smart-cm implementation framework for global container … · 2015. 7. 3. · deliverable n d1.2.1...

Deliverable N D1.2.1 Distribution level (PU) Contract N. 218547

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THEME 7

Transport including Aeronautics

SMART-CM Implementation framework for global container surveillance and control

Project acronym: SMART-CM Project full title: SMART Container Chain Management Deliverable No. (use the number indicated on technical annex)

D1.2.1

Workpackage No. WP1 Workpackage Title New requirements and logistics services for global container management

Task No. T1.2 Task Title SMART-CM Implementation framework for global surveillance and control

Date of preparation of this version: 30/06/09

Authors: TNO, DHL, CERTH-HIT, PLANET, VIL, Belgian Customs.

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

File Name: SMARTCM-D1.2.1-v2.doc

Version: 2

Task start date and duration 01/08/2008- 9 Months


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Revision History

Version No. Date Details V1 27/02/2009 Interim version of the deliverable V2 30/06/2009 Final version of the deliverable

Reviewers’ list Name Company Date Signature

Dimitris Katsochis Planet 30/06/2009

George Charalampous CERTH-HIT 30/06/2009


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List of abbreviations

Abbreviation Description

AEO Authorised Economic Operator BIC Bureau International des Containers et du Transport Intermodal 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 JIT Just in Time LCL Less than Container Load LSP Logistics Service Provider NGO Non-Governamental Organisation NVOCC Non-Vessel Operating Common Carrier OCM Ocean Cargo Management RFID Radio Frequency Identification ROI Return of Investment SOA Service Oriented Architecture STL Secure Trade Lane TIR Transport International Routier VMI Vendor managed inventory WIP Work-In-Process XML Extensible Markup Language


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Table of Contents List of abbreviations ................................................................................................................................ 3 Table of Contents ................................................................................................................................... 4 List of Tables .......................................................................................................................................... 6 List of Figures ......................................................................................................................................... 7 1 Executive Summary ......................................................................................................................... 8 2 Logistic needs and KPI’s ................................................................................................................ 11

2.1 Approach and methodology ................................................................................................ 11 2.1.1 Methodology Industry Requirements gathering ................................................................ 11

2.2 Level 1 – General Business needs knowledge & KPI´s requirements ................................ 12 2.2.1 Methodology ...................................................................................................................... 12 2.2.2 Supply chain wide level 1 requirements ........................................................................... 12 2.2.3 Freight Forwarders level 1 requirements .......................................................................... 13 2.2.4 Customs level 1 requirements .......................................................................................... 18 2.2.5 Terminal Operators level 1 requirements ......................................................................... 18 2.2.6 Shipping line level 1 requirements .................................................................................... 19

2.3 Level 2 – Industry Information Requirements ..................................................................... 22 2.3.1 Methodology ...................................................................................................................... 22 2.3.2 Current information Exchange .......................................................................................... 22 2.3.3 Future information Exchange ............................................................................................ 24

2.4 Level 3 – Industry Data Requirements ................................................................................ 26 2.4.1 Methodology ...................................................................................................................... 26 2.4.2 Results of industry data requirements .............................................................................. 26

3 Customs security needs and KPI’s ................................................................................................ 30 3.1 Introduction .......................................................................................................................... 30 3.2 High level needs and KPI’s ................................................................................................. 32 3.3 Smart-CM – Belgian Customs’ requirements: possible trade lanes ................................... 44

3.3.1 Basic concepts .................................................................................................................. 44 3.3.2 Trends in Customs: Six possible (secure) trade lanes – facilitations ............................... 44 3.3.3 First general Customs requirement for Smart-CM: status information ............................. 45 3.3.4 Second general requirement for Smart-CM: fulfil ENS requirements and support relevant transactions of logistics actors towards Customs .......................................................................... 46 3.3.5 Third general requirement for Smart-CM: accessibility for other Customs agencies ....... 46 3.3.6 Discussion on Customs’ major needs / requirements ....................................................... 50

3.4 Information needs per stakeholder...................................................................................... 55 3.4.1 Anticipated benefits – further issues to be examined ....................................................... 55

4 Requirements for the neutral operational layer .............................................................................. 60 4.1 Introduction .......................................................................................................................... 60 4.2 Architecture Input ................................................................................................................ 60

4.2.1 Logistic Requirements ...................................................................................................... 60 4.2.2 Customs Requirements .................................................................................................... 60

4.3 Architecture Design Process ............................................................................................... 61 4.4 Identification of Architectural Objectives ............................................................................. 61

4.4.1 Architecture goals ............................................................................................................. 61 4.4.2 Architecture consumers .................................................................................................... 62 4.4.3 Architecture constraints .................................................................................................... 62

4.5 Key Scenario’s .................................................................................................................... 62 4.6 Platform Overview ............................................................................................................... 63

4.6.1 Functional Blocks Overview .............................................................................................. 63 4.6.2 Security Device Messaging ............................................................................................... 63 4.6.3 Supply Chain Messaging .................................................................................................. 65 4.6.4 Message Processing ......................................................................................................... 65 4.6.5 Distribution ........................................................................................................................ 66 4.6.6 Collaboration & Visibility Services ..................................................................................... 67 4.6.7 Container Trip Information ................................................................................................ 68 4.6.8 Master Data ....................................................................................................................... 69 4.6.9 Support Services ............................................................................................................... 69


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4.6.10 External Interfaces ............................................................................................................ 70 4.7 Message Formats................................................................................................................ 70 4.8 Functionality Map ................................................................................................................ 75 4.9 Technical Design ................................................................................................................. 77

5 Requirements for the collaboration and visibility layer ................................................................... 78 5.1 Introduction .......................................................................................................................... 78

5.1.1 Platform Architecture overview ......................................................................................... 80 5.1.2 Work Package 3 Responsibilities ...................................................................................... 81 5.1.3 VAS supportive Architecture and Functionality ................................................................. 82

5.2 VAS Description .................................................................................................................. 86 5.2.1 Platform, features and functionalities ................................................................................ 86 5.2.2 Visibility Aspect of the Value Added Services .................................................................. 89 5.2.3 Intelligence Aspect of Value Added Services ................................................................... 90

6 Market restrictions and non-technical requirements ...................................................................... 93 6.1 Introduction .......................................................................................................................... 93 6.2 Market enables/drivers in global supply chains monitoring and control .............................. 94

6.2.1 Enabling technologies for supply chain integration ........................................................... 94 6.2.2 The internet as enabling factor for global supply chains................................................... 94 6.2.3 SOA architectures ............................................................................................................. 95 6.2.4 Global trade as global logistics enablers .......................................................................... 96 6.2.5 Emerging technology providers market ............................................................................ 97

6.3 Non-technical market restrictions for global container monitoring and control ................... 98 6.3.1 Market driven and business models related barriers ........................................................ 98 6.3.2 Global supply chain automated control and visibility related barriers ............................. 106

6.4 The role of SMART-CM in the global market .................................................................... 108 6.4.1 Results from the JAB discussions towards platform acceptance ................................... 108 6.4.2 The SMART-CM position in the context of the market enablers and restrictions ........... 109

7 SMART-CM non-technical requirements: costs benefits and business model ............................ 111 7.1 SMART-CM platform Cost/Benefit Analysis ...................................................................... 111

7.1.1 Costs of the SMART-CM platform .................................................................................. 111 7.1.2 Benefits of SMART-CM platform ..................................................................................... 113 7.1.3 Summary matrix of Cost/Benefit analysis ....................................................................... 115

7.2 Findings from interviews with industrial partners .............................................................. 117 7.3 SMART-CM platform Business Model .............................................................................. 120

8 Conclusions .................................................................................................................................. 122 9 List of sources .............................................................................................................................. 124 Annex 1: The Anticipated changes in the customs procedures ......................................................... 125


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List of Tables

Table 2.1: Freight forwarders Level 1 Requirements (Source: Questionnaire, DHL, K+N, PROODOS) .............................................................................................................................................................. 15 Table 2.2: Shipping line Level 1 Requirements (Source: Questionnaire, COSCON) .......................... 20 Table 2.3: Current Information Exchange Matrix (Source: ANTWERP workshop, questionnaires, interviews, D.1.2.2 – DHL, K+N, PLANET SA, DPW, PSA, COSCON) ............................................... 23 Table 2.4: Future Information Requirements Matrix (Source: ANTWERP workshop, questionnaires, interviews, D.1.2.2 – DHL, K+N, PLANET SA, DPW, PSA, COSCON) ............................................... 25 Table 2.5: Industry Data Requirements(Source: ANTWERP workshop, questionnaires, interviews, D.1.2.2 – DHL, K+N, PLANET SA, DPW, PSA, COSCON) ................................................................. 27 Table 2.6: General System Requirements ........................................................................................... 28 Table 3.1: Customs Level 1 Requirements (Source: Belgian / Greek Customs) ................................ 34 Table 4.1: VAS Features short descriptions functionality ..................................................................... 87 Table 7.1: Summary matrix of Cost/Benefit analysis .......................................................................... 115


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List of Figures Figure 2.1: Methodology for requirements gathering ........................................................................... 11 Figure 2.2: Methodology for level 1 requirements gathering ................................................................ 12 Figure 2.3: Requirements for supply chain wide business needs (Source: DELFT workshop) ........... 13 Figure 2.4: Basic functions of freight forwarders in the supply chain ................................................... 14 Figure 2.5: Basic functions of customs in the supply chain .................................................................. 18 Figure 2.6: Basic functions of terminal operators in the supply chain .................................................. 18 Figure 2.7: Functional needs of terminal operators in the supply chain ............................................... 19 Figure 2.8: Basic functions of shipping line in the supply chain ........................................................... 19 Figure 2.9: Methodology of gathering industry data requirements ....................................................... 26 Figure 3.1: Basic functions of customs in the supply chain .................................................................. 33 Figure 3.2: Scheme 1 – Import Control System (ICS) and Export Control System (ECS) applied as legally foreseen starting from 1/07/09 .................................................................................................. 47 Figure 3.3: Scheme 2 – Exchange of customs to customs data happens by means of a common platform ................................................................................................................................................. 48 Figure 3.4:: Scheme 3 – Only CSD data will be posted on the platform .............................................. 49 Figure 3.5: Structure of the AIS: the three main domains (source: AISWG) ........................................ 51 Figure 4.1: Functional Architecture Overview ...................................................................................... 63 Figure 4.2: Security Device Messaging Functional Block .................................................................... 64 Figure 4.3: Supply Chain Messaging Functional Block ........................................................................ 65 Figure 4.4: Message Processing Functional Block .............................................................................. 66 Figure 4.5: Message Distribution Functional Block .............................................................................. 67 Figure 4.6: Collaboration & Visibility Services Functional Block .......................................................... 67 Figure 4.7: Industry Data Requirements mapping conform to neutral security layer design ............... 71 Figure 4.8: Freight Forwarder Information Needs ................................................................................ 72 Figure 4.9: Customs Information Needs ............................................................................................... 73 Figure 4.10: Terminal Provider Information Needs .............................................................................. 74 Figure 4.11: Shipping Line Information Needs ..................................................................................... 75 Figure 4.12: Neutral Security Layer Functionalities .............................................................................. 76 Figure 4.13: Information Gateway functionalities ................................................................................. 76 Figure 4.14: Approach for a Technical Design ..................................................................................... 77 Figure 5.1: SMART-CM Platform based on DoW ................................................................................. 78 Figure 5.2: SMART-CM Overall functional platform ............................................................................. 79 Figure 5.3: Platform Architecture .......................................................................................................... 81 Figure 5.4: Platform Layers .................................................................................................................. 81 Figure 5.5: Architecture needed for WP3 ............................................................................................. 82 Figure 5.6: Platform Functionality (Layers, Components, Technologies, Features) ............................ 83 Figure 5.7: Platform Functionality for WP3 ........................................................................................... 84 Figure 5.8: WP3 Components and Technologies ................................................................................. 86 Figure 5.9: Platform VAS ...................................................................................................................... 87 Figure 6.1: Methodological framework for Task 1.2.5 .......................................................................... 93 Figure 6.2: Contractual relations in the supply chain ........................................................................... 98 Figure 6.3: Parties involved in the sea transport chain in shipping freight from point A to point D via ports B and C. (Fremont 2005) ............................................................................................................. 99 Figure 6.4: The shipment cycle .......................................................................................................... 101 Figure 6.5: Business process in terminals and area of SMART-CM possible impact (Fremont, 2008) ............................................................................................................................................................ 102 Figure 6.6: Top Areas of Concern for Global Supply Chain (Aberdeen Group 2006) ........................ 106


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1 Executive Summary This report is the SMART-CM Deliverable 1.2.1 which accounts for the task 1.2 of SMART-CM WP1. The key objective of this task is to define user needs, technical and non-technical requirements that are specific to the SMART-CM architecture. The report provides answers to the questions of new service concepts and business models based on existing gaps in the current container chain management. To implement those services, concepts and models, market restrictions and enablers (including business economy and financial drivers) have been considered. Another objective of this report is to provide the reader with common requirements for evolution of global container chain management. Both port/hinterland logistics operations and customs/security are taken into account. In more practical terms, this report accounts for the work that has been done to study SMART-CM platform requirements in a broad sense. Definition of user needs and requirements is a critical component in development of such a complex multi-party technologically advanced platform. First, this report identifies the needs of various container transport chain partners, starting from the shipper interest representatives, Logistics Service Providers (LSP), and spanning to the needs of the customs authorities. Further the report considers platform requirements in respect to collaboration, visibility and neutral layers of the platform. Finally, we discuss in the report non-technical requirements of the platform, namely market restriction and enablers, as well as provide the reader with the first attempt of cost benefit and business model identification. Each chapter of this report corresponds to a specific milestone of the task 1.2. The chapters are quite autonomous in respect to the subject of the study and, in principle, can be treated as separate documents; however they are united by the methodology used and by the over goal of the task 1.2: to define the platform’s needs and requirements. The chapters adhere to the following SMART-CM milestone definition: Chapter 2: M1.2.1. SMART-CM User needs: port and hinterland operations Chapter 3: M1.2.2. SMART-CM User needs: customs / security Chapter 4: M1.2.3. SMART-CM requirements: collaboration and visibility layer Chapter 5: M1.2.4. SMART-CM requirements: neutral operational layer Chapter 6: M1.2.5. SMART-CM non-technical requirements: market restrictions and enablers Chapter 7: M1.2.6. SMART-CM non-technical requirements: costs benefits and business model In Chapter 2 we deal with logistics needs and KPI’s of the platform. The business needs of logistics partners are captured at three levels of abstraction. At first, we define the needs at the supply chain level. At this level there are transparency, security, reliability, timeliness and other needs that are defined per stakeholder group (freight forwarder / LSP, customs, terminal operators, shipping lines). At the second level the industry information requirement goes one level detail deeper. It takes into consideration business needs and identifies the information exchange requirements among various players including freight forwarders, customs, terminal operators and shipping line. Through a number of workshops information exchange needs have been identified: the information exchange needs go beyond established practices and identify future information exchange needs, for which the SMART-CM platform presents an opportunity. At the third level the industry data requirements convert the industry information requirements to data requirements and serves as an input to subsequent milestones and deliverables. Data requirements basically go one level of detail deeper than information exchange and specify the data elements along with provider of data element, party that accesses the data element, storage time of data element and hence forth. The data detail identified in this report is based on business input from industrial partners. The technical level details are being explored in subsequent work packages. Chapter 3 deals with customs security needs and respective KPI’s. It follows the general approach and methodology of Chapter 2, however deals explicitly with customs needs, as a focused type of platform stakeholder. This chapter provides a relevant analysis built around the three main layers of the SMART-CM platform, namely the Information gateway, the Visibility (infrastructure) and the Value added services. The former two are distinguished in the so-called “neutral” part and the business/logistics part. The chapter covers the topic of information exchange along container


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transport chain, placing particular focus on the security aspect of involved customs procedures. As such, it utilizes associated input from a series of sources, such as literature review and experiences/analyses of involved parties based on existing and examined practices respectively. On top of this material put together, some synthesis is performed as an attempt to provide additional insight in view of the neutral and business (logistics) layer development at a later stage in the project. Neutrality in information provision is identified as major component for processes easiness and good level of acceptance from the authorities. Chapter 4 provides an overview of the SMART-CM platform functional design and architecture as well as the first formulations of Value Added Services (VAS) of the platform, as requirements for the collaboration and visibility layers. The VAS envisaged create additional value for platform users, building extra functionality on top of data exchange functionality of the platform. Namely, the VAS layer of the platform uses information being exchanged at visibility and / or neutral layer to create additional business intelligence information, which can be interpreted as a derivative of operational information passing through the platform. The main VAS discussed in this chapter include (and not limited to) dynamic routing, customs single window, exception handling, deviations warning, empty container reusability, abnormality pattern detection, incident handling and other. These stated VAS are dealt with in more detail in WP3 of the SMART-CM project. In Chapter 5 the requirements of the SMART-CM neutral operational level are considered. The identification of architectural objectives, key scenarios definition has been performed. The platform overview consists of the functional blocks overview, security device messaging block, supply chain messaging block, message processing and handling of outgoing messages. There are also considered / defined collaboration and visibility services, container trip information, master data (key business information), support services, external interfaces. The chapter considers message formats from the stakeholder group perspective (e.g. freight forwarder, customs) and makes first approximation in definition of the functionality map and the platform’s technical design. Chapter 6 considers market restrictions and non-technical requirements of the SMART-CM platform. The main barriers of global supply chain monitoring and control are risks and liabilities related to information ownership; low confidence level of the actors in respect to acceptance for the information provided by a data sharing system; actors are used to find their own solutions to their own problems, which presents a barrier towards collective information exchange platform. There are also visibility related barriers, such as difficulty of monitoring goods in transit, complexity of monitoring solutions, poor quality of data exchange (e.g. obsolete and erroneous data), conflicts of business interests of transport chain partners. On the other hand, there are plenty of opportunities to overcome these barriers, which are mainly attributed to technological solutions. First, E-logistics concept bids opportunities in supply chain collaboration facilitation; SOA architectures address the requirements of loosely coupled, standards-based, and protocol-independent distributed computing, mapping enterprise information systems appropriately to the overall business process flow; global trade and global supply chains demand technological solutions that overcome existing barriers. However, not only technology provides bridges for existing barriers. Given the presence of sufficient need and motivation, models for building trust in global chains provide a promising tool for barrier alleviation. In Chapter 7 we deal with non-technical requirements of the platform in respect to cost-benefit efficiency of the platform and underlying business model. The goal of the research done has been to quantify the costs and benefits of the SMART-CM platform as much as possible, while looking at possible business models such that costs and benefits are divided among partners in a sustainable way. The business model under consideration is not limited to the functioning of the neutral organization: a broader, platform-wide perspective is taken. We begin the analysis with a literature identification of possible costs and benefits of the platform. We take a step further, through intensive consultations and interviews with all industrial partners of the platform identifying basic costs and benefits of it. The result of our research shows that it is hard to quantify all costs of the platform at this point in time, let alone the benefits of it. The basic estimate


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shows a rather high cost of platform operation, some EUR260,00 per container trip. The industrial partners could not come up with monetary estimations of benefits coming out from the platform, however, there are some sources indicating that benefits can reach EUR500,00 per container trip. In the section on business models we state that the platform must achieve a fair distribution of costs and benefits, namely to make sure that the parties baring the costs can also realize benefits, otherwise the solution would not be sustainable. We also raise business-model related issues such as device circulation issue (return logistics of CSD devices) and device ownership schema.


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2 Logistic needs and KPI’s

2.1 Approach and methodology

2.1.1 Methodology Industry Requirements gathering The 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. The following figure depicts the methodology used to arrive at final requirements. With the help of questionnaires, workshops and interviews, the user requirements were collected. After going through three levels of processing, detailed industry requirements have been consolidated to serve as an input to subsequent tasks and work packages.

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 2.1: 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. 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) 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)


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2.2 Level 1 – General Business needs knowledge & KPI´s requirements

The general business needs knowledge and KPI´s requirements provides the list of business requirements from players including freight forwarders, terminal operators and shipping line for a successful supply chain.

2.2.1 Methodology The requirements of general business needs and KPI`s were gathered on the basis of identified critical parameters for a successful supply chain. The identified critical parameters are:

a) Transparency b) Security c) Reliability d) Timeliness e) Cost f) Effort/ Efficiency g) Services

The players along the supply chain provided their general and functional requirements along with the required KPI´s based on these critical parameters. The following figure depicts the methodology adopted. The supply chain figure is the basic model of the supply chain, obviously in real life more than one function can be performed by single player.

Lead

Steps Pick-upHub-

HandlingGround

HandlingCustoms clearance

Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling

Hub Handling Delivery

Forwarders ForwardersTerminalOperatorTerminalOperator Customs

ShippinglineCustoms

GeneralGeneral Needs

Transparency

Security

Reliability

Timeliness

Cost

Effort/ Efficiency

Services

Functional Needs KPI´sParameter

Lead

Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling



ShippinglineCustomsLead

Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling



ShippinglineCustoms

Pick-up Hub-HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling



ShippinglineCustoms

GeneralGeneral Needs

Transparency

Security

Reliability

Timeliness

Cost

Effort/ Efficiency

Services

Functional Needs KPI´sParameter GeneralGeneralGeneral Needs

TransparencyTransparency

SecuritySecurity

ReliabilityReliability

TimelinessTimeliness

CostCost

Effort/ Efficiency

ServicesServices

Functional Needs KPI´sParameterParameter

Figure 2.2: Methodology for level 1 requirements gathering The inputs were collected based on DELFT workshop results and questionnaires received from the players. The consolidated results are documents in subsequent sections of the document.

2.2.2 Supply chain wide level 1 requirements The supply chain wide requirements were collected during DELFT workshop and consolidated later. KPI requirements are covered in more detail in subsequent players sections. The supply chain wide industry requirements are outlined in the following figure:


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Lead

Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling



ShippinglineCustoms

Business Parameter Sno. Description Relevance

T1 Transparency & visibility on terminal & shipping processes: status messagesLogistic 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 strategiesLogistic operators; Terminal operators

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

T6 GALILEO: Accuracy of position of container in terminal areaTerminal 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)

Logistic operators; Terminal operators

Reliability R1 Increase the lead time reliability and capture deviations within marginsLogistics 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 functionalALL

Costs C1 Reducing the total d2d cost All

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

E2 Pre-announcement of hinterland operators to improve terminal efficiencyAll

SV1 VAS from platform: automatic document generation for usersAll

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

Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling




Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling



ShippinglineCustoms



Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling



ShippinglineCustoms

Business Parameter Sno. Description Relevance

T1 Transparency & visibility on terminal & shipping processes: status messagesLogistic 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 strategiesLogistic operators; Terminal operators

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

T6 GALILEO: Accuracy of position of container in terminal areaTerminal 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 marginsLogistics 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 functionalALL

Costs C1 Reducing the total d2d cost All

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

E2 Pre-announcement of hinterland operators to improve terminal efficiencyAll

SV1 VAS from platform: automatic document generation for usersAll

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


Security

Timeliness

Figure 2.3: Requirements for supply chain wide business needs (Source: DELFT workshop)

2.2.3 Freight Forwarders level 1 requirements Freight forwarders are normally responsible for the first and the last mile of the supply chain with direct customer contact. The basic functions of freight forwarders as part of entire supply chain are depicted in the following figure:


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Lead

Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling




Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling




Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling



ShippinglineCustoms



Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling



ShippinglineCustoms

Figure 2.4: Basic functions of freight forwarders in the supply chain The inputs for level 1 requirement from freight forwarders were collected through questionnaires. The freight forwarders provided the general and functional needs along with required KPI´s on the basis of identified parameters. The functional requirements (in most of the cases) are result of detailed general requirements. The link between the general & functional requirements can be identified through the numbering of the requirements in the table. The consolidated requirements are provided in the following table.


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Table 2.1: Freight forwarders Level 1 Requirements (Source: Questionnaire, DHL, K+N, PROODOS) Parameters Need Type Sno. Description Details (if any) Source Need priority (h/m/l) KPIs

TG1 Knowledge of where the shipment is located at all times to enable exception management. Also to organize receipt and last mile delivery. This is also connected to local fleet management.

_ DHL / Proodos

high % of delays being informed about x days before estimated departure

TG2 Status messages for terminal and customs procedures

_ KN high (better visibiliy for our customers) to measure no of days container is in the port, how often container has been moved at the port; status messages about customs processes; status messages from port of transhipment: if container is not loaded on the next vessel/where it is and for how long; is the vessel arriving on time/ what is the time deviation (GALILEO); notice of arrival, which is received by the port from the shipping line 1-2 days before the vessel arrives whould be of advantage; in general: allows to analyse each step of the supply chain and to optimize it

TF1 Easy access to platform; early warning from system in case of delay, damage etc.

Web-based accessEmail and SMS alert

DHL high 100% of vessel delays informed 3 days before scheduled vessel arrival

TF2 Status messeages need to gathered from & sent to different partners. Particular steps along the container supply chain need to be defined as Status messages; it has to be clarified who is is triggering the status messages and who can receive them (sensitive info)

particularly the process steps within ports including customs processes are today not very visible; % of delay

KN high when a process is starting/finishing then a status is set; measurement if it is in time

TF3 The platform must provide the apropriate protocols to easily receive such information/messages. The perspective must be B2B.

_ Proodos high _


General Needs

Functional Needs


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Parameters Need Type Sno. Description Details (if any) Source Need priority (h/m/l) KPIs

SG1 Increased security to reduce pilferage and damages

_ DHL high % of pilferages and damages reported

SG2 How often the container is opened _ KN high % of container opened more then one time; measure how customs procedures speed up & theft/pilferages is reduced

SG3 Sensor technology: Avoid cargo damage _ KN high info when damage has been done, eg. temperature/shock monitoring

SF1 Sensitive or high-value cargo monitored 24x7

Immediate email/sms alert when domestic route is deviated; or container suffers "shock", etc.

DHL high 100% of occurence informed as soon as deviation is recorded.

SF2 Availability to receive alert messages from the security device when a container is opend and forward them to relevant parties

_ KN high % of container opened more then one time; measure how customs procedures speed up & theft/pilferages is reduced

SF3 Availabitlity to receive data from the sensors of the security device and forward it to relevant parties

_ KN high info when damage has been done, eg. temperature/shock monitoring

SF4 Platform must provide the technical prerequisires to establish and monitor security of cargo.

_ Proodos high _

RG1 High reliability of transport (need for low standard deviation of average transport time)

_ DHL high Deviation from average transport time per given lane

RG2 Increase the lead time reliability (including each indiviual leg)

_ KN medium analysis of the deviation from standard time per transport processes

RG3 High reliability of transport (need for low standard deviation of average transport time). This is more a important issue than (not consistently) improving transit times. Preference for slighly bigger but with low deviation transit times.

_ Proodos high Deviation from average transport time per given lane

RF1 Accurate and fast transmission of information

High-speed information exchange

DHL high Acceptable:3% of system downtime;3% of data errors reported

RF3 This will come as a result of the controls and monitoring of the cargo that the platform will establish.

_ Proodos high _

Security

Reliability

General Needs

Functional Needs

General Needs

Functional Needs

Table 1 (Continued)


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TMG1 Reduction of overall transport time _ DHL /Proodos

medium Average transport time for given lane

TMG2 Reducing the total d2d time; Minimise the relative ‘idle time ’, e.g time waiting for physical controls

_ KN medium reducing time for customs clearance, adiminstration formalities, physical controls; idle time due to congestions

TMG3 Reduction of overall transport time _ Proodos medium Average transport time for given lane

TMF1 Information received on time Standard data - received every 4 hoursAlerts of exceptions - received real time

DHL medium 97% of data/alerts received on time

TMF3 A result of reducing administration times by using electronic methods via the platform.

_ Proodos medium _

CG1 Reduction of administration costs caused by customs requirements and inspections

_ DHL medium time to consolidate customs documents; admin. costs

CG2 Reducing the total d2d cost _ KN high Reducing admin fee, costs for unnecessary activities (e.g. double moves at port)

CF1 Reduce re-work or multiple systems and data entry.Customs Clearance performed in advance; reduce need for physical customs inspections

Single system link to customs and port systems

DHL medium 80% "green lane"

CF3 This is a direct result of the implementation of the Smart CM platform. If the platform offers the means to replace the paperwork with an electronic equivalent then we will have a cost reduction.

_ Proodos medium _

Timeliness

Costs

General Needs

Functional Needs

General Needs

Functional Needs

Table 1 (Continued)


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2.2.4 Customs level 1 requirements Customs are normally responsible for providing (or holding) the customs clearance of the containers and cargo. The basic function of customs as part of entire supply chain is depicted in the following figure:

Lead

Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling




Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling




Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling



ShippinglineCustoms



Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling



ShippinglineCustoms

Figure 2.5: Basic functions of customs in the supply chain The general and business requirements from customs have been covered in the subsequent chapter 3 of this deliverable. .

2.2.5 Terminal Operators level 1 requirements Terminal operators are normally responsible for port handling of containers. The basic function of terminal operator as part of entire supply chain is depicted in the following figure:

Lead

Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling




Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling




Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling



ShippinglineCustoms



Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling



ShippinglineCustoms

Figure 2.6: Basic functions of terminal operators in the supply chain The inputs for level 1 requirement from terminal operators were collected through questionnaires. The general needs of terminal operators are:

a) SMART-CM should be able to "communicate" with the IT systems of the different partners

b) Security/confidentiality/neutrality/interoperability is of the utmost importance when developing the SMART-CM platform

The following figure depicts the functional needs of terminal operators.


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Figure 2.7: Functional needs of terminal operators in the supply chain

2.2.6 Shipping line level 1 requirements Shipping lines are normally the carriers for carrying the containers through ocean. The basic functions of shipping line as part of entire supply chain is depicted in the following figure:

Lead

Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling




Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling




Steps Pick-upHub-

HandlingGround


Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling



ShippinglineCustoms



Customs clearance

Ground Handling

Port Handling

Ocean Freight

Port Handling



ShippinglineCustoms

Figure 2.8: Basic functions of shipping line in the supply chain The inputs for level 1 requirement from shipping line were collected through questionnaires. The shipping line provided the general and functional needs along with required KPI´s on the basis of identified parameters. The functional requirements (in most of the cases) are result of detailed general requirements. The link between the general & functional requirements can be identified through the numbering of the requirements in the table. The consolidated requirements are provided in the following table.


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Table 2.2: Shipping line Level 1 Requirements (Source: Questionnaire, COSCON) Parameters Need Type Sno. Description Details (if any) Source Need priority (h/m/l) KPIs

TG1 Knowledge of where the container is located at all times to improve container utilization

_ COSCON high % of container unused time about x empty days

TG2 Knowledge of where the container is located at all times to improve container availability

_ COSCON medium % of booking rejection because of container shortage

TF1 Easy access to platform Access to platform via Internet, EDI etc.

COSCON high ways to access platform

TF2 Calculate container utilization ratio Identify container different status: empty/full/damage/lost, different container activity: loading/discharging/vanning/devanning/issue/receive

COSCON high empty days/(empty days+full days)

TF3 Calculate container shortage ratio Prediction of contain shortage for a given port to enable empty repositioning in advance

COSCON medium empty container number for a given port

General Needs SG1 Increased security to reduce pilferage and damages_ COSCON high % of pilferages and damages

automated reported by system

Functional NeedsSF1 Early warning from system in case of delay,

damage etc.Automated report exceptional container status: delay, damage

COSCON high _

RG1 High reliability of transport (need for low standard deviation of average transport time)

_ COSCON high deviation from average transport time per given lane

RG2 High efficient transfer (need for low standard deviation of planned transfer time/ or promised transfer time)

_ COSCON high deviation of planned transfer time/ or promised transfer time

RF1 Calculate standard deviation of average transport time

Compare actual transport time with average transport time per given lane

COSCON medium actual transport time - average transport time

RF2 Record routing information in system Transport time based on given routing: need geography information, routing information

COSCON high _

Security

Reliability

General Needs

Functional Needs

General Needs

Functional Needs



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TMG1 Reduction of overall transport time _ COSCON medium average transport time for given lane

TMG2 Easy routing decision during hinterland transport

_ COSCON medium average transport time for given port to hinterland city

Functional Needs TMF1 Calculate average transport time per given lane_ COSCON high 97% of data/alerts received on time

CG1 Reduction of administration costs caused by customs requirements and inspections

_ COSCON medium time to consolidate customs documents; admin. costs

CG2 Decreased container slot ratio _ COSCON high total container slot ratioCG3 Decreased equipment repositioning cost _ COSCON high average repositioning cost per

container

Functional Needs CF1 Calculate average repositioning cost per containerNeed container cost datum

COSCON high _

EG1 Increased accuracy of cost data and help to set up standard cost management system

_ COSCON medium % of delays being informed after actual costs occurred

EG2 Decreased manual processes _ COSCON low % of automatic container activityEG3 Quick customs clearance of containers _ COSCON high average time of customs clearance

after declaration

Functional NeedsEF1 Calculate average customs clearance time Automated customs

declaration and clearance receipt

COSCON medium _

SVG1 Provide accurate tracking and tracing during the whole shipment

_ COSCON high accurancy of container activity reaches to less than one hour

SVG2 More accurate predicted transport time per given lane (more reliable time commitment)

_ COSCON medium % of actual transport time in accordance with planned transport time

SVG3 Quick container activity delivery for VIP customers

_ COSCON medium % of automatic delivery

Functional Needs SVF1 Compare actural transport time with promised transport time_ COSCON medium _

General NeedsServices

Timeliness

Costs

General Needs

General Needs

Effort / Efficiency

General Needs

Table 2 (Continued)


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2.3 Level 2 – Industry Information Requirements The industry information requirement goes one level detail of business needs and identifies the information exchange requirements among various players including freight forwarders, customs, terminal operators and shipping line.

2.3.1 Methodology The industry information requirements were gathered by identifying the current information exchange and the future information requirements among various players. The same four major categories of players (freight forwarders, customs, terminal operators and shipping line) were used to ask following question: For Current information exchange:

a) What is the current flow of information from other 3 players? b) What is the current flow of information to other 3 players?

For Future information exchange:

c) What is the expectation of extra future information exchange from other 3 players for supply chain performance improvement?

d) What is the expectation of extra future information exchange to other 3 players for supply chain performance improvement?

This process resulted in list of requirements by each player from/to every other player. The consolidation of these requirements resulted is 4*4 requirements matrix, each for current information exchange and future information exchange. As per the methodology adopted, the following points were taken into consideration :

a) Current information exchange can be through any media or system b) Future information exchange requirements are over & above the current information exchange c) The combination of current information exchange & future information requirements generates the

industry information requirements d) 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.

The inputs were gathered through ANTWERP Workshop (for freight forwarders and terminal operators) and questionnaires / interviews (for shipping line). PLANET SA provided requirements from customs using D1.2.2.

2.3.2 Current information Exchange Based on the methodology explained above, the current information exchange between various players was identified. The results obtained from workshops and subsequent interviews were consolidated in 4*4 matrix (table below) and this “Current Information Exchange Matrix” can be used to identify the current exchange of information among various players. The results gathered through workshops and interviews are available in Appendix for more detail.


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Table 2.3: Current Information Exchange Matrix (Source: ANTWERP workshop, questionnaires, interviews, D.1.2.2 – DHL, K+N, PLANET SA, DPW, PSA, COSCON)

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)

(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-Exportf) Vessel Departureg) Vessel Arrival

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 (full/empty/HZ/ Temp Conntrolled/Overs ized/tank), Gross weight (Container + Cargo), vessel name, voyage number, information concerning Stowage, Custom Status, Any specific remarks/requests concerning the container itselfb) Dangerous Goods information (IMO - UN)c) For Transhipment containers : Indictaion of next vessel, voyage number and port of discharge, For reefer (0 Temp controlled) containers : indication of temperature range and indication of degree Celsius or Fahrenheitd) Booking Reference number, B/L (Bill of Lading) Number, Shipping Line Service (this is a code determined by the trerminal operator), Terminal Code (available on database, 1 unique code for each terminal)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. are being paid by shipper (automatically, or receiver for the goods comes with delivery order)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)_


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2.3.3 Future information Exchange Based on the methodology explained above, the future information exchange requirements between various players were identified. The results obtained from workshops and subsequent interviews were consolidated in 4*4 matrix (table below) and this “Future Information Requirements Matrix” can be used to identify the future information requirements among various players.


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Table 2.4: Future Information Requirements Matrix (Source: ANTWERP workshop, questionnaires, interviews, D.1.2.2 – DHL, K+N, PLANET SA, DPW, PSA, COSCON)

To \ From Freight Forwarder(1)Customs

(2)Terminal Operators

(3)Shipping Line

(4)

Freight Forwarder

(a)

(FF requires in future from Customs)a) Shipment Clearance Status (Hold etc)b) Legal confirmation (Red/ Green flag) for inbound /outbound containersc) Duration CDZ would hold in custody under inspection

(Customs agrees to give to FF)a) Movement Reference Number (MRN)b) Risk assessment results. (In case of risk type A -serious threat)

(FF from TO)a) Location of Container at port

(TO to FF)_

(FF from SL)a) Real time data on ATD/ATA* of container in port**b) Services Price List

(SL to FF)a) Accurate tracking and tracing during the whole shipment

Customs(b)

(Customs from FF)a) Entry Summary Declaration (ENS): List of all goods on the ship; Ship identification. (24h prior to loading for departure for the 1st port of call for all goods on the ship)b) Pre-arrival notification (for goods to be unloaded at port): identity of person responsible for goods carriage; identity of person lodging ENS; place of loading/unloading; UCR; bill of lading (B/L) referencec) Container Number

(FF to Customs)_

(Customs from TO)_

(TO to Customs)_

(Customs from SL)a) Entry Summary Declaration (ENS): List of all goods on the ship; Ship identification. (24h prior to loading for departure for the 1st port of call for all goods on the ship)b) Pre-arrival notification (for goods to be unloaded at port): identity of person responsible for goods carriage; identity of person lodging ENS; place of loading/unloading; UCR; bill of lading (B/L) reference

(SL to Customs)_

Terminal Operator

(c)

(TO from FF)a) Next Mode of Transportation (For Imports) / Previous Mode of Transport (For Exports')b) Time of delivery / Mode of Transport (Import / Export)c) Container Number being booked by Forwarderd) Weight, destination, Stowage, Port of destination, Name of the vessel and Voyage number. (Preference to key in once but uploaded automatically then)e) Description of goods inside the container

(FF to TO)_

(TO from Customs)a) Import Status (Declared / Not Declared)b) AEO Status (Green Lane)c) EU / Non EU status of containerd) Information on container likely to be inspected (Scanning, survey..), any specific Customs-technical requirements concerning the container (e.g. when the container needs to be scannede) Red Flag / Green Flag staus

(Customs to TO)a) Movement Reference Number (MRN)b) Risk assessment results. (In case of risk type A -serious threat)

(TO from SL)

a) Next Mode of Transportation (For Imports) / Previous Mode of Transport (For Exports')b) Time of delivery / Mode of Transport (Import / Export)c) Container Number being booked by Forwarderd) Weight, destination, Stowage, Port of destination, Name of the vessel and Voyage number. (Preference to key in once but uploaded automatically then)e) Seal Numberf) Stowage Plan in advance(> 2 days)g) For imports container, indication of next mode of transport (in case of Carrier Haulage. If Merchant Haulage, then Freight Forwarder or Consignee/Shipper should give us this information)h) Description of goods inside the containeri) Indication of the expected time of collection/delivery of containerj) For export containers, indication of first/previous mode of transportk) Container Seal number + integrity of seall) 4 digits customs tariff number (GN Code, internationaly agreed)m) Any specific Customs- technical requirements concerning the container (e.g. when the container needs to be scanned

(SL to TO)_

Shipping Line(d )

(SL from FF)_

(FF to SL)_

(SL from Customs)a) Customs release information b) Customs Release Status

(Customs to SL)a) Movement Reference Number (MRN)b) Risk assessment results. (In case of risk type A -serious threat)

(SL from TO)a) Real time data of container movement (in ten minutes)

(TO to SL)_

D1.2.1 Distribution level (PU) Contract N. 218547

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2.4 Level 3 – Industry Data Requirements The industry data requirements convert the industry information requirements to data requirements and serves as an input to subsequent milestones and deliverables. Data requirements basically go one level detail of information exchange and specify the data elements along with provider of data element, accessor of data element, storage time of data element and hence forth. The data detail which is provided in this document is based on business input. The technical level details needs to be explored in subsequent work packages.

2.4.1 Methodology The industry data requirements are derived from industry information requirements. The results of industry information requirements have been categorized to determine the data elements required from technical interface. The premise of conversion is a simple technical architecture, containing device & SMART CM Platform. The device is defined as an instrument, which will be put on a container. The SMART CM Platform can be defined as a platform which will receive and contribute information to other systems through defined interface. This is a simplistic version of technical architecture, used only for collection and conversion of data requirements. The detailed technical architecture is available in the next chapters 4 and 5 . For delivering the industry data requirements, the following methodology was adopted:

a) High level technical architecture was understood b) The industry information requirements were converted and segregated in data requirements

from device and SMART CM Platform c) The provider and accessor of each data element was identified d) The storage time for data elements was identified

Understanding of high level technical

architecture

Conversion of information

requirements into data requirements

Determining the provider and

accesor of data elements

Defining the storage time of data element

Industry Information

Requirements

Industry dataRequirements


architecture







architecture






Industry Information

Requirements

Industry dataRequirements

Figure 2.9: Methodology of gathering industry data requirements The industry data requirements were collected during the ANTWERP workshop (for freight forwarders and terminal operators) and through subsequent interviews/questionnaires (for shipping line and customs). The following section will present the results of the information data requirements. Apart from the data requirements, the general requirements from the system (from data perspective) were also gathered through questionnaires. The following section will also present the results of the general requirements from system.

2.4.2 Results of industry data requirements The results of industry data requirements have been consolidated in table 2.5 and table 2.6. Regarding the storage time, the following decision was made in ANTWERP workshop: SMART CM Platform: The SMART CM Platform can be push based which means the data will be available in the system till the time it receives acknowledgement of being picked. But the final decision will be taken after detailed technical analysis and can be partner specific. Data with long-term storage could be an exception but not the rule. Device: The device will store information till the final opening of the container. This is the agreed upon principal for storage time. The details of storage time for individual data element for each partner need to be explored in subsequent work packages.


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The details of technical architecture, technical design and interfaces will be provided in deliverable M.1.2.3 and M.1.2.4. The results tabulated in Table 2.5 will provide as an input to these deliverables from requirements perspective Table 2.5: Industry Data Requirements(Source: ANTWERP workshop, questionnaires, interviews, D.1.2.2 – DHL, K+N, PLANET SA, DPW, PSA, COSCON)


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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 container

Shipping Line / Barge Operator / Trucker / Rail Operator

Freight Forwarder / Terminal Operator

15 SMART CM Platform Security Breach,Temperature, Shock, Humidity DeviceFreight 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 CustomsFreight 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 LineTerminal Operator/ Freight Forwarder/ Customs

21 SMART CM Platform Bkg. Reference number of container Shipping LineTerminal Operator/ Freight Forwarder/ Customs

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

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

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

25 SMART CM Platform

POLport of loading/POD port of discharging/POR place of receiving/POD place of delivery/ POD towage

Freight forwarders Shipping Line/Customs

26 SMART CM Platform if dangerous cargo, indication of particular risks (Priority Low) Freight forwardersShipping 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

The general requirements from system (from data perspective) were gathered through questionnaires to determine industry expectation from the technical platform. Table 6 provides the details of the expectations. Table 2.6: General System Requirements


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Process Topic Requirement

Data entry Having defined interface with partner´s systemData access/ retrieval Refer to Storage time details in the documentData quality Data correction with automated checkData formats EDI or XML (element set) or other defined Data security Only authorized users can access Adaptability Adaptive to future business needsScalability Scalable to future business needs

Data processes

Flexibility

This section (and this document) only covers high level data requirements. The detailed technical requirements are not covered in this document


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3 Customs security needs and KPI’s

3.1 Introduction This chapter addresses sub-task 1.2.2 of SMART-CM. It serves as a consolidated report on the topic of information exchange along container transport chain, placing particular focus on the security aspect of involved customs procedures. As such, it utilises associated input from a series of sources, such as literature review and experiences/analyses of involved parties based on existing and examined practices respectively. On top of this material put together, some synthesis is performed as an attempt to provide additional insight in view of the neutral and business (logistics) layer development at a later stage in the Project. Sub-task 1.2.2 is focused on the customs/security-related aspect of SMART-CM user needs, serving as a supplement of sub-task 1.2.1 that is focused on port & hinterland logistics operations. Input is received from the respective sub-task of Task 1.1 (1.1.2) on global Supply Chain Management (SCM) issues. Furthermore, output is forwarded to the following sub-tasks 1.2.3 & 1.2.4, as well as to certain tasks of WP2. In terms of work, the examined sub-task deals with the issue of container security compliance. This function is currently performed based on information provided by the actors of the chains (in accordance to the applied rules and regulations) and physical or other types of checks performed by pertaining authorities. The current processes need further standardisation regarding information exchange and improvement of technologies and processes “interoperability”. Neutrality in information provision is identified as major component for processes easiness and good level of acceptance from the authorities. The main queries directly raised are summarised in the question, how we specify provision of standardised and neutral security related information. A series of activities are deployed to address those queries. Sub-task 1.2.2 defines customs/security user needs and the impact those user needs have on the SMART-CM architecture. Relevant desk research has been carried out to develop better understanding of the topic. In addition to that, a customs/ security workshop was organised to define the needs for Authorised Economic Operator (AEO)/mutual recognition. Additionally, selected in-depth interviews have been performed as well. As all EU administrations are involved in a working group on the abovementioned question, selected organisations have been invited to participate in such inquiry activities. The results of this procedure are input to subtasks 1.2.3 and 1.2.4. Chapter structure Concerning the features of container-related data, the major pursuit is to facilitate standardisation & neutrality, calling for investigation of the relation between user needs and SMART-CM architecture. Section 3.1 provides a relevant analysis built around the three main layers of the SMART-CM platform, namely the Information gateway, the Visibility (infrastructure) and the Value added services. The former two are distinguished in the so-called “neutral” part and the business/logistics part. The Information Gateway provides an entry point for status information from a variety of available sources, including container security devices/e-seals and other RFID infrastructure, as well as Port MIS or fleet management systems. The neutral layer component collects container-tracking information and generates a single “standardized” message structure that can be provided to the customs with the aim of facilitating the implementation of the Secure Trade Lane (STL) concept. Regarding the visibility (infrastructure), while the “neutral” part provides a unified, “standardised” interface for the transmission of the “neutral” status information, the business component 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. The visibility layer should satisfy certain confidentiality requirements. The value added services will build on the information provided from the gateway and the mapping infrastructure provided by the visibility layer to develop additional functionality of interest to the


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industrial partners. Examples of value-added services include “one-stop shop” for event handling, tracking and handling of dangerous cargo and effective management and utilization of resources. To understand the influence of customs procedures on the Sma

smart-cm implementation framework for global container … · 2015. 7. 3. · deliverable n d1.2.1...

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