English
The importance of the VWT for Korean GDP
The economy of the Republic of Korea isexport-driven with exports reaching itspeak so far in 2012 with 54.09 percent ofgross domestic product (GDP). The latestvalue from 2022 is 48.26 percent. Hence,about half of the economy depends onexports and the fluidity, reliability, andefficiency of its supply chains.Like other countries, the Republic ofKorea is dependent on predictable,environmentally sound, and costefficient flows of goods coming into thecountry, both as components being usedto produce goods to be consumed orexported. Smooth imports and exportsis a prerequisite for supply and wealth ofthe Korean society.This need drove the creation of thecargo owner-driven terminal-centricVirtual Watch Tower / VWT networkand community (www.virtualwatchtower.org), a digital solution and diversegroup of actors of the global supplychain ecosystem that joined forces inan initiative led conjointly by ResearchInstitutes of Sweden (RISE), Institute ofHigh Performance Computing (IHPC)/Agency for Science, Technology andResearch (A*STAR). The VWT is amiddleware and decentralized networkedsystem-of-systems to better deal withsupply chain challenges like disruptionsand greenhouse gas emissions. Thesolution enhances existing data sets andfreight management solutions. The VWTapplies a minimalist approach and avoidsoverlaps with existing solutions to themaximum extent possible. The cargo owners’ pain points The ones most interested in the smoothflow of goods are the cargo owners, i.e.,the transport buyers that need to live upto the promises given to their customers.In numerous conversations and workingsessions cargo owners pointed towards a lackof visibility particularly when disruptionsemerge. If disruptions are managed properlycargo owners andother actors can first,profit from cost savingswhile second, increasingcustomer satisfactionand retention whichtogether drive toplinea nd b ot t om-l i negrowth. Benefits includeavoidance of expensiveemergency air transport,freed up capital, and moreprecise emission data toachieve compliance anddifferentiation. Societygains through reducedemissions resulting in improved healthand well-being of citizens. At the core ofthe solution sit visibility and situationalawareness brought about by digitalmeans, which are a pre-requisite formanaging disturbances and disruptionswhich have been occurring increasinglyacross global supply chain networksengaging a large set of autonomouslyacting transport and logistics services. The root-cause of the challenges The cause for suboptimal supply chainperformance is seen by experts in thelack of alignment and collaborationacross supply chain networks. A situationthat many people in the industry havebeen discussing for along time.The cha llenge toovercome: each actoroptimizes their ownoperations. We have toremind ourselves thebenefits of coopetition.We can compete onthe market but cancollaborate on matterslike the mitigation ofsupply chain risksand the reductions ofScope 3 emissions. Thereward of collaborationis high. Situational awareness can translateinto more accurate calculations and betterdecision-making.Empowering a community throughcollaboration and digitalization is exactlywhat motivated the creation of the VWT. An open system-of-systems solution The VWT is a hybrid human-machinesolution. The community is built around an intelligent digital middlewarethat connects V W Ts of differentmember organizations. The VWT canbe perceived as an internet of VWTs(VWTnet). Furthermore, the VWT offerscollaboration tools like pop-up situationrooms for discussing analytical resultsand potentially align action where ofcollective interest.The VWT initiatives is supported bya range of industry partners andadvisors. This includes cargo owners/transport buyers like Alleima Tube, BDPInternational, Einride, Ericsson, Scania,and Stora Enso; logistics value chainservices providers like PSA International,MSC, Green Cargo, GDL, WalleniusSOL, and Yilport; technology firmsand equipment manufacturers such asCargotech with Kalmar and Bromma,HERE Technologies, Marine Benchmark;and knowledge partners like GothenburgUniversity, Chalmers University ofTechnology, VTT, and Umeå University.Kvarken Ports, Port of Gävle, HelsingborgPort, and the Swedish Ports Associationare also part of the emerging VWTecosystem. The community representsmain parts of the ecosystem with lotsof room to grow; new members will beonboarded along the way. The Republicof Korea as a strong export and maritimenation is particularly invited to join tobenefit from the advantages that the VWToffers. Mitigating risks System initiatives can fail as the recentdiscontinuation of Tradelens due to lack ofcommercial viability shows. Many believethat such systems need to be impartial andcarried by a spirit of collaborative effortand sharing of benefits. This spirit is at thecentre of the the VWT.The VWT project as it has been kickedoff earlier this year is conceived as adecentralized and neutrally led initiativeat the beginning of its journey towardsincreased collaboration and digitalizationfor economic and societal value. Not new but different Collaboration and digitalization arekey components to manage supplychains in volatile, uncertain, complex,and ambiguous times with an uncleareconomic outlook.Together we are stronger than alone,which is particularly true in a fragmentedself-organizing ecosystem like the globalsupply chain network where the outcomeof the whole depends on the performanceof the weakest link in the chain network. About the authors Mikael Lind is the world’sfirst (adjunct) Professor ofMaritime Informatics engagedat Chalmers and ResearchI nst it utes of S we den(RISE). He is an expert contributor atWorld Economic Forum, Europe’s DigitalTransport Logistic Forum (DTLF), and UN/CEFACT. He is co-editor of the first twobooks on Maritime Informatics, co-authorof the Practical Playbook for MaritimeDecarbonisation, and co-editor of the bookon Maritime Decarbonization. Wolfgang Lehmacher isa partner at Anchor Groupand advisor at Topan AG.The former Director at theWorld Economic Forum andCEO Emeritus of GeoPostIntercontinental is an Advisory BoardMember of The Logistics and Supply ChainManagement Society, Ambassador F&L,Advisor GlobalSF, Advisor RISE, and a memberof think tanks Logistikweisen and NEXST.He is co-author of the Practical Playbook forMaritime Decarbonisation and co-editor ofthe book on Maritime Decarbonization. Lukas Kim is … [max 50word bio]Currently a senior manager atNSONESOFT, his main scopeof work includes analysis ofinternational maritime standardsand trends, and promotion of global maritimecooperation. He recently was the operationmanager for ’23 Digital@Sea Asia-PacificConference and ’23 Workshop on EnhancingSafety of Navigation by Digital Means Grace Oh i s t h eChairperson of the SwedishChamber of Commerce inKorea. With over 20 yearsof experience at Tetra Pak,the world-leading foodprocessing and packaging solutionscompany, she currently holds the positionof Regional Communications Directorbased in Seoul, Korea. Grace comeswith a diverse global background thatspans from Hong Kong to the UnitedKingdom and is an expert of StrategicCommunication and internationalcollaboration.