Technology that Transforms Global eCommerce Logistics Massive Opportunity

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 1970 s Direct Store replenishment by suppliers or wholesalers Mainly domestic suppliers 1980 s 'CENTRALIZATION' of deliveries through retailer distribution centers 1990 s The rise of global sourcing Overseas supplier Retail distributions centers Retail import center Retail distribution center © Copyright. 2018. Kale Logistics Solutions Private Limited Shops Domestic supplier E-fulfillment center 2000 s E-commerce model involving parcel network Shops Returns Customer home Parcel hub * Based on non-food distribution in developed markets Sortation center Parcel delivery center Local depot (urban logistics) Collection point Delivery Point

Role of Logistics in e-commerce Cash Management and Reverse Logistics First and Last Mile Delivery Management § Cash Collection and deposit as well repatriation § Managing customer returns, warranty execution, Return to origin § Reduce cost per delivery, maximize delivery person § Improve Attempt to Delivery Ratio, reduce failed attempts Visibility across Order Life cycle Market Place and Drop Shipment § Data Integration between varied systems of stake holders § Visibility across supply chain from warehouse to door delivery § Integrated logistics systems for inventory visibility Data Integration between varied systems of stakeholders § Direct shipment from vendor to customer © Copyright. 2018. Kale Logistics Solutions Private Limited

Logistics Value Chain: Complexity in operations

Air Cargo Cross Border e Commerce Supply Chain 4 2 LSP (Cargo agent)– First Mile 1 Origin Country LSP (Cargo Agent) – Last Mile 7 © Copyright. 2018. Kale Logistics Solutions Private Limited Air Cargo Aggregator q q q Bag Acceptance Attach AWB Security Scanning Manifest On Ramp Airport Handler Operation q Loading 3 q q Origin Customs Unloading On Ramp Operation Manifest Bag level Warehousing Airport Handler q Bag Level Delivery 6 Destination Customs 5 Destination Country

Air Cargo Stakeholders - Interactions 1. Purchase Order/Sales Contract Importer Exporter 17. Invoice & Packing List 18. Debit Note 14. Air Waybill 15. Credit Note 16. Debit Note 3. L/C Application 4. L/C Notification Exporter’s Bank 5. Invoice & Packing List 2. L/C Application Importer’s Bank 6. Invoice & Packing List 7. Certification Request 8. Invoice & Packing List 9. Certificate of Conformity 46. Freight Arrival Notice 47. Handling Forwarder 57. Transport Order 28. Receipt Transporter 27. Transport Order Insurance 24. Invoice & Packing List 25. Air Waybill 60. Consignee Receipt Airline Transporter 26. Certificate of Insurance 10. Invoice & Packing List 11. Letter of Instruction 12. L/C Instruction CB/FF 39. Pouch 40. Air Waybill FWB 41. House Waybill FHL 42. Flight Manifest FFM 19. Booking 20. Air Waybill FWB 21. House Waybill FHL 38. MRN 13. Air Waybill Pouch Content: • House Waybill(Paper) • Invoice • Packing List • Certificate of Origin • Regulatory Documents 58. Receipt CTO 29. Cargo Receipt FOH 32. Pouch 33. Customs Rel. Exp. 34. Cargo Acceptance Airport Authority 22. Air Waybill FWB 23. House Waybill FHL Customs 30. Export Goods Declaration. 31. Customs Release Exports 35. Flight Manifest 61. Air Waybill 62. Customs Fees 63. Handling Fees Airport Authority Customs 43. Air Waybill FWB 44. House Waybill FHL 37. MRN 45. Flight Manifest FFM 36. ACI 64. Handling Fees 59. Receipt 50. Invoice 51. Air Waybill 52. House waybill 53. Import Goods Declaration CTO 54. Customs Fees CB/FF 48. Pouch 55. Customs 49. Air Waybill FWB Release Imports 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 Manufacturer Invoice Packing List SLI SDDG Freight Forwarder/ 3 PL Provider House Manifests, Invoice, Packing Lists ERP Systems Declarations, Manifest Documentation System Estimated 118 copies, 258 signatures, 22 hours of key-punching during exports clearance process 3 rd Party DEO MAWB House Manifest Other shipment docs Source: IATA MAWB House Manifest Flight Manifest Airline System © Copyright. 2018. Kale Logistics Solutions Private Limited Customs Terminal Cargo Arrival, Receipt Release Order Airport Cargo Handler Carting Order , Charges receipts, MAWB, Booking Lists, Manifests

Maritime Stakeholders - Interactions 1. Purchase Order/Sales Contract Export er 17. HBL 18. Credit Note 20. Invoice & Packing List 21. Debit Note 19. Debit Note 4. L/C Notification 5. Invoice & Packing List Exporter’s Bank 3. L/C Application Importer’s Bank 6. Invoice & Packing List 29. Receipt Transporte r 10. Invoice & Packing List 11. Letter of Instruction 12. Instruction 16. L/C HBL Customs 25. Shipping Bill 26. Shipping Bill No. 36. Inspection & LEO 38. Movement Request CB/FF 67. MBL 68. Handling Fees 46. Cargo Manifest Shippin g Line Insuranc e 22. Invoice & Packing List Certificate of 23. 24. MBL Insurance ICD/CFS 27. Carting Request 30. Gate In 31. Container Weighment 32. De-stuffing + Carting Tally 35. Stuffing 37. CLP 43. Payment Confirmation 44. Gate Out 39. Forwarding 40. Pre Load List Note 41. WTR 42. Train Summary © Copyright. 2018. Kale Logistics Solutions Private Limited 2. L/C Application 9. Certificate of Conformity 7. Certification Request 8. Invoice & Packing List 13. Booking 15. 14. MBL SLI 28. Transport Order r 65. Importe Receipt 48. IGM Port Por t 44. 1 Port wise Document Warehou se Storage of 33. Cargo 34. Allocation of Empty Container 49. Via 49. Road Via Rail Customs Shipping Line 50. Clearing Payment 51. DO 48. IGM 47. CAN 66. Consignee CB/F F 45. Pre- Arrival Notice Receipt 61. Transport 58. Customs Order Examination 52. BOE -TJO -Train Summary -WTR ICD/CF 53. Container S Inspection 54. Gate In 56. Seal Cutting 55. Weighment 57. De 60. Loaded/Re-stuffing 63 Payment Confirmation Delivery 64. Gate Out 59. Out of Charge 56. 1 FCL 56. 2 LCL Transport er 62. Receipt Warehouse -Stored in Bonded Area

Collaborative Technology Platforms : Single Window and Cargo Community Systems

An end to end Digital Platform from Origin to Destination 2 1 © Copyright. 2018. Kale Logistics Solutions Private Limited

An end to end Digital Platform from Origin to Destination 4 3 © 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-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 Platform Traders Port-Community Information Exchange Other Regulatory Bodies for E-Permits/e-Certificates Exchange A regional information-exchange system or cross-border paperless trade Banks for various kinds of e-payment Insurance Companies Freight Forwarders and Logistics Service Providers Paperless Customs Internet SW Airlines Duty Free Zones Importer/Exporter/Customs Broker/Representative/othe r Stakeholders Air Port Authority etc. 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 3 Marketplace China Company Registrar Ministry of Commerce China Customs • Business Registration • China Foreign Trade Registration • Category allocation & Customs Certificate Regulatory Single Window Trade Process Electronics Goods Exporter • Identify Buyer • Identify Logistics Service Provider China Electronic Standardization Institute China Certification Center for Quality System of Electronic Industry (CCQE) China chambers of commercre • Product Certification • Quality Standardization • Certificates of Origin (COO) 2 Logistics Process Freight Forwarder / Customs Broker • File Customs declaration • Get Published Rates • Make booking © Copyright. 2018. Kale Logistics Solutions Private Limited Cargo Community Platforms Transporter Cargo Terminal Airline China Customs • Last Mile • Consignment Note • Carting Order • Terminal Charge Creation • Security and Acceptance • Customs Facilitation • Accept Booking • Issue AWB • Manifest filing • Approve declaration • Release Order • Manifest acceptance

Multimodal Trade Facilitation Platform- UPLIFT Railways Customs Broker Shipper / Consignee Forwarder Transporter Liner Web Portal UPLIFT Adapter Bank Customs Single Window Internal System Custodian/ Ground Handler Customs Broker Internal System Airlines Customs UPLIFT - A Multi-modal Trade Facilitation Platform © Copyright. 2018. Kale Logistics Solutions Private Limited Transporter Forwarder

Components of Logistics Single Window - ACS & PCS Port Community System • • Freight Forwarder/Broker 3 PL Provider Manufacturer Gate Pass Truck Number Customs Document Booking with Terminal Operator for space allotment Document Validation Allowed for Shipment Time for Shipment EIR Approval Yard Management Terminal Operator 1 Port Customs Invoice Packing List ERP Systems Documentation System Shipping Bills & other declaration doc Carrier booking Waybills, Status updates Terminal GATE Imports goods declaration, Terminal Storage Charges, CAN, DO CUSTOMS CFS Customs Air Cargo Community System Export Cargo declaration Exports manifest Cargo arrival Customs Release Order EIR Carting Approval Manifest PORT Authority Port Security Shipping Bill Imports Cargo declaration, Import manifest, Customs Release Order MAWB/House Manifest FSU Terminal Operator 2 CAN, DO, FFM, FSU Customs Broker Transport Movement MAWB House Manifest Flight Manifest Physical Flow of Cargo Airline System Digital Information Flow of Cargo Handler ACS © Copyright. 2018. Kale Logistics Solutions Private Limited PCS

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 Exporter Booking/Documentation/Tracking Forwarder Do cu me nta t ion Airline 100+ Airlines /C lea ra Job info nc Payments e Ce ic rtif s ate Payments ty Municipal Corporation of Grater Mumbai Ma nife Du ct O Unregulated Cargo Operators Pa ym en Forwarder CHA Airline ns, i ro cs do Banks st CHA Unregulated Cargo Operators stru ctio ts Loa d ing in 2000+ Agents Municipal Corporation of Grater Mumbai Chamber of Commerce Customs and Allied regulators Exporter Landside Area Regulated Cargo Services Cargo Terminal Airside Area Landside Area Regulated Cargo Services Cargo Terminal Operator Processes: Receipt of Cargo, Weightment, Screening, Storage, Palletization, Customs Inspection, Airside movement, Aircraft Loading Parameter Chamber of Commerce Customs and Allied regulators Banks Airside Area Cargo Terminal Operator Processes: Receipt of Cargo, Weightment, Screening, Storage, Palletization, Customs Inspection, Airside movement, Aircraft Loading Pre GMAX including Customs 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 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 13 Statutory Bodies 500+ truckers

Accelerating container movement a Container Digital Exchange Scenario without CODEX Scenario with CODEX • • Invoice & Packing List DO & MBL Forwarder List ing rigin ack of O EI ate &P EIR R tific Allowed for Shipment Time for Shipment EIR Approval Yard Management EIR Carting Approval Manifest 15 CFS/ICD Shipper / Consignee & & Po rt Fe e Port Terminal Operator 1 Mn TEU/annum Terminal GATE MB L Port Operator CFS Customs PORT Authority Port Security Shipping Bill 12 Vessel Operators Port Security cking List Invoice & Pa B) ration Files (S Customs Decla Container Depot (CFS/ICD) Terminal Operator 2 Customs Broker Invoice & Packing List Customs Broker Terminal Operator 1 Port Customs Invoice & Packing List ice Document Validation inal Fee Cer Invo Shipping Line EIR & Term Gate Pass Truck Number Customs Document Booking with Terminal Operator for space allotment Invoice & Packing List Physical Flow of Cargo Container dwell time from 2. 5 hours to 25 minutes One common information highway connecting all Shipment visibility based on rights © Copyright. 2018. Kale Logistics Solutions Private Limited 500+ Exporter/Importers Transport Movement Customs Document copies for port entry reduced from 15+ 400 Agents to 2 Improved capacity planning at terminal Eliminated possibility of un-cleared shipment Digital Information Flow of Cargo Shipment related documents made available for approvals & processing 300 Transporters No separate application required by Shipper, CFS/ ICD for operations Mobile App enabled on- the-go tracking Business Benefits

Digital Corridor- Powering Regional Single Windows

Trade Facilitation Platforms: Full Services Play Home Country National Single Window Logistics Single Window Destination Country Digital Corridor Regulatory Single Window Air Ocean Air Cargo Community(ACS) Airport Community System e-Manifest | e-DO Container Digital Exchange (PCS) e-Manifest | e-DO | e-VGM | UCC Customs Single Window Air Cargo Community Port Community Customs Rail/Road Community Platform Exporter/ Shipper Forwarder Customs Broker Transporter Railways Container Depot Warehouse Export Customs Carrier Export Port/Airport Import Port/Airport Forwarder Customs Broker Transporter Railways Import Customs Container Depot Warehouse © Copyright. 2018. Kale Logistics Solutions Private Limited Importer/ Consignee

Digital Air Corridor between India & Netherland A Digital Air Corridor is being established between Mumbai and Schiphol Uses Blockchain. 1 2 3 © Copyright. 2018. Kale Logistics Solutions Private Limited Connects exporters, importers, agents, ground handlers, Airlines from both stations to have real time visibility of the shipment

Digital corridor- India -Netherland- Cargonaut India- Kale’s GMAX Customs Information Export/Import/Export Customs : Customs clearance, COO, Manifest Participative Government Agency- License and Permits Participative Government Agency Security Certification Agencies Shipment Documents Status of cargo at airport © Copyright. 2018. Kale Logistics Solutions Private Limited Digital Corridor enabled by Blockchain Security Certification Agencies Shipment Documents Status of cargo at airport

Digital Air Corridor - Exports Information Flow Information Exchange Flow- Exports Freight Forwarder Origin Handler 1. FOH – Freight On Hand 2. RCS – Receive from Shipper Carrier 4. MAN – Shipment Manifestation 5. DEP – Shipment Depart View Air Cargo Community System 3. Customs Release Export Customs Shipper © Copyright. 2018. Kale Logistics Solutions Private Limited Consignee Destination Freight Forwarder

Digital Air Corridor - Import Information Flow Information Exchange Flow- Imports Freight Forwarder Origin 1. ARR – Flight Arrived 2. RCF – Receive from Flight Destination Handler 3. View Carrier NFD – Notification for Delivery 4. DEP – Shipment Depart 6. DLV – Shipment Delivered Air Cargo Community System 5. CCD – Shipment Custom Cleared Shipper © Copyright. 2018. Kale Logistics Solutions Private Limited View Import Customs Consignee Destination Freight Forwarder

Marketplace Model for Multi Modal Logistics

Trade Facilitation Platforms: Full Services Play National Trade Platform Logistics Single Window Air Cargo Community(ACS) Airport Community System e-Manifest | e-DO Logistics Marketplace Ocean Logistics Services repository Demand Supply match Price Discovery Container Digital Exchange (PCS) e-Manifest | e-DO | e-VGM | UCC Rail/Road Community Platform Exporter/ Shipper Forwarder Customs Broker Transporter Railways Container Depot Warehouse Export Customs Carrier Export Port/Airport Import Port/Airport Forwarder Customs Broker Transporter Railways Import Customs Container Depot Warehouse © Copyright. 2018. Kale Logistics Solutions Private Limited Importer/ Consignee

COMPLEX TRADE LOGISTICS SECTOR MULTIPLE GOVERNMENT AGENCIES SEVERAL COMMODITIES 36 LOGISTIC SERVICES © Copyright. 2018. Kale Logistics Solutions Private Limited COMPLEX TRADE RULES EXPORT PROMOTION BOARD /CHAMBER OF COMMERCE BILLION $ MARKET SIZE LARGE EMPLOYMENT BASE MANY WAREHOUSES/DEPOTS DISCONNECTED IT PLATFORMS MULTIPLE PERMITS & CERTIFICATIONS MULTIPLE LOGISTICS AGENCIES BANKS & INSURANCE AGENCIES

LOGISTICS e MARKETPLACE- CONNECTING THE FRATERNITY START 1 Plan end to end shipment route 10 View trade analytics 9 Online Grievance Redressal 8 7 Monitor Physical Flow of Goods 2 Check availability 3 Rate enquiry 4 a Select Freight Forwarder/Broker 4 b Availability Price Discovery e. Payment 4 c FEATURES Service Provider Rating Book ocean freight Book truck/Rail Digilocker Track & Trace Shipment 4 d Book warehouse Pay electronically 4 e 6 © Copyright. 2018. Kale Logistics Solutions Private Limited Invoice Generation 5 Exchange e. Contract 4 g Book Packaging Services 4 f Book Other Logistics services Book air freight

Logistics Marketplace Agent Rating on SLA Exporter/Importer • Dashboard • Exporter/Importer list Packing List RFQ Booking sent Regulatory Single Window Invoice Find Agent Rates Scheduling Booking Confirmation RFQ Booking sent Freight Forwarder Rates Scheduling Booking Confirmation RFQ Booking • Global Tenders • Export/Importer Booking sent & confirm Cargo Community Systems • Global Trade News • Promotions Carrier Customs Broker • List of CBs Transporter • List of Transporters Guidelines e. Trade Portal Transit Insurance e. Market Place for Exports/Imports © Copyright. 2018. Kale Logistics Solutions Private Limited

Logistics Community Technology Framework Model 1 Regulatory Single Window National Trade Logistics Platform 2 Digital Corridor Partner Countries Customs, Ports and Airports • Exchange Cargo Status • Exchange Documents • Exchange Customs Information Customs Authority Existing Trade Facilitation Infrastructure Ministry of Trade and Commerce Logistics Single Window • • Freight Forwarder Customs Broker Container Depot Warehouse Trucker Port Airports Shipping Line a b Other Participating Government Agencies Trade Market Place • • © Copyright. 2018. Kale Logistics Solutions Private Limited Exporters/Importer Marketplace Logistics Service Provider Database Services offered Rates and schedules Optimized transportation plans Bookings on Carriers Service Provider Work ratings Trade Analytics

Blockchain : Powering Digital Logistics Trade Platforms

E-Certificate of Origin- Moving towards Blockchain Destination Country Document submitted on Blockchain network Freight Forwarder / Customs Agent Co. O + invoice + packing list is applicable Prints & Submits & carries in person Exporter Customs Manual in person Co. O approval at Chambers Rejected documents sent back to Exporter Rejected Invoice & Packing List sent back t Invoice/ Packing List Verify/Approve/ Reject Invoice & Packing List Originating Country © Kale Logistics Solutions Private Limited. All Rights Reserved Approved documents stamped and handed over to FF/Custom Agent Verification, authentication and issuance on Blockchain network Transmission on Blockchain network with digital signature

e. VGM-Process Flow Shipper/ Broker Factory Stuffed Container Vessel operator VGM information of the containers that shippers provided Shipper • VGM information of the containers that shippers provided • VGM information when a terminal operator weighs a packed container on behalf of the shipper Weighment at Shipper premises/Registered weighbridge Terminal Operator Provide VGM information of the container to be loaded to carrier or terminal operator Cargo Container Depot Shipping Line Weighment at Container 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 © Kale Logistics Solutions Private Limited. All Rights Reserved Increased Security Information in advance

Blockchain in E-Phyto certificate e. Phyto is short for “electronic phytosanitary certificate”. e. Phyto 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. e. Phyto is produced, transmitted and received in XML. E-Phyto flowchart XML data transmitting NPPO of exporting country Pr Fe ed ba ck NPPO of importing country Feedback if any ss ov ce idi ng da rt po ta k ac if an b ed if a Fe Exporters © Kale Logistics Solutions Private Limited. All Rights Reserved y Im ny Faster & Simpler workflow o pr Lower risk of data loss/damage Importers Increased Security Time & cost saving Information in advance

Thank You Connect with us Kale Logistics Solutions Private Limited 9 th Floor, Thane One Corporate Business Park, Behind Cine. Wonder Mall, Majiwada, Thane (W), Maharashtra, INDIA - 400 610. +91 22 4113 4123 info@kalelogistics. in 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 are the trademarks or registered trademarks of their respective owners.