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An emerging open economy
Thailand is the second-largest economy in ASEAN after Indonesia and is an upper-middle-income country with an open economy. Thailand’s economy has depended on international trade and maritime transportation plays an important role to Thailand’s trade i.e., 80% of all export and import volumes are transported by sea.
Pandemic and the uncertainties
During the COVID-19 pandemic, like other countries Thailand too faced lower demand. Moreover, Freight Forwarders were unable to communicate with customer/other parties in supply chain to quickly resolve issues. On the other hand, inability to track and trace consignments; and timeliness of shipments in reaching their destinations within scheduled or expected delivery times as well as inability to adopt new technologies to enhance operational efficiency were among the key pressing challenges.
Flawed traditional process
Traditionally, shipping lines permitted the pickup of imported cargo through a paper-based Delivery Order. The importer or his Customs Broker (CB) would submit a physical copy of the Delivery Order at the counter of the shipping line/airline, pay the charges, and hand over the paper copy of the Delivery Order to the warehouse operator at port/airport. However, this transaction involved manual exchange of physical copies. It also involved the importer/CB visiting offices of multiple carriers and consolidators, waiting to make payments and thereafter waiting for document approval.
Wanting to transform
Our client is an industry association of freight forwarders, and needed a system which will support preparing the e-DO request without manual data input for its members. In turn, they intended to move towards 100 per cent e-Delivery Order generation in the coming few years.
Supporting paperless trade initiatives
The Electronic Delivery Order (e-DO) has enabled the entire process to be executed electronically, without physical visits and queue wait times, which resulted in the complete elimination of physical copy of Delivery Order supporting paperless trade initiatives.
Kale developed a web service interface mechanism for fetching the manifest files details from Shipping Lines Manifest folder and populate same in e-DO system. e-DO system has reconciliation reports which can be generated on various parameters such as for stipulated date and time frame, particular e-DO request, etc. Kale developed a web service interface mechanism for fetching the invoice details along with charge code, amount and populate same in e-DO system.
Kale’s e-DO system have various payment mechanism such as PDA, Payment gateway with Corporate Banking, Private Banking, Debit Card payment, Credit Card Payment, QR Code based payment, etc. e-DO system already two-way authentication mechanism, digital signatory and SMS.
Widespread Adoption and Business Success
Currently, over 1500 agents of the association are actively utilizing this platform and nearly 3000 transactions of e-DO are taking place everyday. The number of transactions are soaring day after day and in the next year, the number of transactions are expected to soar leading to 100 per cent adoption and continued business success.
Business Benefits
Elimination of paper-based processing
Higher time savings
Increased cost savings
Increased data accuracy
Secured transactions
Faster revenue realization
Benefits to Customs Broker / Freight Forwarders:
Benefits to Shipping Line / Line Agent:
Testimonial
“The benefit we derive from the CODEX e-DO is that we can reduce traffic at our counters because customers no longer need to obtain a paper document to exchange or receive goods. Additionally, customers can save time and cost for delivering physical DO copies to their offices in different locations for cargo delivery. The digital transfer of documents and reduction in manual processing meanwhile increase security and minimise the possibility of error.”
