Facilitating Regional Competitiveness

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Facilitating Regional Competitiveness
REGIONAL WORKSHOP on the HARMONIZATION OF
TRADE DATA REQUIREMENTS in SOUTHEASTERN
EUROPE and POSSIBILITIES FOR PAPERLESS
DOCUMENT EXCHANGE
The South East Europe Project
21 November 2007 Hotel Continental, Belgrade
John A. Clendenin, President CEO PO Box 3171
15 La Grange Frederiksted St. Croix, VI 00841
Phone [phone] Cell 617.480.0001 sport_at_IC
Logistics.com www.ICLogistics.com
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Overview

• Regional TDA Project
• Macedonia - Lead
• Bulgaria
• Serbia
• Integration of Country Single Windows
• Focus on SMEs Business Productivity
• Pilot to demonstrate UNe-Docs and WCO
  collaboration
• Agreed and signed at the Ambassador level
• Seeking Government Private Partners

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Complexity of the International Supply Chain
Suppliers
Manufacturers
Carriers
Importers
Consumers
Information Flow
Product Flow
Money Flow
It is estimated that the average customs
transaction involves 30 different parties, 40
documents, 200 data elements (30 of which are
repeated at least 30 times) and the re-keying of
60 to 70 of the data at least once. United
Nations Council on Trade and Development
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Access to Trade Data Requirements
This documentation contains core information
which governs the shipment of goods.

• Party Information
• Carrier
• Financial institutions
• Ultimate consignee
• Route information
• Country/point of origin
• Destination

• Party Information
• Source
• Agent
• Inland carrier (origin)
• Value of goods
• Route information
• Method of shipment/mode to forwarder
• Inland route (origin)

• Party Information
• Ocean carrier
• Route information
• Port shipped
• Port unloaded
• Port of US destination
• Ocean route
• Voyage number
• Vessel

• Party Information
• Customs broker
• Delivery carrier
• Route information
• Delivery route

• Party Information
• Inland carrier
• Route information
• Pier
• Transshipment ports
• Inland route

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Electronic Trade Documents
Trade documentation must precede and accompany
shipments to the Ports.
Form Families

• En Route
• Bills of Lading
• Customs Forms
• Delivery LOI
• Final Invoice
• Transmittal Letter
• Vessel Manifest

SHIP

• Materials
• Transport
• Payment
• Insurance

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The Industrial Enterprise Applications Market
Customer Interface Applications
Customer Support
Sales Marketing
Field Service
Order Entry
EDI, Internet
CUSTOMERS
Core ERP Functionality
Suppliers
Warehouse Mgt.
Forecasting, Scheduling, Planning Optimization
Logistics
MRP II, III
Accounting
Human Resources
Time Attendance
MES
Maint. Mgt.
Quality Control
viewed from 30,000 feet
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The Supplier Maze
Nth tier
3rd tier suppliers
2nd tier suppliers
1st tier suppliers
OEM
Customer
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Complete Supply Chain Integration
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Trade Facilitation Questions to Consider from
the position of the SME

• Competitive Positioning
• Products / Services, Markets, Competitors, Value
• Economic Positioning
• Revenue Model, Cost Model, Asset Model
• Enterprise Resources and Design
• Resources, People / Partner, Processes, Power,
  Infrastructure
• Business Performance
• Operating Margins and Business Performance
  Company Image, Reputation, and Benchmarks

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Key to Supply Chain IntegrationData Visibility
Between Suppliers and Customers
Supplier Profile Data Needed Once
Performance Data Needed Quarterly
Ongoing Supply Data Needed Weekly
Name Address NAIC Code Special Status
Core Mfg Capabilities Capacity Information
Quality Certifications Special Awards
Supplier Assessment Results
Quality Metric(s) Cost Metrics(s) Delivery
Metric(s) Responsiveness Metric(s)
OEM-specified Metrics
Product Number Description Inventory
Balance Work in Process Sales Price Min.
Order Quantity Invoice(s) Specification
Revision
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eBusiness Roadmap
.com

• Seamless connectivity to back-end system(s)
• Minimize/eliminate manual input on transactions.
• B2B automated processes

Integrated
Level 5

• End-to-end
• Fulfillment
• Workflow

• Secure transaction processing
• Online payment authorization
• Authentication and validation

Transactional
Level 4

• Online orders, payments
• Order tracking, queries
• Funds transfer0

• Web site connectivity to database application(s)
  and email accounts

Interactive
Level 3

• Registration
• Forms
• E-mail

• Web site Content
• development updates

Static
Level 2

• Advertising
• Marketing
• Information

• Internet access through ISP
• Email accounts

Access
Level 1

• No company web site
• Can access other sites

No Capability
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Submission of Trade Documents - Current situation

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Single Window Approach

• a simple, one-stop solution offering official
  control with trade
• facilitation

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Region Single Window Initiatives

• Macedonia, Bulgaria and Serbia have initiated
  Single Window Initiatives.
• Each Country at a different level of
  implementation.
• Each Implementation is focused internally.
• Not one country is looking at a regionally
  approach.
• Focused from the national perspective and not
  from the SME perspective

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Technical Assistance

• Macedonian Customs Administration was awarded a
  USTDA Technical Assistance Grant for the
  following goals and objectives
• Analyze the current regional implementations of
  the single window concept.
• Analyze understand and integrate EU, UN and WCO
  guidelines.
• Perform a Gap Analysis on these implementations
  and determine what actions are missing from a
  regional implementation from the perspective of
  the small and medium sized enterprises (SMEs).
• Demonstrate how technology can be used to move
  goods through regional borders with greater
  efficiency and fewer delays from the perspective
  of the SME.
• Demonstrate how trade related information and/or
  documents need only be submitted once at a single
  entry point to fulfill all import, export and
  transit related regulatory requirements-sharing
  of data among cross border agencies.
• Contribute to key areas of economic growth
• Leverage this effort in connection with TTSFE 2
  projects and major procurements.

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MANAGING Trade Facilitation From Function to
Process . . .
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4.12 MANAGE MATERIAL MOVEMENT
5.7 Selling Process
5.8 Order Fulfillment Management
Site Prep Status,
Asset Movement Planning
Service Support Status
Solution Implementation Plan
4.3 Manage Demand Fulfillment
Delivery Status
4.3 Demand
Customer Order Ship Direction,
Material Movement Instructions
Removal Order Instruction
Legislature
Move Ordered Items
Transport Schedules Shipping Documentation
Customers
Delivered Items
Transport Regulations, Documentation
Specifications
Delivery/ Removal Carriers
Returned Items
Riggers
Delivered Items
6 Customer Services
Returned Items
Riggers,
Transport Equipment
Materials Ordered,
Items for Re-mfg / Repair / Strip
Stocking Echelon Replenishment Deliveries,
Interplant Deliveries,
4.8 Manage Inventory
4.8 Manage Inventory
J-I-T Inline Materials,
End Items/ Modules,
Items for Re-mfg/ Repair/ Strip
Materials Ordered,
Prepare and Consolidate for Delivery
J-I-T Inline Materials,
End Items/ Modules,
4.2 Design Physical Infrastructure
Set Up Materials Tools
Processes
Tooling
Ready for Ship Items
4.10 Perform Build Operations
4.10 Perform Build Operations
4.11 Configure Integrate Products
Finished End-items/ Modules,
Defective Materials
End Items/ Modules,
J-I-T Inline Materials
Scrap Dealer
Scrapped Items
2.8 Facilities Management
4.11 Configure Integrate Products
All Processes
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Level 3 Process Example - S1 Source Cargo Product

Material Pull Signals Material Inventory
Location WIP Inventory Location Finished Goods
Inventory Location
Source Execution Data Sourcing Plans Replenishment
Signals
Inputs
Purchased Materials
S1.1
S1.3
S1.2
Process Elements
Schedule Material Deliveries
Receive Verify Material
Transfer Material
Inventory
Procurement Signal Material on Order
Receipt Verification
Outputs
Defines the process elements contained in each
process category in the SCOR toolkit
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Data Sharing
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Integrated AIDC Enablement
Driver Passenger Identification
End-Item Pallet RFID
Truck
. . . Real-time Solutions that Enable
web-based Data and Document Management
Biometric Authentication
RFID Reader/Antenna
RFID Reader/Antenna
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Bulgaria
Serbia
Macedonia
SMEs
Border Crossings
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Shipper LOI Authorization
Shipper or his Authorized Agent hereby
authorizes the above named Company, in his name
and on his behalf, to prepare any export
documents, to sign and accept any documents
relating to said shipment and forward this
shipment in accordance with the conditions of
carriage and the tariffs of the carriers
employed. Shipper guarantees payment of all
collect changes in the event consignee refuses
payment. The Company is to use reasonable care in
the selection of carriers, forwarders, agents,
and others to whom it may entrust the shipments.

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Shippers Export Declaration (SED)
BOX 30 I certify that all statements made and all
information contained herein are true and correct
and that I have read and understand the
instructions for preparation of this document,
set forth in the "Correct Way to Fill Out the
Shippers Export Declaration." I understand that
civil and criminal penalties, including
forfeiture and sale, may be imposed for making
false or fraudulent statements herein, failing to
provide the requested information or for
violation of U.S. laws on exportation (13 U.S.C.
Sec. 305 22 U.S.C. Sec. 401 18 U.S.C.
Sec. 1001 50 U.S.C. App. 2410).
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Commercial Invoice UNeDocs
Invoice clauses It is hereby certified that
this invoice shows the actual price of the goods
described, that no other invoice has been or will
be issued, and that all particulars are true and
correct .
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SME Interface and Transaction Process

• Business Partners
• SME (Importer Exporter)
• Prime (Importer Exporter)
• Freight Forwarder
• Shipping Agent
• Customs Broker
• Banks
• Customers
• Government
• Licensing
• Certifications
• Crisis Management

Data Sharing Process
0 1 0 1 1 1 0 1 0 0 1 0

• Macedonia I.B.M.
• Integrated Border Management
• Customs
• Customs Warehouse
• Inland Customs
• HQ Customs
• Border Police
• Veterinary
• Phyto-Sanitary
• Agriculture
• Weights Measures
• Crisis Management

Internet
Data Sharing MOUs

• Other Borders 2
• A. Single Window
• B-1 Single Window Integrated
• B-2 Single Window Interfaced
• C Single Window Transaction

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Parties Involved with the Movement of Goods

• Business Partners
• SME (Importer Exporter)
• Prime (Importer Exporter)
• Freight Forwarder
• Shipping Agent
• Customs Broker
• SME Transporter
• SME Carrier
• Banks
• Customers
• Government
• Licensing
• Certifications
• Crisis Management

• Macedonia I.B.M.
• Integrated Border Management
• Customs
• Customs Warehouse
• Inland Customs
• HQ Customs
• Border Police
• Veterinary
• Phyto-Sanitary
• Agriculture
• Weights Measures
• Crisis Management

Data Sharing Process

• CORE
• International Stds
• IATA SITA
• WCO
• UN/CEFACT, UNECE, UNCTAD
• ISO, IMO, ICAO, ICC
• Data Standards
• Messages
• Unique Consignment Reference
• TIR
• Financial Banking
• Exchange Rates
• Tariffs

• COMMON
• Trade Coalitions
• NAFTA
• ITP US UK
• European Union
• ITMS
• TARIC
• TQS
• EBTI
• SMS
• ISPP
• NCTS
• VIES

• UNIQUE
• Duty Drawback
• Temporary Import
• Customs Warehouse
• U.S. ITDS, FACET, ACE
• Mauritius MACSS
• Trade Net Crimson Logic
• Sweden VCO
• Virtual Customs Office
• Netherlands Cargonaut

Data Sharing Process
0 1 0 1 1 1 0 1 0 0 1 0
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ICLogistics Trade Facilitation Architecture
Forwarder Customs
Border Customs - MK
Customs Terminal Stip
SME
Forwarder
Border Customs - SR
0 1 0 1 1 1 0 1 0 0 1 0
Comments
Document
Signatures
Stamps
Static Dynamic data Time Who Location
Authentication Comments Signature Stamp
Trade Document
Web Services Reports
Secure access to Custom Reports Border
Police Agriculture Phytosanitary
Multiple Data Formats (Flat Files, Comma Value,
XML)
Multiple Data Structures (Fields, Records, GUI,
Language)
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SEE Birkhart Trading Partners
Birkhart Serbia Mexican Company
Aluminum Castings Manufacture
Macedonia New Trend USA Tool Tie
Serbia Serbia Warehouse
e-mail
RFQ for tooling 3-D specs DWS
RFQ for tooling 3-D specs DWS
e-mail, paper
Quotation response
Quotation response
e-mail
Requirements Planning Engineering Scheduling Man
ufacturing
paper
Purchase Order
Quotation approval
e-mail
exchange revisions to 3-D specs DWS
e-mail
e-mail
-Receive Tremec quote requests Metz quote
-Approve Metz quote and send PO to Metz -Send
die set to Metz -Approve eng.
changes -Recv/Test new tooling -Send report to
Tremec -Send samples to Tremec -Get final
approval
Samples? Reports Get final approval
e-mail, paper
e-mail, paper
Scarl Fair
ERP
SFair Client
Carrier Tracking Systems
Carrier Tracking Systems
future
RFQ for tooling 3-D specs DWS
Bk Warehouse
MK - Stip
BK - Serbia
Supplier Collaboration utilizing web-based data
and document management
Birkhart Germany Auto MFG
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Web Interface
SEE Regional Trade Management Pilot
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Net-Centric Infrastructure Implementation Benefits
Reduce operating costs by eliminating fax, phone,
manual data entry and related errors
Accelerate the cash-to-cash cycle
Improve on-time delivery and customer satisfaction
Reduce inventory and obsolescence costs by using
shared information
Access information globally whenever and wherever
it is needed
Increase SME opportunities via increased web
presence
Improve on-time delivery and customer satisfaction
Monitor and improve supplier performance Increase
inventory and schedule visibility
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Trade Facilitation Goals

• To strengthen the capabilities of SMEs
• Trade Competitiveness
• Assure SME Sustainability
• Reduced Costs for SME
• Improved Asset Management
• Information Technology Integration
• Interoperability
• Transparency
• e-Governance
• e-Procurement

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The Developmental Challenge

• Develop technology improvements to help
  Facilitate Competitiveness.
• Offer SMEs more value and opportunities that
  will enable growth and prosperity.
• Provide the Tools that will enable the SME to
  compete in the 21st Century.
• Be Ready for business change Global competition
• Creating an adaptive and agile management and
  organizational culture
• Become Technically Tactically proficient
• Internet and information systems integration and
  deployment
• Benchmark for quality effectiveness
• Adopting quality and benchmarking techniques as a
  competitive strategy
• Balance Costs, Inventory, Customer Service
• Creating value by striking the right balance
• Enable the SME to gain potential Market access to
  respective Industry Supply Chains.
• Enable purchase organizations/Primes to have
  minimal risk visibility down to new prospective
  sme/suppliers.
• Provide a single-thread e-Commerce solution for
  the entire supply chain process

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The Project

• Duration- 7 months
• Cost- Funded
• No impact to current national programs and
  projects currently underway
• Minimal or no impact to Border Crossing /normal
  operations
• Agencies provide points of contact and time
  allowed for interviews
• No cost to SME (4-10 per country/trade sector)
• Voluntary SME involvement/free equipment/free
  training
• Project will be conducted in five phases
• Analysis of current programs
• Develop a Regional ICT Architecture
• Develop Implementation plan
• Implement a prototype demonstration
• Analyze Results and develop future strategy
• Project will be centered around three regional
  conferences
• Goal- To provide results that may aid and speed
  current implementations of National programs and
  determine if a solution can be recommended to
  link cross border agencies that will increase the
  flow of goods