Consistently Optimised Resilient Secure Global Supply-Chains

Nik DELMEIRE – European Shippers’ Council

CORE Overall Objective

Friction costs in int. Trade & Logistics

So

cie

tal r

isks

in in

t. T

rade

& L

og

istic

s

Current practises

Innovation potential

Current State of the Art

Awareness, best practices & deployment

CORE Key Innovative Concepts

Help! Rising compliance

costs for legitimate traders

and ineffective security

procedures

Challenges• Globalisation: complexity in managing fragmented value

chains

• Multiple potentially conflicting demands: lean, agile, resilient, sustainable, compliant, secure

• Changing societal threats (e.g. cybersecurity, systemic risks)

• WTO: from tariffs to trade facilitation (NTB, TTIP)

• IT & Big data (opportunity & threat)

CORE Key Concepts

Elaboration of CORE key concepts (1)The fundament: key enabling technologies1. Visibility of end-to-end supply chains and visibility of SC risks

– End-to-end: focus on upstream (consolidation): data capture & data quality– SC Risks & control visibility: situational awareness

2. Seamless Data Interoperability– Friction costs: ‘e-Freight’ business cases IATA & DG MOVE– Standardisation, semantics and data governance

3. Integration of less-intrusive (security) technologies in SC– Detection, scanning and cargo screening, Automatic identification and data

capture (e.g. CSD) and Tracking and tracing technologies– Integration in seamless supply chain processes (container scan: € 1200)– Composite container and temperature-controlled container concepts

Elaboration of CORE key concepts (2)Proactive and responsive concepts4. Advanced Supply Chain Risk Management (SCRM)

– 4T Portfolio mix: Terminate, Transfer, Tolerate, Treat– Control capabilities: preventative, corrective, directive, detective– Value chain driven: Metrics, best practices, business cases, value of trust

5. Supply Chain Resilience– External threats and systemic vulnerabilities: natural disasters, demand shocks, oil

dependence, information fragmentation, global cyber risks – SC resilience framework (WEF, 2012):

• Partnerships (e.g. harmonised traffic control measures after volcano eruption) • Policy (Multi-stakeholder risk assessment approach)• Strategy: Joint resilience adaption strategies• Information Technology: use and expand data sharing platforms

Elaboration of CORE key concepts (3)Collaboration and Recognition6. System-based supervision

– Paradigm shift from individual transactions (declarations) to auditing the corporate compliance system

– Maximise piggy backing on commercial controls and recognition of other auditable security/quality programmes

– Beyond AEO: Trusted tradelane supervision

7. Coordinated Border Management– Eliminate redundancies between different policies, regulations and

enforcement practices– Support self-structuring process based on political will and trust– Fact-finding: e.g. Potential synergies between food safety and customs

control

Contextual demo differences• Geographic spread demonstrator

tradelanes: all continents!

• Import/entry, export/exit, transit– Entry/exit modes: Sea, Air, Road, Rail – Hinterland interfaces: Road, Rail, IWT,

Shortsea

• Product related compliance: Veterinary, Phytosanitary, Dangerous goods, Strategic/dual use goods, Electronics, Automotive, FMCG, pharmaceutics

Major outcomes –> CORE Manifesto• Advanced Supply Chain Risk Management

– Deployment of innovative control capabilities – Transition in 4T-portfolio from transfer/tolerate to treat– Sound business cases for transitions

• Reduced trade compliance costs for legitimate and trusted traders – Adoption of supply chain driven supervision models – Piggy backing on business and chain controls – Boost mutual recognition of security programmes– Accelerate Coordinated Border Management

• Society better protected against supply chain security risks– Effective risk-based control and supervision – Boost collaboration B2B, B2G and G2G – Building global resilience: Agenda and roadmap

Expected impact• Friction costs in international trade & logistics

– Trade Facilitation: compliance cost reductions • NL-study (TNO): €248M reduction potential

– Other Total Landed Cost reductions• Supply chain synchronisation / optimisation

• Societal risk reduction– Resilience against systemic risks– Effective risk-based control and supervision– Boost to CSR and sustainability

• New value driven business models

Help!

Pushing boundaries!

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