UNCEFACT Supply Chains Digital Information Current Future Trends
- Slides: 40
UN/CEFACT Supply Chains & Digital Information Current & Future Trends in International Trade Mike Doran UN/CEFACT Plenary Vice-Chair 3 rd Executive Forum on Trade Facilitation, Geneva, 20 -21 June 2005 UNITED NATIONS CENTRE FOR TRADE FACILITATION AND ELECTRONIC BUSINESS United Nations Economic Commission for Europe
Agenda 1. 2. UN/CEFACT 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 UNe. Docs Project 4. A Roadmap Towards Paperless Trade UN/CEFACT
UN/CEFACT Mission To deliver trade facilitation recommendations & ebusiness 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. UN/CEFACT
UN/CEFACT Structure VISION STRATEGY TACTICAL UN/CEFACT
Agenda 1. 2. UN/CEFACT 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 UNe. Docs Project 4. A Roadmap Towards Paperless Trade UN/CEFACT
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. UN/CEFACT
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 UN/CEFACT
International Supply Chain - Many Parties Source : Complex Networked Supply Chain (Harwick, 1999 ) UN/CEFACT
International Trade Transaction Process Intermediary Customer BUY SHIP PAY Supplier Authority The International Trade Transaction Process consists of integrated and coordinated flows of information, goods & payments Source: The UN/CEFACT International Supply Chain Reference Model UN/CEFACT
International Trade Transaction Process SHIP BUY Prepare For Export Transport PAY Prepare For Import INVOLVES • • Commercial Procedures Transport Procedures Regulatory Procudures Establish Contract Order Goods Advise On Delivery Request Payment • Establish Transport Contract • Collect, Transport and Deliver Goods • Provide Waybills, Goods Receipts Status reports etc. • 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 UN/CEFACT
Trade Facilitation & Trade Security New processes to ensure the security of international trade • World Customs Organization’s Advanced Cargo Information (ACI) • US Customs 24 Hour Rule • International Maritime Organization’s International Ship & Port Facility Security Code (ISPS) • The European Commission communication on a Simple & Paperless environment for Customs & Trade UN/CEFACT
Sub Processes of the Ship Use Case UN/CEFACT
Single Windows UN/CEFACT
Meeting regulatory requirements and exchanging information with government UN/CEFACT
A Single Window The new approach - a simple, onestop solution offering official control with trade facilitation. UN/CEFACT
Business Model of the Mauritius Single 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 UN/CEFACT
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/rec 33_ecetrd 352_e. pdf UN/CEFACT
SINGLE WINDOWS Next 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 UN/CEFACT
Agenda 1. 2. UN/CEFACT 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 UNe. Docs Project 4. A Roadmap Towards Paperless Trade UN/CEFACT
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) UN/CEFACT
Paper Document Standards The United Nations Layout Key • First started in the 1950 s • During 60 s & 70 s 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) UN/CEFACT
Borders UNLK Set of standards Boxes Data Elements and Boxes
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 UN/CEFACT
e. Document Developments Elec. Tra - SITPRO (UK) Form UN/EDIFACT EDI Equivalent UN/CEFACT
Digital Document Standards The UNe. Docs Project Developing the initial work of SITPRO for international trade. Based on the following standards: • UN Layout Key for Trade Documents (UNECE Recommendation 1/ISO 6422) • United Nations Trade Data Elements Directory (UNTDED/ISO 7372) • UN/CEFACT eb. XML Core Components (ISO 15000 Part 5) • UN/EDIFACT - for EDI applications • UN/CEFACT XML Naming & Design Rules • UN/ECE Trade Facilitation Recommendations UN/CEFACT
UNe. Docs Deliverables § A Digital Document Standard for international trade documents § Business Process model derived from the UN/CEFACT International Supply Chain Reference Model § eb. XML UN/CEFACT Core Componentbased Data Model from which the set of UNe. Docs documents are derived which… UN/CEFACT
… comply with the UN Layout Key standard … UN/CEFACT
…and are delivered with box completion guidelines, … UN/CEFACT
Plus UN/CEFACT XML schemas and… UN/CEFACT
…and UN/EDIFACT message implementation guides UN/CEFACT
UNe. Docs 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 UNe. Docs 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 UN/CEFACT
Agenda 1. 2. UN/CEFACT 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 UNe. Docs Project 4. A Roadmap Towards Paperless Trade UN/CEFACT
“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 UN/CEFACT
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. UN/CEFACT
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 UN/CEFACT
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 UN/CEFACT
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. UN/CEFACT
Next UN/CEFACT Forum Meetings - 7 th UN/CEFACT Forum Lyon, France - 26 to 30 September 2005 - 8 th UN/CEFACT Forum Vancouver, Canada - March 2006 - 9 th UN/CEFACT Forum New Delhi, India - September 2006 UN/CEFACT
Mike. Doran@cern. ch For further information see: http: //www. uncefact. org UN/CEFACT
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