blockchain, internet of things, artificial intelligence€¦ · artificial intelligence - ai and...

VALENTIN CARLAN (UA) & JOHN KERKOFS (PORT@PP)

STEVEN SCHUTTER (NXTPORT)

FERNAND RUTTEN (DELOITTE) & PHILIPPE HEEREN (LAGA)

QUESTIONS & ANSWERS

BLOCKCHAIN, INTERNET OF THINGS, ARTIFICIAL INTELLIGENCE

VALENTIN CARLAN JOHN KERKOFS

THE POTENTIAL OF BLOCKCHAIN TECHNOLOGY IN THE MARITIME SUPPLY

CHAIN

The potential of blockchain technology in the maritime

supply chain

CARLAN V., KERKHOF J., SYS C., VANELSLANDER T.

BRUSSEL, 14TH SEPTEMBER 2018

Rationale

• Growing trend on implementing ICT (digital) innovation in the supply chain

• Main characteristics:

1. growing need for innovation• cost savings

• increase the quality of products (and services), and

• further growth opportunities

2. technology (IT) push

3. The dynamic global context

• Further integration of the supply chain, is blockchain a possible solution?

4

Blockchain (Distributed Data Ledger technology): definition

• An authonomous, distributed and open database that intermediates the change of cryptographic verified data blocks.

• Distributed database that is operated through internet (Mougayar, 2016; Loklindt & Moeller, 2018) -> peer-to-peer consensus

• Advanced cryptographic technics to ensure high security of data (Loklindt & Moeller, 2018)

5

(2014)

(2017)

(2015)

(2016)

(2018)

Gartner Hype Cycle and Blockchain

IS DISILLUSIONMENT REALLY AROUND THE CORNER?

VC investment in blockchain startups

7

Maritieme keten – Haven van Antwerpen

8

Owner of the goods / shipperOrigin

Origin

DC

DC

Port

Port

Receiver of the goods

Shipping company

Terminal operating

company

Terminal operating

company

Hinterland transport

company

Hinterland transport

company

Forwarder

Agent

Customs broker

Customs broker

Government

Financial institutes

Insurance

Maritime supply chain integration barriersEconomical

• Market competition and uncertainty

• Lack of investing stakeholders’ involvement

• Financial constraints

Legal & political

• Multiple jurisdictions involved: no consistent legal framework

• Challenge of information disclosure policy between partners in the supply chain

• Lack of governmental policies

• Lack of rewards and encouragement programs

Technological

• Incompatibility of operating and strategic goals

• Lack of methodology for blockchain technology implementation in sustainable supply chains

• Security challenge

• Immutability challenge of blockchain technology

Cultural & managerial

• Resistance to change

• Lack of customers’ awareness and tendency about blockchain technology

• Hesitation to convert to new systems

• Lack of management commitment and support

Potential benefits of blockchain technology

10

*Carlan, V., Sys, C., Vanelslander, T., (2016)

**Halaburda (2018)

Blockchain

(distributed ledger alone)

Blockchain+

(enabled through smart contracts

and/or enhanced encryption tools**)

Digital economy benefits*

Reduces cost to access/receive

informationX

Reduces cost to send information XAvoid illicit transactions and/or their

prejudiceX X

Avoid error correction X XAvoid information matching (benefit

from automatic data matching – if

applicable)X X

Avoid information search X XEfficient use of resources/assets X

Community attendance benefits*

Access to broad (real-time)

informationX

Higher value-added services X

Compliance with standards and

regulationsX

Intermediate conclusions

11

• ICT innovation in the supply chain is seen as the key for keeping competitive advantage

• Blockchain technology can help further integration if standardization is achieved

• Full blockchain benefits are enabled only in combination with other technologies

EXAMPLE OF BLOCKCHAIN PROJECT IN THE PORT

John Kerkhof

MARITIME SUPPLY CHAIN INEFFICIENCIESPort and hinterland

stakeholdersAuthorities

Other

third

parties

Inefficiencies

Ship

per

Freig

ht f

orw

ard

er

Cus

tom

s d

ecl

ara

nt

Shi

pp

ing

lin

e

Term

ina

l op

era

tor

Hin

terl

and

tra

nsp

ort

Rec

eive

r o

f th

e go

od

s

Port

Aut

hori

ty

Cus

tom

s

Ha

rbor

ma

ster, p

ilota

ge e

tc.

Oth

ers

(e.g

. Police

, Sa

nita

ry

and

vete

rina

ry a

utho

rities)

Agent

Fina

ncia

lin

stitut

es

Roa

d

Ra

ilIW

W

(ba

rge

op

era

tor)

Time

ETA/ATA estimation X X X X X X X

Operations planning X X X X X X X

Document flow

Goods ownership documents (CMR, B/L,…) X X X

Hardcopy documents (Phytosanitary certif.) X X X X XCustoms declaration X X X X X X X X X X

Information flowTrack and Trace X X X XPayment confirmation X X X X X X X X X X X X

Cargo relatedShipment fragmentation X X X X X X XLoading units X X X X X

Financial flow X X X X X X

PILOT CASE: PHYTOSANITARY CERTIFICATEA declaration used in international commerce for shipments of plants and plant

products. Certificate issued by the National Plant Protection Organisation of the

exproting country to be presented to the NPPO of the importing country.

PILOT CASE: STAKEHOLDERS

PILOT CASE: PROCESS FLOW

PILOT CASE: BLOCKCHAIN INFRASTRUCTURE

Big potential and open for any type of certificate or authorisation

• Tresholds▪ legislation

▪ global aspect

▪ commercial risk

▪ time to market

CHALLENGE : FROM PILOT TO PRACTICE

CHALLENGE : FROM PILOT TO PRACTICE

CONTACT: [email protected]

STEVEN SCHUTTER

BEST IN CLASS VOORBEELDEN VAN DIGITALISERINGSPROJECTEN VOOR DOUANE IN DE

HAVEN

Best in-class examples for digital solutions, related to customs

Steven Schutter – Marketing Manager NxtPort14/09/2018

Waze is a navigation app…

But primarily a data platform where data from all connected users such as location, speed, accidents, obstacles … are being shared anonymously with all other users, allowing to adjust behaviour dynamically

OUTSMARTING LOGISTICS, TOGETHER

Just imagine…

Imagine what processes we could improve if we had the right DATA gathered, analysed, shared and applied properly.

25

Complex supply chain ecosystem lacking an

integrated information flow

“a simple shipment can go

through nearly 30 people and

organizations, including more

than 200 different interactions

and communications”

“up to 50% of the cost of

moving a container is related to

paperwork”

Consignee

Shipper- Deep sea Carrier- Forwarder- Terminal- Barge operator- Rail operator- Truck company- Subcontractor - Driver / Skipper- Authorities / Customs

source: NYT March 4, 2017; Forbes March 5, 2017

Silo’s have been optimized

resulting in sub optimization of

the supply chain.

20-sep-18 © 2018 NxtPort - Building the Port of the Future 27

Connections in the traditional supply chain

2 parties = 1 connection

3 parties = 2 connections



Your

company



The profit paradigm

Fragmented supply chain

Paper based + data duplication

Non coordinated

ErrorsNo transparancyInefficiency+ capacity

underutilisation

Sub-optimized E2E flow despite efforts in optimizing company processes/scale and in point2point communication

4-5 43%stack moves

before picked by transporter

50%of the cost of moving a container is related

to paperwork

overall truck efficiency.

24% running empty /

57% average loading

30people and organizations, including more than 200

different interactions

Consignee

Shipper

API ENABLING DATA BACKBONE WITH SOLID

SHARING LOGIC

CO-CREATED SOLUTIONS (APP’s)

targeting # actors & cargo types

MARKETPLACE

OF AVAILABLE API’s AND APP’s

Private Company

CustomsOther

Authorities

1 connection 1 connection 1 connection


Connections in a NxtPort supported Supply Chain

n parties = 1 connectionNxtPort Common Data sharing Backbone

Your

company


Multiple Communities Powered by NxtPort

Combase

Private Company

Customs OtherAuthorities

Cpoint/PoAPort+Port@ppRx/SeaPort

Data Management Policy

……

Port+

eECDApp

… …


Solutions Domains & multiple Communities

NAUTICAL

END 2 END VISIBILITY / PLANNING / EXECUTION

PORTHINTERLAND PORT HINTERLAND

Nautical

Port Cargo

B2G

Hinterland

E2E visibility

Nautical

Port Cargo

B2G

Hinterland

E2E visibility

B2GB2G

# CARGO TYPES

•Containers•RoRo

•Breakbulk•Liquid Bulk•Dry Bulk

# ACTORS

•Shippers / Consignee(Industry/Retail)•Deep sea Carrier / Shipping Agent

•Terminal •Forwarder

•Logistics operator•Barge operator•Rail operator

•Trucking company•Authorities / Customs


NxtPort API’s and Solutions: www.nxtport.com

…

Nautical

Port Cargo

B2G

Hinterland

E2E visibility

Nautical

Port Cargo

B2G

Hinterland

E2E visibility

https://www.nxtport.eu/


B2G - Customs & other Authorities

Port Cargo

B2G

Nautical

Hinterland

E2E visibility

Under developmentAPPUnder developmentAPP

VISIGIP

Visibility app for the inspections at the Grens Inspectie Post

Bulkchain

A full bodied application and a complete suite of API’s allowing for a digitization of the Antwerp Breakbulk activities.

Under developmentAPP

FAVV ePhyto

Phytosanitary certificates, are transferred via blockchain technology and the document flow is automated by means of so-called "Smart Contracts” to make document flows safer and more efficient.

Under discussionAPP

Digital emergency procedure

Emergency workaround in case direct communication with the PLDA application of customs is tempory not available.

www.nxtport.eu

/nxtport

@nxtportnews

[email protected]

03 808 59 60

20-sep-18© 2018 NxtPort - Building the Port of the Future 35

[email protected]

Questions ?

FERNAND RUTTEN PHILIPPE HEEREN

DIGITAL CUSTOMS NEXT GEN

Headline Verdana BoldNext Gen. AEOThe power of disruptive technologiesFernand Rutten (Deloitte) – Philippe Heeren (Laga)

10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 38

Business works together with the customs authorities toward the common objective of supply chain security

AEO – C2B partnership through IT

C 2 B

Trust-based control framework

U.S. ISA

© 2018 Deloitte Belgium 39

Benchmarking global supply chain security and trusted trader programmes

Focus on the benefits


Global supply chain security and trusted trader programs

Benchmarking Study • Conducted end of 2017

• +120 global respondents

• Almost 50/50 EMEA / Americas

• 72% participates in a program

Desired benefits vs. actual benefits


How the New ‘Disruptive’ Technologies will drive the Next Gen. AEO challenges

RPAIoT

AIBlockchain


Let the Robot replace your recurring and repetitative work

Robotic Process Automation - RPA

RPA to automatebookings and upload of supply chain documents

Segregation of duty


AI and Machine Learning


Predictive modelling in the supply chain

Artificial intelligence - AI and virtual reality

Improve efficiency, e.g. in the loading process, in the delivery process

Improve safety and security

AI / VR can be used to classify goods or perform customs inspections


Trade Master Data. How can I control it? How can Artificial Intelligence help me?

‘My material data base is 1 miomaterials big’

‘Our customs expert is leaving us soon, how do we captureand save theknowledge?’

‘We have NOcorrect HTS codes in our (ERP) system(s)’

‘We have 200 new material numbers every day!!’

‘Our HTS and ECCN codes are outdated and not maintained’


Artificial Intelligence Classification Automation./ How does it work?

PROCESSINGACQUISITION OUTPUT & FEEDBACK

Extraction

Automated

classification

high

Manual

classification

low

medium

Classification

Engine

Enrichment

Pre-processing

& Cleansing

Remediation

Confidence Level

Step that requires manual intervention

Classified

material

Material that requires

classification

The Classification Engineer gathers

as much information as possible

information (product sheets,

intranet) to make a sound judgement

Based on his/her experience the

Classification Engineer tries to classify

the material

If the Classification Engineer is certain, a

classification is entered

If the Classification Engineer is not entirely

certain, he will ask another expert for support

The material is

classified

RESULT

Material that requires

classification

Using RPA the data extracted is

enriched with as much information

as possible (product sheets, intranet)

to feed into the Machine Learning

component

The Machine Learning solution –

trained by Classification Experts

tries to classify the material.

In addition, it returns a number that

reflects the confidence level linked

to the suggested classification code

When the Confidence Level is high, the

classification is automatically updated in the system

When the outcome is below a predefined

threshold, alternative options for classification

(when available) are provided to the user

The material is

classified

Re-train model

MANUAL

AUTOMATED


Following up on the chain

Internet of things

Combined with blockchain, secure follow-up on goods can be ensured

Temperature HumidityMovement (shocks)…

Combined with AI powered predictive analytics, risks can be managed (e.g. risk of theft, risk of damage)


Blockchain & Internet of Things

Blockchain

Blockchain based solutions linked to (NFC) chips to fight counterfeit

Blockchain based solutions to store and share certificates via QR code link


Exchange of customs records through blockchain

(Belgian) customs blockchains

▪ Certificate of origin on blockchain

▪ Certificates tracking and verificationfor NAFTA / CAFTA


Customs authorities’ involvement

What is customs doing on these New Technologies

Netherlands

USAU.S. Customs and Border Protection

Port of Rotterdam Singapore customs

Peru Customs

COMESACommon Market for

Eastern and Southern Africa

IBM/Maersk active customs authorities

COMESA customs collaboration

UKHMRC

HM Revenue & Customs for border controls

BEPort of

Antwerp authorities

Port of Antwerp/ NxtPort/ T-mining/ Enzafruit

Electronic certificate of origin (eCOs) on the blockchain.

Electronic phytosanitary certificates on the blockchain

Bill of Lading in the blockchain

Dubai / UAECustoms

Customs authorities activelyparticipate and lead the way

ALREADY TODAY


Conclusions


Next Gen. AEO?

Artificial intelligence is used to automate and improve the classification process

Virtual reality and artificial intelligence is used to visualize data and apply predictive analytics

Non-stop transparency on customs-relevant data through blockchain technology

Artificial intelligence combined with robotics to improve data quality

Internet of things combined with blockchain to track and trace goods

Automate and link the physical, documentary, financial flows in the supply chain and restore trust

Exponential technologies improve and ensure security and efficiency in the supply chain importance of data quality

Authorities use exponential technologies + push economic operators to use exponential technologies

Exponential technologies are (becoming) an integral part of trusted trader programmeslike AEO condition to get authorized

Real-life examples of technologyapplications in supply chain

ALREADY TODAY

Technologies lead to Digital transformation

ALREADY TODAY


THANK YOU !

Philippe HeerenLawyer, GTA, Laga

Fernand RuttenPartner Global leader, GTA

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blockchain, internet of things, artificial intelligence€¦ · artificial intelligence - ai and...

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