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DTTN’s experience on facilitating SME’s participation in trade
Mr Stephen Cheung, Senior Vice President, Business Development, Tradelink/DTTN
Regional Policy Forum on Trade Facilitation and SMEs in Times of Crisis
20-22 May 2009, Beijing, China
AgendaAgenda
Tradelink (B to G) Highlights
Digital Trade and Transportation Network (B to B)
Established inSep 1988
Government becomesa shareholder
Granted exclusive franchise (1997– 2003)to provide e-submission services for certaintrade-related documents
Selected by the Government as the developerand operator of DTTN
1992
2003
1988
19942004
Granted license (2004-2009) to continue provisionof government document e-submission services
2005
Publicly listed and traded on the Main Board of The Stock Exchange of Hong Kong
About TradelinkAbout Tradelink2008
Tradelink Beijing Established
Being granted license to continue
provision of GETS II (2010-16)
The HK SAR Government
Key players in the trading sector, including trade associations, terminal operators & financial institutions
43.80%43.80%
12.29%12.29%
Public Shareholders
43.91%43.91%
Digi-Sign CertificationServices Limited
Digital Trade and Transportation Network
Government and Industry Expert SupportGovernment and Industry Expert Support
100%100% 100%100%
The digital express link to business partners worldwide
Building trust in electronic services with Digi-Sign security solutions
Services Details
Production Notification (PN) e-lodgment of notification to the Trade & Industry Department about cut-and-sewn garments manufactured in HK
Notifications under Textiles Trader Registration Scheme (TTRS)
e-submission of notification to the Trade & Industry Department for textile trading under TTRS
Certificate of Origin (CO) e-application for CO to the Trade & Industry Department or other government approved organisations
Dutiable Commodities Permit (DCP) e-application for DCP to Customs for import, export, manufacturingor storage of dutiable commodities
Electronic Cargo Manifest (EMAN) (excluding road mode)
e-submission of manifests for air, rail, water cargo to the CensusDepartment and the Trade & Industry Departmente-receipt of notice / voucher from Customs ande-communication with other government departments
Import or Export Declaration (TDEC) e-lodgment of import or export declaration with Customs
TradelinkTradelink’’ss Government ServicesGovernment Services
Document checking and validationSecure communication channel7 x 24 electronic interfaceDocument status trackingHotline & onsite technical support and other customer services“Paper-to-electronic” conversion service
LogisticsServicesProviders
Importers
Exporters
Freightforwarders
Carriers
Manufacturers
Trading Com
munity
Trading Com
munity
e-confirmation e-confirmation
SecuritySolution
Government ServicesGovernment Services
The HKSAR The HKSAR GovernmentGovernment
TradelinkTransaction fee
+Gov’t fee
+e-submission of
trade related documents
Gov’t fee+
e-submission of trade related documents
Over 54,000 registered users including manufacturers, importers, exporters, freight forwarders, logistics services providers, and carriers
Steady transaction volume – over 20 million per annum
Dedicated customer services: hotline, onsite technical support, 20 customer services centres, training support, and direct sales team
Customer loyalty program - customer magazine , e-newsletter , luncheon seminar and round-the-year loyalty program
Our Substantial Customer BaseOur Substantial Customer Base
Established development Centre in Guangzhou in 2007Beijing Branch office opened in 2008Tianjin JV company in 2008Recognised service provider under the CEPA framework
Our Vision for the China marketTo facilitate international trade between China and the rest of the worldDevelop an one-stop e-trade platform in mainland for the
– Operation and management of the modernized logistics parks
– E-finance services– International connection(via DTTN)
China MarketChina Market
PanPan--Asian EAsian E--Commerce Alliance (PAA)Commerce Alliance (PAA)
Customer base: over 250,000 organizations
Established in July 2000 by TradeLink(HK), Trade-Van (TW) and CrimsonLogic(SG)
Now 9 member economies
Jointed by three new members from Australia,Philippines and Japan in 2007
Common StrengthsLocal market leader in e-commerceStrong & close relationship with local gov’tMass customer baseLong years of experiences on electronic document exchange, customs declaration, manifests, certificate of origin, licenses services
To provide secure, trusted, reliable and value-adding IT infrastructure and facilities to promote intra-regional trade
115,000 Customers
KoreaKTNET
JapanTEDI
China CIECC
TaiwanTrade-Van
MalaysiaDagangNet
Hong KongTradelink
MacauTEDMEVSingapore
CrimsonLogic
ThailandCAT
10
Digital Trade & Transportation Network
(DTTN)
Key Milestones of DTTNKey Milestones of DTTN
Dec 2005
2H 2006
With 3600+ registered customers
Dec 2004DTTN Limited incorporated
Pilot run
Full Commercialization
2003
Tradelink awarded by the Governmentas developer and operator of DTTN
2001Formation of LOGSCOUNCIL
2008
2009
Becomes Tradelink’swholly owned subsidiary
Objective of DTTNObjective of DTTN
Suppliers
TaxAuthority Truckers Carriers Terminals
Warehouses
Trade Associations
InspectionAgencies
TradeAssociations
Forwarders
Buyers
InsuranceInstitutions
Manufacturers
Forwarders
Airlines
BanksInsuranceInstitutions
Customs BuyersManufacturers
Carriers
Sellers
Banks
Key Functions of DTTNKey Functions of DTTNAn e-Business CONNECTOR for the Entire Supply Chain
connects all parties along the supply chain to achieve “system-to-system integration”.
A Mega Electronic DATA STORE
stores data online for 2 years and offline for 7 years
A Super Electronic Document CONVERSION ENGINE
supports “any-to-any” transformation of data format and communication protocols
Data Inheritance Feature- Common data can be inherited between documents- Web portal services
Community Role of the DTTNCommunity Role of the DTTN
Electronic message transformation services
Statistical and analytical reporting servicesData inheritance services
Information security services
Electronic message routing servicesPortal services
Sellers InspectionAgencies
Banks &Financial
Institutions
FreightForwardersBuyers
Government& Agencies Carriers Insurance
Institutions Terminals
DTTN Key Services Offering
DTTN to Support the Whole SupplyDTTN to Support the Whole Supply--ChainChain
Purchase Process Purchase / Sales Order, Order Confirmation
Packing List / ASN, Commercial Invoice,Inspection Certificate, InsuranceDelivery
Booking, Shipping Order, Arrival Notices,Transport Documents - Master / HouseWaybill - Sea / Air, Cargo Receipt,Transport Set, EIR, Delivery / Release Order
Local and OverseasTransportation
Government Trade DocumentsExport / Import License,Customs Clearance,Certification of Origin etc.
Financial Settlement Letter of Credit, Company Guarantee, Bill of Exchange,L/C collection Letter; Document Arrival Notice
Support over 80 major documents related to trade, logistics and finance for both import and export business processes
How to Connect with DTTNHow to Connect with DTTN
Option 1: Direct Integration
A simple direct connection with internal application systems (e.g. FMS/ERP/SCM etc.) using the existing interfaces with no or minimal system changes
Option 2: Standard Excel Spreadsheets
Easily customizable according to
your needs
Link with Your BuyersLink with Your BuyersBuyers
• Data Transformation• Verification of digital
signature• Encryption / Decryption• Dispatch the ack / error msg
• Prepare the PO by using the Excel Form and send to XX via DTTN electronically.
• Prepare the PO by using the existing internal application system & send to the XX via DTTN electronically
• Receive the PO Confirmation from XX via DTTN electronically
• Receive PO & the data will go directly into the internal ERP System
• Generate & return the PO Confirmation to the buyers electronically
Suppliers
Internal SystemElectronic Document Conversion Engine
(Type 1) Excel Form User
(Type 2) Direct Integration User
18
DTTN is well received and supported by the industry …
Excerpt of DTTN Participants in Excerpt of DTTN Participants in different industriesdifferent industries
Excerpt of DTTN Participants Excerpt of DTTN Participants -- ForwardersForwarders
Excerpt of DTTN Participants Excerpt of DTTN Participants -- OthersOthers
22
Success Cases Sharing
Customer Success Case Customer Success Case DTTN as UNIQUE gateway between DTTN as UNIQUE gateway between Tyco & TycoTyco & Tyco’’s partners for document exchange s partners for document exchange (Purchase to Delivery)(Purchase to Delivery)
5. Master SO(EDIFACT)
Buyer
1. Sales Order (X.12)
Forwarder
Tyco
1. Sales Order (SAP)
4. Shipping Order, CI, PL (SAP)
4. Shipping Order, CI, PL(File Format: XML)
SO - shipping order/ 落貨紙CI - commercial invoice / 商業發票PL - packing list / 提單BL - bill of lading / 裝箱單
Carriers
5. Master SO(File Format: XML)
7. Tyco Invoice (X.12)
6. Invoice(File Format: XML)
6. Invoice (SAP)( (
Suppliers
2. EDI – Purchase Order
3a. DN “EDI” (Excel)
3a DN “EDI” (SAP)
6. Invoice (CSV)
3b. DN “Drop Ship” (Excel)
3b. DN “Drop Ship”
(File Format: XML)
7. Tyco Invoice (SAP)
Goods Delivery
TDSTDS
FreightForwarder
FreightForwarder
Otto International AsiaBuying Office
Otto UKBuyer
1. Purchase Order
2. Purchase Order10. Clean Document set
3. Purchase Order7. Bill of Lading
4. Invoice, Packing List, Shipping Order8. Invoice, Packing List, Bill of Lading
5. Invoice, Packing List,
Shipping Order
6. Bill of Lading
9. Invoice, Packing List, Bill of Lading
11. Invoice
, Packing
List, Bill o
f Lading,
e/CO
11. Invoice
, Packing
List, Bill o
f Lading,
e/CO
12. Invoice, Packing List, Bill of Lading,
e/CO
12. Invoice, Packing List, Bill of Lading,
e/CO
Suppliers
Physical
Data
Reference Cases Reference Cases Buyer Management ServiceBuyer Management Service
FreescaleFreescale –– A SellerA Seller--Driven Case Driven Case
ShippingDept - Admin
ShippingDept - Operators
1 Sales Information
TDS3 Confirmed SLI
9 Shipping Cartons + INV + PL + SLI
8 Printed Ship Label
FreightForwarders
4 SLI + INV
5 SLI + INV
6 AWB/SWB
7 AWB/SWB
10 Generate TDEC
2 Draft SLI
Physical
Data
11 Trade Declaration
FreescaleSales Backend
Tradelink ValuNet
The Digital Express Link to your Business Partners Worldwide
www.tradelink.com.hk
www.hk-dttn.com