Supply Chains

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Supply Chains Digital InformationCurrent
Future Trends inInternational Trade

• Mike Doran
• UN/CEFACT Plenary Vice-Chair
• 3rd Executive Forum on Trade Facilitation,
  Geneva, 20-21 June 2005

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Agenda

• 1. UN/CEFACT
• 2. International Trade Transaction Process
• - International Supply Chain Reference Model
• - Trade Facilitation Trade Security
• - Single Windows
• 3. From Paper to Digital documents
• - Document Standards - International Trade
• - The UNeDocs Project
• 4. A Roadmap Towards Paperless Trade

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UN/CEFACT

• Mission
• To deliver trade facilitation recommendations
  e-business standards which can improve the
  ability of business, trade and administrative
  organizations within developed, developing and
  transitional economies, to trade products and
  relevant services more effectively - and so
  contribute to the growth of global commerce.
• Focus
• The worldwide facilitation of national AND
  international trade transactions, through the
  simplification and harmonization of business
  processes, procedures and information flows.

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UN/CEFACT Structure
VISION
STRATEGY
TACTICAL
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Agenda

• 1. UN/CEFACT
• 2. International Trade Transaction Process
• - International Supply Chain Reference Model
• - Trade Facilitation Trade Security
• - Single Windows
• 3. From Paper to Digital documents
• - Document Standards - International Trade
• - The UNeDocs Project
• 4. A Roadmap Towards Paperless Trade
• ?

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International Supply Chain Reference Model
The Challenge- To enable trade facilitation
e-business solutions to be developed that meet
the needs of the potential 45 Parties involved in
the execution of National and International
Trade Transactions involving Several hundred
activities undertaken in some 70 relationships
whilst recognising the variety of technical and
business capabilities of the parties and
contribute to cost savings of some 3 to 10 of
International Trade.
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International Supply Chain Reference Model
The Model consists of Text Descriptions of the
major trade processes and information Pictorial
representations of the information using Unified
Modelling Language (UML) standard A Model
linking these representations together A Catalog
of common business processes
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International Supply Chain - Many Parties
Source Complex Networked Supply Chain (Harwick,
1999 )
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International Trade Transaction Process
Intermediary
BUY
SHIP
PAY
Customer
Supplier
Authority
The International Trade Transaction Process
consists of
The International Trade Transaction Process
consists of integrated and coordinated flows of
information, goods payments Source The
UN/CEFACT International Supply Chain Reference
Model
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International Trade Transaction Process
SHIP
PAY
BUY
Prepare For Export
Prepare For Import
Export
Transport
Import
INVOLVES

• Commercial
• Procedures
• Establish Contract
• Order Goods
• Advise On Delivery
• Request Payment

• Transport
• Procedures
• Establish Transport Contract
• Collect,Transport and Deliver Goods
• Provide Waybills, Goods Receipts Status reports
  etc.

• Regulatory
• Procudures
• Obtain Import/Export Licences etc
• Provide Customs Declarations
• Provide Cargo Declaration
• Apply Trade Security Procedures
• Clear Goods for Export/Import

• Financial Procedures
• Provide Credit Rating
• Provide Insurance
• Provide Credit
• Execute Payment
• Issue Statements

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Trade Facilitation Trade SecurityNew
processes to ensure the security of international
trade

• World Customs Organizations Advanced Cargo
  Information (ACI)
• US Customs 24 Hour Rule
• International Maritime Organizations
  International Ship Port Facility Security Code
  (ISPS)
• The European Commission communication on a
  Simple Paperless environment for Customs
  Trade

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Sub Processes of the Ship Use Case
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• Single Windows

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Meeting regulatory requirements and exchanging
information with government

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A Single Window

• The new approach - a simple, one-stop solution
  offering official control with trade
• facilitation.

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Business Model of the MauritiusSingle Window

• Joint venture functioning 100 as a private
  concern
• Equity ( USD 1 million) provided by
  shareholders
• Self-sustainability perspective right from the
  start
• Activities financed from 2 sources
• a software single-user licence of 1300
• a service fee of USD 5.- per declaration
• Highly successful and profitable activity
• share value multiplied by eight since 1994
• yearly dividends 90 of funds invested

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UN/CEFACT Recommendation Number 33

• Recommendation Guidelines on Establishing a
  Single Window
• To enhance the efficient exchange of
  information between trade and government
• http//www.unece.org/cefact/recommendations/rec33/
  rec33_ecetrd352_e.pdf

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SINGLE WINDOWSNext Steps

• Developing a Standard for the Establishment of
  Single Windows
• Developing Commonly Agreed Data Structures for
  Single Windows
• Benefits have to be higher than implementation
  costs

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Agenda

• 1. UN/CEFACT
• 2. International Trade Transaction Process
• - International Supply Chain Reference Model
• - Trade Facilitation Trade Security
• - Single Windows
• 3. From Paper to Digital documents
• - Document Standards - International Trade
• - The UNeDocs Project
• 4. A Roadmap Towards Paperless Trade

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International Trade Digital Information

• Exchange of information - covers the entire
  trade transaction process
• Trade documents are the core means of exchanging
  information
• Goods cannot move faster than the information
  that controls them
• There are increasing requirements for
  just-in-time delivery, approved supply chains etc
• Added impact of security measures on information
  requirements (ACI, 24 hour rule etc)

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Paper Document StandardsThe United Nations
Layout Key

• First started in the 1950s
• During 60s 70s the UN Layout Key (UNLK) was in
  use in many countries worldwide through the work
  of UNECE UNCTAD
• In 1978 the UNLK Recommendation had gained
  world-wide acceptance and was re-named, the
• United Nations Layout Key for Trade Documents
• (Recommendation No 1 - ISO 6422)

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(No Transcript)
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UNLK Set of standards
Borders
Boxes
Data Elements and Boxes
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Market Requirements for International Traders
The ability to allow traders to move from a form
to an electronic message AND BACK AGAIN at any
point in the trade transaction
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eDocument DevelopmentsElecTra - SITPRO (UK)
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Digital Document StandardsThe UNeDocs Project

• Developing the initial work of SITPRO for
  international trade. Based on the following
  standards
• UN Layout Key for Trade Documents (UNECE
  Recommendation 1/ISO6422)
• United Nations Trade Data Elements Directory
  (UNTDED/ISO7372)
• UN/CEFACT ebXML Core Components (ISO 15000 Part
  5)
• UN/EDIFACT - for EDI applications
• UN/CEFACT XML Naming Design Rules
• UN/ECE Trade Facilitation Recommendations

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UNeDocs Deliverables

• A Digital Document Standard for international
  trade documents
• Business Process model derived from the UN/CEFACT
  International Supply Chain Reference Model
• ebXML UN/CEFACT Core Component-based Data Model
  from which the set of UNeDocs documents are
  derived which

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comply with the UN Layout Key standard
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and are delivered with box completion
guidelines,
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Plus UN/CEFACT XML schemas and
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and UN/EDIFACT message implementation guides
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UNeDocs Project - Current Status

• Project transferred to the UN/CEFACT Forum TBG 2
  - Digital Paper Working Group
• A Call for Participation in this WG launched in
  document TRADE/CEFACT/2005/27
• Feasability study carried out with OASIS - UBL
  TC for UBL 2.0 with UNeDocs alignment
• A Stakeholder Group will now be set up to
  formulate the needs documentary requirements of
  stakeholders and provide support for the
  development implementation of digital document
  standards

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Agenda

• 1. UN/CEFACT
• 2. International Trade Transaction Process
• - International Supply Chain Reference Model
• - Trade Facilitation Trade Security
• - Single Windows
• 3. From Paper to Digital documents
• - Document Standards - International Trade
• - The UNeDocs Project
• 4. A Roadmap Towards Paperless Trade

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A Roadmap towards Paperless Trade

• The Executive Forum is invited to
• Review the draft Roadmap
• Assess the current state of implementation
• Take stock of experience lessons learned, to
• Identify steps that governments business need
  to take to change to paperless

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What is a Roadmap?

• It is a tool to facilitate the passage from
  the current situation to a future commonly agreed
  objective, the implementation of paperless trade.

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What are the issues?

• Benefits who benefits how?
• Costs what are the costs who will pay?
• Policy Strategy considerations
• - Time frame process
• - Role of governments
• - Scope of Paperless Trade
• - Trade Facilitation Open Standards

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What are the next steps for the Roadmap?

• The Roadmap is not a negotiated text. It is a
  living document to establish a framework, based
  on agreed objectives, which
• Includes the input of previous Workshops
• Will include comments recommendations from the
  Executive Forum on Paperless Trade
• Will provide an initial simple tool for the
  implementation of paperless trade
• Could provide thematic input into the World
  Summit on the Information Society (WSIS), Tunis -
  Nov 05

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Development of the Roadmap

• The Roadmap will be further developed during
  the course of the Executive Forum will be
  reviewed in the closing Round Table
• Creating an enabling Environment to make
  Paperless Trade a Reality
• ..and will then be forwarded to UN/CEFACT for
  consolidation circulation.

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Next UN/CEFACT Forum Meetings

• - 7th UN/CEFACT Forum
• Lyon, France - 26 to 30 September 2005
• - 8th UN/CEFACT Forum
• Vancouver, Canada - March 2006
• - 9th UN/CEFACT Forum
• New Delhi, India - September 2006

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Mike.Doran_at_cern.ch

• For further information see
• http//www.uncefact.org