1 Basics Intermodal Global Door-to-door Container Supply Chain Visibility Funded by the European Commission, DG Research Duration: 06/2008 – 05/2011 6/9/2016 The INTEGRITY Consortium

Terminal and Transport Operators Logistics Providers & Shippers Customs Authorities Academia & Technology Providers Coordinator Bap Logistics

I. Basics on visibility & supply chain benefit measurement  Visibility = ”The extent to which decision makers in the supply chain have quality information at their disposal for (better) decision making” Visibility Supply Chain Security Supply Chain Predictability & Efficiency Sense & Respond

SICIS-system overview SICIS Platform Services (User management, Authentication, Security, Middleware) Container Tracking (Milestone reporting) Supply Chain Templates Container tracking (CSD based) Container Tracking (Local systems) Phase 1 External Data Sources External Data Sources External Data Sources External Data Sources SICIS Data SICIS Data Warehouse VesselTracking (Satellites) Ship Arrival Predictions Phase 2 Exception Reporting Consignment tracking / Data Retrieval KPI Dashboard Supply Chain Templates (KPIs / Targets) Phase 3 Other services….

SICIS features – Phase 2: Vessel Tracking + Ship Arrival Predictions

SICIS: Shared Intermodal Container Information System  Tracking and tracing of purchase orders  Real-time milestones on container level  Messages and exception reports  Data exchange with Customs on secure status of parties and container customs status  Data availability for analysis and risk assessment Sensors RFIDs E-seals Container security devices Satellites Radiation portals Platforms and Portals Port Community Systems Tracking and Tracing portals (e.g. ICSO) Scanning data X-ray scanners Data Providers/ Users Port Authorities Customs Authorities 3PLs/Cargo Owners Shipping Companies Terminal Operators Inland Transport Operators Manual input SICIS 6 6/9/2016 The INTEGRITY Consortium All this data exchange is at the container level!

7 SICIS Status Overview - Snapshot Factory China AEO Status E-seal information Supervised packing Inland transport China AEO status Tracking information Port of Loading ISPS certified operator Manifest provided X-ray scan checked E-seal checked Radiation checked Ocean transport ISPS certified vessel Satellite Tracking Port of Discharge ISPS certified operators Import Customs has not received data Info on on- carriage missing Inland transport UNKNOWN Warehouse Europe UNKNOWN 6/9/2016 The INTEGRITY Consortium SICIS Users at origin Customs Users at destination

SICIS features – Phase 1: Container Tracking Milestone EventsSecurity Status

Benefit Case 1: Planning of hinterland logistics 1. Problem at hand: -Lack of pre-arrival information & on-carriage insight 2. Party/ies involved -Cargo owner/ importer; Freight forwarder; Road & barge carriers; Terminal operators 3. Benefit description -Info available on mode of transport and hinterland destination for on-carriage -Planned dwell time info can be used for storage planning by the terminal operators 4. Challenges -Transactional structure of the supply chain prevents logical transfer of relevant information

Benefit Case 2: Reduction of administrative errors 1. Problem at hand: -Lots of manual (re)entry of data in the supply chain; subject to various types of errors 2. Party/ies involved -All actors in the supply chain 3. Benefit description -Higher information quality - accuracy, timeliness and access - reduces administrative errors -If a container misses a planned ship, the cargo owner doesn’t often get informed – but acts based on the original data provided by the freight forwarder 4. Challenges -Actors may not have any incentive to pro-actively correct mistakes. -Identification of mistakes is often not enough to correct operations

Benefit Case 3: Safety stock reduction 1. Problem at hand: -Variability in the pipeline leads to higher safety stock levels -Container unloading is communicated typically with 3-4 days delay 2. Party/ies involved -Cargo owner, shipping company, terminal 3. Benefit description -Real-time information if container is loaded / unloaded etc. -Reduction of variability allows safety stock reduction 4. Challenges -Data ownership

Benefit Case 4: Integrity of the whole pipeline 1. Problem at hand: -Lack of insight in container integrity and supply chain pipeline; unnecessary inspections 2. Party/ies involved -Customs administrations; Cargo owners; freight forwarders 3. Benefit description -Integrity of shipment + monitoring of flow via SICIS + ability to query shipment data increases trustworthiness and provides basis for reduced inspections -Customs can also use SICIS for “de-risking” of containers 4. Challenges -How can Customs receive non-declaration data sets?

Extensions Example The INTEGRITY Consortium 6/9/ P Warehouse Factory Port of Arrival Port of Departure Inland terminal P  Transport in China is often not containerised  SICIS would pick up the movement in Hong Kong  Full visibility requires extension into China China Hong Kong European

Solution: CASSANDRA Key points  Providing integral data for supply chain visibility  Introducing risk based approach in the supply chain  Government ‘Piggy Backing’ on visibility data in the entire supply chain The INTEGRITY Consortium 6/9/

CASSANDRA Work Breakdown 1. State of the art 2. Developing risk based approach in the SC 3. IS integration (only interfaces) 4. ‘Living Labs’ 5. Evaluation 6. Consensus building The INTEGRITY Consortium 6/9/