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| Talking Point | Interviews | Success Stories | China Today | Import & Export | Legally Speaking | Regional Development |
DTTN Helps Companies
Enhance Operating Efficiency and Achieve Synergistic Effects

With continued global e-commerce development, business interaction becomes increasingly digital. Connecting the internet and other electronic platforms, paper-free electronic trading environments are created. In this way, the logistical electronic platform – Digital Trade and Transportation Network ("DTTN") – enhances operational efficiency and saves costs. DTTN provides a platform for promoting use of e-commerce, especially for small and medium enterprises. Most importantly, it helps companies facilitate information flow, explore further business opportunities and develop new business, boosting Hong Kong's economic development. The following are two successful cases of employing DTTN to increase operational efficiency.

HKGCC enhances efficiency via DTTN

"Save time and effort" says Chan Cheong Chi, senior manager of the certification division at the Hong Kong General Chamber of Commerce ("HKGCC"), the largest and oldest business association in Hong Kong. This statement from Mr. Chan highlights the benefits offered by the DTTN.

HKGCC strives to improve the quality of service providing to their customers especially for the application of the Certificate of Origin ("CO"). Accelerating the CO application process so as to save time and optimize the use of resources is imminent. Chan states that before connecting to the DTTN, they must input the CO application data manually, sometimes they received complaints from clients because of error being made during the key entry process. After implementing the new system, these problems are eliminated and also recognised an improvement in operational efficiency, echoing the benefits of e-commerce development.

Chan says: "In summer 2006, our association launched WebCo (www.webco.hk), a service allowing users to apply for re-export or transhipment COs via the web. Users can also check application status and make amendments if there are any errors. For us, we can directly print the CO according to the information entered by the customers, therefore, saving time and manual effort. But, some clients are not willing to use the WebCo service as they already have their own established computer system for processing applications. If they use this service, they need to re-input the same data again and this becomes the barrier for them. With the DTTN, clients' database can be link directly to the WebCo system and no re-keying of the same data is necessary. Error caused by the re-keying process is totally eliminated. Apart from that, clients can use the same DTTN link to exchange other business documents via the DTTN to other trading partners such as banks and freight forwarders to achieve the goal of saving time and effort."

"Once we have decided to link the DTTN with our WebCo, consultants from DTTN started working with us to identify our needs, the business documents we required to exchange via the DTTN and the related process flow. They also worked with our IT department to understand the operation pattern of our system and then made some modifications in order to allow clients to send documents electronically into our system. Although the process takes time and we need to deploy resources initially, it's still worthy of the effort because we can achieve good results in such a short period of time."

Indeed, exporters generally welcome this new approach. Chan explains: "With the implementation of the DTTN, the number of CO applications being processed by electronic means increased, our operation cost and processing time significantly reduced. Accordingly, a synergistic effect is achieved."

The first client to apply for a re-export CO via DTTN is one of the largest international department stores based in the UK. This client processes close to 200 re-export CO application per month and is very supportive on the new approach. They concur that by using the DTTN, it helps to save time and cost. Chan says that DTTN users will continue to increase and the service will become increasingly common. "With the connection to the DTTN, users are no longer required to input information on the web but can still process the CO application electronically via the DTTN. They can also check the application status and obtain related information. We can process online application and notify clients immediately if there are any errors. Therefore, the application process can be accelerated."

DTTN brings all-round benefits to HKICC

F. H. Wan, Director of the Indian Chamber of Commerce, Hong Kong ("HKICC") also agrees that all parties can benefit from employing DTTN. He says: "DTTN brings all-round benefits to clients, us and DTTN itself."

Before using the DTTN, the Origin Certification Re-export service offered by HKICC (founded in 1952) was mostly handled manually. Wan states that clients needed to come twice, as at first they had to submit the application document and then return to get the certificates. If there was an error, handling times would then be doubled.

Wan says: "In the past, for wholly-manual processing, clients needed to input data and prepare the application document. When we received their documents, we would input the same data in our own computer system. Thus, it duplicated the process of inputting data and complicated the approval process. During the peak season for cargo shipment, the number of Re-export CO applications increases significantly. As the whole process was done manually, it was difficult for our staff to handle all of those applications at the same time. In fact, we had to devote a lot of human resources not only to re-enter data, but also review the documents in order to maintain accuracy. On the other hand, we strive to improve services so as to meet clients' needs, which accelerate our pressure on processing the Re-export CO applications."

"After using DTTN, information in clients' application documents will be transferred to our computer system directly via the DTTN. This eliminates the process of re-entering the same data into our system and also improves service quality to our clients. Once the application is confirmed, confirmation documents together with the Re-export CO Certificate Number will automatically be sent to our clients. The whole process does not require any manual effort, reducing the chance of making mistakes and minimizing our response time to clients' applications."

"According to current Hong Kong customs regulations, all exporters and re-exporters are required to submit trade declarations within 14 days after export. Basically, most of the information required for Re-export CO applications is the same as that for trade declarations. In the past, clients needed to input the same data separately for these two documents. With the implementation of DTTN, clients can easily transfer the information in their Re-export CO application to ValuNet Deluxe software for trade declarations, which indeed enhances operational efficiency."

At present, the number of clients applying for Re-export COs via DTTN is increasing gradually. In general, clients are all satisfied with the new approach and their responses are positive. Wan expects that by employing DTTN, clients' workload can be reduced by 50% and HKICC can also save 30% of the processing time. In the future, this can also be in line with the implementation of the Road Cargo System (ROCARS).

Wan adds: "Now, all offices are equipped with computers and e-commerce development is definitely the new trend. We believe that after the implementation of ROCARS, it will be most helpful for small and medium-sized enterprises. Indeed, the information required for Re-export CO applications, trade declarations and ROCARS is closely connected and nearly the same. Through DTTN, these three applications can be handled simultaneously to enhance efficiency, avoiding duplicate work processes and potential human errors induced by re-entering the same information. Then, wherever there's a computer, even in coffee shops, exporters can apply for similar certificates and trade declarations via DTTN and other online electronic platform from 7am to 11pm without any time and location constraints. This is obviously helping with maximising operational flexibility and efficiency and enhancing the applicability of electronic platforms."

Helping companies become internationalized

In fact, DTTN provides much convenience for companies and allows them to handle documents without the manual input of extensive information anytime, anywhere so as to enhance efficiency and save costs. In line with digitalisation trends, DTTN has become popular and similar electronic platforms and operation modes can be implemented outside Hong Kong to connect with companies in different countries, heralding the real era of e-commerce.

 
Feb 2008
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