Technology that Transforms

Global e-Commerce Logistics - Massive Opportunity Ahead

The Rise of Cross-Border e-Commerce, Collaborative Communities and Logistics Marketplaces
 E-commerce Industry at a glance
Retail e-commerce sales worldwide
Globally, e-commerce, market is
worth around $22.1 trillion

Global e-commerce Sales Will

Double in Less Than 5 Years

Global internet connectivity,

coupled with a growing shift toward the
convenience of “e-tail,

Major e-Commerce markets –

China, USA, Japan,
Germany
© Copyright. 2018. Kale Logistics Solutions Private Limited
 The evolution of retail logistics
Suppliers Shops
1970s Direct Store
replenishment by
suppliers or
wholesalers
Mainly domestic suppliers Retail distributions centers Shops
1980s
'CENTRALIZATION' of
deliveries through
retailer distribution
centers Overseas supplier Retail import center Retail distribution center Shops

1990s The rise of

Domestic supplier
global sourcing

E-fulfillment center Returns

Customer home
2000s E-commerce
Collection point
model involving Parcel hub Sortation center Parcel delivery center
Delivery Point
parcel network * Based on non-food distribution in developed markets Local depot (urban logistics)

© Copyright. 2018. Kale Logistics Solutions Private Limited

 Role of Logistics in e-commerce

Cash Management and Reverse First and Last Mile Delivery

Logistics Management
 Cash Collection and deposit as well repatriation  Reduce cost per delivery, maximize delivery person
 Managing customer returns, warranty  Improve Attempt to Delivery Ratio, reduce failed
execution, Return to origin attempts

Visibility across Order Life cycle Market Place and Drop Shipment
 Data Integration between varied  Integrated logistics systems for inventory visibility Data
systems of stake holders Integration between varied systems of stakeholders
 Visibility across supply chain from  Direct shipment from vendor to customer
warehouse to door delivery

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Logistics Value Chain: Complexity in operations
 Air Cargo Cross Border e Commerce Supply Chain

2 4

LSP (Cargo agent)– First Mile Air Cargo Aggregator Origin Customs
 Bag Acceptance
1  Attach AWB
 Security Scanning
 Manifest
Origin Country  On Ramp Operation
 Loading
Airport Handler
3

 Unloading
 On Ramp Operation
 Manifest
 Bag level Warehousing Destination Customs Destination Country
LSP (Cargo Agent) – Last Mile  Bag Level Delivery Airport Handler
7 5
6

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 Air Cargo Stakeholders - Interactions
1. Purchase Order/Sales Contract

Exporter Importer
17. Invoice & Packing List
14. Air Waybill 18. Debit Note
15. Credit Note 16. Debit Note

3. L/C Application 2. L/C Application

4. L/C Notification Importer’s Bank
Exporter’s Bank

5. Invoice & Packing List 6. Invoice & Packing List

7. Certification Request 9. Certificate of 46. Freight Arrival Notice

8. Invoice & Packing List Conformity 47. Handling Forwarder

28. Receipt 57. Transport Order

Insurance
Transporter 24. Invoice & Packing List 60. Consignee
25. Air Waybill Airline Receipt Transporter
27. Transport Order 59. Receipt
26. Certificate of Insurance
39. Pouch
40. Air Waybill FWB 58. Receipt
41.House Waybill FHL
10. Invoice & Packing List 19. Booking
42. Flight Manifest FFM 61. Air Waybill
11. Letter of Instruction CB/FF 20. Air Waybill FWB Airport Authority 62. Customs Fees
12. L/C Instruction 21. House Waybill FHL
63. Handling Fees
13. Air Waybill 38. MRN
Customs 43. Air Waybill FWB CTO
36. ACI
64. Handling Fees 44. House Waybill FHL
37. MRN
Airport Authority 35. Flight 45. Flight Manifest FFM
CTO 22. Air Waybill FWB Manifest
Pouch Content: 23. House Waybill FHL
• House Waybill(Paper) 29. Cargo Receipt FOH 50. Invoice
• Invoice 32. Pouch 51. Air Waybill 54. Customs Fees CB/FF
Customs 48. Pouch
• Packing List 33. Customs Rel. Exp. 52. House waybill 55. Customs
• Certificate of Origin 30. Export Goods Declaration. 53. Import Goods Release Imports 49. Air Waybill FWB
• Regulatory Documents 34. Cargo Acceptance 31. Customs Release Exports Declaration
56. Custom Release Import

© Copyright. 2018. Kale Logistics Solutions Private Limited

 An example of the current documentation and information flow in Air Cargo Exports

Pre-alerts for
Overseas
Agents
House Manifests, Customs
Invoice Freight
Manufacturer Forwarder/ Invoice, Packing
Packing
3PL Provider Lists
List
SLI
SDDG
Terminal
ERP Systems Declarations, Cargo Arrival, Receipt
Manifest Release
Order
Documentation
System

3rd Party
Airport Cargo Handler
Estimated 118 copies, DEO
258 signatures, 22 MAWB
House Manifest
hours of key-punching Other shipment
during exports docs MAWB
clearance process House Manifest
Source: IATA Flight Manifest Carting Order ,
Charges
receipts,
Airline MAWB,
Booking Lists,
Manifests
Airline System

© Copyright. 2018. Kale Logistics Solutions Private Limited

 Maritime Stakeholders - Interactions
1. Purchase Order/Sales Contract
65. Receipt
17. HBL 20. Invoice & Packing List Importer
Exporter 19. Debit Note
18. Credit Note 21. Debit Note

4. L/C Notification Exporter’s Bank 3. L/C Application Importer’s Bank 2. L/C Application
5. Invoice & Packing List 6. Invoice & Packing List
7. Certification Request 9. Certificate of 67. MBL
8. Invoice & Packing List Conformity 68. Handling
13. Booking 46. Cargo Manifest Fees
14. SLI
15. MBL
29. Receipt 28. Transport
Order Shipping Insurance
Transporter Line Port 48. IGM Shipping
Port
Line
10. Invoice & Packing List CB/FF 50. Clearing Payment
11. Letter of Instruction 22.Invoice & Packing List
12. L/C Instruction 23. MBL 51.DO
24. Certificate of Insurance 49. Via 49. Via
48. IGM 47. CAN
16. HBL Road Rail Customs
44.1 Port wise Document
52. BOE CB/FF 66. Consignee
ICD/CFS 45. Pre- Arrival Notice Receipt
Customs Warehouse
27. Carting Request 58. Customs 61. Transport
25. Shipping Bill 33. Storage of Cargo -TJO -Train Summary
30. Gate In Examination Order
26. Shipping Bill No. 34. Allocation of -WTR
31. Container Weighment 59. Out of Charge
Empty Container
36. Inspection & LEO 32. De-stuffing + Carting Tally
35. Stuffing ICD/CFS
53.Container Inspection Transporter
37. CLP
54. Gate In
43. Payment Confirmation 55.Weighment 62. Receipt
44. Gate Out 56.1 FCL
56. Seal Cutting
39. Forwarding Note 57. De-stuffing
38. Movement 60. Loaded/Re-stuffing Delivery Warehouse
40.Pre Load List 56.2 LCL
Request 63 Payment Confirmation -Stored in Bonded Area
41. WTR 64. Gate Out
42. Train Summary
© Copyright. 2018. Kale Logistics Solutions Private Limited
Collaborative Technology Platforms : Single Window and Cargo Community Systems
 An end to end Digital Platform from Origin to Destination

© Copyright. 2018. Kale Logistics Solutions Private Limited

 An end to end Digital Platform from Origin to Destination

© Copyright. 2018. Kale Logistics Solutions Private Limited

Collaborative Technology Platforms connecting the Logistics Value Chain
 United Nation Recommendation no 33 for Single Window

• Level 1 : Paperless Customs + e-Payment for Customs Duty + e-Customs Duty + e-Container Loading List + and electronic risk-based inspection
• Level 2 : Connecting Other Government Back-end IT systems, and e-Permit Exchange with Paperless Customs System
• Level 3 : e-Documents Exchange among Stakeholders within the (air, sea) port community
• Level 4 : An Integrated national logistics platform with also traders and logistics-service providers information exchange
• Level 5 : A regional information-exchange system

National e-Logistics A regional information-exchange system or

Platform cross-border paperless trade
Traders
Port-Community
Information Exchange Banks for various
kinds of e-payment
Other Regulatory Bodies for
E-Permits/e-Certificates Insurance
Exchange Companies
Freight Forwarders
and Logistics Service
Paperless Customs
Providers

Internet SW Airlines
Duty Free Zones

Importer/Exporter/Customs Air Port Authority

Broker/Representative/othe Port Authority etc.
r Stakeholders Ship Agents

Terminal Operators
Note that in many countries, Level 3 was
being developed before Level 2.

© Copyright. 2018. Kale Logistics Solutions Private Limited

 Electronics goods Exports from China ( to India)
Business Process

1 Regulatory Single Window

China Company Ministry of

China Customs
3 Marketplace Registrar Commerce

• Business • China Foreign Trade • Category allocation &

Registration Registration Customs Certificate

Trade Process

Electronics
Goods Exporter
China Electronic China Certification Center for
• Identify Buyer China chambers of
Standardization Quality System of Electronic
• Identify Logistics commercre
Institute Industry (CCQE)
Service Provider
• Product Certification • Quality Standardization • Certificates of Origin
(COO)

Logistics Process 2 Cargo Community Platforms

Freight Forwarder /
Transporter Cargo Terminal Airline China Customs
Customs Broker

• File Customs • Last Mile • Carting Order • Accept Booking • Approve declaration
declaration • Consignment Note • Terminal Charge • Issue AWB • Release Order
• Get Published Rates Creation • Manifest acceptance
• Manifest filing
• Make booking • Security and
© Copyright. 2018. Kale Logistics Solutions Private Limited
Acceptance
• Customs Facilitation
 Multimodal Trade Facilitation Platform- UPLIFT

Shipper /
Railways Customs Broker Forwarder Transporter Liner
Consignee

Web Portal

Airlines Customs Broker

UPLIFT Adapter
UPLIFT Adapter
Internal System

Internal System
Custodian/ Transporter
Ground Handler
Customs Single Window

Customs
Bank Forwarder

UPLIFT - A Multi-modal Trade Facilitation Platform

© Copyright. 2018. Kale Logistics Solutions Private Limited

 Components of Logistics Single Window - ACS & PCS

Port Community System

Allowed Time for EIR Approval EIR
• Gate Pass for Shipment Yard Management Carting
• Document
Truck Number Shipment Approval
• Validation
Customs Document Manifest
• Booking with Terminal
Freight Forwarder/Broker Operator for space
Manufacturer allotment
3PL Provider

Terminal
Port Customs Operator 1

Invoice Packing List Documentation

ERP Systems
System Terminal GATE

Shipping Bills & other declaration doc Imports goods declaration,

Carrier booking Waybills, Terminal Storage Charges,
Status updates CAN, DO
CFS Customs PORT Authority

CUSTOMS
Shipping
Port Security Bill
Air Cargo Community System

Export Cargo declaration Imports Cargo declaration,

Exports manifest Cargo arrival Import manifest, Customs
Customs Release Order Release Order
MAWB/House Manifest FSU
CAN, DO, FFM, FSU Terminal
Operator 2
Customs Broker
Transport Movement
MAWB House Manifest
Flight Manifest Airline Physical Flow of Cargo Digital Information Flow of Cargo

Airline System Cargo Handler

ACS PCS

© Copyright. 2018. Kale Logistics Solutions Private Limited

 Connecting stakeholders at Mumbai Airport on a collaborative platform
GMAX: Empowering unregulated operators to transact digitally e-
Booking, e-AWB, e-Customs, e-Chamber fo Commerce etc.
Booking/Transport/Tracking Booking/Documentation/Tracking

Exporter Forwarder Airline

Do

100+ Airlines
cu
me
nta
tio
n/C
lea
ran Job info
ce Payments
Ce
rt
ific

Payments
ate
s

Unregulated CHA Banks Unregulated

Cargo Operators Cargo
CHA Forwarder Airline
s Operators Municipal Corporation
oc

t
id

ifes
Du of Grater Mumbai
ro ty
ct

an
O Pa
ym

,M
en

ons
ts

ucti
str
g in
2000+ Agents
din
Loa

Municipal Corporation Chamber of Commerce

of Grater Mumbai Customs and Allied
regulators Banks
Chamber of Commerce Customs and Allied
Exporter
regulators

Landside Area Cargo Terminal Airside Area Landside Area Cargo Terminal Airside Area

Regulated
Cargo
Cargo Terminal Operator Processes:
Regulated
Cargo
Cargo Terminal Operator Processes: 13 Statutory Bodies
Receipt of Cargo, Weightment, Screening, Storage, Palletization, Customs Inspection, Airside Receipt of Cargo, Weightment, Screening, Storage, Palletization, Customs Inspection, Airside
Services Services
movement, Aircraft Loading movement, Aircraft Loading
including Customs

Parameter Pre GMAX Post GMAX

Document handled ( including copies) 128 24

Avg Queue Time for document/payments 1 hr 20 minutes Nil
Airport Counters 9 1
Average time per export doc handling 28 minutes 6 minutes 500+ truckers
Average time per import doc handling 22 minutes 8 minutes
Accuracy of data 85% 94% +
Waiting time for Export Trucks 2 hours+ 30 minutes
Availability of data to stake holders Through Mail, calls and in person Portal, EDI, App, On Demand

© Copyright. 2018. Kale Logistics Solutions Private Limited

 Accelerating container movement a Container Digital Exchange

Scenario without CODEX Scenario with CODEX

Allowed for Time for EIR Approval EIR

• Gate Pass Shipment Shipment Yard Management Carting
Invoice & Packing List
•
•
Truck Number
Customs Document
Document
Validation
Approval
Manifest
15 CFS/ICD
• Booking with Terminal
Forwarder DO & MBL Shipping Line Operator for space
allotment
EIR & Term
inal Fee
List

Terminal
igin
ing

Port Customs Operator 1

EIR
f Or
ack

& Port
F ee Port Terminal
&P

te o

EI Operator Terminal GATE

R 1Mn TEU/annum
tifica

&
ice

M
BL
Invo

Cer

Invoice & Packing List

Port Operator CFS Customs PORT Authority

Shipping
Shipper / Port Security Bill
Consignee
12 Vessel Operators
Port Security

cking List
Invoice & Pa Container Depot
B) Terminal
ration Files (S (CFS/ICD)
Customs Decla
Customs Broker
Operator 2 400 Agents
Invoice & Packing List Transport Movement
500+ Exporter/Importers
Invoice & Packing List
Customs Broker Customs Physical Flow of Cargo Digital Information Flow of Cargo

Container dwell time from Document copies for Shipment related documents
port entry reduced
2.5 hours to 25
minutes from 15+ to 2
made available for approvals &
processing
300Transporters

No separate application
One common information Improved capacity required by Shipper, CFS/
highway connecting all planning ICD for operations
at terminal

Eliminated possibility of Mobile App enabled

Shipment visibility based un-cleared shipment on- the-go tracking
on rights

Business Benefits
© Copyright. 2018. Kale Logistics Solutions Private Limited
Digital Corridor- Powering Regional Single Windows
 Trade Facilitation Platforms: Full Services Play

Home Country Destination

National Single Window Country
Digital Corridor

Logistics Single Window Regulatory Single Window

Customs Single Window

Air Cargo Community

Air Ocean Customs Port Community

Air Cargo Community(ACS) Container Digital Exchange (PCS)

Airport Community System e-Manifest | e-DO | e-VGM | UCC
e-Manifest | e-DO

Rail/Road Community Platform

Exporter/ Forwarder
Shipper Customs Container Depot
Broker Warehouse
Transporter
Export Carrier Forwarder
Railways Import
Customs Customs Broker
Export Customs Transporter
Import
Port/Airport Port/Airport Railways
Container Depot Importer/
Warehouse Consignee

© Copyright. 2018. Kale Logistics Solutions Private Limited

 Digital Air Corridor between India & Netherland

A Digital Air Corridor is being established between

Mumbai and Schiphol

Uses Blockchain.
Connects exporters, importers, agents,
ground handlers, Airlines from both

1 2 3
stations to have real time visibility of the
shipment

© Copyright. 2018. Kale Logistics Solutions Private Limited

 Digital corridor- India -Netherland

India- Kale’s GMAX Netherland- Cargonaut

Customs Information

Export/Import Import/Export

Customs :Customs clearance, COO, Manifest Customs : Customs clearance, COO, Manifest

Participative Government Agency- License

Participative Government Agency
and Permits

Security Certification Agencies Security Certification Agencies

Digital Corridor
enabled by
Blockchain
Shipment Documents Shipment Documents

Status of cargo at airport Status of cargo at airport

© Copyright. 2018. Kale Logistics Solutions Private Limited

 Digital Air Corridor - Exports Information Flow

Information Exchange Flow- Exports

Freight Forwarder Freight Forwarder

1. FOH – Freight On Hand

2. RCS – Receive from Shipper

Destination
Origin

Origin Carrier
Handler 4. MAN – Shipment Manifestation
5. DEP – Shipment Depart
View View
Air Cargo Community Air Cargo Community
System System

3. Customs Release
Export Customs

Shipper Consignee

© Copyright. 2018. Kale Logistics Solutions Private Limited

 Digital Air Corridor - Import Information Flow

Information Exchange Flow- Imports

Freight Forwarder Freight Forwarder

1. ARR – Flight Arrived

2. RCF – Receive from Flight

Destination
Origin

Destination Carrier
Handler 3. NFD – Notification for Delivery
4. DEP – Shipment Depart
View 6. DLV – Shipment Delivered View
Air Cargo Community Air Cargo Community
System System

5. CCD – Shipment
Custom Cleared
Import Customs

Shipper Consignee

© Copyright. 2018. Kale Logistics Solutions Private Limited

Marketplace Model for Multi Modal Logistics
 Trade Facilitation Platforms: Full Services Play

National Trade Platform

Logistics Single Window Logistics Marketplace

Air Ocean
Logistics Services repository
Demand Supply match
Price Discovery
Air Cargo Community(ACS) Container Digital Exchange (PCS)
Airport Community System e-Manifest | e-DO | e-VGM | UCC
e-Manifest | e-DO

Rail/Road Community Platform

Exporter/ Forwarder
Shipper Customs Container Depot
Broker Warehouse
Transporter
Export Carrier Forwarder
Railways Import
Customs Customs Broker
Export Customs Transporter
Import
Port/Airport Port/Airport Railways
Container Depot Importer/
Warehouse Consignee

© Copyright. 2018. Kale Logistics Solutions Private Limited

 COMPLEX TRADE LOGISTICS SECTOR

EXPORT
MULTIPLE GOVERNMENT AGENCIES PROMOTION BOARD /CHAMBER OF MULTIPLE PERMITS &
COMPLEX TRADE RULES CERTIFICATIONS
COMMERCE

SEVERAL BILLION $ LARGE MULTIPLE LOGISTICS

COMMODITIES MARKET SIZE EMPLOYMENT BASE AGENCIES

DISCONNECTED IT
36 LOGISTIC SERVICES MANY WAREHOUSES/DEPOTS PLATFORMS BANKS & INSURANCE AGENCIES

© Copyright. 2018. Kale Logistics Solutions Private Limited

 LOGISTICS e MARKETPLACE- CONNECTING THE FRATERNITY

START

1 Plan end to end Check 3 4a Select Freight

2 Rate enquiry
shipment route availability Forwarder/Broker

View trade Book ocean

10 4b
analytics freight

Availability Price Discovery ePayment

Online
9 Grievance
4c
Redressal FEATURES
Book
truck/Rail

Monitor Physical
8 Flow of Goods
Service Provider Digilocker Track & Trace
Rating Shipment 4d Book
warehouse

Pay
7 electronically
4e
Book air
Invoice Exchange Book Packaging Book Other
6 5 4f freight
Generation 4g Services Logistics
eContract
services

© Copyright. 2018. Kale Logistics Solutions Private Limited

 Logistics Marketplace

Agent Rating
on SLA
Exporter/Importer
Regulatory
Invoice Packing List Single
RFQ RFQ Window
Booking sent Booking sent
• Dashboard Freight Carrier
Find Agent Rates Scheduling Forwarder Rates Scheduling
• Exporter/Importer list Booking Confirmation Booking Confirmation Booking sent & confirm
RFQ Booking
• Global Tenders
Cargo Community
Systems
• Global Trade News

• Promotions Customs Transporter

Broker • List of Transporters
• List of CBs
• Export/Importer
Guidelines
eTrade Portal

Transit Insurance

eMarket Place for Exports/Imports

© Copyright. 2018. Kale Logistics Solutions Private Limited

 Logistics Community Technology Framework Model

1
Regulatory National Trade
Logistics Platform
Digital Corridor
2 Partner Countries
Customs, Ports and
Single Window
Airports
• Exchange Cargo Status
• Exchange Documents
• Exchange Customs Information

Customs Authority Logistics Single

Existing Trade Window

Facilitation • Freight Forwarder

Infrastructure •
•
Customs Broker
Container Depot
a
Ministry of Trade • Warehouse
and Commerce • Trucker
• Port
• Airports
• Shipping Line b
Other Participating
Government Trade Market Place
Agencies
• Exporters/Importer Marketplace
• Logistics Service Provider Database
• Services offered
• Rates and schedules
• Optimized transportation plans
• Bookings on Carriers
• Service Provider Work ratings
• Trade Analytics

© Copyright. 2018. Kale Logistics Solutions Private Limited

Blockchain : Powering Digital Logistics Trade Platforms
 E-Certificate of Origin- Moving towards Blockchain

Destination Country
Document
submitted on
Blockchain
network
Freight
Forwarder / Customs CoO + invoice + packing
Customs
Agent list is applicable

Prints & Manual in person Transmission on

Submits Blockchain network
& carries
CoO approval at
with digital signature
in person Chambers

Rejected
Exporter documents
sent back to
Exporter
Rejected Invoice &
Packing List sent back t
Invoice/
Packing List

Verify/Approve/ Reject
Invoice & Packing List
Originating Country Approved documents
stamped and handed over Verification,
to FF/Custom Agent authentication
and issuance
on Blockchain
network

© Kale Logistics Solutions Private Limited. All Rights Reserved

 eVGM-Process Flow

Shipper/ Factory Stuffed Weighment at Shipper

Broker Container premises/Registered
weighbridge
Vessel operator

• VGM information of the

containers that shippers
VGM information of the containers provided
that shippers provided Terminal
• VGM information when a Shipping
terminal operator weighs a
Operator
Line
packed container on behalf of
Shipper the shipper

Provide VGM information of the

container to be loaded to carrier or
terminal operator
Container Weighment at Container
Cargo Depot Depot/ weighbridge

Loaded container is weighed to gain VGM.

Information is electronically sent to Shipping Lines and Terminal Operators

Faster & Simpler workflow Lower risk of data loss/damage Increased Security Information in advance

© Kale Logistics Solutions Private Limited. All Rights Reserved

 Blockchain in E-Phyto certificate
ePhyto is short for “electronic phytosanitary certificate”. ePhyto is the electronic equivalent of a paper phytosanitary certificate.
The National Plat Protection Organisation(NPPO) of exporting countries issue phytosanitary certificates which need to be
directly made available for the NPPO of the importing country. ePhyto is produced, transmitted and received in XML.

E-Phyto flowchart

XML data transmitting

NPPO of exporting country Feedback if any NPPO of importing country

s
Pr es
ov
idi oc
ng pr
da rt
ta po a ny
Fe Im if
e db ck
a ck ba
if a
ny eed
F

Exporters Importers

Faster & Simpler workflow Lower risk of data loss/damage Increased Security Time & cost saving Information in advance

© Kale Logistics Solutions Private Limited. All Rights Reserved

 Thank You
Thank You
Kale Logistics Solutions Private Limited
Connect with us 9th Floor, Thane One Corporate Business Park,
Behind CineWonder Mall, Majiwada,
Thane (W), Maharashtra, INDIA - 400 610.

+91 22 4113 4113 +91 22 4113 4123

[email protected] www.kalelogistics.in

Mumbai | Delhi | Dubai | Mauritius

© 2018, All Rights Reserved. Data from industry publications has been used for this presentation.
This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or form or in any media without the prior written consent. All product names and company names and logos mentioned herein
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