project presentation inception report - trip...

D10.2.1 Public Contract N.218547

1 of 66 CERTH-HIT

SEVENTH FRAMEWORK PROGRAMME THEME 7

Transport including Aeronautics

Project Presentation Inception Report Project acronym: SMART-CM Project full title: SMART Container Chain Management

Deliverable No. (use the number indicated on technical annex)

D10.2.1

Workpackage No. WP10 Workpackage Title Project Coordination

Task No. T10.2 Task Title Technical Management

Date of preparation of this version: 02/03/09

Authors: CERTH-HIT

Status (F: final; D: draft; RD: revised draft): D

File Name: SMARTCM_D10.2.1_v1.doc

Version: 3

Task start date and duration M1-M36


2 of 66 CERTH-HIT

Revision History Version No. Date Details V1 21/11/2008 Table of Contents-Allocation of responsibilities V2 06/01/2009 Received input from partners. Drafting based on the results of the

technology concertation meetings and Demonstrators meeting V3 02/03/2009 Inclusion of extra chapter on SMART-CM focus Reviewers’ list

Name Company Date Signature

Tom Paeshuys PSA HNN 01/12/2008

Alexandra Mayr Kuehne & Nagel

01/12/2008


3 of 66 CERTH-HIT

List of abbreviations

Abbreviation Description

AEO Authorised Economic Operator BIC Bureau International des Containers et du Transport

Intermodal CIEL Computer Integrated Exchange Logistics Forwarding CPFR Collaborative Planning, forecasting, replenishment CSD Container Security Device CSI Container Security Initiative CSTS Cargo Status Tracking Server EDI Electronic Data Interchange EFT Electronic fund transfer EIA European Intermodal Association ENS Entry Summary Report EXS Exit Summary report FCL Full container Load GUI Graphical User Interface ICSO International Cargo Security Organisation IP Intellectual Properties IRIS Integrated Regional information system JIT Just in Time LCL Less than Container Load LOGIS Logistics Information System LSP Logistics Service Provider MIS Management information System NCL Non Containerised Loads NGO Non-Governamental Organisation NVOCC Non-Vessel Operating Common Carrier OCM Ocean Cargo Management PSSS Powers Secured Satellite System RFID Radio Frequency Identification ROI Return of Investment SICIS Shared Integrated Container Information System SOA Service Oriented Architecture STL Secure Trade Lane TIR Transport International Routier VMI Vendor managed inventory WIP Work-In-Process XML Extensible Markup Language


4 of 66 CERTH-HIT

Table of Contents List of abbreviations ................................................................................................ 3 Table of Contents ..................................................................................................... 4 List of Figures .......................................................................................................... 5 List of Tables ............................................................................................................ 5 Executive Summary ................................................................................................. 7 Chapter 1. Introduction to SMART-CM ................................................................ 8

1.1 Scope and structure of the report ......................................................... 8 1.2 Rationale of the SMART-CM ................................................................ 8

1.2.1 The requirements ...................................................................... 8 1.2.2 The SMART-CM Structure ........................................................ 9 1.2.3 Brief description of the SMART-CM Work packages ............... 10

1.3 The SMART-CM partnership .............................................................. 11 1.3.1 Overview ................................................................................. 11 1.3.2 The SMART-CM Advisory Board ............................................ 12

Chapter 2. Summary of main gaps & industry requirements in global container management .......................................................................................... 14

2.1 Introduction ......................................................................................... 14 2.2 Key findings of the Global Container Supply Chain Compendium ...... 14

2.2.1 Opportunities within today’s Supply Chain Management ........ 15 2.2.2 Problems in the Supply Chain ................................................. 19 2.2.3 Future Challenges in Supply Chain Management ................... 21

Chapter 3. SMART-CM focus for bottleneckes alleviation .............................. 24 3.1 Focus on Logistics (port & hinterland) ................................................ 24

3.1.1 Port operations ........................................................................ 24 3.1.2 SMART-CM focus on Port-hinterland connection .................... 26

3.2 SMART-CM focus on Security and customs bottlenecks ................... 27 3.3 SMART-CM focus on Technology bottlenecks ................................... 28 3.4 SMART-CM focus on Standardisation bottlenecks ............................. 28

Chapter 4. Sum-up of the domain requirements .............................................. 30 4.1 Sum-up of the industrial requirements ................................................ 30 4.2 Sum-up of the Customs and security requirements ............................ 32

4.2.1 Contemporary needs for the Secure trade lanes concepts ..... 32 4.3 The SMART-CM single window approach .......................................... 35

Chapter 5. Preliminary definition of SMART-CM architecture ......................... 38 5.1 Introduction ......................................................................................... 38 5.2 The SMART-CM platfom initial approach ........................................... 38 5.3 The actual SMART- CM architecture .................................................. 40 5.4 First specifications of the Platform Components ................................ 42

5.4.1 The neutrality of the SMART-CM Solution .............................. 42 5.4.2 First specification of the added value services components .... 43

Chapter 6. The global supply chains to be demonstrated in SMART-CM ...... 47 6.1 Introduction ......................................................................................... 47 6.2 The EU-Middle East Corridor ............................................................. 47

6.2.1 Container transport chain description ...................................... 47 6.3 The EU-Asia/Pacific (EU-AP) Demonstrator ....................................... 48

6.3.1 Container transport chain description ...................................... 48 6.4 Functionalities to be demonstrated ..................................................... 49 6.5 The demonstrators’planning ............................................................... 50


5 of 66 CERTH-HIT

6.6 The first phase of the SMART-CM demonstrators .............................. 51 6.6.1 Objective ................................................................................. 51

Chapter 7. The technologies to be demonstrated in SMART-CM ................... 53 7.1 Presentation of EDC technology & service platform ........................... 53

7.1.1 EDC76 Product Description .................................................... 53 7.1.2 EDC76 (Container Security Device) ........................................ 53 7.1.3 The Platform (Security and visibility layer) .............................. 54 7.1.4 EDC76 Product Roadmap 2009 – 2010 .................................. 55

7.2 Brief presentation of Industrial actors systems related to the demonstration of corridors operation. ............................................................ 56

7.2.1 Introduction ............................................................................. 56 7.2.2 K&N: CIEL – Global Container Chain Monitoring Platform ...... 56 7.2.3 DHL: OCM – Ocean Cargo Management System ................... 56 7.2.4 COSCON: IRIS 2 - Global Integrated Container Management System ............................................................................................... 57

References ............................................................................................................. 60 Annex 1: The SMART-CM Consortium ................................................................. 61 Annex 2: The SMART-CM 2nd Level User needs .................................................. 62 Annex 3: The SMART-CM 3rd Level User needs .................................................. 64 Annex 4: The Possible VAS features ................................................................... 65

List of Figures Figure 1: The SMART-CM partnership .................................................................... 12 Figure 2: The Interfaces along the global supply chain ............................................ 30 Figure 3: Methodology for requirements gathering .................................................. 31 Figure 4: Level 1 General and functional requirements ........................................... 32 Figure 5: Contemporary custom procedures ............................................................ 33 Figure 6: Restructured Customs processes through a SOA communication platform ................................................................................................................................. 34 Figure 7: Restructured Customs processes through a CSD platform ...................... 35 Figure 8: The technology agnostic approach of SMART-CM ................................... 36 Figure 9: The SMART-CM platform ......................................................................... 38 Figure 10: SMART-CM Overall functional platform .................................................. 42 Figure 11:Neutral Layer processes .......................................................................... 43 Figure 12: The framework of the Value added services ........................................... 45 Figure 13: The EU-ME Corridor ............................................................................... 48 Figure 14: The EU-AP Corridor ................................................................................ 49 Figure 15: Start-up demonstrators’ Corridors ........................................................... 52 Figure 17: Incident platform Snapshots ................................................................... 54 Figure 18: Snapshots of the visibility layer ............................................................... 54 Figure 19: Snapshot of the reporting tool ................................................................. 55 Figure 20: The DHL systems and the interface with the SMART-CM platform ........ 57 Figure 21: Snapshot of the IRIS on-line system ....................................................... 58

List of Tables Table 1: The SMART-CM Division of Work ................................................................ 9 Table 2 :SMART-CM neutrality characteristics ........................................................ 43


6 of 66 CERTH-HIT

Table 3: Customs implication in the demonstrators ................................................. 50 Table 4: First Phase of the demonstrators ............................................................... 50 Table 5: Second Phase of the SMART-CM demonstrators ...................................... 51 Table 6: Final phase of the SMART-CM Demonstrators .......................................... 51


7 of 66 CERTH-HIT

Executive Summary The report presents the overall concept of the SMART-CM project, its objectives, main components and project focus. The document provides additonal information to the project work items described in the Description of the Work (Annex I of the Grant Agreement) on the basis of the interim results achieved from the work of the consortium during this first period of the project. The report deals with the following issues in an attempt to achieve a comprehensive presentation of the added value the project may bring to the efficient planning and management of global container chains: • The SMART-CM objectives, structure and consortium • State-of-the-art, bottlenecks and challenges in the global supply chain as drawn

from the initial wok of SMART-CM • Global container chain stakeholders (freight forwarders, shipping lines, customs,

terminals) and the answer of SMART-CM • Existing technologies, concepts, current platforms used by the industry and

interfaces with the SMART-CM platform • Initial SMART-CM architecture, functionalities and interfaces between the

different layers • Presentation of the SMART-CM demonstrators and planning


8 of 66 CERTH-HIT

Chapter 1. Introduction to SMART-CM

1.1 Scope and structure of the report

This report comprises the vision for the SMART-CM project for achieving efficient and sustainable global container chains. It presents the basic expectations from the project, how these are justified by the initial findings of the research activities and which would be the further steps of the project towards the technological components development and the SMART-CM global demonstrators. The report consists of 7 chapters that are structured to highlight the added value that emerges from the activities planned in the context of the project. The first chapter comprises the introduction and a brief description of the SMART-CM objectives, project structure and partnership. The second chapter provides the initial findings of the project in the first months and how these justify the approach planned since the proposal. The third chapter synthesises these results into the SMART-CM focus regarding the alleviation of the bottlenecks in the global container chain. The fourth chapter provides the global logistics industry user needs and orientation of the SMART-CM technological solutions for container chain management. These user requirements are combined with the results from the initial findings in order to guide the next steps of the project towards the final platform definition and integration. The fifth chapter is an overview and first considerations of the SMART-CM platform design, architecture and technological challenges to be faced for the achievement of the final project output. The sixth chapter comprises an introduction to the demonstrators with their planning and first steps for their start-up. The project at its first steps relies on existing technologies, checking at a first level their proof of concept. The final chapter comprises a presentation of the main technologies that will be tested, such as the EDC technology overview and the current management systems that are used by the main industrial partners.

1.2 Rationale of the SMART-CM

1.2.1 The requirements

SMART-CM is the response to the 1st Call for proposals under the Cooperation Theme 7, Transport (Including Aeronautics) of the FP7, for the topic of “SST.2007.2.1.3 Smart supply chain management in intermodal door-to-door container transport”. One of the priorities of the EC and of the European transport policy was to improve the efficiency, security, safety of the logistics chains in Europe and in particular, through this research topic, to enhance the sustainability of the global container chains. The objective focused on the integration of three main innovation areas that envisaged:


9 of 66 CERTH-HIT

• Technologies that would enable the continuous monitoring and control of

containers and the status of the cargo • Communication systems and platforms used by the transport business

community and controlling authorities, • Supportive innovative procedures and processes in ports and terminals with the

aim to establish seamless and high capacity container transport flows in the European and global supply chains

By implementing the above these axes of innovation should lead to the shared information among the global container chain partners (operators, authorities, shippers, terminals) at a container and cargo level in order to exploit the information for added value supply chain management operations and alleviating the current barriers that torment global container logistics.

1.2.2 The SMART-CM Structure

SMART-CM, as structured and organized aims to do advanced technology implementation and research in order to overhaul the complete container door-to-door transport chain so that it is more efficient, secure, market driven, and competitive. It will systematically analyse current processes and systems, produce new innovative concepts for processes and technologies, and it will demonstrate all these in a set of 2 world scale Demonstrators. Its “view”, analyses, and recommendations fall in the following four areas ensuring a fully comprehensive coverage of the call subject:

1. Innovation/Technology, where improvements to existing technologies as well as innovative new systems are developed for: containers’ identification and monitoring devices, data integration and “intelligent” sorting through “technology neutral” platforms, cost and energy efficient

2. Commercial/market issues, where the market for container transport is analysed, and assessed

3. Business/organisational issues, where the efficiency offered by the technologies proposed is matched for innovative, lean and more efficient business and organisational structures all along the sector

4. Legal/Security issues, where the various legal issues, the security rules and regulations that apply to container movement are examined and specific recommendations/technological solutions are given for alleviating the negative impact of legal complexity in the business environment

The Demonstrators are established at the early project phase using existing on board container technologies and available dedicated management platforms with the objective to create a “living” operational environment and integrated technologies for testing all new project developments under real life container d-to-d transport. The project work structure follows the balance project approach for covering the three main pillars of the future global container transport evolution:

Table 1: The SMART-CM Division of Work The SMART-CM division of work

Business / Logistics trends WP1 covers the objective for logistics process


10 of 66 CERTH-HIT

The SMART-CM division of work and identification of processes

reengineering and better integration. The analysis is dedicated to provide assessment of state of the art and basic requirements for the design of the project solutions.

Technology development Three technology WPs (WP2/WP3/WP4) dealing with the development of SMART-CM platform technologies and services.

Market evolution Two WPs (WP7/WP9) are dedicated to maintaining the project dialog with the market actors, capture the actors’ assessment for the projects outcomes and define the business cases and the success parameters for the vast use & the exploitation of the project results.

1.2.3 Brief description of the SMART-CM Work packages

The project starts with the assessment of state of the art, gap analysis and the definition of Common requirements (WP1) for feeding the technology development works in WP2, WP3 & WP4. This WP includes common activities with the INTEGRITY project and results to a common Deliverable, D1.1.1 “Global Container Supply Chain Compendium”. For efficiently capturing the different stakeholders’ needs, dedicated workshops are to be organized in the context of this WP in close cooperation with INTEGRITY. The execution of the focused workshops involving customs and major industrial partners of the transport and logistics industry is considered part of the early dissemination and consensus building (WP8) activities of the project. The technological WPs (WP2/WP3/WP4) receive input on requirements from WP1 and the demonstrators which start early in the project with the release of the demonstrators’ Action Plans. More emphasis on the Technological issues of the project and results are to be presented in this report. The “dialogue” between SMART-CM platform development activities and the demonstrators is continuous and secures the gradual enrichment of the SMART-CM platform functionalities, supporting the achievement of substantial and applicable project solutions in real working environment. The Evaluation WP receives input from WP1 regarding Key Performance Indicators for the solutions to be applied in global container transport management. Based on a) the requirements’ conclusion, b) the SMART-CM platform architecture, c) service specification and d) the demonstrator results this WP will create a comprehensive evaluation framework for the technical and socio-economic assessment of the SMART-CM platform services will be performed. Dissemination & Consensus building activities (WP8) start early in the project and support the WP1, stakeholders’ dedicated workshops preparation, while continuing with permanent dissemination activities during the whole project execution. There are two major dissemination events that will be organized in the context of this WP.


11 of 66 CERTH-HIT

The first is an event related to the actors of the global chain involved in the demonstrators. The second one is dedicated to the final project conference, aiming to promote the solutions and techniques proposed by SMART-CM for achieving efficient, secured & trade facilitating global container chain management. Finally, the exploitation project activity (WP9) focuses on the identification and analysis of the major success parameters and business models that could facilitate the implementation and the exploitation of the SMART-CM platform components. It is already anticipated that the two SMART-CM layers (neutral layer and business logistics layer) will constitute independent and exploitable project results. Especially for the neutral layer of SMART-CM platform, the identification of the neutral organization profile that should exploit the operation of the neutral layer after the end of the project is included in the WP activities. From the above outlined WPs and activities, this inception report covers the initial activities and guidelines provided by the first stages of the project regarding requirements, technological challenges, provisional architecture for the SMART-CM platform as well as the planning of the demonstrators.

1.3 The SMART-CM partnership

1.3.1 Overview

Worlds' largest terminal operators, Logistic Service providers, Shipping companies, Technology providers and national customs organisations are cooperating within SMART-CM aiming at using State-of-art technology for making improved security for container transport, beneficial for business and logistics while responding to the challenges of the future. The fields and roles required by a solid partnership that would cover the need emerging for such a project are to the following:

• Logistics, Intermodal freight forwarders and Carriers as the user and practitioners of global supply chains

• Terminals Operators and port authorities as the nodal points in the global chains and critical for achieving seamless intermodal transport

• Technology providers for the provision, design, development and implementation of the technological components vis-à-vis communication, monitoring and control of global chains

• Logistics, Intermodal freight transport Research for coordinating, designing, implementing, evaluating and validating the SMART-CM approach

• Authorities/International Associations including regulatory bodies, standardization bodies and decision makers that influence the global supply chains framework and operational environment

Given these general roles needed to be integrated in the partnership the following figure provides the allocation of the partners in these categories.


12 of 66 CERTH-HIT

Terminal, Transport Operators

Logistics Providers Customs & Authorities

Technology Providers

Researchers & Consultants

Figure 1: The SMART-CM partnership

In summary the consortium consists of 31 partners from 11 countries worldwide abd the full list of the consortium is provided in Annex 1.

1.3.2 The SMART-CM Advisory Board

In addition to the well experience members of the consortium, an external validation and consultation body was considered necessary in order to expand the impact of the project and have direct links to the global chain community. This body has been established commonly with the INTEGRITY project and is the “Joint Advisory Board (JAB) The role of the JAB is to provide added expertise and independent opinions for the proper and timely execution of the work-plan of the two projects and advise on practical implementation/dissemination issues for the projects’ “products”. Participation in the JAB means full knowledge of the project’s main rationale and plan of work, and commitment to participate in all events planned by the Board and to deliver expert opinions and advice as requested. The specific mandate for the Joint Advisory Board consists of:

• Debating and expressing opinions on critical project milestones, results, and deliverables that are put to it by the project management.

• Advising the project management and the steering committee of the project on methodological and planning issues.

• Supervising the validation – evaluation phase and expressing opinion on the results and their validity.

• Assisting in the dissemination of project results by holding “open” workshops or Conferences in conjunction with its “closed” meetings, in order to make more “players” aware of project results and activities.


13 of 66 CERTH-HIT

• Finally, advising on the exploitation plan and future development of project results


14 of 66 CERTH-HIT

Chapter 2. Summary of main gaps & industry requirements in global container management

2.1 Introduction

This chapter presents the key findings οf the global supply chain analysis from the first deliverables of SMART-CM. Main emphasis has been given in the main bottlenecks, challenges, existing concepts, standards and processes in global cointainer chain management. Analytical presentation of the main issues is provided in D1.1.1: Global Supply chain compendium. The analysis of the state-of-art provided the basis for further identifying the specific focus of the project that is presented in the subsequent chapter 3 of this report. The Compendium raised the discussion on what the real issues are in the clusters covered and helped determining on which issues SMART-CM will focus and which not. It also helped raising the discussion on prioritisation of issues and provided a good starting point for the task on user needs. It was understood in a better way that the process of releasing the container from the terminal works in relation to the fiscal aspect of handling the container. It is better known now, for instance, that the terminal operators lack information on the hinterland connection. Combined with better arrival information of the sea leg, this can be turned into better planning (on the terminal and within the whole chain) and improved visibility.

2.2 Key findings of the Global Container Supply Chain Compendium

Supply chain management is a cross-functional approach to manage the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and then the movement of finished goods out of the organization toward the end-consumer. The modern economy expects an unbroken logistics chain from production to consumption, with constant access to information about shipment status for all concerned enabling them to make adjustments should an incident occur. However, global container transportation systems have not achieved this goal exhibiting a gap between data availability and data need. SMART-CM will fill this gap by offering information capture and exchange throughout the chain. One critical element in this effort is to capture information as early as possible, preferably at the point of ‘stuffing’ the container. These are the key findings from the Compendium, a joint deliverable of SMART-CM with the INTEGRITY project. The following paragraphs review the main insights of the Compendium, grouped under the headings Opportunities, Problems and Future Developments, and relate its findings to the SMART-CM mandate.


15 of 66 CERTH-HIT

2.2.1 Opportunities within today’s Supply Chain Management

A number of promising opportunities exist in modern Supply Chain organisation for the SMART-CM proposed solutions. These are listed below:

• Global Production Networks and Bottlenecks in Transport Flow The rapid industrialization of Pacific Asia, particularly China, and the enduring growth in the consumption of foreign goods in the western world, have resulted in the steady growth of global trade now including a wide variety of services that were previously fixed to regional markets and a surge in the mobility of the factors of production. Parallel to this growth, the need to reconcile spatially diverse demands for raw materials, parts and finished goods has placed additional pressures on the function of freight distribution and logistics. The global economy is thus based on the backbone of freight distribution, which in turn relies on networks established to support its flows and on nodes, such as ports, that are regulating the flows within networks. However, many of Europe’s deep-sea container ports are currently operating at or close to capacity and there are strong growth expectations in container traffic for the years to come. Factors like the emergence of economies of scale in global shipping, labour force working hours constraints and the unpredictable peaks in service demand making service availability planning difficult, the problems in hinterland connections and the fact that ports are the nodes for administrative and customs procedures where still only a limited number of required information is handled electronically, make them focal points of any actions to ensure efficient and smooth flow global supply chain systems. The proposed improvements in port operations, present an arena of opportunities for SMART-CM solutions: Regarding capacity constraints, although investing in infrastructure and especially railway hinterland connections would ease the congestion problems experienced at port hinterland connections, the growth of intermodal volumes in the next years will be much higher than what is currently planned in order to increase terminal capacity. Thus, turning to systems which will support stretching existing capacity on the corridors, accommodate better coordination among all partners of the supply chain and support implementation of effective cargo bundling and cargo coordination systems appears to offer solution to the desired increase of efficiency in intermodal port hinterland connections. Coordination of the transport chains Early information is highly important for logistics chain partners in order to improve efficiency of transport chains from and to the ports. As partners do not easily exchange their data, an anonymous confidential data interchange with a neutral platform is highly important. Reliable and neutral information existence might trigger advice giving to the individual players in their planning of capacity and investments in order to avoid bottlenecks in the transport network resulting currently from uncoordinated planning. Increasing need for a sustainable hinterland transport system


16 of 66 CERTH-HIT

Ports need to demonstrate a high level of environmental performance and sustainability not only in view of community support, but also in view of attracting new trading partners and potential investors. Quality of services improvements The emerging trend here is that we might see in the future more and more players, originating from different sectors, compete with each other in order to control the whole chain and to offer complete door-to-door services and one-stop-shopping for customers. This is happening due to bad customer services received by individual transport modes. In the railway sector for instance, long preparations and negotiations, insufficient reliability, lack of tracking and tracing capability and elevated traction costs make intermodal train services unattractive. By providing easy access to services, commercial transactions and tools for total chain quality and visibility improvement, SMART-CM will enable the operation of one-stop shopping transportation services.

• The Visibility imperative Companies demand better transparency of orders status, inventory, and shipments across their extended supply chain making visibility a precondition to adequately manage events. Supply Chain Event Management (SCEM) attempts to identify, as early as possible, the resulting deviations between the plan and its execution to trigger corrective actions according to predefined rules. Tracking events in the supply chain is a necessary means for SCEM. However, companies that do track events often suffer from poor data quality and factual inaccuracies in forecasts and reports. There are three main obstacles to achieving visibility:

Organisational: it is difficult to address responsibility for visibility since it surpasses different organisational functions and regional boundaries all benefiting from improved visibility.

Technology: Visibility systems have to gather information from multiple internal and external systems; that requires many interfaces to other systems. However, web services, B2B hubs, and transportation carrier portals are now making interfaces more manageable.

Managing visibility information: how to derive strategic business improvement from visibility information. Additional technology and organizational capabilities are needed to achieve this. Companies need a system which can monitor the events in the entire supply chain and that provides reports to all stakeholders involved.

Strategic importance of information: the dilemma companies are faced with is, on the one hand, the power that information can give to those who own it and, on the other hand, the benefits information sharing and visibility can bring to the whole chain, as witnessed in advanced logistic concepts such as Vendor Managed Inventory.

• Traceability and Safety


17 of 66 CERTH-HIT

Traceability has to do with reconstructing the supply chain and checking the history to see who actually has handled the goods. This should provide the opportunity to prove the chain’s security level and potentially gain advantages at the border, while on the other hand it provides the shipper with the ability to check if only known members with the right security enhancing measures participate in the supply chain. Traceability in this sense should not be confused with ‘Tracking and Tracing’ used extensively in the agricultural-food sector, the aircraft industry, the pharmaceutical industry and the automobile industry, examples of industries that have recognized the importance of traceability. Safety is the key word for justifying their efforts. Traceability can be more difficult for a product with 10,000 components. For instance U.S. car manufacturers register by serial number only engines, air bags and other safety related parts. The lack of standard part numbering schemes at their suppliers is not particularly helpful. To gain more visibility and improve part quality, manufacturers would need to combine automatic data collection, data analysis tools and text recognition software to scour warranty and accident reports.

• Sustainability Global supply chain sustainability is a top issue. Sustainable development is sometimes comprehended as an ultimate value system to give orientation for decision making and action in different situations. It can be seen as a framework for companies and their management to transform their responsibility for environmental, economical and social behaviour into business practices within the legitimacy of our society. Globalisation allows working with a lot of different suppliers to get raw materials and preliminary products, and each first tier supplier often depends on a multilevel supplier chain for their own production. Such a structure makes it difficult for a company to handle the whole supplier network and thus increases the complexity of purchasing. But for sustainability, companies have to ensure manufacturing of products without creating environmental damage or disobeying social standards. This fact represents a significant risk to a company’s public reputation and its attractiveness on the sales market, because it has to take the responsibility for its suppliers in front of the media and critical non-governmental organisations (NGO). The saturation, fragmentation, and deregulation of mature markets, as well as the intensification of competitive pressure render this reputation even more important. Consistently, NGOs uncover inhumane working conditions, especially in developing countries, and reveal how companies make money from these unjust circumstances. Therefore, it is useful to integrate environmental and social aspects in supply policies and supply processes ex ante (Commission of the European Communities 2002). Hence, firms have to identify new criteria for supplier selection and evaluation, aiming at the integration of environmental and social guidelines as well as the implementation of related control mechanisms and compliance stimuli. These requirements are then passed on to suppliers.


18 of 66 CERTH-HIT

• Quality of service The global objective of a Supply Chain is customers’ satisfaction. At the same time, individual components of the Supply Chain aim at maximizing their shareholder value by maximizing the Return on Investment (ROI - the ratio of profit to capital employed over one year -) of their investors. This strategic objective can be translated into several short- and medium-term objectives at the tactical level:

Minimizing the time required for converting orders into cash. Minimizing the total Work-In-Process (WIP) in the Supply Chain. Improving pipeline visibility, that is the visibility of each one of the activities

of the Supply Chain by each one of the partners. Improving visibility of demand by each one of the partners. Improving quality through quality assurance measures. Reducing costs. Improving services. Factors that define quality of service in the Supply

Chain relate to reliability and consignment status information availability detailed below:

• Reliability In today's competitive business environment, customers require dependable on-time delivery from their suppliers. In the short term, delivery deviations—the earliness and lateness from the targeted delivery date—must be analyzed, as both early and late deliveries are disruptive to supply chains. When an order is placed, the customer is typically given a fixed promise date. Under the notion of delivery windows, the customer supplies an earliest allowable delivery date and a latest allowable delivery date. In the context of global supply chains, the concept of delivery performance applies to the whole chain but to individual nodes within the chain as well.

• Consignment status information The importance of Consignment Tracking cannot be stressed enough. In the freight and logistics industry, visibility of status information is nowadays of equal importance to the physical movement of goods.

• International programmes on security Four types of programs have been identified: i) Customs compliance programs to which the security layer has been added; ii) Government origin, pure security programs; iii) International organization origin, security standards programs; and iv) of private origin, pure security programs. Most of the programs promote security measures which target one or more of the following security goals:

Facility management: Guaranteeing the security of the facilities where cargo is stored and handled.


19 of 66 CERTH-HIT

Cargo management: Protecting cargo during all steps of shipping and transport processes.

Human resources management: Guaranteeing trustworthiness and security awareness of all personnel in direct and indirect contact with cargo and other company assets.

Information management: Protecting critical business data and exploiting information as tool for detecting illegal activities and preventing security breaches.

Business network & Company management systems: “Building security in” into internal and external organizational structure and company's management systems.

• Technological developments Technologies for supply chain management often make use of communication technologies and positioning technology.

• Container Security devises and eSeals

• Cargo scanning technologies

• Terminal access technologies

2.2.2 Problems in the Supply Chain

As organizations strive to focus on core competencies and on becoming more flexible, they have reduced their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other entities that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing management control of daily logistics operations. Less control and more supply chain partners led to the creation of supply chain management concepts. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and improving inventory velocity.

There are a number of potential issues looming that can disrupt global supply chains, sourcing strategies, and the flow of working capital.

• Vulnerability and supply chain risk management Supply chain vulnerability can be defined as ‘an exposure to serious disturbance, arising from risks within the supply chain as well as risks external to the supply chain’. Consequently, supply chain risk management aims at identifying the areas of potential risk and implementing appropriate actions to contain that risk. The shift towards global supply networks during recent years has resulted in these networks becoming more vulnerable. Paradoxically, a consequence of supply chain risk is a lack of confidence in the supply chain amongst its members, but it is also this very lack of confidence that adds to supply chain risk! Lack of confidence in a supply chain leads to actions and intervention by managers throughout the supply chain which collectively can increase the risk. This risk spiral exists everywhere and the only way to break the spiral is to find ways to increase confidence in the supply


20 of 66 CERTH-HIT

chain. To do so organisations need to understand the elements of supply chain confidence – visibility and control – the lack of which will increase supply chain risk. If an expected risk occurs then disruptions in the supply chain arise in supply, transportation, production, communication/information systems, and human resources.

Supply Chain Risk Management It can be defined as: “the identification and management of risks within the supply chain and risks external to it through a co-ordinated approach amongst supply chain members to reduce supply chain vulnerability as a whole.” Determining the appropriate practices to manage the supply chain vulnerability issue appears to be context specific, dependent amongst other things on the supply chain’s response to the need for operational excellence.

• Security More than five years after 9/11, security continues to be a bigger concern for businesses in order to keep products running safely and smoothly through the global Supply Chain while complying with increasing government regulations and restrictions. Facilitating global trade is a crucial element of the mission of Customs agencies. One of the objectives to achieve this is by eliminating duplication and delays in international supply chains such as multiple reporting requirements and inspections. This process of simplification, however, should also adequately reflect the requirements of increased security. This has resulted in a series of measures:

• the proposed Community customs code security amendments (regulation 648/2005)

o require traders to provide customs authorities with information on goods prior to import to or export from the European Union (see Pre Arrival / Pre Departure Declarations);

o provide reliable traders with trade facilitation measures )see Authorized Economic Operator AEO);

o introduce a mechanism for setting uniform Community risk-selection criteria for controls, supported by computerised systems

• the customs security program to harmonise control standards and facilitate trade by the AEO programme.

• the AEO programme. AEO certified traders can obtain simplified customs procedures.

The benefits of these programmes are often covered under the all encompassing term of ‘creating green lanes’. This means that import cargo, upon arrival, is already viewed, verified, and found secure before entry, and can pass across the border unhindered by Customs, or other inspection agencies. In many cases, such green lanes already exist, or are being developed, by removing bottlenecks in information exchange with customs, and improving information exchange along the chain, both between business involved, and between customs agencies in different countries.


21 of 66 CERTH-HIT

• Resilience Resilience is defined as the ability of a system to return to its original or desired state after being disturbed. Restoring after the disruption implies that no backup plans are in place and after the disruption is over the supply chain will be restored in its original design and structure. Resilience can be achieved by either flexibility or redundancy. Flexibility means switching to other suppliers when a disruption occurs, while redundancy means reassigning to other factories, because they are expressly under-utilized for this purpose. Flexibility can be achieved by investment in infrastructure and resources such as a multi-skilled work force, a product system designed to accommodate multiple products with real time change and multiple suppliers.

• Agility Agility means the ability to respond to short-term changes in demand or supply quickly and to handle external disruptions smoothly. This implies that backup plans are present, other potential suppliers can be selected and the supply chain is redesigned to cope with the disruption. This approach is considered proactive, because measures have already been taken in advance. For agility, visibility, velocity and acceleration are required. Velocity and acceleration require shorter end-to-end pipelines while visibility reduces uncertainty and enables the reduction of supply chain risk through shared information, both upstream and downstream. Through agility companies could respond to sudden and unexpected changes in markets and fluctuations in demand and supply. But agility is also a good remedy for increasing supply chain security.

• Bottlenecks Bottlenecks can range from physical operations, such as the limited loading/unloading facilities, to information flow and even administrative processes, such as security scanning or customs procedures and ports requirements. Identifying bottlenecks helps to build up an efficient, secure and resilient container supply chain.

• Product Liability Manufacturers, distributors, suppliers, retailers and others who make products available to the public are held responsible for the injuries those products cause, especially with relation to failure to warn about potential contamination.

2.2.3 Future Challenges in Supply Chain Management

a. External Forces Driving Change

• Economic trends: New Markets and a new economic balance Brazil, Russia, India, China, Africa and Korea will be major markets to consider in the coming years. Each of these markets will evolve much more quickly, compared with the parallel changes that occurred in North America and Western Europe. There will also be changes in the balance between local and global sourcing.


22 of 66 CERTH-HIT

• Ecological trends: sustainability and the scarcity of natural resources. Sustainability will be a prime consideration for future scenarios. The industry will need to convince consumers that it is operating in an ecologically responsible manner. The 2007 Bali Treaty and other political initiatives are challenging the industry to come up with breakthrough solutions by 2020. Preserving energy and raw materials and other resources like water will become a crucial aspect in future supply chains, as costs will likely remain volatile and supplies will continue to dwindle. Apart from current performance KPIs for the Supply Chain the following KPIs will be used in relation to sustainability.

• Energy consumption • CO2 emissions (greenhouse gases) • Traffic congestion • Water consumption • Security compliance • Infrastructure simplification

• New technology trends: explosion of information.

Moore’s Law will continue to scale the effects of new technologies in ways never before seen. For example, RFID technologies will play a big role in the future. In addition, the adoption and use of new technologies by consumers and shoppers (in home, in stores, on-the-go) will grow rapidly.

• Regulatory trends: new rules, new compliancy. In addition to consumer pressure and companies’ own growing emphasis on corporate social responsibility, governments will enact more regulations, particularly targeting areas such as sustainability. This will be done by government and regulatory bodies at different levels: local, national and international. In addition, some current labour regulations must be repealed (for example, for more flexible working times) to allow infrastructures to be used to their full capacity with less stress on the environment.

b. Industry Trends Driving Change There will also be key industry trends that will affect the future value chain, particularly in the areas of consumer behaviour, information flow and product flow. In contrast to the external forces, the industry does have the power to shape how this change will take place, at least to some degree.

• Consumer behaviour: driving the value chain. Consumers and shoppers will continue to become more demanding and empowered. In fact, they will become active partners in the supply chain and will directly drive product development and replenishment. They will increasingly interact (including ordering and buying) via different channels (online, in-store, mobile), and will require other delivery mechanisms besides the stores, including, for example, neighbourhood distribution and home delivery.

• Product flow: redesigning supply chains.


23 of 66 CERTH-HIT

New industry challenges necessitate new supply chain solutions. Urban structures will require special attention. Current transportation and infrastructures are increasingly congested and hamper the required service levels. In addition, energy prices and government regulations (for example, relating to city distribution) will have a significant impact on transportation. The industry will need to rethink how products are distributed.

• Information flow: managing complexity through transparency. Supply chains in the future will be even more complex than they are today. Companies will need to determine how best to work together to effectively match supply with demand. Open information sharing will be an important foundation to help companies anticipate dynamic consumer demands. Collaboration should focus on areas of common interest, without affecting the competitive positioning of companies. Some business areas that are now considered to be core differentiators may well become candidates for collaboration with competitors, such as replenishment in inner cities. In addition, industry collaboration will be essential to encourage governments to enact more appropriate regulations.

In this operating environment with the operational, security, communication and standardisation bottlenecks which at the same time is lead by key drivers towards evolution of enabling technologies, security and policy regulations, concrete business models, complex partnerships and high level of competitiveness, SMART-CM aims at providing an integrated, open technological tool with embedded functionalities improving the supply chain performance in different fields. Based on the first results of the Compendium SMART-CM will aim at responding to the needs related to:

• Logistics (port/hinterland) • Security/customs • Technology • Standardisation

The following chapter presents the focus of SMART-CM on these different categories.


24 of 66 CERTH-HIT

Chapter 3. SMART-CM focus for bottleneckes alleviation

Based on the state-of-the-art analysis in global supply chain and further supported by the user requirements capture activities of the project enabled the consortium to validate the project focus presented in the DoW and identify priority areas in which the SMART-CM solutions should focus. In the following paragraphs we present the project focus for each one of the component of the main global container transport chain.

3.1 Focus on Logistics (port & hinterland)

3.1.1 Port operations

The bottlenecks identified in the Compendium include the following: • Terminal capacity growing slower then demand • Terminal efficiency • Working conditions in ports • Capacity utilization and peak in vessel arrivals • Waiting times for hinterland modes/operators • Efficiency of information exchange

The terminal capacity planning (matching supply and demand) is strongly related to port expansion infrastructure projects (like Maasvlakte2, Deurganckdok/Delwaidedok), thus out of scope in a project like SMART-CM. The issue of working conditions is also out of scope. SMART-CM will mainly focus on the bottlenecks related to terminal efficiency, waiting times for hinterland modes and efficiency of information exchange. From the Value Added Services (VAS) point of view, the Flow Calibration VAS of the SMART-CM platform will contain the feature of Overflow Avoidance on Terminals using the Congestion Control component. Terminal efficiency (priority 1) SMART-CM addresses effective cargo coordination systems, meaning that the interaction between system of forwarders / operators with the Smart-CM solutions (neutral layer, information gateway, value added services). This includes coordination between ocean carrier, terminal operator and freight forwarder in order to improve terminal efficiency, reduce dwell times and create smooth transfer between port processes and hinterland transport. Relevant user requirements identified by terminal operators are among others:

• To have earlier information available on hinterland transport planning of containers on board of deepsea vessels arriving in the port; This enables them to optimise their stacking processes taking into account the requirements for smooth hinterland transport. The knowledge on hinterland mode and timeslot is important to optimize the terminal process. This is


25 of 66 CERTH-HIT

facilitated by the information gateway which can exchange next mode of transport and planned departure time.

• Pre-announcement of hinterland operators: in doing so, terminal operators are aware of the expected arrival of hinterland operators for bringing or collecting containers to/from the hinterland. Thus, waiting times for hinterland operators at the terminal can be reduced or avoided. This can be facilitated by the information gateway when combined with existing solutions like P@ck-IT in Port of Antwerp that already allow pre-announcement of hinterland operators (e.g. using hand-held devices). It refines the departure time from the terminal and is important for short-term planning.

• Congestion Control VAS uses automatic velocity adjustment commands for carriers, trains and especially for trucks harmonized to the progress of the overall supply chain, proving a negative feedback to the transport media for overflows on Terminal equipments and storage and reducing the storage plan complexity and the possibility for deadlocks. Also provides to the Terminals the “whole picture” of the shipment chains giving the advantage for optimized planning.

Waiting times for hinterland modes (priority 1) The cargo coordination systems addressed by SMART-CM not only aim at terminal efficiency but also at reducing the waiting times for hinterland operators. The abovementioned requirements from terminal operators also contribute to tackling the issue of waiting times. Hinterland operators also experience waiting times due to the fact that containers have not undergone customs clearance (this can be supported by Smart-CM if the customs use the container security status to release the container from the terminal and postpone fiscal clearance until the container is at the destination). For faster release of containers, hinterland transportation depends on faster customs release. SMART-CM can offer the elementary information (Container Status) originating from the CSD’s and validated by the neutral layer. Congestion Control VAS with the delivery unscrambling mechanism eliminates the unnecessary hinterland services reservations, while offering capacity for shipments with greater priority and provides fuel savings and savings on administration burden. Efficiency of information exchange (priority 1) Digitalization is lacking in customs procedures in some member states and EEC countries. At the ports of these countries, electronic manifests are not accepted and the electronic stamps are not recognized in customs procedures. The bill of lading and other necessary documentations are still handled in the manner of paper work. Use of EDI for transmitting data between ports is still not generalized. What customers require is a wide range of e-service which integrated in only one channel, even allow tailor-made requirements. The focus within Smart-CM is on the container (the ‘box’) more than on the content. Therefore electronic information exchange will be related to integrity status of the container, not so much on the content.


26 of 66 CERTH-HIT

3.1.2 SMART-CM focus on Port-hinterland connection

The bottlenecks identified in the Compendium include the following: • Development of transport infrastructure to the hinterland • Efficient use of the hinterland infrastructure • Coordination of the transport chains • The need for a sustainable hinterland transport system • Quality of commercial hinterland services (such as terminal services,

barge/rail services) Focus on chain coordination and quality of hinterland services.

• Priority 2. Chain coordination: exchange of status information concerning supply chain events and proactive information exchange on exceptions and prediction of updated planning information.

• Priority 2. Quality of hinterland services: top requirement of shippers concerning intermodal hinterland services is reliability. The proactive information exchange about SC exceptions, increased visibility along the whole SC especially in respect to container location ad status, and forecast of updated planning information (e.g. ETA updates) will improve reliability of hinterland services.

By making available security related data and thereby reduce delays on the terminal. By making available timing related data and allow better prediction of arrival times at any location in the chain. This will improve the reliability and the better alignment of subsequent transport legs. SMART-CM is not directly aimed at improving the reliability of the individual hinterland services. What SMART-CM does, is improving the reliability of the whole chain because the platform knows where the cargo is, when it will arrive and where, and how to use more optimal timeslots for some of the transport legs. Smart Shipment Coordinator VAS uses Delivery Initiation Protocol in order to create the transport service index and the map of the involved transport providers per shipment. It also uses the Delivery Description Protocol in order to ensure the Transport Quality of Service at the shipment agreed level. The Business Validation component ensures that the appropriate quality (handling specification, respond time etc) will be fulfilled among the entire transporting nodes and the Regulator component will ensure the appropriate process per Port (order, prerequisites, access granting, etc). This VAS would achieve the features for Exception Handling and Rescheduling. The Smart Configuration Manager VAS using the Transport Equipment Invocation, Network Description, Sensor Installation and Port Workflows Description protocols will preserve the lack of IT standardisation between Port and Hinterland Operators offering equipment, network and business processing homogenization among the different actors.


27 of 66 CERTH-HIT

3.2 SMART-CM focus on Security and customs bottlenecks

The security bottlenecks identified in the Compendium (chapter 2) include the following:

• Depend on weakest link in the chain different company standards and procedures, focus is on bigger companies

• Awareness, take security threads seriously • Customs controls and corresponding delays • Heterogeneity of sealing standards and practices • Security in warehouses (e.g. surveillance and access control) • Security at loading and stuffing areas (fences and surveillance) • Security in port area (access control, fences, surveillance) • Security in Human-container interface: qualifications, recruitments, training,

monitoring • IT processes and information flow: data security standards, data storage on

the container SMART-CM will not primarily focus on physical security in warehouses, loading and stuffing areas and other port areas. The focus lies on issues concerning customs control, standardisation issues and data integrity. Customs control Priority 1. SMART-CM improves the customs operations by providing customs with container security status information and by providing a process for authorized container opening, without interrupting the standard transport process. Customs takes that information into account when doing their risk assessment process. Having a container that has been closed under their supervision or under the supervision of a trusted party and knowing that the container has not been opened in between, customs may then trigger a release process. The use of CSD’s (Container Security Devices) within SMART-CM and the methodology of authorized closing and opening offers full transparency (and integrity) of the chain of custody. SMART-CM and more specific the neutral layer should offer customs (world wide) a single point of access, not only for the status of the container, but also on the provision of intermediate open codes and the supporting methodology. At this point CSD providers each have their own method of intermediate opening (if supported by the technology). A general and world-wide supported technology and methodology should be offered by the SMART-CM project. Data integrity is supported by security measures taken in the neutral layer. Data integrity is guaranteed by:

Secured communication channels User Authentication process Claim based security model Full proof datacenter that hosts the solution

VAS could provide Authentication Centre functionality for the SMART-CM platform featuring Multicast Information Encapsulation, Shipment Authorization Session Keys and 3rd Party Authentication for Actors. Multicast Information Encapsulation will use


28 of 66 CERTH-HIT

encapsulation of the information on pre-posted holders from the Platform in order to prevent any kind of unauthorized interception and preserve competition. This security enhancement of the system will keep the transporting information and the sender and routing information invisible to unauthorized access at any level. This will protect mission critical information of LSP. The platform will play the third party role of an Authentication Centre for all information exchange transactions between the actors. This ability will protect all actors from impersonation activities among the global supply chain.

3.3 SMART-CM focus on Technology bottlenecks

The technology bottlenecks identified in the Compendium include the following:

• Lack of full scale deployment of newest CSDs • Ensuring real-time availability of information by tracking and tracing

technology. Real-time tracing and tracking information is generated not only by the CSD. Also other real-time status information (like the location of the vessel) should be incorporated into the SMART-CM platform.

• Need for clear business case/business model on implementation of tracking and tracing technology; It requires considerable investments and benefits are not always obvious or clear.

• Need for small scale introductions and pilots on tracking and tracing technology; These should better identify the benefits along the chain and overcome the investment hurdle

• Functioning of container terminal access technology under hard weather conditions (readers)

• Reliability of scanning equipment/lanes when passing with high speed and consequences for the quality of image

The focus on SMART-CM is not on the further development of scanning devices and terminal access technology. A proper choice of functioning technology is the main issue with respect to technology. Feasible business models for tracking and tracing technology and CSDs are crucial for this, though this is not a technology issue but moreover a cost-benefit issue that will be tackled in the project. Depending on the needs of the user, a specific CSD technology will be preferred. Therefore interoperability of the different available technologies is of great importance, certainly for 3PL operators. PRIORITY 1: SMART-CM will select a combination of technologies and processes that allows easy handling of CSD’s in the process. Aspects of return logistics are important, as to keep the costs of CSD management under control. Another important issue is the ability to handle multiple CSD vendors and still being able to work efficiently.

3.4 SMART-CM focus on Standardisation bottlenecks

The standardisation bottlenecks identified in the Compendium (chapter 5) include the following:

• Bottlenecks on technology standards


29 of 66 CERTH-HIT

• Bottlenecks on process standards • Bottlenecks on information standards • Bottlenecks on Customs standards

SMART-CM will cover all above clusters of standardisation issues. However, there will be a clear focus:

• PRIORITY 2. Technology standard issues will focus on container seal standards. Technical requirements of e-seals for reading and processing recorded data are not standardised. SMART-CM will assess which standards are available (or can be improved) concerning the secure communication and being tamper proof of the CSD.

It is important to make a distinction between E-seal and CSD, because these two devise types are not the same. Standards on CSD levels should mainly be achieved on minimum information generated by the device, message format, etc. Tamper proof CSD’s should be labeled, for instance DHS, AEO, and certified. • PRIORITY 2. Process standards: WP2 addresses the issues on how the CSD

container status information fits into the Freightwise framework (section support for transport management processes).

• PRIORITY 1. Information standard issues will focus on messaging standards, like the many EDIFACT/XML applications. SMART-CM will make sure that there is alignment between the SDMF message (coming from the neutral layer) and the Freightwise TIS (transport item status) message by using well defined and common event types that are unambiguous for the subscribers offered in a open standard format and using proper communication channels.

• PRIORITY 1. Customs process issues will focus on mutual recognition of “trusted partner” concept, format and data diversity in manifest filing (incl 10+2 rule) and country specific practices for import clearance. Here we have to differentiate between Smart-CM as a technology supplier and other aspects of the project. The Smart-CM platform can support customs by giving information that plays a role in risk assessment and container release from the container. The aspect of mutual recognition is not so much technical but more procedural aspect. The customs have to clarify under which conditions of closing the container they put trust in the container status upon closing. This can be done if the container is supervised under their supervision or under supervision of a partner customs authority or under supervision of an AEO that is certified by that customs authority.

As regards the concrete logistics requirements a concrete exercise has been conducted for their identification among the SMART-CM logistics partners as well as the customs. This has taken place in dedicated workshops for this purpose.


30 of 66 CERTH-HIT

Chapter 4. Sum-up of the domain requirements

This chapter provides a summary of the description of the specific requirements considered for the design of the SMART-CM solutions.

4.1 Sum-up of the industrial requirements

Based on the results of the user requirements combined with the results of the state-of-the-art, SMART-CM will aim at improving the interfaces between the stakeholders along the supply chain (B2C and B2B) complying with the legal implications and security regulations, mitigating the business constraints and achieving information integrity. The following figure indicates the B2C and B2B interfaces within the global supply chain where SMART-CM will achieve improving their efficiency.

Figure 2: The Interfaces along the global supply chain For this specific requirements capture activity a three step methodology has been followed to arrive at the user requirements. Every requirement starts with Knowledge, gets converted into information for processing, before getting converted into data for detailed assessment. The same methodology has been followed for collection of industry requirements. With the help of questionnaires, workshops and interviews, the user requirements were collected. After going through three levels of processing (as shown in the following figure), detailed industry requirements have been consolidated to serve as an input to subsequent tasks and work packages.


31 of 66 CERTH-HIT

InterviewsWorkshopsQuestionnaires

Detailed Industry Requirements

Level 1 :General Business Needs Knowledge & KPI’s

Level 2 :Industry InformationRequirements

Level 3 :Industry DataRequirements

InterviewsWorkshopsQuestionnaires

Detailed Industry Requirements

Level 1 :General Business Needs Knowledge & KPI’s

Level 2 :Industry InformationRequirements

Level 3 :Industry DataRequirements

Figure 3: Methodology for requirements gathering

Level 1: In Level 1 of the requirement gathering phase, the business needs (general & functional) knowledge & KPI´s were assessed. The inputs were collected using DELFT workshop and questionnaires based on identified business parameters. Figure 1Figure 4 highlights the supply chain wide general and functional requirements. The details of player specific business requirements and KPI´s are document in deliverable D.1.2.1 These requirements are classified into 7 categories which are the following:

• Transparency/visibility • Security • Reliabiltiy • Timeliness • Costs • Effort/Efficiency • Services

Level 2: In Level 2 of the requirements gathering phase, the business needs were detailed out and matrixes containing current information exchange and future information requirements among various players were determined. These inputs were collected using ANTWERP workshop (for freight forwarders & terminal operators) and interviews/questionnaires (for shipping line and customs). These are provided in Annex 2. The project should aim for providing platform for making current information exchange faster and more reliable, whereas same platform enabling information exchange as desired in future information requirements matrix Level 3: In Level 3 of the requirements gathering phase, business needs from level 1 and the information exchange matrix from level 2 has been converted to data needs indicating the data element, provider, accessor and storage time of data requirements. These inputs were collected using ANTWERP workshop (for freight forwarders & terminal operators) and interviews/questionnaires (for shipping line and customs). The results of information data requirements serve as an input to technical design and feasibility of the project and are provided in Annex 3.


32 of 66 CERTH-HIT

Lead

Steps Pick-up Hub-Handling

Ground Handling

Customs clearance

Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling

Hub Handling Delivery

Forwarders ForwardersTerminalOperator

TerminalOperator CustomsShipping

lineCustoms

Business Parameter Sno. Description Relevance

T1 Transparency & visibility on terminal & shipping processes: status messages

Logistic operators; Terminal operators

T2Terminal operator having info on hinterland transport planning earlier à proactively plan

Terminal operators

T3 Visibility during recovery process from anomalies process (reactive)

All

T4 Traceability of empty containers for better repositioning strategies


T5 Enabler in exception management : scenarios, according to plans, proactive

All

T6 GALILEO: Accuracy of position of container in terminal area

Terminal operators

S1

Open the container only once / as less as possible (green lane concept) with around 80% of goods flowing through Green Lane

All

S2Fight counterfeiting (e.g by using green lane concept, otherwise counterfeiting risk)

All

S3 Reduce theft All

S4Avoid cargo damage (liability issue) by knowing the sensitivity of the commodity (sensor technology)


Reliability R1 Increase the lead time reliability and capture deviations within margins

Logistics operators

TM1Reducing the total d2d time; Minimise the relative ‘idle time ’, e.g time waiting for physical controls

Logistics operators

TM2

Reducing the dwell time in terminals by improved avaialibiltiy of information to different actors thus contributing to better process planning


TM3 For some users, waiting time can be functional

ALL

Costs C1 Reducing the total d2d cost All

E1 Reduce administrative burden / single window à offering one-stop-shop service

All

E2 Pre-announcement of hinterland operators to improve terminal efficiency

All

SV1 VAS from platform: automatic document generation for users

All

SV2Enabling companies to go intermodal by reducing complexity and solving interoperability issues

logistics operators

SV3Contribution of SMART-CM to E-FREIGHT and internet-of-things vision becoming a reality

All

Effort/ Efficiency

Services

Transparency/ Visibility

Security

Timeliness

Lead


Ground Handling

Customs clearance

Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling




lineCustomsLead


Ground Handling

Customs clearance

Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling




lineCustoms

Pick-up Hub-Handling

Ground Handling

Customs clearance

Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling




lineCustoms

Business Parameter Sno. Description Relevance

T1 Transparency & visibility on terminal & shipping processes: status messages


T2Terminal operator having info on hinterland transport planning earlier à proactively plan

Terminal operators

T3 Visibility during recovery process from anomalies process (reactive)

All

T4 Traceability of empty containers for better repositioning strategies


T5 Enabler in exception management : scenarios, according to plans, proactive

All

T6 GALILEO: Accuracy of position of container in terminal area

Terminal operators

S1

Open the container only once / as less as possible (green lane concept) with around 80% of goods flowing through Green Lane

All

S2Fight counterfeiting (e.g by using green lane concept, otherwise counterfeiting risk)

All

S3 Reduce theft All

S4Avoid cargo damage (liability issue) by knowing the sensitivity of the commodity (sensor technology)


Reliability R1 Increase the lead time reliability and capture deviations within margins

Logistics operators

TM1Reducing the total d2d time; Minimise the relative ‘idle time ’, e.g time waiting for physical controls

Logistics operators

TM2

Reducing the dwell time in terminals by improved avaialibiltiy of information to different actors thus contributing to better process planning


TM3 For some users, waiting time can be functional

ALL

Costs C1 Reducing the total d2d cost All

E1 Reduce administrative burden / single window à offering one-stop-shop service

All

E2 Pre-announcement of hinterland operators to improve terminal efficiency

All

SV1 VAS from platform: automatic document generation for users

All

SV2Enabling companies to go intermodal by reducing complexity and solving interoperability issues

logistics operators

SV3Contribution of SMART-CM to E-FREIGHT and internet-of-things vision becoming a reality

All

Effort/ Efficiency

Services

Transparency/ Visibility

Security

Timeliness

Figure 4: Level 1 General and functional requirements

4.2 Sum-up of the Customs and security requirements

4.2.1 Contemporary needs for the Secure trade lanes concepts

This category of user needs was dealt in the context of the task 1.2.2 in order to identify the specific requirements of the customs vis-à-vis the SMART-CM platform and the different envisaged components.


33 of 66 CERTH-HIT

In summary, the following figures describe the custom processes existing today, those that would be required from a SOA such as the SMART-CM platform, and finally an ideal situation that could be served through the SMART-CM platform respectively. Overall there were 6 facilitation scenarios that were identified and reported in the respective deliverable. These scenarios were discussed in the customs workshop with the participation of the customs authorities and related business partners participating in the project. However, not all scenarios wil be implemented in the context of the SMART-CM.

Figure 5: Contemporary custom procedures 1st Scenario: This is based on the process of Figure 5 that it is a presentation of the Import Control System (ICS) and Export Control System (ECS) applied as legally foreseen starting from 1/07/09. In this case import and export flow data are compared by the two customs agencies involved: entry summary declaration, pre arrival notification, import declaration versus exit summary declaration, export manifest and export declaration. So the same data is sent twice to different customs administrations and customs administrations exchange those data in order to compare them.

The 2nd scenario (possibility) is starting from the first scenario mentioned above and in addition:

a. Customs seals (CSD) at departure. This means that a mutual recognition has to be agreed upon between the customs administrations concerned on customs controls and risk analysis.

b. Customs-to-customs data exchange has to be installed without use of a common platform. Because there is a mutual recognition on risk analysis


34 of 66 CERTH-HIT

only specific data is exchanged: less data is exchanged between the customs administrations concerned than in the first case.

Figure 6: Restructured Customs processes through a SOA communication platform The 3rd scenario is based upon the 2nd scenario with the only difference that the exchange of the customs to customs data happens by means of a common platform alike the SMART-CM. This is presented in Figure 6 The 4th scenario is considering scenario 3 by going a step further in facilitating and give the economic operator the possibility to do the sealing himself. The condition then is that this economic operator has to have the status of Authorised Economic Operator or similar (C –TPAT,…) and that a mutual recognition of these statuses exists between the customs administrations concerned


35 of 66 CERTH-HIT

Figure 7: Restructured Customs processes through a CSD platform The 5th scenario the difference compared to the previous case is that the entry/exit summary declaration is not posted anymore on the platform. Only the CSD data will be posted on the platform. All other necessary information (for the ENS/EXS,…) is retrieved from the platform. This is presented in Figure 7 Finally, the 6th facilitation scenario for a Secure Trade Lane incorporates all the above but not only for customs administrations, but also for other public agencies. In other words, the customs require from a SoA Architecture platform as a single access point where customs would only have to send their release message on cargo status towards the system instead of having to send it towards several involved parties. A possibility here is that the customs authorities certify the customs messages sent by the SMART-CM Platform by which they acknowledge their official status. In this way the parties receiving for example a release message from the SMART-CM platform can be assured that customs authorities won’t argue this release message. Finally, any operations that will encompass customs operations and communication through the SMART-CM platform should be in line with the general guidelines and standards that are established by the WCO and the SAFE Framework. A more in depth customs user needs analysis is incorporated in the D1.2.1.

4.3 The SMART-CM single window approach


36 of 66 CERTH-HIT

Based on the combination of the global industry characteristics and general needs, combined with the specific user needs of the customs and industry, the overall objective of the project, can simply be stated as “research in order to enable the development, demonstration, and evaluation of new concepts for technology interoperability and services that will improve the efficiency, user friendliness, and quality of service of existing door-to-door container transport chains operation in different environments and conditions under different technologies and organisation / business schemas”. The responses of SMART-CM to the global logistics industry requirements identified are summarised to the following: • Increase supply chain visibility (efficient exchange of information among the

industrial actors and between them and the customs authorities) • Achieve faster throughput in transport corridors (support implementation of

“green lanes” concept) • Accomplish high level chain security (continuous control of containers) • Improve productivity in chain operation (handling of “events”, min. Processes

cost & time, support transactions, better chain planning etc) The platform will be a technology agnostic single window platform and a reference for logistics operations for global chains enhancing the interfaces between the different stakeholders.

Container Security Technology (CST): active RFID / satellite comms / multi-sensoric units

Customs

Shipper

Logistics Providers

TerminalOperator

TransportOperator

SWPSWP

Figure 8: The technology agnostic approach of SMART-CM The technoliogy agnostic approach will be configured in order to:

• Enable interoperable B2B co-operation in door-to-door container transport security.

• Develop compliant application of B2B and B2A container security data solutions with international Customs operations.


37 of 66 CERTH-HIT

• Develop a neutral approach and service platform for secure and interoperable data communications.

• Define & implement added value services and chain visibility enabling techniques for fulfilling operational requirements of the actors in managing global container chains.

• Develop prototypes of advanced applications in global container management, such dynamic scheduling at the containers’ chains, resulting from innovative concepts such as “The Internet of Things” and other research activities’ results.

• Assess wide applicability of the project solutions by considering costs and benefits through implementation in global demonstrators.

• Contribute to standards development for advancing of interoperability of technologies currently applied to safe container chain management at global level and for messages exchange and process implementation between customs and actors and among actors of the global container transport industry.


38 of 66 CERTH-HIT

Chapter 5. Preliminary definition of SMART-CM architecture

5.1 Introduction

The development, demonstration and the after project duration, operation of the “SMART-CM platform” is the major “technological component” of the project balanced concept for achieving efficient & secure door-to-door container chain management in the future. The initial approach that has been adopted during the conception of the platfom was verified by the industrial partners and key findings from the state-of-the-art survey.

5.2 The SMART-CM platfom initial approach

Figure 9 presents an overview of the SMART-CM platform three-level architecture, as it was planned during the proposal preparation.

Value‐Added S ervices

Logis tics Vis ibility “Neutral” Vis ibility

Neutrallayer

SMART-CMplatform

XML1

XML

Vendor-specific XMLTechnology-agnostic/neutral XML

XML1 XML2 XML3

E DCE DCE DC

XML

K&N C OS C ON

DHL

XML

XML

XML

S AVI (S IC IS )S AVI (S IC IS )S AVI (S IC IS )

GUI

GUI

OtherOtherOther

T“Neutral” / S ecure/un‐tampered

end‐to‐end (e.g. digitally s igned)T

T

Business logistics layer

Figure 9: The SMART-CM platform

This figure presents an overview of the balanced approach followed by the SMART-CM platform, comprising the three main layers: • Information gateway • Visibility (infrastructure) • Value added services The Information Gateway provides an entry point for status information from a variety of available sources, including container security devices/e-seals, other RFID infrastructure, as well as sources such as Port MIS or fleet management systems.


39 of 66 CERTH-HIT

The core of this information is the container security devices (CSDs) or e-seals that are available in containers and are aggregated through the respective vendors. While the details of each vendor’s tags are abstracted in the SMART-CM platform, each individual vendor would in principle use a different XML (or alternative) format to output the aggregated status information for the containers that are tracked via its infrastructure. The neutral layer component of the information gateway collects this information and generates a single “standardized” message structure that can be provided to the customs with the aim of facilitating STL implementation taking the following into account: • The term ‘neutral’ implies the following: The neutral layer is able and willing to

interconnect with any technology provider, customs authority and logistics/terminal operator without any direct or indirect bias, as long as the connected actor fulfils the access requirements that will be defined.

• By establishing the neutral layer we will achieve: Efficiency in STL roll-out since less interconnections with container security device (CSD) technology providers are needed, freedom of choice offered to the logistics/terminal operators when selecting the most appropriate technology for their business case, and pre-arranged acceptance by customs authorities.

• Individual implementation with single technology providers and relatively few containers on isolated test lanes can perhaps suffice without the neutral layer, but it becomes essential when on an industrialised scale for global coverage hundreds of thousands of containers with different actors and technologies are all mixed up.

• On top of that the neutral layer, as a side-effect, will be able to distribute status information on position and integrity of containers to upstream layers for further processing that will enable logistics/terminal operators to efficiently implement and run their proprietary strategies and solutions towards increased efficiency, predictability, visibility, reliability, flexibility, lead time reduction, and resilience to disturbances in the supply chain.

Naturally, information from other (unverified) sources cannot be provided to the customs for the purposes of a verified and neutral infrastructure, but may still be relevant for other operations of interest to the transport users and stakeholders. To summarize, the information gateway provides: • A core XML structure with the verified information that can be used to support the

“neutral” functionality of the platform, along with • Optional available information that can be useful for the visibility and the

development of the value-added services. The second level of the SMART-CM platform is the visibility (infrastructure), which -like the information gateway- is split into two components: • Logistics/business visibility, and • “Neutral” visibility.

While the “neutral” visibility provides a unified and “standardized” interface for the transmission of the “neutral” status information, the business visibility provides a broader range of available status information (potentially suitable for applications that do not share the stringent security requirements of customs operations). It essentially is a GUI to the neutral layer. It involves user management, delta-based updates, reporting capabilities, workflow support, exception management, etc.


40 of 66 CERTH-HIT

The logistics visibility layer will be based on web-based mapping software and will provide a centralized tool for the visualization of the information of interest to a logistics operator. The logistics visibility layer will also offer the infrastructure for the visualization of the value added services, which will be incrementally built on the same system. The value added services will build on the information provided from the information gateway and the mapping infrastructure provided by the visibility layer to develop additional functionality of interest to the industrial partners. Two clusters of value-added services of the SMART-CM Platform will be developed within this Layer: a. The first one will include mature and pragmatic value added services that can be

demonstrated in the project pilots and which refer to the collection and processing of status information. They will also be demonstrated in the corridors (WPs 5/6). Their technical status and development will be handled within WP3.

b. The second cluster (to be developed by WP4) will be more advanced “future” value-added services that may be a bit too advanced to be fully deployed today. Due to their nature, these services may only be demonstrated in restricted / laboratory environments.

5.3 The actual SMART- CM architecture

SMART-CM platform will provide a uniform way of communication between the Shippers, Logistic Service Providers, Transport Service Providers, Port Authorities with Terminal Operators, AEO agents, Customs and the position and condition information from the CSD providers. Based on this connectivity the Logistics Layer will provide Request handling mechanism, information credibility, authorization granting, information exchange insurance and act as a state machine for the global supply chain creating an infrastructure for optimizations on many logistic levels. Based on the concentration activities between WP’s 2/3/4 and the meetings for requirements gathering following the initial SMART-CM platform conception, the functional overall platform is depicted in Figure 10 where the data sources and the exchange of information are shown. This follows the approach that has been adopted in the beginning of the project, with the three layer approach as this has been validated by the user needs and requirements identified in the first period of the project. However, there were some user constraints that have been introduced and expressed by the customs and industrial partners. These are summarised to the following points: • Data storage issue The SMART-CM platform needs to comply with the requirement for not storing any information at any database related to logistics information. This will remain the property of the industrial partner and will be distributed to the entities that this considers important, including the customs. The information, as soon as it is distributed to the partners will be deleted from the platform. This fact may hinder the implementation of specific added value services that would need specific information from the dataset owned by the industrial partners. An intermediate solution could be


41 of 66 CERTH-HIT

elaborated for defining the proof of concept of the services for the needs of the project. The information will be distributed through the logistics visibility layer. • Developing Value added services The issue of the added value services at a first level has been controversial within the consortium, as these would provide possibilities for enhancing the logistics chains, but lowering the competitive advantage of industrial partners that may already have available services of similar feature in the own applications. This requirement is also coupled with the previous requirement for non-information storage For keeping a balanced approach on this industry requirement, the value added services as presented in the full list will be prioritized by the industry partners and define which of them could be of any interest in order to be developed internally based on the availability of respective logistics information. This fact creates an additional issue for the exploitation of the platform regarding the added value services, since the requirement for only internal value added services may emerge. • Disclosure of information directed to the customs The customs requirements fall into the support of the green lanes and the facilitation of the customs clearance through the dispatch of the container status before reaching the port of call. There are three basic scenarios of interface with the customs that are supported by the neutral layer of the SMART-CM platform:

Container Status message pushed to customs Events message pushed to customs Authorized opening of containers (customs inspection and opening of the

container without considering as a breach)

Within the Value Added Service (VAS) the facilitation of the industrial partners’ customs declarations will be assessed. However, the full declaration submission (transaction process with customs) towards the customs will not be supported by the SMART-CM platform. The customs interaction with the platform will be made only through the neutral layer. The total set of information to be released to the customs will be pushed from the logistics layer to the neutral layer and this will incorporate only the information that will be required to the each customs authority. The following figure depicts the architecture design of SAMRT-CM as verified ands accepted by the industry and user requirements.


42 of 66 CERTH-HIT

Figure 10: SMART-CM Overall functional platform

5.4 First specifications of the Platform Components

5.4.1 The neutrality of the SMART-CM Solution

In the first versions of D2.2.1 and D2.2.2 the main specifications of the neutral layer and design considerations are described and the Figure 11 depicts the processes of the neutral layer through the communication services.


43 of 66 CERTH-HIT

Figure 11:Neutral Layer processes The neutrality of the SMART-CM solution will have the characterisitcs as described in the following table.

Table 2 :SMART-CM neutrality characteristics Neutrality requirement Characteristics Neutral interoperability • No bias towards specific CSD

technology providers • No bias towards customs or

businesses Neutral implementation • Testing data integrity along the whole

process of security related container info gathering

Neutral information administering organization

• Managing the platform and provisioning information from the neutral layer to the stakeholders

5.4.2 First specification of the added value services components

The Value Added Services provide the way/means to combine available information in a SMART way in order to provide enhanced feedback to industrial partners. In the case of SMART-CM the platform will combine information coming from CSDs with additional logistics information from the information gateway in order to enhance industrial actors’ process and improve container supply chain.


44 of 66 CERTH-HIT

Epigrammatically, these added value services will be:

• Platform services that contribute to minimum cost and time in global chain operation

• Platform services that improve chain visibility and contribute to better information flow management among actors in order to achieve:

– better planning of chain (business intelligent in logistics) – better management and forecast on chain operation (shift from

conventional control to autonomous cooperation and control) • Platform services that may support industrial actors in achieving Key

Performance Indicators along the whole chain. Based on the compendium and its findings the first main areas for the Value added services for the improving the Container Supply Chain could be the following:

• Security • Reduce chain disruptions • Find risks and preventive strategies

• Resiliency • Eliminate impact of disruptions • Collect disruptions and find reacting solutions

• Efficiency - Remove Bottlenecks • Terminal efficiency and dwell times • Peak in vessel arrivals and capacity utilization • Waiting times for hinterland modes


45 of 66 CERTH-HIT

Figure 12: The framework of the Value added services


46 of 66 CERTH-HIT

The Value Added Services consideration for SMART-CM, has resulted to an overall list of possibilities that could lead to specific functionalities if not for the current configuration of the platform, possibly for the future. The table with the possible VAS features are provided in ANNEX 4 This list of the possible services is subject to the prioritization from the SMART-CM industrial partners and is not the final services to be created in the context of the project. The Description of Work of SMART-CM and contractual obligation of the project is to develop the 3 added value services integrated in the platform.


47 of 66 CERTH-HIT

Chapter 6. The global supply chains to be demonstrated in SMART-CM

6.1 Introduction

The technological solutions of the efficient container management, monitoring and control are to be tested in two major global demonstrators. Through these demonstrators the SMART-CM solutions will be validated and evaluated in order to assess its added value to the industry of global trade and freight transport. These Corridors are the following: • Corridor A: Demonstrator EU-Middle East Corridor

o From Antwerp to Port Said-feeding service to Thessaloniki-Dubai-NAVA SHEVA/Mundra (WP5, responsibility of DHL)

• Corridor B: EU-Asia/Pacific Corridor: o Antwerp-Singapore-Feeder service to Laem Chabang-Ningbo in China

(WP6, responsibility of K+N) The main objectives of both corridors will be platforms to demonstrate in a real-life environment the developments of the SMART-CM project that enable improved security efficiency, increased visibility and reduced costs of the global container chain operation. These relate to organisational, technological, operational and business matters. Flows are covered from the point of stuffing (loading) and stripping (unloading), i.e. door-to-door as far as the use of containers is involved, and involve all actors active in or serviced by the demonstrator scenario. The SMART-CM Demonstrators are established at the early project phase using existing on board container technologies and available dedicated management platforms with the objective to create a “living” operational environment for testing all new project developments under real life container d-to-d transport. The initial scenarios for the demonstrators are presented in the following paragraphs.

6.2 The EU-Middle East Corridor

6.2.1 Container transport chain description

The EU-ME corridor is connecting port terminals operated by DP World (Dubai Ports) along the route between Europe and India. Dubai is rapidly evolving towards becoming a key logistics hub for global air and ocean freight, whereas India is now the second largest producer of goods exported to Europe. The main port of call in Europe will be Antwerp; a feeder line extending from Port Said (Egypt) to the Greek port of Thessaloniki will also be covered as part of this demonstrator. Hinterland connections to and from the main seaports will be added successively depending on suitable flows and customers.


48 of 66 CERTH-HIT

Figure 13: The EU-ME Corridor

6.3 The EU-Asia/Pacific (EU-AP) Demonstrator

6.3.1 Container transport chain description

The EU-AP corridor is connecting port terminals serviced by PSA and COSCO on the route between Europe, South-East Asia and China. The corridor is in the Asian region centered on Singapore, a key hub location for global ocean freight. From there the demonstrator connects with some of the major export countries to Europe, specifically PR China (Port of Ningbo near Shanghaj) and Thailand (Port of Laem Chabang). The principal port of call in Europe will be Antwerp. Hinterland connections to and from the main seaports will be added successively depending on suitable flows and customers.


49 of 66 CERTH-HIT

Figure 14: The EU-AP Corridor

6.4 Functionalities to be demonstrated

The corridors provide the physical basis for demonstrating the SMART-CM functionalities developed in WP2/3/4 in a commercial environment. The following functionalities will be tested: • Neutral layer representing the logical view of the neutral platform. It is capable and

willing to interconnect with any technology provider, customs authority and logistics/terminal operator without any direct or indirect bias, as long as the connected actor fulfils the access requirements that will be defined. The neutral layer will be able to distribute status information on position and integrity of containers that will also enable logistics/terminal operators to efficiently implement and run their proprietary strategies and solutions towards increased efficiency, predictability, visibility, reliability, flexibility, lead time reduction, and resilience to disturbances in the supply chain.

• Neutral implementation representing the technical view of the neutral platform. It will be auditable to validate the unbiased, secure and reliable manipulation of data. The technology partner taking care of the implementation will be obliged to deliver, on fair and reasonable terms, a managed service based on the neutral implementation to the neutral organization. The implementation will provide a single-window to customs and logistics/terminal providers, and will do so through a GUI and through a messaging interface.

• The logistics visibility layer to be developed by WP3 and the communication between the logistics actors. All logistics information that could be exchanged by the stakeholders of the corridors will be done through the logistics visibility layer.

• Exchange of logistics information related to the Corridors between the industrial stakeholders and the customs as the Customs single Window and/or Customs shipment reference harmonization and/or customs form generation (added value service functionality)


50 of 66 CERTH-HIT

• Added value services to be defined and agreed by the logistics operators for increasing the efficiency of the global container chain to be proposed through WP3 and WP4. For the latest, a simulation procedure for testing the application may be selected.

The customs involvement in the demonstrators is those implicated in the ports of call for each case. The customs authorities that would be involved in the process are summarised in the following table, directly as a Project partner or indirectly as a project associate through a correspondence partner: Table 3: Customs implication in the demonstrators

Customs Authority (alphabetical)

Lead correspondance partner

Belgium Customs (Full Partner) Dubai Customs Dubai Ports Customs Organisation (DPW-

DPCO) German Customs Belgium Customs, DPW-DPCO Greek Customs Belgium Customs, Port of Thessaloniki India Customs Belgium Customs, DPW-DPCO PR China Customs (Ningbo Port)

Belgium Customs, BPV

Singapore Customs Belgium Customs, PSA Thailand Customs Belgium Customs, TIFFA

6.5 The demonstrators’planning

The demonstrators have been divided in different phases according to the progress of the SMART-CM technological solutions and applications to be demonstrated. The following diagram provides an overview of the planned progress of the project and the phases of the demonstrators. There are 3 main phases for the SMART-CM demonstrators with the characteristics as provided in the following tables.

Table 4: First Phase of the demonstrators Characteristics

Demonstrator Chains • Hong Kong,-Singapore-Rotterdam-Linz (K&N) • Dubai-Antwerp & Dubai-Aqaba-Antwerp (DHL) • Ningbo Port-Singapore (COSCO)

Starting date 1st February 2009 Number of CSD’s used:

30

SMART-CM platform components to be used

• Satellite CSD of EDC • Neutral information gateway (first version) • Neutral visibility (first version)


51 of 66 CERTH-HIT

Table 5: Second Phase of the SMART-CM demonstrators Characteristics

Demonstrator Chains • Antwerp to Port Said-Feeder service to Thessaloniki-Dubai-NAVA SHEVA/Mundra

• Antwerp-Singapore-Feeder service to Laem Chabang-Ningbo in China)

Starting date July 2009 Number of CSD’s used:

60-80

SMART-CM platform components to be used

• Satellite CSD of EDC • SMART-CM Information Gateway (Neutral and

Logistics Business components) • SMART-CM neutral visibility – core functionality

available for use • PoC of one Added Value Service

Table 6: Final phase of the SMART-CM Demonstrators Characteristics

Demonstrator Chains • Antwerp to Port Said-Feeder service to Thessaloniki-Dubai-NAVA SHEVA/Mundra

• Antwerp-Singapore-Feeder service to Laem Chabang-Ningbo in China)

Starting date March 2010 Number of CSD’s used:

100-120

Components to be demonstrated

• Full SMART-CM platform • Demonstration with external CSD technology

providers • Common SMART-CM & INTEGRITY platforms &

technologies demonstration

6.6 The first phase of the SMART-CM demonstrators

6.6.1 Objective

In order to keep track on the global evolutions of the container chain management and enabling technologies the start-up of the demonstrators have been agreed to start at an early point of the project (M6, February 2009) by implementing the existing technologies and processes available in the market. This is to last until M11,


52 of 66 CERTH-HIT

end of June 2009. The platform of EDC that will be presented in the following chapter will be used for the initial demonstration of the corridors of the industrial partners. The objective of this start-up of the demonstrators will be the following:

a) To provide the “plug and play” feel of the devices in order to understand the technology better

b) To find the gaps / additional functionalities required from the device c) To test various functionalities like track & trace and security breach d) To gain the learning curve on demonstration to be exploited during main

demonstrations in July 2009 The Corridors that are introduced for this phase are: • K+N: Corridor: Rotterdam-Singapore and Rotterdam-Hong Kong (round trip) • DHL: Corrridor: Aqaba (Jordan)-Antwerp and Dubai-Antwerp • COSCON: Corridor: Ningbo (China) – Singapore (round trip) The following map presents the routes selected for the 1st level trials of the demonstrators.

Ningbo

Hong KongDubai

Aqaba

Antwerp

Singapore

Rotterdam

COSCON Start‐up and Hubs and CorridorDHL Start‐up Hubs and CorridorK+N Start‐up Hubs and Corridor

COSCON Start‐up and Hubs and CorridorDHL Start‐up Hubs and CorridorK+N Start‐up Hubs and Corridor

Figure 15: Start-up demonstrators’ Corridors The demonstrators will be organized step-by-step and to be reported in the concrete action plans (D5.1 and D6.1). These will be live documents with the planning of each phase of the demonstrators and describe the processes and applications to be tested.


53 of 66 CERTH-HIT

Chapter 7. The technologies to be demonstrated in SMART-CM

This chapter presents the basic available technologies that are used for the first level demonstrators and how the existing technologies used by the logistics stakeholders may benefit and cooperate in the context of the project.

7.1 Presentation of EDC technology & service platform

7.1.1 EDC76 Product Description

The EDC Secured Solution offers a full service model to shippers and logistic service providers. The core elements of this service model are:

• EDC76 (Container Security Device);

• Incident Platform (Security layer);

• Visibility layer (Logistic Layer);

• World Wide System Patent by Powers International.

7.1.2 EDC76 (Container Security Device)

The 76 is a flexible mountable unit that can easily be installed in any standard shipping container. The unit monitors and reports the position, status and security of cargo as they move across the global supply chain. The EDC76 provides global communications using Iridium (low earth orbit) global satellite. Technical Features:

• Iridium SBD Data Modem • 12 Channel GPS Receiver SIRF3 • ATMEGA 128 Processor 8Mhz • Batterylife 10 weeks up to 3 months (depending on the amount of

messages per day) • Battery life time: 3 Years • Light sensor for Open Door detection • Authorised Closing & Opening (AEO, C-TPAT Compliant) • Modular Expandable (shock, nuclear,... sensors) • Mounted on the container in less than 30 seconds • Self Activating unit when mounted on container • Ruggedized housing IP65 • External Antennapack (GPS, Iridium)


54 of 66 CERTH-HIT

7.1.3 The Platform (Security and visibility layer)

The core task of the security layer of the platform is the handling of events regarding the status of the container. All status messages coming from the CSD mounted in the container are handled on this platform.

Figure 16: Incident platform Snapshots

Its easy-to-use interface is specially designed for call centre exploitation and offers the users a step-by-step guidance trough the different procedures. The Visibility layer is web-based and, therefore, a worldwide accessible application for the visual tracking of the container. The Visibility layer offers the mapping of container trips, as well as the real-time location and status of a container. Furthermore, this application has a tool for generating open, intermediate open and final closing keys. Each action (except a breach) is done by authorized persons using unique keys. This process offers full transparency of the chain of Custody.

Figure 17: Snapshots of the visibility layer


55 of 66 CERTH-HIT

An extensive reporting tool offers full reporting and logistic history of a given movement or all movements of one’s container assets. All data that are fed to the visibility layer can easily be redirected through XML to existing corporate ERP (Enterprise Resource Planning) systems, middleware applications and to governmental authorities. Functionalities overview:

• Authorised & Intermediate Open & Close Key Generator • Asset Management • Group Management • User Management • Extensive Reporting • White label (own branding) • Webinterface • XML (easy integration with existing logistic software & middleware)

Figure 18: Snapshot of the reporting tool

7.1.4 EDC76 Product Roadmap 2009 – 2010

The EDC 76 unit is under continuous modification, offering always the latest technology and compliance to new standards and/or legislation. A next hardware release is planned for june / july 2009 and includes the following upgrades: • Updated Print and adapted firmware • Standard Onboard Sensors (Use case adjustable):

o Temperature o Humidity o Movement o Shock (3 Axle)

• Sleep, wake-up and reporting distance improved (more accurate) • Hybrid Communication: Iridium SBD & Cell • Bi-directional communication (modify parameters and location lookup) By the end a second upgrade is foreseen and will offer the following features:


56 of 66 CERTH-HIT

• Broadband implementation (GPRS) • Firmware Upgrade • RF integration (2.4 Ghz)

7.2 Brief presentation of Industrial actors systems related to the demonstration of corridors operation.

7.2.1 Introduction

This chapter is related to the several communication and monitoring platforms used by the SMART-CM industrial partners (DHL, K+N, COSCON) for their day to day container chain operations. These platforms have both the role of monitoring, tracking and tracing of the containers, as well communicating with the several partners and customers. A short description of these systems as would be involved in the demonstrators’ of the SMART-CM is the provided in the following paragraphs.

7.2.2 K&N: CIEL – Global Container Chain Monitoring Platform

CIEL FS is the seafreight operating application used by all seafreight departments worldwide within Kuehne + Nagel. CIEL FS is the abbreviation of: Computer Integrated Exchange Logistics Forwarding Seafreight. Operational employees use CIEL to manage the transportation needs of our customers or the customers of our colleagues abroad. Some of the most commonly used functionalities of CIEL FS are: Register seafreight bookings in the system, Book (electronically) with the Sea carrier (EDI), Arrange inland transportation, Archive documents electronically (E-File and E-Scan), Create and print invoices/credit notes, Create BAL Bill of Ladings, Create documents (e.g. notice of shipment, notice of arrival), Arrange Customs Clearance. Specialists within the global organisation of Kuehne + Nagel are working constantly on further development of the seafreight application systems to keep up of requirements from inside and outside of the organisation. The future interface between SMART-CM platform and CIEL should be on basis of EDI transmission.

7.2.3 DHL: OCM – Ocean Cargo Management System

DHL is using LOGIS (Logistics Information System), an ocean freight production system for managing the ocean freight business. Compatible across DHL's business unit, LOGIS makes it possible to document all of the important checkpoints and workflow steps that a shipments passes through. DHL also uses INTTRA portal, which links DHL to the carriers’ systems, to offer faster document processing whilst increasing shipment visibility during transit Apart from LOGIS, DHL also uses web based track and trace system, which allows the tracking of shipments and provide transparency along the value chain. DHL´s web based track and trace facility provides pickup, shipment booking for ocean


57 of 66 CERTH-HIT

consignments directly into production systems. It also prints the labels and allows customers to attach a document with the booking message. The system then provides global shipment status information while providing near real time visibility. It also provides historical data including shipment details and financial information to allow customers to analyze historical data. The details of which DHL system should be linked to SMART CM can be worked out in detailed technical design phase of the project. The high level perceived interface is shown in the following figure. SMART CM will help DHL in aligning with other players in the value chain and provide increased transparency, reliability, security and timeliness through enabling of concepts like green lane, real time availability of container status and information about security breach/ temperature to customers through information provided through neutral layer and device.

Neutral Visibility

Value Added Services

Logistics Visibility

SMART-CM PLATFORM

XML

EDCEDCEDC

DHL INFORMATION GATEWAY

LOGIS

OCEAN

PRODUCTION

SYSTEM

DHLi

TRACK

AND

TRACE

SYSTEM

LOG NET

ORDER

MANAGEMENT

SYSTEM

XML

XML1

XML

Vendor specific XML

Technology agnostic/neutral XML

XML

Neutral Visibility

Value Added Services

Logistics Visibility

SMART-CM PLATFORM

XML

EDCEDCEDCEDC

DHL INFORMATION GATEWAY

LOGIS

OCEAN

PRODUCTION

SYSTEM

DHLi

TRACK

AND

TRACE

SYSTEM

LOG NET

ORDER

MANAGEMENT

SYSTEM

XML

XML1

XML

Vendor specific XML

Technology agnostic/neutral XML

XML

Figure 19: The DHL systems and the interface with the SMART-CM platform

7.2.4 COSCON: IRIS 2 - Global Integrated Container Management System

IRIS-2 (Integrated Regional Information System) is an application system that integrate business process, cargo transport and customer service. IRIS-2 can record the company's container business operation information worldwide in real-time, and then save the information into a centralized database to enable the information sharing worldwide. The main functions of the core system of IRIS-2 consist of basic information and business operation. The basic information includes the following information modules: geographical information, organizational structure, client archive, supplier archive, freight rate, supplier rate, schedule, transportation path and client agreement; the business operation consists of such modules as booking shipping space, export documentation, import documentation, work order operation,


58 of 66 CERTH-HIT

space allocation and financial settlement. IRIS2 also has a framework for business information exchange: EDI sub-system.

Customer Information Services

With well-developed information technology and e-commerce systems, through an inter-connected global e-commerce platform and a global EDI centre, COSCON allows its customers and suppliers to exchange data and share information resources. There are two different kinds of services provided. The first are public services including sailing schedules, cargo tracing, vessel particulars and rate quotations. For those registered customers, they can enjoy more convenient services like sailing schedule subscription which can receive customized schedule information via e-mail as often as like. Other specific services include booking assistant, B/L printing, on-line shipping instruction, on-line B/L checking, arrival notice, customer reports, E-mail notification and EDI service. The URL of COSCON E-Commerce is http://www.coscon.com/ebusiness/home.screen.

Figure 20: Snapshot of the IRIS on-line system Linkage between SMART-CM and IRIS2 system

The possible linkage between SMART-CM platform and IRIS2 system would mainly be container movement information exchange. Customs clearance information exchange is also expected. EDI would be the first choice as information exchange method, but XML or Message Queue is also accepted. Potential benefits from SMART-CM platform Potential benefits from SMART-CM platform could be the following, from an ocean carrier’s point of view.


59 of 66 CERTH-HIT

Much more accurate and in time information for container movement and processes

Simple and effective interface with all partners on supply chain Security for cargo inside containers Effective process for customs clearance procedures


60 of 66 CERTH-HIT

References • SMART-CM: D1.1.1. Global Container Supply Chain Compendium (common

Deliverable with INTEGRITY) • SMART-CM: D1.2.1. SMART-CM Implementation framework for global container

surveillance and control (interim version) • SMART-CM: D2.1.1: Quality assessment plan • SMART-CM: Description of Work Annex I of the Grant Agreement • SMART-CM: D5.1: EU-ME Corridor Implementation Handbook • SMART-CM: D2.2.1: Specification (interim) • SMART-CM: D2.2.2: Design (interim) • SMART-CM: M3.1.1 Specification of value added services for the SMART-CM

platform

Deliverable 10.2.1 Dissemination Level -Public- Contract N.218547

61 of 66 CERTH-HIT

Annex 1: The SMART-CM Consortium

Beneficiary Number *

Beneficiary name Beneficiary short name

Country

1(coordinator) Centre For Research and Technology Hellas/Hellenic Institute of Transport CERTH/HIT Greece

2 Fraunhofer Institut for Material Flow and Logistics FhG Germany

3 Beratung und Planung Im Verkehrswesen BPV Germany

4 DHL Global Forwarding - DHL Management Ltd. DHL Switzerland

5 COSCO Network e-logistics COSCOEL China 6 COSCO Container Lines COSCON China 7 European DATACOM EDC Belgium 8 TNO TNO Netherlands 9 European Intermodal Association EIA Belgium 10 VTT Technical Research Centre of Finland VTT Finland

11 Transeuropean Consultants for Transport, Development and Information Technology S.A TREDIT Greece

12 Planet SA PLANET Greece 13 AMRIE ITALIA AMRIE Italy 14 PTV Planung Transport Verkehr AG PTV Germany 15 University of Rome UN.Rome Italy

16 Thai International Freight Forwarders Association TIFFA Thailand

17 TIFFA EDI Services Company Limited TIFFA EDI Thailand

18 Ningbo Port Group Information & Communication Ltd NPIC China

19 Thessaloniki Port Authority THPA Greece 20 Kuehne&Nagel K+N Austria 21 PSA HNN PSA Belgium 22 Belgian customs B.Customs Belgium 23 Port Authority of Antwerp AntPA Belgium 24 Sequoyah N.V. Sequoyah Belgium 25 Flemish Institute of Logistics VIL Belgium 26 Porthus Porthus Belgium 27 PROODOS SA PROODOS Greece 28 Comite Europeen de Normalisation CEN Belgium 29 InternationaL Cargo Security Association ICSO Belgium 30 Hellenic Ministry of Finance (Greek Customs) Gr. Customs Greece

31 The peninsular & Oriental Steam Navigation Company-P&OSNCO (DP World) DP World UK


62 of 66 CERTH-HIT

Annex 2: The SMART-CM 2nd Level User needs

To\From Freight Forwarder(1)

Customs (2)

Terminal Operators (3)

Shipping Line (4)

Freight Forwarder(a)

(FF from Customs)_

(Customs to FF)_

(FF from TO)_

(TO to FF)_

(FF from SL)a) Booking Confirmationb) Estimated time of departure Confirmation

(SL to FF)a) Receipt of booking confirmationb) Vessel Schedulec) Shipment Statusd) Issuance of Ocean Bill Of Lading/Seaway Bill of Lading e) Confirmed B/L

Customs(b)

(Customs from FF)_

(FF to Customs)a) Export declarationb) Invoicec) Packing list_

(Customs from TO)a) Customs Declarationb) Summary Declaration

(TO to Customs)_

(Customs from SL)a) Container Number

(SL to Customs)a) Manifest (24hour, I/B,FROB), Foreign cargo remaining on-boardb) Gate in Information (CODECO)c) Empty Manifestd) PTT(Permit to Transfer)e) Container Arrival/Re-Export

Terminal Operator (c)

(TO from FF)_

(FF to TO)_

(TO from Customs)_

(Customs to TO)_

(TO from SL)a) Container Number, Container type (ISO Code, Length, Height), Container Category Temp Conntrolled/Oversized/tank), Gross weight (Container + Cargo), vessel name, voinformation concerning Stowage, Custom Status, Any specific remarks/requests conceitselfb) Dangerous Goods information (IMO - UN)c) For Transhipment containers : Indictaion of next vessel, voyage number and port of dreefer (0 Temp controlled) containers : indication of temperature range and indication oFahrenheitd) Booking Reference number, B/L (Bill of Lading) Number, Shipping Line Service (thisdetermined by the trerminal operator), Terminal Code (available on database, 1 uniqueterminal)e) Is the container collected/ delivered, Number of containers to be collected /delivered

(SL to TO)a) Registering the container at Ningbo port/terminal portalb) Container Dispatchc) Numeric Container List (predefined)d) Pre-Alert about Vessel Arrivale) Receive bay plan (overview of vessel and all containers onboard)f) Delivery order: shipping line authorises PSA for release of container after freight etc. g) Prestowage Bay Plan (Vessel Manifest)

Shipping Line(d )

(SL from FF)a) Empty container enquiry & free capacity request with ocean carrierb) Sending OBL instructions to ocean carrierc) Container release requestd)Ocean Carrier bookinge) Shipping Instructionf) Payment Confirmation

(FF to SL)a) Send Bookingb) Billing Details

(SL from Customs)a) Customs Release Informationb) Customs Status (Feedback on Vessel Departure/ Vessel Arrival/Manifest)c) Customs Release Status

(Customs to SL)_

(SL from TO)a) Tally sheet provided by Tally company which includes the number of loading/discharging containers with container status (damage/ good condition)b) Container Movement

(TO to SL)_


63 of 66 CERTH-HIT

To\From Freight Forwarder

(1)Customs

(2)Terminal Operators

(3)Shipping Line

(4)

Freight Forwarder(a)

(FF from Customs)_

(Customs to FF)_

(FF from TO)_

(TO to FF)_

(FF from SL)a) Booking Confirmationb) Estimated time of departure Confirmation

(SL to FF)a) Receipt of booking confirmationb) Vessel Schedulec) Shipment Statusd) Issuance of Ocean Bill Of Lading/Seaway Bill of Lading e) Confirmed B/L

Customs(b)

(Customs from FF)_

(FF to Customs)a) Export declarationb) Invoicec) Packing list_

(Customs from TO)a) Customs Declarationb) Summary Declaration

(TO to Customs)_

(Customs from SL)a) Container Number

(SL to Customs)a) Manifest (24hour, I/B,FROB), Foreign cargo remaining on-boardb) Gate in Information (CODECO)c) Empty Manifestd) PTT(Permit to Transfer)e) Container Arrival/Re-Export

Terminal Operator (c)

(TO from FF)_

(FF to TO)_

(TO from Customs)_

(Customs to TO)_

(TO from SL)a) Container Number, Container type (ISO Code, Length, Height), Container Category Temp Conntrolled/Oversized/tank), Gross weight (Container + Cargo), vessel name, voinformation concerning Stowage, Custom Status, Any specific remarks/requests conceitselfb) Dangerous Goods information (IMO - UN)c) For Transhipment containers : Indictaion of next vessel, voyage number and port of dreefer (0 Temp controlled) containers : indication of temperature range and indication oFahrenheitd) Booking Reference number, B/L (Bill of Lading) Number, Shipping Line Service (thisdetermined by the trerminal operator), Terminal Code (available on database, 1 uniqueterminal)e) Is the container collected/ delivered, Number of containers to be collected /delivered

(SL to TO)a) Registering the container at Ningbo port/terminal portalb) Container Dispatchc) Numeric Container List (predefined)d) Pre-Alert about Vessel Arrivale) Receive bay plan (overview of vessel and all containers onboard)f) Delivery order: shipping line authorises PSA for release of container after freight etc. g) Prestowage Bay Plan (Vessel Manifest)

Shipping Line(d )

(SL from FF)a) Empty container enquiry & free capacity request with ocean carrierb) Sending OBL instructions to ocean carrierc) Container release requestd)Ocean Carrier bookinge) Shipping Instructionf) Payment Confirmation

(FF to SL)a) Send Bookingb) Billing Details

(SL from Customs)a) Customs Release Informationb) Customs Status (Feedback on Vessel Departure/ Vessel Arrival/Manifest)c) Customs Release Status

(Customs to SL)_

(SL from TO)a) Tally sheet provided by Tally company which includes the number of loading/discharging containers with container status (damage/ good condition)b) Container Movement

(TO to SL)_


64 of 66 CERTH-HIT

Annex 3: The SMART-CM 3rd Level User needs S No. Information Platform Type of Information Provider Access

1 Device Container Number2 Device Seal Number 3 Device Number of Device

4 Device Origin & Destination (or STL number)

5 SMART CM Platform Weight of Container6 SMART CM Platform Number of Packages7 SMART CM Platform Volume8 SMART CM Platform Commodity9 SMART CM Platform Dangerous Material

10 SMART CM Platform Location Code

Based on ISO Codes of locations derived from geo-coordnates from Device

11 SMART CM Platform Co-ordinates Device

12 SMART CM PlatformReal time data for sailing & arrival (Actual Time of Departure / Actual Time of Arrival)

Shipping Line Freight Forwarders / Shipping Line

13 SMART CM Platform Next/first mode of transportation Shipping Line/ Freight forwarders Terminal Operator

14 SMART CM Platform ETD/ETA* per containerShipping Line / Barge Operator / Trucker

Freight Forwarder / Terminal Operator

15 SMART CM Platform Security Breach,Temperature, Shock, Humidity Device

Freight Forwarder / Customs / Terminal Operator

16 SMART CM PlatformVessel Number, Voyage Number, Vessel Name, Journey number (Port Specific), Call Sign

Shipping Line Freight Forwarder / Terminal Operator

17 SMART CM Platform Shipment Status e.g. for EU / Non EU containers Customs

Freight Forwarder / Terminal Operator / Shipping Line

18 SMART CM PlatformCustom Release Legal confirmation RED/ GREEN flag for input and output shipments

CustomsFreight Forwarders / Terminal Operator / Shipping Line

19 SMART CM PlatformElectronic Delivery order/Release order from Shipping Line after payment

Shipping Line Terminal Operator / Freight Forwarder

20 SMART CM Platform Container Type(container size, type full/empty) Shipping Line

Terminal Operator/ Freight Forwarder/ Customs

21 SMART CM Platform Bkg. Reference number of container Shipping Line

Terminal Operator/ Freight Forwarder/ Customs

22 SMART CM Platform Cargo nature (DG/Refri/Awkward) Shipping Line/ Freight forwarders

Shipping Line/Customs

23 SMART CM Platform BL (Bill of Lading) number for LCL Containers Shipping Line Shipping

Line/Customs

24 SMART CM Platform Container status(FCL/LCL) Shipping Line/ Freight forwarders

Shipping Line/Customs

25 SMART CM PlatformPOLport of loading/POD port of discharging/POR place of receiving/POD place of delivery

Freight forwarders Shipping Line/Customs

26 SMART CM Platform if dangerous cargo, indication of particular risks (Priority Low) Freight forwarders Shipping Line/

Customs

27 SMART CM Platform Customs declaration / Summary Declaration Freight forwarders Customs

28 SMART CM Platform Risk assessment results /In case of risk type A - serious threat) Customs

Freight forwarders/Shipping Lines/Terminal Operators

29 SMART CM Platform Movement Reference Number Customs

Freight forwarders/Shipping Lines/Terminal Operators

30 SMART CM Platform

Pre-arrival notification: identity of person responsible for goods carriage; identity of person lodging ENS; place of loading/unloading; UCR; bill of lading (B/L) reference

Shipping Line Customs

31 SMART CM Platform Availibility of services price list Shipping Line Freight forwarders

Freight Forwarders / Customs

Shipper/Freight Forwarder

Customs / Terminal Operators / Shipping Line


65 of 66 CERTH-HIT

Annex 4: The Possible VAS features VAS Feature Description Level

Dynamic Routing Intelligent advanced transportation routing taking into account all critical real time conditions 1

Customs Single Window

One Cargo Clearance data entry and control for the entire shipment 1

Customs Shipment Reference Harmonization

Business rolled reference surrogate identifications and translation per shipment session for every actor. Shipment Id's combination with container id, ENS, MRN 1

Customs Form Generation

Automated Customs forms creation with the related data per shipment 1

Exception Handling Coordination according regulation rules and threshold after plan exception 2

Global Transportations Information State

Platform will act as a state machine for the information exchange transaction and status 2

Transactions Assurance Receipt

Assurance for all information exchange in order to preserve completion and to prevent non repudiation 2

Transport Condition Incompatibilities Warning

Real time business data validation to avoid incompatibilities and transport mishandlings 2

Deviations Warning Gradient Alerts according different level of plan violations 2

Logistics One Stop Shop

A flexible access point of the Platform to forward requests, to serve business procedures data exchange and to provide information to the Actors 2

On Arrival Certifications Exchange

The carriers will submit their entire shipment certifications automatically on arrival at port 2

Transport Chain Progress

Platform will inform the actor for the progress of the total shipment 2

Flexible & 3 Accuracy Level Estimations

Service Completion Time estimations using information from the service provider, the actor or by mean historical data 2

Shipment Authorization Session Keys

Authorization keys will be created and distributed to every authorized actor across the entire shipment 3

Multicast Information Encapsulation

Encapsulation of the information on pre-posted holders from the Platform in order to prevent any kind of unauthorized interception and preserve competition 3

3rd Party Authentication for Actors

Platform will play the third party role of an Authentication Centre for all information exchange transactions between the actors 3

Empty Containers Reusability

Schedule proposals for improved utilization and adoption of the empty containers 3

Anomaly Detection Patterns

Proactive warning mechanism on high planning deviation detection 3


66 of 66 CERTH-HIT

VAS Feature Description Level

Incident Handling Immediate cooperative actors coordination on emergency situations 4

Dangerous Location Warning

Continuously monitoring of high densities for dangerous materials 4

Lost Cargos Seek Alerting mechanism for all missing containers acknowledged at first sight 4

Suspicious Way Paths Warning

Identification of "Red Lanes" for suspicious delivery routes 4

Transport Services Indexing Publishing mechanism for every transport provider 4Transport Services Ticket Granting

A flexible subscription mechanism for efficient transport services usage 4

Transport Quality of Service

Preservation of specific quality of services per transport provider 4

project presentation inception report - trip...

Documents