Q & A ON INNOVATION AND TECHNOLOGY
ADVANCEMENTS IN E-COMMERCE FOR PANEL DISCUSSION
DURING AN E-COMMERCE LOGISTICS NETWORK

Topic:

“Cross Border e-Commerce Uncertainty (Brexit, UPU, EU VAT, China Tariffs, global de Minimis changes etc.). I was invited as one of the speakers in the Panel Discussion. The idea of this panel is to discuss various legislative changes happening or about to happen in different parts of the world and how they influence e-Commerce trade activities and volume. The focus will be on members being an excellent representation and source of knowledge when it comes to B2C clearance into ecommerce core markets like North America, Europe (Germany, UK, France) and handling high volume small parcel shipments from overseas, primarily Asia/China. The panel has a trade attorney from the US confirmed, hence having participants sharing their experience would be an excellent fit.

Anant:

This was discussed at the panel. Each marketplace is different than others based on its localities, rules, and regulations. There is no one size fits all solution for all marketplace, and hence e-Commerce Logistics system must adapt to each changing environments, Customs rules and regulations.

Question:

“Marketplaces, Shipping Platforms and Online shippers - What's needed from a 3PL?”In this panel the idea is to have marketplaces, shipping platform and online shippers participate alongside one or two members, who have experience in that sector, and represent a good example in terms what’s needed for a successful partnership.

Anant:

Logistics Management Services – volunteers to be one of the network’s e-Commerce members to join the panel as we already have had the partnerships with e-Marketplaces, shipping platforms, or online shippers, and been working with Customs authorities and Customs e-Paperless providers.

Question:

“Innovation and Technology Advancements in e-Commerce - Is there a size fits all solution when it comes to the degree of digitalization?”

Anant:

One can’t really answer “Yes”, or “No” to the above question. Why? Though I always believe in that it’s possible to develop a Global e-Commerce Logistics Platform, which is suitable for any given country. I also realize that such a platform still need to be adjusted to work well with local governmental or Customs rules & regulations.

Question:

The idea of this panel is to continue the discussion about digitalization of the freight forwarding sector from the Singapore conference, but this time with special focus on e-Commerce logistics, while looking what’s needed from a freight forwarder to handle what type of shipments, in particular where to start if you have realized there is a need for digitalization of your operation. The focus should be on possible ways to start as well as the features to look at in a system without directly selling the IT system. The focus should lie on knowledge in terms of IT features required based on operational needs. ”

Anant:

No one can really answer the above questions (in red fonts) with only few words or sentences. Honestly, I think in reality digitalization always plays important roles in freight forwarding, and even more so with today e-Marketplace & e-Commerce Logistics operations. Below infographics show players in e-Commerce environment, and each employs digitalization that are designed and programed to accomplish each supply chain from e-Marketplaces to Fulfillment Centers, to e-Commerce Logistics, to e-Customs Operations, to destination distribution centers, and finally to Last Mile Deliverers, who deliver goods at door steps.

Online Marketplaces are: renown e-Market Places such as Amazon, Alibaba, Lazada, 11-Street, Shopee, e-Bay, etc.; or Government provided e-Marketplace; or Off-the-shelves e-MarketplaceSoftware; or In-house developed ones. Online Marketplaces receive orders from buyers, and send daily purchase order to e-Fulfillment Centers. For larger e-Marketplace retailers, there are hundredsof thousands if not millions of orders filled by buyers daily. These orders digitally flow frome-Marketplace systems to various supply chains’ systems as well as Customs e-Paper system(for cross border e-Commerce operations). It is obvious these processes can not be done manuallyby human.

Orders from e-Marketplaces are sent electronically to sellers, who would ship goods ordered tothe Fulfilment Centers where goods can be sorted out, stored before picked, packed and shippinglabeled ready for shipping. In case a seller has his or her owned e-Marketplace system, theprocesses are similar, excepts fulfillment will be done in-housed, and the seller may either takethe packages to the Post Office, courier company or provider of his choice, or call for the serviceprovider to pick up.

From Fulfillment Center(s), packages will be shipped by a Line Haul Operator from the origin to destinations. The Line Haul Operator must send consignment data either via API (Advanced Programing Interface), or CSV file, or XML feeds to destination courier operator’s system in time for them to process electronic feeds timely to the Customs e-Commerce e-Paper or Paperless system. Presently for Thailand, we need at least at least 6 hours before each flight ETA to process raw consignment data from origin Line Haul into Customs required CSV format (e.g., eliminating all special and Chinese characters, calculating C.I.F. value, inputting correct H.S. codes for all items, electronically sorting all connotes (HAWB’s) into Catergory 2, 3, or 4, and etc.) before submitting each consignment data CSV file into Netbay’s Customs Paperless System for e-Commerce clearance two hours before the flight ETA.

After Customs clearance, packages are delivered to last mile distribution centers for final delivery to buyers. Each steps from shipment arrival, to shipments delivered to e-Commerce Express CargoTerminal, Cargo being X-rayed, shipment customs cleared (with exceptions of those being held byCustoms), Goods loaded on trucks at the Express Cargo Terminal, Goods delivered to Last MileDistribution Center, Goods picked up by Last Mile Deliverer until goods are delivered to ultimatecustomer’s door are updated electronically via e-Commerce Logistics System, or via scanners,or mobile / scanners. e-Commerce Logistics Provider is required to provide updated timestampsof each consequential event via API, or other methods.

The e-Commerce Logistics Software can also work with Post Offices for last mile deliveries.Cross Border E-Commerce Logistics Providers can also employ destination post office for last miledeliveries. Using Mobile Phones with robust scanner, Providers scan Post Office’s bar codes, or QR Code when tendering packages to the Post Office. Later updated delivery time stampscan be updated via API between Post Office’s and Provider’s systems.