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)
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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