Mr. Kim_ Changbong

							                                    PROFILE


                                Kim Chang Bong




       Professor-GSCM
Department of Business Management
College of Business and Economics
Chung Ang University, Seoul

     President
Korea Association for International Commerce & Information, Seoul

      Ph.D., International Trade, Chung-Ang University, Seoul
      Visiting Scholar, John Hopkins University, Baltimore
      Researcher, Keio University, Tokyo
      M.S., International Business, George Washington University, Washington
      D.C.

Published Works (SSCI)

“Business Performance, Process Innovation and Business Partnership in the Global
Supply Chain of Korean Manufacturers,” Journal of Korea Trade, 2010

“An Empirical Investigation of the Determinants of Korean Tariffs,” Journal of
Korea Trade, 2008
Presentation Title:

Authorized Economic Operators within Global Supply Chain

Presentation Summary

Among the most important and often cited features of the rise in globalization is the tremendous
growth in international trade. Another significant feature of increased globalization is the
internationalization of production.     International trade and production are two integral
components of the global supply chain, which is increasingly becoming more complex and
challenging to manage. The dissemination of Authorized Economic Operators (AE0) within the
Global Supply Chain participants will inevitably have an impact on intra-regional and inter-
regional supply chain operations. This presentation focuses on four critical areas of Global
Supply Chain Management (GSCM) that will be impacted from AEO interjection within the
Global Supply Chain.      The four areas or key points of the presentation are:        1) Vertical
Specialization, 2) Business Partnering, 3) Risk-Management and 4) Competitive Advantage of
global supply chain participants. Vertical Specialization occurs when a country uses imported
intermediate parts to produce goods for export. Manufacturers in the global supply chain,
especially those producing high-technology goods, have gradually been increasing the foreign
value added content of their final products through vertical specialization. This requires reliance
on numerous overseas suppliers, and AEO - as a globally standardized customs system - is
becoming a component of “best practices” among vertical specialization partners. Business
Partnering is a significant factor in increasing business performance among Global Supply Chain
companies. In establishing a business partnership with the global supply chain, companies must
meet each other’s requirements such as ISO certification. Since AEO has become one
requirement in global supply chain business partnering, AEO could facilitate business partnering
among Global Supply Chain companies. Risk Management within the Global Supply Chain
refers to preventing disruptions along the global supply chain. Global Supply Chain participants
at country ports of entry such as customs brokers, terminal operators focus on speed for clearing
cargo through customs, and AEO certification for those Global Supply Chain participants will
reduce the uncertainties and risks during customs clearance of imported goods. The presentation
begins by explaining “what is” Global Supply Chain Management (GSCM). The presentation
then explains the significance of each area to GSCM, how AEO interacts with each area, and
how each area can benefit from AEO..        The conclusion of the presentation reviews the
significant impacts of AEO interjection into GSCM and it forwards suggestions to GSC
managers on how to prepare for such scenario.