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ASEM e-logistics service (2)
ASEM e-Logistics Seminar, Seoul October 27- 29, 2003

(continued) ASEM e-logistics service (1)

3. International Cooperation for ASEM e-Logistics Service

Considering the close, interdependent relationship between trade and logistics, it is appropriate to develop e-logistics concurrently with e-trade.

e-logistics would help to develop new business relationships and increase the trade volume among ASEM members with its broad applicability, connectivity and expandability. But, building an e-logistics service is neither simple nor easy despite its usefulness and advantages. So, it is highly recommended to develop e-logistics functions step by step through discussion, feasibility study and pilot project.

The primary objective of implementing e-logistics is to ensure the visibility of cargo and to facilitate information flow among ASEM members in collaboration with e-trade. Visibility in an intelligent cargo and information tracking system would provide event management capability, a real-time or near future alert system and logistics performance evaluation capability.

4. Implementation of ASEM e-Logistics Service

In the current business practices of logistics service providers, much of the work and business flow depends on conventional processing of a large number of paper documents, which means the process is slow, costly and lacks the capability to share or reuse information, unlike the capability provided by electronic documents. So, a phased approach is needed to reach the final goal of an ASEM e-logistics service from the current situation.

The first stage in an ASEM e-logistics service model is to obtain the capability to send booking data electronically, by sharing and reusing electronic data from the purchase orders, invoices and packing lists created by traders, to logistics service providers such as freight forwarders, carriers and 3PL. Booking container or vessel space using electronic data, instead of by paper, will help logistics service providers manage their cargoes much more efficiently and will ensure the transparency of cargo flow. This will be a great advantage to trading companies in terms of competitive logistics costs.

With the electronic booking data, logistics service providers could create tracking information and could package the information in a way best suited to their customers. As a result, visibility that bridges Asia and Europe would become a reality. This is the second stage in the e-logistics service model.

Practical recommendations to proceed with international cooperation to reach the goal of an ASEM e-logistics service are

  1. Selection or volunteer of participating member countries
  2. Selection or volunteer of participating companies from the selected or volunteer member countries
  3. Feasibility study
  4. Pilot project based on the result of the feasibility study
  5. Regular reports on the progress of the international cooperation pilot project to ASEM TFAP Meeting
  6. Based on the result of the pilot project, develop recommendations for basic guidelines for an ASEM e-logistics service among ASEM members
  7. Spread the ASEM e-logistics service to other member countries using the basic guidelines
 
Nov 2003

This article is courtesy of Korea Trade Network (KTNET), a member of the Pan-Asian E-Commerce Alliance. KTNET was founded in Dec. 1991 to help trading companies increase their international competitiveness by the business automation system to reduce cost and time trading businesses in Korea. To reach KTNET, please go to www.ktnet.co.kr/
enghome/index.html
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