Hong Kong has long been one of the world’s great ports and trading centres, a true hub of international commerce with goods going to and fro to every corner of the globe.

However, the world of commerce and trading is changing. Today, major buyers like HP and Wal-mart are looking for better transparency and tighter integration with their suppliers. The main motivation is to better predict end customer demands and reduce operating costs. To meet these requirements, suppliers have to look into electronic-based solutions to grease their supply chains for efficiency and cost-effectiveness. For Hong Kong businesses to remain part of this global network and maintain their competitiveness, they have to outgrow their current paper-intensive processes and transact online.

At the same time, two other major forces are challenging Hong Kong’s importance as a trading hub: the rise of competitive ports and the demands of trans-shipping the massive volumes going in and out of China via Hong Kong. With other ports around the region vying for the lucrative trans-shipment business, and ports within China chipping away at Hong Kong’s role as the country's commercial gateway to international trade, the local government and business leaders needed something to give Hong Kong the competitive edge.

A survey of the local logistics industry showed clearly that there was a strong demand for a fully integrated electronic trade and transportation network that would enable fast, efficient communication, transactions, and information sharing throughout the world. This system would seamlessly and securely connect all large and small businesses involved in every aspect of trading, from manufacturers, freight forwarders and shippers through to banks, customs clearance houses and end recipients.

Although it was an ambitious concept that has never been done before, the Hong Kong Logistics Development Council, a committee appointed by the Hong Kong SAR Government, with members from the public and private sectors, considered the provision of an open and shared common electronic infrastructure was essential for the development of services to improve the competitiveness of players in the trade and logistics community.

DTTN: the big picture

In essence, the DTTN is a platform that provides interconnection among the industry stakeholders and related community systems to facilitate information flow and enhance efficiency. It is designed to facilitate the Business Process Interconnect (BPI) requirements that are needed to business transactions online, and provide a platform for the development of new business opportunities. The existence of a common and shared user platform with defined standards and protocols will attract existing suppliers and spawn new businesses, including logistics software development, value added services, etc., which will contribute to the development of the Hong Kong economy and enhance competitiveness in the global arena.

DTTN: A boost & bonus in the supply chain

The easiest way to gain an idea of DTTN's broad scope is to think of it as a single window to trade, logistics and financial services.

A single “sign-on” log in will provide access to a vast range of trade and transportation operators and service providers. This will allow participants to save time by acquiring and using services from multiple providers through a single session on their computer.

DTTN will make it possible to quickly and easily interconnect electronically with trading partners to automate all supply chain transactions. At the same time, having access to more timely, accurate information and value-added services will allow DTTN users to compete effectively and retain existing business. It will also make it possible to implement “just in time” supply chain management, and provide internet access to more trading partners.

Companies can enquire the status of shipments or about any other document and message transacted, in real time, through a Web-based graphical user interface. They can also simply print or download these documents for re-use in an interactive manner. To ensure the information is readily available, all documents in the DTTN will be kept securely online for two years and archived for seven years thereafter.

DTTN will provide a set of administrative tools for participants to manage their own accounts and profile information stored in the platform, with complete security that allows users to provide access to only their preferred clients and companies.

DTTN & SMEs

DTTN is designed to enable companies, large and small, to optimise their logistics processes and cut their operating costs by reducing delays, double handling, data entry time and errors. DTTN, as an electronic platform, will encourage SMEs to adopt new and more efficient, low-cost business practices to increase customer demand with more visibility. For instance, the new platform will enable SMEs to prepare their shipping documents once and pass them electronically along the supply chain, reducing the reliance on laborious and error-prone paper-centric processes.

Similarly, payments will be received and made electronically along the supply chain, without the risk of breaching security and confidentiality. Businesses will save time and money on document deliveries and enjoy better financial management - such as tighter credit controls and improved cash flow.

This will be extremely important for small logistics companies: rather than struggling to compete with competitors on the mainland on a cost basis, DTTN will provide them - at a very affordable rate - the tools they need to offer high-quality, value-added services.

As far as affordability is concerned, the pricing model of DTTN services will charge the sender no more than HK$2.50 for each successful document transmission. Companies signing up for the launch project are also being offered several major incentives, including reduced charges and waivers.

DTTN: the e-logistics hub of choice

The first pilot test will be held later this year, and when the DTTN system goes online it will handle nearly 80,000 traders and 1,500 forwarders.

Ultimately, the arrival of DTTN will benefit the entire trade community, from port and airport terminal operators to shipping lines and airlines. Hong Kong’s large number of SMEs will, however, benefit the most with DTTN by being able to utilise the features of a state-of-the-art trade and transportation network with minimal expense. It is expected that DTTN would greatly strengthen Hong Kong’s trading position as the engine to China’s growing prosperity.

View from the top

“We believe we are in a unique situation where technology and commerce can come together to make the Pearl River Delta the most modern logistics hub in the world. We have clever people with lots of energy who are not afraid of technology or hard work. These attributes combine to give us an advantage over any other region in the implementation of such a large project. We are also keenly aware that the DTTN will benefit all who participate, particularly the SMEs.” - Peter Stokes, CEO of DTTN