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Trends for collaboration in international trade: building a network of inter-organization information systems

Trends for collaboration in international trade: building a network of inter-organization information systems. Somnuk Keretho, PhD, Kasetsart University and Markus Pikart, UNECE

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Trends for collaboration in international trade: building a network of inter-organization information systems

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  1. Trends for collaboration in international trade:building a network of inter-organization information systems Somnuk Keretho, PhD, Kasetsart Universityand Markus Pikart, UNECE Capacity Building Workshop on Facilitating Cross-Border Paperless Supply Chain10-11 July 2013UN Conference Centre, Bangkok

  2. Objectives of this presentation • To argue that “Trade-related Single Window”* as successfully implemented in many developing economies is not the only information exchange platform that contributes positive results for trade facilitation. • But there are other types of Inter-Organization Information Systems (IOISs)that exist or that should be implemented to provide good benefits for the development of trade in the country. • Interoperability between these different IOISs (including SW) is the key success factor to future supply chain efficiency. • To propose a draft policy framework to provide an environment for establishing collaboration and interoperability between IOISs (building a network and synergy of IOISs). *UN/CEFACT Recommendation No. 33 in Single Window, published in 2005 (almost 10 years ago)

  3. Topics • A structure to classify different inter-organization information systems (IOISs) in international trade • The need for interoperability between IOISs • Creating the framework for IOIS collaboration • Conclusions and recommendations

  4. Single Window Implementation Worldwide • 71 out of 185 economies have implemented Single Window systems. • Positive results from SW implementationhave been reported. Electronic systems for trade across bordersas reported in the World Bank’s Trading Across Border Report for 2012

  5. Single Window - to enhance the efficient exchange of information between traders and government. • Single Window is a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements should only be submitted once. UN/CEFACT Recommendation and Guidelines on establishing a Single Window, UNECE, 2005 http://www.unece.org/cefact/recommendations/rec33/rec33_ecetrd352_e.pdf

  6. Some Observations- several opportunities for further improvement - • One size does not fit all- there are many different SW models & approaches, e.g. • e-Customs, Customs-Oriented Single Window • Trade- and Cargo-Oriented Regulatory Single Window • Transport-Oriented Regulatory Single Window, e.g. EU e-Maritime or Maritime Single Window • Different models other than regulatory-oriented SWs - Other types of “Inter-Organization Information Systems” (IOISs) exist and emerge for facilitating information flow among different sets of stakeholders (not just for regulatory requirements as in the original UNECE definition of SW), e.g. • Port Community Systems (PCSs) • e-Navigation • e-Freight • e-Commerce, etc.

  7. Some Observations- several opportunities for further improvement - • Different inter-organization collaborative platforms are normally created based on some closely-related processes, and consequently they establish different Inter-Organization Information Systems (IOISs), e.g. - those related to port operations, e.g. Port Community Systems - those related to transport services, e.g. e-Freight - those related to transportation regulations, e.g. maritime and clearance of ships like e-Maritime - those related to trade- and cargo-oriented regulations, e.g. NSW for Customs and import/export-related procedures of OGAs • Interoperability among those different IOISs has potential benefits, especially those involved with overlapping information among different IOISs along the international Supply Chain.

  8. Master Sea Cargo Manifest(17) House Sea Cargo Manifest (37) Export Declaration (114) Good Transition Control List (27) Application for Permission to Export Rice (KP. 2) (24) Sales Report (KP 3) (21) Application for the Collection of the Permit for the Export of Rice (A. 3) (35) Permit for the Export of Rice (A. 4) (35) Application for Certificate of Standards of Product (MS. 13/1) (44) Certificate of Analysis (17) Certificate of Product Standards (MS. 24/1) (45) Certificate of Fumigation (21) Application for Phytosanitary Certificate (PQ. 9) (29) Phytosanitary Certificate (33) Application for Certificate of Origin (42) Certificate of Origin (38) Proforma Invoice (35) Purchase Order (39) Commercial Invoice (51) Application for Letter of Credit (24) Letter of Credit (32) Packing List (25) Cargo Insurance Application Form (20) Cover Note (23) Insurance Policy (24) Booking Request Form – Border Crossing (25) Booking Confirmation – Border Crossing (30) Booking Request Form – Inland Transport (16) Booking Confirmation – Inland Transport (18) Bill of Lading (42) Empty Container Movement Request (TKT 305) (20) Request for Port Entry (TKT 308.2) (27) Equipment Interchange Report (EIR) (24) Container Loading List (28) Container List Message (32) Outward Container List (34) ACase Example Documents related to Rice Exportation that could be electronically improved (from purchase order until the cargo container leaving the sea port) 36 Documents involving 15 parties, and more than 1,140 data elements to be filled in CommercialDocs Regulatory Docs Transport Docs Currently, Thailand Single Window provides e-services mainly on regulatory documents and associated processes, but port/transport/buy/pay related electronic procedures still need to be improved. * Number in parenthesis is the no. of data elements

  9. Layers of Business Process Areas in the international supply chain International Supply Chain 1. Buy Pay Ship Transport Supply Chain 2. Transport Import Export Prepare for Import Prepare for Export Transport Infrastructure Management 3. Load/ Unload Warehouse Operations Port Operations Transport Regulations 4. VesselPiloting Permits & Certificates for Vessels Traffic Control TradeRegulations 5. Customs Clearance Other regulatory agencies’ control Agriculture Control

  10. Layers of business process areas and related IOIS systems International Supply Chain 1. Buy Pay Ship e-Commerce(e.g. Amazon) Transport Supply Chain 2. e-Freight (e.g IATA e-Freight), Track & Trace Systems Transport Import Export Prepare for Import Prepare for Export Transport Infrastructure Management 3. Port CommunitySystem (PCS), Warehouse Information Systems Load/Unload WarehouseOperations Port Operations Transport Regulations 4. Maritime SW, e-Navigation, SafeSeaNet VesselPiloting Permit & Certificates for Vessels Traffic Control TradeRegulations 5. Trade SW, e-Customs, NCTS* Other regulatory agencies’ control Agriculture Control Customs Clearance *NCTS: New Computerized Transit System

  11. Topics • A structure to classify different inter-organization information systems (IOISs) in international trade • The need for interoperability between IOISs • Creating the framework for IOIS collaboration • Conclusions and recommendations

  12. Collaboration between IOISs • To provide the complete set of services for international supply chain, different IOIS systems need to collaborate, e.g. • The links between PCS and trade SW for efficient port operations and regulatory coordination. • The links between e-Freight and PCS • However, it is not necessary to establish collaboration and interoperability between each and every IOIS systems. Instead, IOIS collaboration is only necessary when and where it creates added value for stakeholders.

  13. A Collaboration Scenario between two IOISs Transport Operators Related to a Port Regulatory Agencies Interoperability between NSW & PCS Customs Shipping Lines Food and Veterinary Terminal Operators NSW PCS Border Control Transporters Safety and Security Freight Forwarders Maritime Process Agreement, Harmonization for Data Semantics, Data Privacy/Security, Service Level Agreement, Legal Agreement Other OGAs Warehouses

  14. The Network of IOISs for cross-border supply chain Hauler Operators Sellers/Exporters Warehouses Buyers/Importers Freight Forwarders e-Trade TerminalOperators Port Community System (PCS) Importer’sBanks Exporter’sBanks Freight Forwarders Traders Regulatory Agents Haulers Port-equipment Operators A network of networks of inter-agency collaboration e-Freight MarineDepartment Ship Agents HealthDepartment Vessels Air lines Ship Piloting CustomsBrokers Maritime SW Vessel Operator CustomsDepartment TradeSW Vessel Traffic Safety Traders Terminal Operator Quarantine &SPS Agency Port Authority Other government agencies

  15. Topics • A structure to classify different inter-organization information systems (IOISs) in international trade • The need for interoperability between IOISs • Creating the framework for IOIS collaboration • Conclusions and recommendations

  16. The proposed framework for IOIS colloboration • A demand-driven strategy for IOIS interoperability • Interoperability between two different IOIS requires among others the following: • A vision for collaboration • Rules of engagement • A framework of trust and service level agreements • Common understanding of shared business processes • Common standards for data exchanges

  17. Layers of Interoperability between IOIS systems 1. Strategic decision by IOIS executives 2. Rules of engagement Strategic View 3. Service level agreements Business OperationView 5. Sematic Interoperability 4. Business Process Interoperability 6. Syntax and Technical Interoperability(data structures and technical protocols) TechnicalView

  18. Topics • A structure to classify different inter-organization information systems (IOISs) in international trade • The need for interoperability between IOISs • Creating the framework for IOIS collaboration • Conclusions and recommendations

  19. Conclusions • As the economy develops, there will be more and more IOIS systems establish. • European countries have led the development of IOIS systems. They are now increasing relevnat for Asia and Pacific countries. • IOIS systems can be clustered into layers to closely-related process areas of the international supply chain. • Policy makers need to have a balanced view in implementing IOIS systems in their country to ensure that different IOIS systems cover all process areas of the national trade. • As more IOIS systems are established in the economy, they begin to overlap in terms of stakeholders and services they provide. • Significant benefits can ve realized if collaboration between IOIS systems is established.

  20. Recommendations for policy makers • To recognize the important role of different IOIS systems for the development of trade (e.g. not just regulatory SW) • To make a national inventory of IOIS systems in the country, and to identify areas where additional IOIS systems could improve efficiency and security of the international supply chain • To negotiate at the international level a set of common principles, rules and best practices for IOIS inteoperability, and to establish these rules as an international standard for IOIS interoperability, and • To encourage decision makers of national IOIS systems to adhere to this standard.

  21. Thank you for your kind attention Somnuk Keretho, Ph.D.Kasetsart University, Bangkok sk@ku-inova.org Markus Pikart • UNECE, Geneva • Markus.Pikart@unece.org

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