds across borders Types of e-global Logistics Software Trade Compliance, Transportation Management, Settlement Trends in e-global Logistics Software Integration of systems, Portals and Partnership Software Vendors i2 (FreightMatrix), Manugistics Application Deployment Strategies Manual, In-House, Purchased, ASP/Hosted

H ig h L e v e l O v e r v iew. S te p h a n M a rt in. S e n io r S y s te m A rc h i te ct

H ig h L e v e l O v e r v iew S te p h a n M a rt in S e n io r S y s te m A rc h i te ct OPEN XCHANGE Architecture Overview A ge nda D es ig n G o als A rc h i te ct u re O ve rv i ew S c a l a b ili