Hong Kong eHong Kong e--Logistics ExcellenceLogistics ExcellenceHong Kong eHong Kong e Logistics Excellence Logistics Excellence

Anna LinVice-chairmanSub-committee on Infrastructural SupportHK Logistics Development Council

1212thth June, 2013June, 2013

Established Connecting Hub between East and West

HK as a free port• No import or export tariffs on most merchandise

Free mo ement of capital talent goods and• Free movement of capital, talent, goods and information

• No sales tax and low tax base (16.5% profits tax)( p )• No restriction of foreign ownership

World class logistics infrastructure• World’s busiest airport for international air cargoes • World’s third busiest container port• Strong transportation network with PRD

Independent legal system• Rule of law upheld by independent judiciary

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Rule of law upheld by independent judiciary

Trustworthy Gateway to tap China Mainland Market

Close economic relations• Most important entrepôt (64% and 54% re-export

from & to Chinese mainland respectively)• Largest foreign investment source (US$591.2 billion)

Ke offshore capital raising and RMB centre• Key offshore capital-raising and RMB centre• Chinese mainland as HK’s largest source of external

investment

Trusted shopping paradisepp g p• Retail sales value +9.8% in 2012 (US$57.2 billion)• More than 36M visitors, 22M from Mainland China• Overnight visitors spending +23% (US$21.4 billion)• Chinese Mainland visitor spent US$14.4 billion (67%

of total)

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of total)

Excellent e-Logistics enables End-to-end Supply Chain Visibility

Robust ICT infrastructure • Fastest internet connection with nearly 100%

coveragecoverage• Mobile penetration at 223%• 9 submarine cable systems, 17 overland cable9 submarine cable systems, 17 overland cable

system, 8 satellites for external communication• High online-security

Emerging RFID/IOT technology• Revolutionize the product information flow via• Revolutionize the product information flow via

globally connected traceability network• Transform the entire global supply chain into a g pp y

highly effective and efficient information pipeline

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Emerging Trends for Global e-Logistics Supply Chain

Over 50% of the responding companies agreed on the p g p gimportance of supply chain visibility and had supply chain visibility initiative over a year…… Increasing visibility is a critical strategy to dramatically reduce

If you can’t “see” something, you can’t measure it – and if you can’t measure it

cost and improve supply chain operation performance in the global economy.

can t measure it,it’s probably costing your business too much.

EndEnd toto end Visibility is at the heart of theend Visibility is at the heart of the5

EndEnd--toto--end Visibility is at the heart of the end Visibility is at the heart of the nextnext--generation supply chaingeneration supply chain

End-to-end Visibility enabled by Globally Connected Traceability Network

DESTINATIONHONG KONGSOURCE

Supply P t P t C t D d

Globally Connected Traceability Network

Supply

Manufactures 3PL Warehouse 3PL Retailers

Ports Ports Custom Demand

EPCDataflow

EPCDataflow

EPCDataflow

Manufacturing Consolidation Transportation Warehouse Shipping De-consolidation Distribution

ng

ctur

e

Global Traceability EPCIS Network InfrastructureEnab

linIn

fras

truc

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Global Connectivity Hong Kong traceability infrastructure (EPCIS network) is globally connected and accessible by Italy, US, New Zealand, Taiwan, y y, , , ,Singapore, Malaysia and Guangdong China to facilitate information data flow seamlessly.

Hong Kong

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Solving Business Challenges through Supply Chain Visibility

Cold Chain Management SolutionCold Chain Management SolutionTraceability network enabling visibility of goods, information flow, and thermo‐humidity status from point of source to point of destination  

Inventory Management  SolutionA solution to improve inventory management and enhance in‐stock, out‐stock and stock take efficiency

Genuine Product Authentication SolutionA solution enabling supply chain e‐pedigree visibility including channel management and anti‐counterfeiting

Consumer Mobile ApplicationA mobile app enables consumers to obtain trusted source of information and latest hot deal from brand owners and retailers by scanning barcode or QR code via

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owners and retailers by scanning barcode or QR code via smart phones

Case Sharing: I t & Q lit M t Wi

L i RFID t i & Vi ibilit Pl tf

Inventory & Quality Management on Wine

Leveraging RFID tagging & Visibility Platformto enhance supply chain visibility for better inventory and quality management.

Real Time Temperature Tracking to p gassure Wine Quality from Vineyard to Retail

Hong Kong EPCISItaly EPCIS

EPC Data Interchange / Event Query

E t E t E t E t E t

Hong Kong EPCISItaly EPCISPlace the orderOrder Fulfilled

EventUpload

EventUpload

EventUpload

EventUpload

EventUpload

EventUpload

Tag 1

Tag 3

Tag 2

Vineyard Dispatch Italy Port Hong Kong Port HK warehouse Retail

Real time temperature monitoring along supply chain

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Real Time Inventory Visibility to uplift On-shelf Availability

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Case level

Significant Values brought to Stakeholders

Before RFID tagging After RFID taggingBefore RFID tagging After RFID tagging

Inventory visibility/ O h lf il bilit

Not available 100% visibility of the inventory flow achievedOn shelf availability flow achieved

Human error prevention

Not available Automatic identification and data capture (AIDC)prevention capture (AIDC)100% via RFID technology

Increased data accuracy

80% 100% data accuracy

Better logistics Partial EnhancedBetter logistics management

Partial Enhanced

Real time product flow No All information is available onReal time product flow and temperature monitoring

No All information is available on real time basis

Case Sharing: P d t A th ti ti C ti dProduct Authentication on Cosmetics and

Consumer Electronics

Supply chain e-pedigree visibility to guard pp y p g y gagainst counterfeiting and parallel imports, as well as to better connect with consumers via mobile technology.

End-to-end Unique Supply Chain e-Pedigree

what

Overseas warehouse Transportation HK warehouse StoreFactoryWhere Consumerpy Consumer

LogisticProcess

Pack all items into carton box

Ship out all carton box

to store

Receiving all carton

box

Ready for Sell

Label associationWhen

Verify the product

authenticity

BusinessStep Packing Shipping Receiving SellingCommissioningWhy Verification

Identifi-cation

Container no.Product serial no.

Location

Container no.Location

Product serial no.Location

Container no.Location

Product serial no.Location

Product serial no Verification code

Global Traceability EPCIS InfrastructureFormation of a unique supply chain e-pedigree

Consumers Obtain Trusted Product Information

A HK sole agent of a US nail polish uses the solution to monitor logistics flow and tackle counterfeiting by providing trusted e-pedigree info to consumers. p g

Selling location:Hong Kong Retail ShopSelling location:Hong Kong Retail Shop

Before purchase

Brand Owners Fight Against Counterfeits and Parallel Imports

4 Key Types of Results:

Successfully authenticated

Already been verified

Is being recalled

Is not sellable

After purchased 1st time verification

Enhanced Customer Services enabled by S l Ch i P diSupply Chain e-Pedigree

A US headphone brand provides a quick warranty registrationA US headphone brand provides a quick warranty registration service to assist its channel management and anti-counterfeiting.

Before purchaseExtended product information to promote brand & product key features

Enhanced Customer Services enabled byS l Ch i P diSupply Chain e-Pedigree

After purchase, consumer can complete the warranty registration byAfter purchase, consumer can complete the warranty registration by simply scanning the QR code on the manual. Through this service, the brand can also better manage its sales channels and observe any abnormal distributionany abnormal distribution.

After purchased

Summary:Creating Values through HK e-Logistics Excellence

• Globally connected between east and west

• World class logistics and ICT infrastructureg

• End-to-end supply chain visibility enabled by globalized

traceability networktraceability network

• Creating values via quality assurance, operational efficiency,

anti-counterfeiting and consumer engagement

Hong Kong as a Trusted Regional Hub Hong Kong as a Trusted Regional Hub for Optimizing Your Business for Optimizing Your Business

19Photo author: Wikipedia user - Wing1990hk

Th k YThank You