As expressed in the November 2010 Leaders’ Statement in Yokohama, Japan, “Businesses have become larger and multinational in scope, tapping into supply chains that transcend traditional economic and geographic boundaries.”  Yet research into Chokepoint 3 of the Supply Chain Connectivity framework endorsed by Ministers that year, revealed that SME Logistics Service Providers (LSPs) in the region lack capacity to provide cross-border logistics services consistent with the supply chain needs of new and evolving business models. The large majority of SME LSPs in the survey continue to operate local supply chains limited to their own economy and borders due to a lack of awareness of foreign economy information, policies, and trade related resources.

This initiative is an effort to improve awareness of the changing international business situation, while promoting awareness and proficiency in modern supply chain practices and advanced logistics technologies. It will culminate with the development of the International Logistics Support (ILS) pilot network, which is a website designed to enhance the ability of SME LSPs to provide efficient cross-border logistics supply chain services by providing them with relevant cross-economy logistics-related information. The network will be designed to draw usage by SME LSPs by considering their existing internal resources and capabilities while presenting information in localized format and language. This initiative will be implemented in two parts:

Part 1: Train the trainers---Awareness Building and Capacity Enhancement for Adoption of Technology Advancement and Best Practices (2012 – 2013): Conduct research and development studies and hold training courses that will promote awareness of current and emerging business models, advanced logistics technologies and modern supply chain practices available given existing SME LSP resource availability. We will invite organizations focused on development of LSP sub-providers, as well as those with valueable experience and knowledge in the industry . Enhancing   the ability of economies’ logistics associations to train the trainers will be an effective and pragmatic approach to enhancing LSP sub-providers’ capacity; therefore, this project will identify key SME LSP development and support bodies (e.g. local logistics associations) in each APEC economy and invite them to the training courses. For sure, the LSP sub-providers recommended by each economy are also welcomed to the training.  To ensure a broad perpsective the organizers will look to organize one of the training courses in an economy with a relatively high performance logistics environment.

Fall 2012, Venue TBD – Training course I, Promoting Awareness of Emerging Int’l Business Models and Adoption of Advanced Logistics and Supply Chain Technologies

This session will focus on advanced technologies and their emerging usage in the changing global supply chain environment to assist the evolving and changing needs of international business. The training course will include building awareness in recent technology developments and how these technologies can be integrated to support emerging international business models, and further hold discussions to investigate their possible application to SME LSP given their existing resources and realistic development potential.

Fall 2013, Venue TBD – Training course II, Promoting Awareness and Adoption of Modern Supply Chain Practices under Current APEC Economies’ Cross-border Policies and Business Environment

This session will focus on promoting awareness of modern supply chain practices, as well gaining feedback on supply chain model research done throughout this initiative. One of the focuses will be on the governmental policies affecting the logistics sector, the overall business environments in the APEC region, and reviewing best practices for operation in these settings. This session will review and promote best practice examples to facilitating cross-border trade using existing SME LSP resources. Further, key performing logistics models will be presented such as those engaged in the Suzhou Logistics Park, while the potential applications and benefits of the new International Logistics Support network in development will be reviewed and discussed with participating economies.

Part 2: Establishment of the International Logistics Support (ILS) Pilot Network (2013 – 2014): The ILS Pilot Network web portal will serve as a repository for logistics related information and a platform for cross-economy cooperation for LSPs in APEC region. It will use a central hub with nodes that will include relevant information from governments or logistics organizations from participating economies that can be shared. Participating economies can decide what existing economy-wide hyperlink(s) of logistics information could be included as nodes to this central hub. All these hyperlink(s) provided by government or the private sector in the participating economies are managed and owned by the information providers. Meanwhile, existing APEC resources such as the APEC logistics website (http://www.logistics.apec.org/) and customs-related websites developed by the SCCP will also be linked with and integrated into the central hub, providing a central access point for APEC logistics related resources. Through an economy’s node, the centralized hub will display different modules of cross-border policies, regulations, documentation and other  logistics related information across economies participating in the ILS Pilot network. A benefit of the ILS Pilot network is that LSPs can go to this centralized hub for logistics information in a much easier and more efficient way, which will facilitate communication between LSPs, logistics associations and regulators in the APEC region.

For the duration of this project, we will create an initial network of the hub and work with a few pilot economies to develop the first nodes of the ILS network by providing hypertext links for relevant information to the logistics sector. The pilot version of the ILS network will include local information on China and a few other pilot economies delivered through a website that will:

The initial funding provided for this project will be sufficient for implementing the ILS Pilot network in participating pilot economies.  Possible types of information that could be included are development of frameworks and information collection, research and development of models, key cross-economy policies and information, make it easier to find specific information, as well as development and maintenance of technical infrastructure for the central hub. Once established, keeping information up-to-date and costs related to maintaining the technical infrastructure of the ILS Pilot network should be minimal. However, expansion into other economies will depend on reactions to the pilot program, level of success and additional funding.

Linkages between Part 1 and Part 2: Part 1, as a training-oriented action, will not only help build awareness of advanced business models, practices and logistics technologies, but also create a channel to improve economies’ understanding of obstacles that  LSPs’ may face when doing business in the region. With a strong reference to such information, in Part 2, the ILS pilot network design will endeavor to address LSPs’ needs and frustrations through constructing an informational portal where the typical LSP may access logistics associations, financial support groups, and other relevant organizations in each economy. In turn, this portal will contribute to future training as a useful reference tool of resources and information related to the logistics sector in participating pilot economies.