improving security through visibility · the story of cassandra . 6 the grounding of the vessel,...
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IMPROVING SECURITY THROUGH VISIBILITY
Common assessment and analysis of risk in global supply chains
Mario Monsreal• CLI-México • Logistics Summit • 18/04/2013
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Overview
Why CASSANDRA?
Goal & Benefits
Consignment Data
The project
Data pipeline concept
Living Lab demonstration
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The Story of CASSANDRA
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The grounding of the vessel,
MSC NAPOLI, January 2007
UK Maritime and Coastguard Agency examined the stowage, segregation and securing of the cargo.
Highlighted the problem of non-declared and mis-declared goods.
Led to growing pressure for ship manifests to contain more detailed cargo information to enable risks to be more adequately assessed.
In some cases the Carrier had no reasonable means of identifying who was responsible for the containers and their contents.
International conventions and current practices means the sea Carrier of cargo is not in the best position to provide accurate information relating to the goods being carried.
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Search for consignm. data
GLOBAL DATA PIPELINE
Parties
milestones Cargo details
At least 5 variants: •ASN or PL •Rfid scanning in factory •OM system (ERP) •WMS factory •Customs declaration
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Container loading and stuffing: some challenges
Many European Importers buy Free on Board: they become owner of the goods after loading on board of the ship
Container loading is done under direction and supervision of exporter or manufacturer, by local freight forwarder or logistics provider
Information on loading list or container manifest is often in local language, and uses hard copy documents
It is often unclear when and how the container number becomes known to the owner of the cargo
Many importers in Europe cannot clearly say where their goods are coming from: which factory, which city, through which port, which local freight forwarder was involved, what was on the export declaration?
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Requirements for better data …..
Ship related data is no good
Data required from the source: from loading of stuffing of the container
Re-use of data for all declaration processes, with ENS as a basis (ENS multiple filing)
Reconciliation of export and import declarations (export=import)
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And what we do with it…
Focus on the integrity of the supply chain, and self-assessment by businesses the ‘business system’
and ..
Government supervision based on quality and reliability of the ‘business system’
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The Story of CASSANDRA Business focus
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Supply chain control
www.geodis.fr
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Global trade compliance
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The Project
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Prologue
Common assessment and analysis of risk in global supply chains
CALL FP7-SEC-2010-3
Collaborative project/Integration project
SEC-2010.3.2-1: Monitoring and tracking of shipping containers system
CASSANDRA is a 3 year project, from June 2011 to May 2014 and part of the European Commission’s Seventh
Framework programme for Security
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CASSANDRA consortium
CASSANDRA consortium comprises of 27 partners in the fields of – Supply Chain Management – Logistics – IT – Research – Customs
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CASSANDRA consortium (1/2)
Knowledge and Consulting IT Solution Provider Port Communication
Systems
Software and
Hardware
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CASSANDRA consortium (2/2)
Logistics Provider Port Community Authorities
Standardization
Terminal
3PLs
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Why CASSANDRA?
Increasing flow of containerised cross-border trade
Growing emphasis on security
Need for efficient and effective security and control
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Goal
CASSANDRA’s goal is to deliver 3 stakeholder benefits for the price of 1
“Improving performance”
“Improving efficiency and effectiveness”
Facilitate EU and global trade
CASSANDRA 3 for 1
Business
Customs
General (Society)
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CASSANDRA will reach its goal
… by developing a data-sharing concept &
… by introducing a new approach for risk assessment
Demonstration of the solutions and building consensus are essential parts of the project
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Benefits for Business
Reduction of administration
costs and errors
Improved insight in performance
and supply chain risks
Reduced involvement of Customs (and
other authorities)
Improved Supply chain operational performance
CASSANDRA Data sharing CASSANDRA Customs benefits
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Benefits for Costums
Better identification of secure and safe supply chains
More focus on high risk flows
Improved efficiency
Improved effectiveness (and higher hit rate)
CASSANDRA Data sharing
CASSANDRA Risk assessment
Improved data for
risk assessment
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General benefits
By improving supply chain performance CASSANDRA will facilitate global trade – Trade facilitation for developing countries will also be tested
in a real world Africa – Europe trade lane
New risk assessment & data sharing will – improve societal safety and – gives opportunities for product safety as well
Data sharing concept also brings opportunities for insight in e.g. CO2 footprints
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SUPPLY CHAIN SECURITY STRATEGY
Security framework (1/2)
Events can cause disruptions in the supply chain
Security strategy influences (type of) impact
Events Disruptions
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Security framework (2/2)
Insight in supply chain vulnerabilities are of central importance when determining strategy
Internal sources of risk
Disruptions
External sources of risk
External sources of risk Vulnerabilities
Logistics structure and concept (dependencies)
Security enhancing measures
Analysis tools
Preventive measures
Reactive measures
Supply chain security strategy
Natural disaster, theft
Strike, poor data quality
Discontinued supply, supply chain congestion
Sealing a container
Contingency plans
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New approach risk assessment (1/3)
New risk assessment for Customs based on Risk Based Audit (RBA) approach
RBA – focuses on risks – focuses on underlying causes and – shifts attention from transactions to processes
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New approach risk assessment (3/3)
By aligning risk assessment for customs and business, ...
... business will be provided with operational risk information, while ...
... giving maximum leverage for customs risk assessment
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Data pipeline concept (1/4)
Subsets of supply chain data are held by different parties in the chain
Reliability of data is not always clear
Lack of visibility
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Data pipeline concept (2/4)
Consignor or Exporter
Consignee or Importer
Container/Carrie
r
Freight
Forwarder or 3PL
Freight
Forwarder or 3PL
EU Regulation
Country B
Port
1
Port
2
CARGO
3rd Country Regulation
Country A CARGO CARGO CARGO
Phys
ical
laye
r O
rgan
isat
iona
l la
yer
Dat
a &
Doc
umen
t la
yer
Future Customs and International Trade Systems
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Data pipeline concept (3/4)
Data will be captured at the source
Data can be pulled from the pipeline by authorised business and customs – Special attention will be given to data security and
accessibility levels
CASSANDRA data pipeline will bring visibility and also facilitate RBA
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Data pipeline concept (4/4)
CASSANDRA will bridge gaps between existing solutions with state of the art IT
Achieving interoperability of heterogeneous systems with standard, open and flexible communication is key
Result will be a virtual data pipeline
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Data integration
at local level
Oppertunities for local business mode
One way how this could work…
Country A Country B
Local BCS Local BCS
Other sources
Other sources
Pipeline
Dashboard
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Living Lab demonstration
Name • Institution • Conference/Event • Date
In a Living Lab, innovations are tested in a real world setting
CASSANDRA solution (both risk assessment & data-sharing) is tested in 3 labs:
– Asia Europe – Europe US – Africa Europe
Each lab holds more trade lanes in which actual stakeholders participate
WP 100: Inception, scoping, background, requirements
WP 200: Risk based and
systems based approach
WP 300: IT architecture &
solutions
WP 600: Organization (business model,
stakeholder model, public-private coll.
Model) WP 600 Consens
us Building
WP 700:
Dissemi-nation WP 500: Evaluation
Risk based and systems based
approach
IT architecture & solutions
business model, stakeholder model,
public-private collab. model)
Risk based approach in
SCM
System based approach to government
supervision for intern. trade
Collaboration model &
Business Case
WP 410: Living Lab 1 (Asia-EU)
WP 420: Living Lab 2 (EU-US)
WP 430: Living Lab 3 (North-Africa-EU)
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CASSANDRA project
Key points
Integral data: cargo data and container tracking
Introducing risk based approach in the supply chain
Government ‘Piggy Backing’ on visibility data in the entire supply chain
Demonstration in Living Labs on 1. North Europe (Germany) – North America 2. Asia (China, Thailand) – West Europe (Rotterdam/UK) 3. South Europe (Spain) – North Africa (Egypt)
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Main Project Activities
Interfacing: technically bridging the gaps between visibility solutions in supply chains. This will be demonstrated in ‘living labs’ on three major trade lanes.
Business intelligence: facilitating the adoption of modern tools for integrating risk assessment and screening within businesses and across businesses in the full supply chain. The working of these tools will be demonstrated in the living labs.
Consensus building: providing the platform to discuss and adopt a common risk based approach for business and government supervision, as well as joint arrangements on how to deal with specific risks.
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Contact
Dr. Mario Monsreal Zaragoza Logistics Center
+34 976 077 604 Email: [email protected]
Centro Latinoamericano de Innovación en Logística-México +52 (999) 946 0081
+52 5627-0210 ext. 7107 Email: [email protected]
Thank you for your attention.
Any questions?