APEC Supply Chain Visibility Feasibility Study Takeshi Morikawa

APEC Supply Chain
Visibility Feasibility
Study
Public Management Consulting Department
Takeshi Morikawa
8th May 2013
Copyright© 2013Nomura Research Institute, Ltd. All rights reserved.
Contents
1. Outline of this project
2. Result of Questionnaire survey
3. Result of The pilot project
4. SCV Work shop
5. APEC Recommendation for SCV
Copyright© 2013Nomura Research Institute, Ltd. All rights reserved.
2
1. Outline of this project:
Supply Chain Visibility Initiative
CY 2010（Japan）
lSOM1
・APEC ICT Global
Value Chain Workshop,
lSOM2
・Supply Chain
Connectivity
Framework, CTI
lSOM3
・Supply Chain
Visibility Workshop,
SCSC
・Supply Chain
Connectivity Action
Plan, CTI
lMinisterial Meeting
・Joint Statement
CY 2011（U.S）
CY 2012（Russia）
CY 2013－
SCV Feasibility Study（Phase 1～3）
lPhase 1
Questionnai
re survey
(APEC funding)
＋
lPhase 2
Pilot
project
(Self funding)
Establish
best
practices
lPhase 3
Workshop
(APEC funding)
APEC
recomme
ndation
1. Strengthen
business
competitiveness
2. Reduce the
burden on the
environment
3. Achieve both
security
improvement
and trade
facilitation
Based on “APEC Supply Chain Connectivity
Framework Action Plan for Chokepoint 6”
Copyright© 2013Nomura Research Institute, Ltd. All rights reserved.
3
2. Result of Questionnaire survey
Collection Result
l
It is difficult for shippers and/or consignees to control the process
of supply chain in current status of international logistics since a
great number of entities are involved in the transport process.
Cargo movement is not visible to shippers in real time
Visible
Shipper
(Manufacturers)
Overland
Transporters
l
Exp.
Customs
Exp. Ports
Ocean
Carriers
Imp. Ports
Imp.
Customs
Distributers
Consignees
(Retailers)
A questionnaire survey was conducted to grasp the currently
adopted information types, coding systems, and internal systems at
some major logistics sites in each entity in APEC region.
Table Collection Result
•As for the collection result of the
questionnaire,
shipper/consignee and forwarder ;
23 affairs,
shipping company and container
terminal ; 20 affairs,
the customs ; one affair.
•The reply was obtained from
9 economies of APEC.
Copyright© 2013Nomura Research Institute, Ltd. All rights reserved.
4
2. Result of Questionnaire survey
The truck arrival to a container terminal is most useful
information at Export process
l Most useful information at Export process is the truck arrival to a
container terminal and to a warehouse, the complete loading on a
ship at container terminal, and the ATD (Actual time of departure) of
vessel from container terminal.
Figure Container Movement for Export
Warehouse
Complete
Stuffing
Arrival
Figure Contents of the ideal information items
Container status of Export: All
Departure
On the road
Departure
Arrival
Arrival
Container Depot
Container
Terminal
Complete
Loading
Arrival ATA
Departure ATD
Next Port
ATA
ATD
On Ocean
Copyright© 2013Nomura Research Institute, Ltd. All rights reserved.
5
2. Result of Questionnaire survey
ATA and, arrival and departure of Container Terminal
are important at Import process
l Most useful information at Import process is the ATA (Actual time of
arrival) of vessel to a container terminal, the truck arrival to a
container terminal and the truck departure from a container terminal.
Figure Container Movement for Import
On Ocean
Former Port
ATA
ATD
Arrival
ATA
Container Terminal
Figure Contents of the ideal information items
Container status of Import: All
Departure
ATD
Complete Loading
Container Depot
Departure
Arrival
Departure
Arrival
On the road
Departure
Warehouse
Arrival
Complete
Unloading
Copyright© 2013Nomura Research Institute, Ltd. All rights reserved.
6
2. Result of Questionnaire survey
Search key for Container Status Information is
Container No. with Booking No. or BL No.
Most useful Search key for container status information is Container
number with Booking number or Bill of Lading number.
Same result can show you at not only Port to Port but also Door to Door.
Figure Conditions when providing information
Search key for Port to Port Container Status data : All
Copyright© 2013Nomura Research Institute, Ltd. All rights reserved.
Figure Conditions when providing information
Search key for Door to Door Container Status data : All
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3. Result of The pilot project
Outline of pilot project
Table: Outline of Japan/China pilot project
Executer
Nippon Express Group (Japanese Forwarder)
SIPG (Shanghai International Port (Group)）
Trade lane
Shanghai port (China) to Hakata port (Japan)
Shipping company: SSE (Shanghai Super Express)
Experimental period
Dec. 2011 to Mar. 2012
Cargo owner
Precision equipment manufacturer, Consumer-goods trading
company, NVOCC(Nippon Express)
Major objective
Sharing the visibility information which is captured from
Terminal Operation System and Automated Data-capturing
system(RFID) at Shanghai and Hakata, and stored in EPCIS
System
configuration
1) EPCIS Repository
2) EPCIS Accessing Application
3) EPCIS Capturing Application
4) Tracking information input
- Terminal operation systems & RFID（2.45GHz) system
NVOCC: NON VESSEL OPERATING COMMON CARRIER
EPCIS: EPCIS is an EPCglobal standard designed to enable Electronic Product Code (EPC) data sharing within and across enterprises.
(http://www.gs1.org/gsmp/kc/epcglobal/epcis/)
Copyright© 2013Nomura Research Institute, Ltd. All rights reserved.
8
3. Result of The pilot project
China to Japan pilot project Scheme
The pilot project is conducted by using international container cargo between Japan and
China. The project starts from shipper‘s factory to consignee’s warehouse which includes
all entities of supply chain, and implements from 2011 Dec. to 2012 Mar.
Figure: Scheme of Japan/China pilot project
User
Shipper /
Consignee
DB
WEB Browser
DB
Nippon
Express
DB
EPCIS
Japan Customs
Internet
Entities of supply chain
Not Connect
Not Connect
Import
Port
DB
Logistics
provider
DB
Consignee
DB
Container
Terminal
CFS
Ware house
EPCIS
Shipper
DB
Export
Port
DB
Factory
Container
Terminal
ＲＦＩ
Ｄ
DB
RFID
Reader
Container
China Shanghai
Container
SSE
Flow of Cargo
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Japan Hakata
RFID
Tag
e-Seal
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3. Result of The pilot project
Expected impact from pilot project
Present problem
Increase
Increase in
in
efficiency
efficiency of
of
inquiry
inquiry response
response
Minimum
Minimum stock
stock
level
level reduction
reduction
(Assume
(Assume contingency
contingency
of
of supply
supply chain
chain to
to
avoid
avoid stock
stock out
out
situation)
situation)
Reduction
Reduction of
of lead
lead
time
time between
between
complete
complete
unloading
unloading and
and
customs
customs clearance
clearance
report
report
Result of Pilot project
n Inquiry response using a telephone,
FAX and e-mail such as the arrival
to a container terminal at Export
process, ATA and, arrival and a
departure of Container Terminal at
Import process.
n By use of a shared pilot information system,
information sharing of the persons concerned
becomes possible, and an inquiry reduces
them.
n The cargo in the warehouse of the
Japan side consignee's hand is
considered as minimum stock.
n All of cargo between port of China side and
the warehouse of the Japan side consignee's
hand is considered as minimum stock by this
system. Consignee can reduce minimum
stock level.
n Lead time between complete
unloading and customs clearance
report is 2 to 3 hours.
n The information system which performs a
customs clearance report automatically is
developed. This system recognizes container
unloaded completely from vessel by the
RFID reader. The lead time reduction for an
average of 1 hour is possible by this system.
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4. SCV Work shop
Work Shop for SCV at Russia round
Outline of Work Shop
Date: 21 May 2012 (One day
WS)
Venue: Kazan Russia
Audience: SCSC, SCCP,
ECSG, TPTWG and various
supply chain entities.
Purpose: Share the result of
projects and discuss about the
recommendations.
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Work Shop Agenda
Introduction
Session 1: Report of Best
practices
Session 2: APEC
Recommendation for Cargo
Status Information Network
for enhancing SCV
Session 3: Harmonize with
International-standard-making
organizations
1
1
4. SCV Work shop
Objectives of SCV WS
Sharing the results of Best Practices
Sharing the APEC Recommendation
n Moderator: Henri Barthel, Vice President, GS1 System Integrity
n Organizer: Ministry of Economy, Trade and Industry, Japan
n Speaker:
l Mr.Takashi OBAYASHI ; Group General Manager, NIPPON EXPRESS Co., LTD. (Japan) .
l Mr.Chun-Fu Lin ; Specialist, Department of Investigation, Directorate General of Customs,
Ministry of Finance (Chinese Taipei)
l Mr. K W Ho, Senior Industry Engagement Manager for Logistics of GS1Hong Kong (cosponsoring economy: Hong Kong, China)
l Ms.Helena Chong Siew Ying; Deputy Director, Malaysian Communications and Multimedia
Commission (Malaysia)
l Mr. Kim Soo Yeob; from Korean Maritime Institute (co-sponsoring economy : Korea)
l Mr. WU ; from China (representative from Northeast Asia Logistics Information Service
Network (NEAL-NET))
l Dr. Kenneth R. TRAUB ; Independent Consultant, Ken Traub Consulting LLC of U.S
l Mr. Takayuki HIRABAYASHI ; Deputy Director, the Ministry of Economy, Trade and
Industry of Japan
l Mr. Dominique VANKEMMEL ; Domain Coordinator Transport/Logistics, Trade and
Transport Facilitation, CEFACT / United Nations
l Ms. Mariya Polner ; Research Analyst, the World Customs Organisation
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4. SCV Work shop
How to make APEC recommendation
l In order to finalize APEC recommendation, reporting
of best practices and sharing the Recommendation,
harmonizing with International Standards are a
required step.
Session 1: Report of best
practices
Japan
Chinese Taipei
Hong Kong, China
Malaysia
Korea
APEC
Recommendation
Session 3:
Harmonization with
International Standards
China (NEAL-NET)
WCO、UN/CEFACT、GS1
USA (Implementation)
Session 2: Toward the
realization of SCV
Japan (METI)
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5. APEC Recommendation for SCV
Phase 3：Contents of APEC recommendation 1/2
}
This project will create a set of draft recommendation for member
economies to establish common technical grounds for visualized,
global supply chain in the APEC region.
1
Background and Objectives
1.1 Current status of cargo status information sharing in APEC region
1.2 Impact of cargo status information network on supply chain among APEC region
2
Ideal cargo status information network for enhancing supply chain visibility
2.1 Ideal cargo status information network
2.2 Scope of this recommendation
3
Necessary technology and Information sharing
3.1 Information sharing
Based on the result
3.1.1 Ideal cargo status information
of phase 1
l Important information at trade process
l Search Keys
3.1.2 Cargo status event code scheme
3.2 Visibility platform architecture [Ref. EPCglobal Architecture]
3.3 Technological specifications
3.3.1 Technologies for capturing data
3.3.2 Database interfaces
3.3.3 Application
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5. APEC Recommendation for SCV
Phase 3：Contents of APEC recommendation 2/2
4
Best practices of Supply Chain Visibility
Based on the result
4.1 Best practices 1 [Japan]
of phase ２
4.1.1 Outline
4.1.2 Practicality of supply chain visibility platform
4.1.3 Verification of the effects of improvements in supply chain management
4.2 - 4.5 Best practice [Other economy] (Same Format as 4.1)
5
How to promote the implementation
5.1 Implementation step
5.2 Implementation method of cargo status information network
6
Future plan
6.1 Realization of supply chain visibility in APEC region
6.2 Collaboration with International-standard-making organizations
6.3 Collaboration with other region
6.4 Others
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5
5. APEC Recommendation for SCV
1. Background and Objectives
1.1 Current status of cargo status information sharing in APEC
region
1.2 Impact of cargo status information network on supply chain
among APEC region
difficult for shippers to control the process
Cargo movement is not visible to shippers in real time
Visible
Overland
Shipper
(Manufacturers) Trans
porters
Exp.
Customs
Exp.
Ports
Ocean
Carriers
Imp.
Ports
Imp.
Customs
Consignees
Distributers
(Retailers)
＜Effects of global supply chain visibility＞
Type of
effect
Direct
effects
Examples
Reduction of queries
Process synchronization and automation
Reduction of risk of delays, etc.
Greater frequency
Increased Shorter lead times
Greater choice of logistics providers
effectivenes Greater choice of ports/shipping routes
s of SCM
Consequent reduction of safety inventory
levels
Batch development of logistical
Effects of information systems to common
standardizat specifications
ion
Reduction of maintenance of master data
for shipping routes
Process innovation and creation of new
Creation of business
added value Sustainable development (environmental
measures)
Source：
APEC Recommendation
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1
6
5. APEC Recommendation for SCV
2. Ideal cargo status information network
for enhancing supply chain visibility
2.1 Ideal cargo status information network
2.2 Scope of this recommendation
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5. APEC Recommendation for SCV
3. Necessary technology and Information sharing
3.1 Information sharing
3.1.1 Ideal cargo status information
3.1.2 Cargo status event code scheme
ü Items to be shared : What, When, Where, Why
ü Code Scheme : What : Container No.
When : Coordinated Universal Time
Where (Location) : UN/LOCODE
Why (Cargo Status) : UN/Status Code
ü Search Key : (Container No. + Booking No.) or B/L No.
Table Vessel and Container Status Data (Export)
Table Vessel and Container Status Data (Import)
When
Where
Why
What
Importance
When
Where
Why
What
Importance
YMD HHMMSS
Container Depot
Arrival
Truck
Middle
YMD HHMMSS
Former Port
ATA
Vessel
Middle
YMD HHMMSS
Container Depot
Departure
Container
High
YMD HHMMSS
Former Port
ATD
Vessel
Middle
YMD HHMMSS
On the road
On the way
Container
Low
YMD HHMMSS
On Ocean
On the way
Vessel
Low
YMD HHMMSS
Warehouse
Arrival
Container
High
YMD HHMMSS
Container
ATA
Vessel
High
YMD HHMMSS
Terminal
Container
Complete Unloading
Container
High
YMD HHMMSS
Terminal
Container
Arrival
Truck
High
YMD HHMMSS
Terminal
Container
Departure
Container
High
On the way
Container
Low
YMD HHMMSS
YMD HHMMSS
YMD HHMMSS
Warehouse
Warehouse
On the road
Complete Stuffing
Departure
On the way
Container
Container
Container
High
High
Low
YMD HHMMSS
Container Terminal
Arrival
Container
High
YMD HHMMSS
Terminal
On the road
YMD HHMMSS
Container Terminal
ATA
Vessel
High
YMD HHMMSS
Warehouse
Arrival
Container
High
YMD HHMMSS
Container Terminal
Complete Loading
Container
High
YMD HHMMSS
Warehouse
Complete Unloading
Container
High
YMD HHMMSS
Container Terminal
ATD
Vessel
High
YMD HHMMSS
Warehouse
Departure
Container
High
YMD HHMMSS
On Ocean
On the way
Vessel
Low
YMD HHMMSS
On the road
On the way
Container
Low
YMD HHMMSS
Next Port
ATA
Vessel
Middle
YMD HHMMSS
Container Depot
Arrival
Container
High
YMD HHMMSS
Next Port
ATD
Vessel
Middle
YMD HHMMSS
Container Depot
Departure
Truck
Middle
YMD HHMMSS
Bonded Area
Bond transportation
Container
Low
YMD HHMMSS
Bonded Area
Bond transportation
Container
Low
YMD HHMMSS
Bonded Area
Customs Clearance
Container
High
YMD HHMMSS
Bonded Area
Customs Clearance
Container
High
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5. APEC Recommendation for SCV
3. Necessary technology and Information sharing
3.2 Visibility platform architecture
3.3 Technological specifications
3.3.1 Technologies for capturing data
3.3.2 Database interfaces
3.3.3 Application
<Image of Query by EPCIS>
System A (IS)
System B (IS)
(1) Search
(2) Query
Query Interface
Query Interface
User
Sys. A
Logistics
Information
DB
Sys. B
Logistics
Information
DB
(3) search
(4)Respond
(2) Query
System C(IS)
QI
http://www.gs1.org/gsmp/kc/epcglobal/epcis
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1
9
5. APEC Recommendation for SCV
4. Best practices of Supply Chain Visibility
4.1 Japan - China Container RFID Trucking System (Japan)
4.2 Japan – China Automobile RFID Tracking System (Japan)
4.3 Global Wine Supply Chain Visibility Project (Hong Kong)
4.4 The Security and Trade Facilitation System (Malaysia)
4.5 e-Seal Program in Chinese Taipei (Chinese Taipei)
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2
0
5. APEC Recommendation for SCV
5. How to promote the implementation
5.1 Implementation step
5.2 Implementation method of cargo status information network
Road
Transportation
Container
Terminal
Container
Terminal
Road
Transportation
Vessel
Schedule
Warehouse/
Factory
Container
Status
Cargo
Tracking
Ocean Transportation
Warehouse
Step1
Step2
Step2
Step3
Step3
NEAL-NET (North East Asia Logistics Information Service NET work)
Tianjin New Port●
Qīngdǎo ●
CHINA
Guangzhou ●
http://www.nealnet.org/
●Dalian
Incheon ● KOREA
Busan ●
●Shanghai
●Ningbo Jhoushan Port
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JAPAN
●Tokyo Yokohama
Since December, 2010
2
1
5. APEC Recommendation for SCV
6. Future plan
6.1
6.2
6.3
6.4
Realization of supply chain visibility in APEC region
Collaboration with International-standard-making organizations
Collaboration with other region
Others
Expansion of
transportation
Expansion of a class
- Customs clearance
level
- Freight level
APEC
Recommendation
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Expansion of the range
- APEC level
- World level
2
2
5. APEC Recommendation for SCV
APEC Implementation for Cargo Status
Information Network for enhancing
Supply Chain Visibility
Doc. can found
APEC Recommendation for SCV
http://publications.apec.org/publication
-detail.php?pub_id=1294
Result of Questionnaire survey
http://publications.apec.org/publication
-detail.php?pub_id=1252
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Thank you!
<Contact>
Public Management
Consulting Department
Takeshi Morikawa
[email protected]
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