e-Documentation: Design and Delivery

e-Documentation: Design and Delivery

Atif Irshad Consultant

ChainTrack Systems

e-Documentation: Design and Delivery

1. Global Electronic Trade

2. Global Requirements

3. Business Benefits of e-Documents

e-Documentation ‘Design & Delivery’ Reducing costs, achieving compliance & document processes

December 2010

Global Electronic Trade

Trade Intermediaries

What is B2B trade process?

What is Business/Export Documentation?

Wide variety of documents that the exporter needs to complete to ensure that the order reaches its destination quickly, safely and without problems.

The export process is more complex today

Function of export documentation

Export documentation may serve any or all of the following functions:

Export Declaration a declaration of goods exported Shipment Status Provides status of shipments in terms of

dates, times, locations, routes, and identification numbers Purchase Orders Captures purchase order information for

goods and services Commercial Invoice is used to determine value and duty. Bill of Lading Provides detailed shipment bill of lading

information Advance Shipment Notice Offers advance notification of

shipment details and contents Shipment Information Provides bill of lading, rating, and

scheduling information

The Paper Documentation Process

Seller: AccountReceivable (AR) Print Paper

InvoiceCollate& Post

Postal Service

Seller Buyer

Buyer: AccountsPayable (AP)

File Copy

PaperInvoice

File Orginal

Electronic Delivery

Electronic StorageElectronic Storage

Invoice Validation

AuditAudit

Area’s of change to address e-Invoicing

The paper path

The e-Documents Process

Framework for electronic Communication

Customs Interfaces Reports and Statistics Freight Documentation Internal Data Exchange Communication Services Purchase Order

Information Supply Chain Management Warehouse Information Shipment Information Tracking and Tracing Electronic Invoicing Data Conversion

CustomsFreight ForwarderSubcontractor

CarrierCustomerSupplier

e-Business Roadmap

a

b

d

c

What are the options?

e-Documentation: Design and Delivery

1. Global Electronic Trade

2. Global Requirements

3. Business Benefits of e-Documents

e-Documentation ‘Design & Delivery’ Reducing costs, achieving compliance & document processes

December 2010

Global Requirements

  Multitude of documentary requirements

involved in physically exporting Maze of documentation.

Compliance + Productivity

Success in today's compliance environment is reliant upon secure, efficient movement of large quantities of data.

Redundant keying, duplicate entries and incompatible applications can all lead to reduced productivity or, worse, errors that result in delays and penalties.

Electronic Data Exchange Operational and financial data

requirements met through the Electronic Data Interchange (EDI) and Extensible Markup Language (XML) solutions.

Different Electronic formats – Use of web services to send receive core documents such as purchase orders, invoices and ship notices.

Label Printing: GS1-128 (formerly UCC-128) bar-coded and RFID labels.

Customer RequirementsCustomer

Interfaces

Aesculap BASF Boehringer Bosch BMW Daimler-Chrysler EPCOS Festo Hayes Logistic Merk Otto Porsche Quelle Siemens

Cargo Community SystemsElectronic data

exchangewith a (CCS)Cargo Community

System

Connection to ARINC [US]

CCN [SIN] Cargo Connect

[CCX/UK] TRAXON Europe

[TRX/DE] INTTRA [DE].

Customs InterfacesSystems are electronically linked to customs authorities around the

world, including but not limited to the following countries:

U.S. Automated Commercial Environment (ACE) Automated Broker Interface (ABI)

Canadian Automated Data Exchange (CADEX) Accelerated Commercial Release Operations Support System

(ACROSS) Australia - Cargo Automation Pre-clearance System New Zealand - CEDI-FIT Japan - NACCS Germany - ALFA Belgium - SADBEL The Netherlands - CARGONAUT France - SOFI United Kingdom - AMS2000 Sweden – TDS Dubai – MIRSAL 2

Common Communication Models

Buyer SellerService

Buyer Seller

Pap

er or

Em

ail

Pap

er or

Em

ail

Buyer Seller

Buyer Seller

E-In

voice

E-In

voice

Current Method

EDI Method(Bilateral Direct)

Software as a Service(3-Corner)

Software Solution(4-Corner)

Source ‘Final Report of the Expert Group on e-Invoicing’ November 2009 for the European Commission

e-Documentation: Design and Delivery

1. Global Electronic Trade

2. Global Requirements

3. Business Benefits of e-Documents

e-Documentation ‘Design & Delivery’ Reducing costs, achieving compliance & document processes

December 2010

Electronic Documents Design Automatic loading of export-specific data

elements not provided through the host system interface. Manifest and automatically create documentation for domestic or international shipments

Collate data for required regulatory statistical reporting in printed or electronic format and includes the facility for electronic reporting to various Customs authorities (e.g. MIRSAL, AES, CAED, NES, SAGITTA, and NCTS) .

Electronic Documents Delivery Document printing via LAN, WAN, email, fax,

remote, and PDF. Each document can be configured independently,

such that the Commercial Invoice, for example, could be setup to print 10 copies in-house, and be sent via email to the Consignee, Forwarder and internal staff.

Auto Distribution routine. Provide the facility to store user-configured profiles for the distribution (print, fax or email) of a document or set of documents to multiple recipients.

Optionally can be able to send/ receive electronic notifications in the format of your choosing to automatically update records in your freight or ERP system.

Benefits of e-Documentation Electronic business transactions with your

customers and suppliers, quickly and cost effectively trade electronic purchase orders, invoices and advance ship notices (as well as any other electronic documents required by your customers).

Web services are utilized to automatically incorporate electronic transactions such as purchase orders, invoices and shipping instructions

Ensure compliance and maintain an archive of record for reporting and audit purposes

Paper path

The cost of paper documentation

1. Paper & Envelopes2. Handling & Copying3. Postage 4. Printer Ownership

• Maintenance• Toner• IT Support

5. Storage • Floor Space• Handling

1. Handling2. Scanner Ownership

• Maintenance• IT Support

3. Storage • Floor Space• Handling

Up to €20 per invoice

Source ‘Final Report of the Expert Group on e-Invoicing’ November 2009

for the European Commission

Down stream costs - dispute management

Technical e-Documents Challenges

Savings across the business

€12 for every invoice

Source ‘Final Report of the Expert Group on e-Invoicing’ November 2009

for the European Commission

€12 for every invoice€20 saving per invoice€15 saving per invoice

Business Benefits of e-Invoicing Customer retention by fulfilling the expectations of trading

parties Quality improvement through direct communication and

elimination of errors caused by manual handling Efficiency gains through optimized and automated processes Transparency of working capital and faster payment of invoices Business visibility provides data for auditing and traceability of

orders Process improvement with faster dispute handling, decreased

reliance on paper and handling costs Cost reduction create a compelling ROI case:

Seller Side AR & Storage €15 saving per invoice Buyer Side & AP €20 saving per invoice Dispute Management €12 saving per invoice

And ‘Electronic invoicing HMRC Reference:Notice 700/63 (June 2007)’

Sources ‘Final Report of the Expert Group on e-Invoicing’ November 2009 for the European Commission

e-Documentation: Design and Delivery

1. Global Electronic Trade

2. Global Requirements

3. Business Benefits of e-Documents

Thank you & any questionsinfo@chaintrack.com

Five key points to e-Documentation

1. Store all your documents on-line

2. Send Qualified Electronic Documents

3. Track and audit all activity

4. Control the process

5. An individual signs the document