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33rd APEC Transportation Working Group Tokyo, Japan October 10-14 2010. The restructuring of supply chain management via APEC initiative Presenter’s Name: Mr. Takayuki HIRABAYASHI Economy: Japan. Contents. Current problems of international logistics Value of visibility - PowerPoint PPT Presentation
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33rd APEC Transportation Working Group Tokyo, JapanOctober 10-14 2010
The restructuring of supply chain management via APEC initiative
Presenter’s Name: Mr. Takayuki HIRABAYASHI
Economy: Japan
1. Current problems of international logistics
2. Value of visibility
3. Challenges of establishing a visibility platform (1) (2)
4. Public and private scoters’ cooperation
5. Key points for Supply Chain Visibility
6. Supply Chain Visibility Initiative
ContentsContents
Scope of outsourcing: difficult for shippers to control the process
In addition, under economic globalization, production and sales all over the world will involve the management of a greater number of trade lanes and, hence, involve a greater number of entities.
WarehousingCustoms /Container
loading
International transportation
ProductionCustoms /Container
unloadingWarehousing
Delivery /sales
Inland transportation
1
Phones, fax, and e-mail are means of communication normally used to send and receive information.
Shipper / ConsigneeTruck company
Customs broker
Ocean carrier
Production
Safety stocks
Delivery /sales
Safety stocks
Man-hours Excessive Safety Stocks
In anticipation of uncertainty that may exist in the performance of transportation, there are excessive safety stocks at every stage of the process.
Current problems of international logistics
Reduction in consolidated stocks
lead-time to be reduced by 1.1 days on average
consolidated stocks to be reduced
by 1.6 days’ worth of stock on average
Establishment of a visibility platform to share cargo movement information between entities involved in the supply chain will have following effects.
Reduction in workload
The number of inquiries and an anticipated reduction therein by the
establishment of a visibility platform
・ exporting workloads to be reduced by 9%~30%
・ importing workloads to be reduced by 10%~25% Shippers and forwarders can expect that 30%~60% of the work in the
process that has not yet been automated
2
Value of visibility
※According to the questionnaire survey conducted by the Ministry of Economy, Trade and Industry in 2009
3
Individual item(Layer0)
Package(Layer1)
Carton/tote box(Layer2)
Pallet(Layer3)
Container(Layer4)
Vessel(Layer5)
Production
Wrapping
Transship-ment
Warehousing
Transship-ment
Container Vanning
Inland transportation
Ship loading
Ocean shipping
Ship unloading
Customs
Customs
Inland transportation
Container Devanning
Inspection
Warehousing
DeliveryInspection
Sales
Production plant Warehouse Container Yard Vessel Warehouse Inland transportation
Cargo /transport materials
Logistics facilities / environment
Logistics process (stages)
Challenges of establishing a visibility platform (1)
EPCIS proposed by GS1 Ensure interoperability among standards currently used Set an operational rule; a data set, code structure
PlantContainer terminal
Customsof the
exportingside
Ocean-going vessels
Containerterminal
Customs of the
importing side
Warehouse
Production system RFID Customs system AIS TOS Customs system RFID
Production management
Salesmanagement
accountingmanagement
Shipper
Operationmanagement
Accountingmanagement
Logistics trader
Internet
Customsrepository
Shipping companyrepository
Terminalrepository
Customsrepository
Terminalrepository
Logistics provider
repository
Shipperrepository
DB DB
Information to be shared
Systemized code
EPCISStandard interface
4
Challenges of establishing a visibility platform (2)
※EPCIS: Electric Product Code Information Services
Private Sector
Manufacturers: Canon Inc., Toshiba Logistics Corporation
Logistics providers: Deutsche Post DHL (forwarder) NYK Line (shipping company)Shanghai International Port Group (port operator)
System vendors: Oracle, Japan IBM
Public Sector
Customs: Peru, Chinese Taipei
Transport: Japan (MLIT), China, South Korea (MLTM),EU Commission
Science: Hong Kong, China
Economy: Japan (METI), South Korea (MKE),
Standards organizations
WCO
UN/CEFACT
GS1
Visibility Platform
5
Public and private scoters’ cooperation
Technology• Visibility platform architecture (EPCIS network)• Technical specifications• Technologies for capturing data• Database• Query method
Information sharing• Data set to be shared• Structure of codes to describe cargo movements
How to promote the implementation• Port-to-Port implementation• Collaboration with customs systems• Eventual provision of door-to-door services from the original shipper to
the consignee• Response to the needs of specific industries
Best practices• Pilot outline / system composition • Practicality of a visibility platform• Verification of the effects of improvements in supply chain management
6
Key points for Supply Chain Visibility
CY 2010 CY 2013
1. Strengthen business competitiveness
2. Reduce the burden on the environment
3. Achieve both security improvement and trade facilitation
Workshop collaborating
with other fora, such as TPTWG/SCCP
Pilot Project among economies as the BEST
PRACTICE
APEC Guideline
CY 2010 ~ 2012
SOM1@Hiroshima・ APEC ICT Global Value
Chain Workshop, ECSG
SOM2@Sapporo・ Supply Chain Connectivity
Framework, CTI
SOM3@Sendai・ Supply Chain Visibility
Workshop, SCSC ・ Supply Chain Connectivity Action Plan, CTI
7
Based on “APEC Supply Chain Connectivity Framework Action Plan for Chokepoint 6”
Supply Chain Visibility Initiative