1. UN/CEFACT Pioneering Paperless Trade: The way covered and the way ahead Experience of DAKOSY/Germany UN/CEFACT Executive Forum Geneva, 20-21 st June 2005 Less and Better Data to build Trust and Efficiency

2. UN/CEFACT Who we are … Name: DAKOSY Datenkommunikationssystem AG Board:Mr. Dieter Spark, Mr. Ulrich Wrage Employees:88 and 5 trainees Capital:1,53 mio. Euro Turnover 2004:10,5 mio. Euro Service times:24 hours / day 7 days / week Shareholder:33,33 % DHU = terminals 33,33 % DIHLA = liner agents 33,33 % DIHS = forwarding agents

3. UN/CEFACT …and what we do Forwarder Stevedore / Terminal Oversea Carrier Hinterland- transport Consignee / DC / Buyer Start End Hinterland- Transport Authorities, Customs, Police Authorities, Customs, Police Shipper / Supplier / Factory Forwarder Stevedore / Terminal  EDI-Services alongside the whole Transport Chain

4. UN/CEFACT DAKOSY offers today...  EDI Services,  ASP Services,  Internet Services and  IT Services... for more than 1.370 clients …and what we do

5. UN/CEFACT Background/Business Drivers  In 1981 4 major groups working within the Port of Hamburg (Forwarder, Liner Agent, Tally and Quay Operator) decided to set up a Port – Communication – System  The main target: Speed up the flow of information!  The main problems:  No standards available!  Hardly no software available with inbuild EDI-function  The challenge: Reducing the vision, concentrate on a small number of business cases to start with

6. UN/CEFACT Project Phases and Evolution  Phase 1: Port-Communication-System for Seaport Forwarder, Tally, Liner Agent and Quay Operator only  Phase 2: From a mere EDI-Clearing-Center to a Systemhouse  Applications and IT-Services for the transport sector  Phase 3: Neutral Platform  The public sector orders IT-infrastructure (Dangerous Cargo, Harbour Rail)  Phase 4: “DAKOSY leaves the Port” and offers EDI- and IT-Services alongside the whole Transport Chain (cross border)  Future: Bank, Insurance, …

7. UN/CEFACT Project Phases and Evolution 3.5 mio transactions per day

8. UN/CEFACT User Community and Services ZODIAK Global Connect EDI HABIS ZAPP GEGIS UNIKAT ACTION TRUCK 850 Forwarder 200 Shipper/Supplier/Factory Customs Authorities 36 Terminals 22 Rail Operator 25 Container- Trucker Airlines 70 Ocean Carrier / Liner Agents EDP - Centre ASP SW-Licence EDI Outsourcing Figures of May 2005

9. UN/CEFACT The Business Model  Shareholders to pay a yearly fee for the so called „traditionell EDI- Business within the port - community“  Each participant has to sign a contract with one of the shareholders and has to pay to them for the usage of the EDI-Network of DAKOSY  Additional services of DAKOSY (EDI, ASP and IT- Services) are charged by DAKOSY directly (e.g. per transaction)

10. UN/CEFACT Financing Development and Maintenance  Initial invest: DM 2.000,000.-  Average cost per transaction: Depending on complexity between € 0.01 and € 1.00  Some services are mandatory (Dangerous Cargo Movement Control, Customs Export Control)  Our shareholder get their share indirectly (by reselling our services)  The money we earn we spend on Maintenance and Development!

11. UN/CEFACT Standards  Problem of the “early bird”: We had to create our own standards (syntax and content)!  With the framework of EDIFACT live became easier!  XML – beloved by Newcomers in the EDI-Business – can still not compete with the existing “message library of EDIFACT”  Trend: Focus on content and not on syntax!  In future first the core components are to be defined!  Messages are build on those core components…  and only at the end lays the decision for the syntax !

12. UN/CEFACT What are the Benefits? Data Quality Saved Time and Money Efficiency No double input Reusage of data Statusinformation Visibility Control Exporter / Importer Intermodal Transport Customs / Authorities Terminal Operator Forwarder Single Window with ASP- and EDI-Conversion-Services: Barrier-free access for small and medium enterprises Barrier-free access for small and medium enterprises Other

13. UN/CEFACT Key Trends  Low-level entrance, e.g. at DAKOSY  eDocs paperflow and EDI Business Logic in cooperation with ADOBE Systems e Docs   Integration of paper, application and EDI to one process, based on standards ( )

14. UN/CEFACT Key Trends  Low-Level Entry to the World of EDI! EDI- Services Carrier EDI eDoc - Services eDoc B/L preview DAKOSY Forwarder (EDI-capable) EDI eDoc B/L interface Forwarder (without EDI)

15. UN/CEFACT The Top 5 Crucial Success Factors … and Lessons Learned Success Factors?  To hit the spot at the right time meeting real pioneer spirit!  Neutrality!  Easy to use! …and Lessons learned….  90 % Talking, 10 % Doing  Forget the mission!  Keep it simple and cheap  “Eat the elephant piece by piece”

16. UN/CEFACT To make paperless trade happen we need to..  harmonize standards, messages, rules, procedures.  build up a “core component library”.  ban the “red stamp” in favor of the electronic signature!  learn from the EU and their Customs Procedure NCTS!!

17. UN/CEFACT Thank you Evelyn Eggers Manager Sales Department eggers@dakosy.de