asian development bank assessment of paperless trading .... tfforum_bs2_stokes.pdf ·...
TRANSCRIPT
Assessment of Paperless Trading
Readinessa self assessment approach for
policy makers and the private sector
Asia-Pacific Trade Facilitation Forum 2009
Setting the Regional Agenda
Breakout Session 2 November 26, 2009
Peter Stokes
Asian Development Bank
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APEC Trade Facilitation Background
APEC Blueprint for Action on Electronic Commerce of 1998role of governments is to … facilitate development and uptake of electronic commerce by promoting the efficient functioning of electronic commerce internationally .… to develop domestic frameworks … compatible with evolving international norms and practices.
In 2002, APEC Leaders and Ministers adopted the Trade Facilitation Action Plan (TFAP), which aimed to reduce business transaction costs by 5% 2006.
14th APEC Economic Leaders' Meeting in Hanoi, VietNam, in November, 2006
APEC has met the target of a five-percent reduction in trade transaction costs by 2006. For next Trade Facilitation Action Plan (TFAP-II), target a further reduction of trade transaction costs by five percent in the APECregion by 2010.
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Why is Paper Used in TradingCenturies of Paper Legacy – familiarity
Quickly accepting convenience of electronic informationInteroperability?
Legislations in some jurisdictions explicit require or implicitly assume Government related documents and some commercial documents should be on paper
Many jurisdictions have implemented legislation to give same recognition to electronic documents / signatures as to their paper counterparts
International trading conventions previously assumed goods documents were on paper – Letters of Credit; Airway Bills; Bills of Lading
Montreal Convention 1999 (provides for electronic records for air cargo) in force on 4 November 2003.eUCP (UCP600) – governs use of electronic presentation; supplements Uniform Customs and Practice for Documentary Credits (UCP500) – April 1, 2002Bills of Lading – Rotterdam Rules to be signed by UN 23 September 2009http://www.uncitral.org/uncitral/en/uncitral_texts/transport_goods/2008rotterdam_rules.html
Paper sign-off; evidence on the transfer of goods between parties (e.g. seller to trucker) is currently the most convenient; cost effective
Mobile devices in use to record transfer with capability of an electronic signature on a “touch screen”
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1. Request for Quote
2. Quotation
3. Purchase Order
4. P. O. Confirmation
5. Shipper Order/Instr.+ Invoice+ Packing List
6. Ship Order/ Instr.
11. Pre-alert / Arrival Notice
7b. Shipping Order Cycle (S/O, BoL)
7a. Ship Instr. Cycle
8. Gate-out/gate-in
10. Bay Plan
13. Payment Order
14. Remittance15. Import documents
16. Proof ofDelivery
9. Bay Plan
Capture gate movement
(gate-out/in)
Capture gate movement
12. Export documents
12. Gate-in/ gate-out
5. Shipper Order / Instr.+ Invoice
7a. Manifest
7a. Manifest 7a. Manifest
Scope of Paperless Trading
Government at Destination
Government at Origin
Buyer/Importer
Seller/Exporter
Freight Forwarder Freight Forwarder
Terminal at OriginTerminal at Destination
Air Carrier
Ocean Carrier
BankBank
Air ExpressTerminal atDestination
Terminalat Origin
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Characteristics of “Paperless” tradingBased on analysis of Case Studies
Multiple partiesmultiple units or departments in each party
Require to collaborate streamlining of cross-functional and cross-party business processesapplication of specific, somewhat complicated Information Technology (IT)
Application-to-Application B2B InteroperabilityTerminologyCommunications Protocols Data Structure Specifications and Transformations
Necessitates changes in the established way of “doing things”, Parties and business in
different economiesdifferent legal jurisdictions speak different languages
Can be Complex and Challenging
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Obstacles to Paperless Trade Implementation – Private Sector
Obstacle To AddressUnclear scope and requirements with urgent schedule
Rapid iterative development approach with proactive directly communicating team
Forging consensus with stakeholders
Top Management Support
Direct Integration with large organizations
Data standardizationTop management negotiationsBusiness Value
Diverse standards for same data for different Government authorities
Encourage use of standards eg. WCO data model
Slow Community Take-upSlow User Acceptance
Marketing & IncentivesBusiness Value / BenefitEase of Use; Training
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Obstacles to Cross Border Paperless Exchange of Regulatory Documents – Public Sector
Obstacle To Address
Negotiations between Governments take a long time
Use Best Practice of previous projects as guideline for future projects
Forging consensus with stakeholders
Appropriate Government structureTop down mediation role (Political Will)
Process complexity Plan for data and process rationalization
Creating an Integrated Platform
Strategic PlansGovernment funding
Slow Community Take-up Marketing Awareness & IncentivesBusiness ValueMandate Use, where practical
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Paperless Trading Implementation Framework
Value to Stakeholders / CostsBilateral Cooperative Framework
Political CommitmentLegal Recognition
Assess Political / Commercial SituationAnalyze Processes and Community Assess Technology & Functionality
Assess Security
Community ManagementData & Process RationalizationFunctionality and Technology
Implementation Plan
Programme ManagementMandate Use
Marketing IncentivesEase of Use - Support
Identify Opportunity Assess Bilateral Relations
Goals Concept for Paperless
Trading Initiative
Feasibility StudyAssess As-Is SituationBusiness ProcessTechnology Security
Feasibility StudyDefine To-Be Situation;
Paperless Trading Implementation
Collaboration Strategy and Action Plan
Execute Action Plan Phases
Measure
Assess
Improve
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Paperless Trading Readiness Assessment Template Link to Template
Critical Success Factor Assessment
(0-7)Weighting Weighted
Assessment
1 Value for Key Stakeholders 72 Political Commitment 7 14% 14%
3 Driver for Community Adoption 7 20% 20%
5 Operating Model and Public Private Partnership
5 4% 3%
8 Data and Process Rationalization 3 8% 4%
9 Promotion and Marketing 3 7% 3%
6 Technology Readiness 4 8% 4%7 Effective Program Management 7 14% 14%
5
3
14% 14%
4 Predictability of Legal Protection and Security Framework
5% 4%
10 Ease of Use; Training; Support 6% 3%
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Paperless Trading Readiness Assessment Template
Critical Success Factors & Weightingspecific to each project and stage within a project
A. Review / Revise Weighting to each Critical Success Factor
B. Assess State of Readiness of Level of Achievement
C. Calculate Relative Readiness / Level of Achievement
D. Remedial Action as Required
11 © 2009 Axway Inc. Confidential and proprietary. All rights reserved.
Axway in China Ports
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Shanghai EasiPassSupporting the World’s 2nd Largest Container Port
1 Evergreen Marine Transportation Co. Ltd. Statistics, Taipei, Taiwan, 20012 Frost and Sullivan Transportation & Logistics Practice, May 19, 2009
Shanghai Port growth 5.6 million TEU (2000)1
28 million TEU (2008)2
2,100+ port users
50+ document types
96 million+ transactions p.a.
300 million+ RMBe-payments per day
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Global Trade Management
Objective: Single Window for Trade Facilitation
Malaysian economic model focus is on developing goods for exporting to highly industrialized nationsBeing a country that’s easier to do business with, compared to other Asian TigersComplete transparency with all trading partners.40% faster in processing of declarations
Collaborative Challenge: Synchronize Standards
Streamline trade processes for all partnersPaperless data exchange with authorities and governmentContinuous operations of complex document flowBeing extremely flexible and reactive to easily introduce newcomers in the community
Solution: Transaction flow synchronization
Synchrony Integration Broker exchanges with 6,445 connected customers who did not change anything to their IT system48 million electronic transactions processed by Synchrony per year2 billion RM in customs duty payment transacted per yearMonitor and measure the broad scope of company transactions, alerting in case of problems, so decisions can be made on the fly
