Transcript Ray Walker OBE - Information management

UN/CEFACT
An Introduction to the work of the UN Centre
for Trade Facilitation and Electronic Business
Ray Walker OBE
Chairman, UN/CEFACT Steering Group
Special Adviser on Trade Processes and Electronic Business
to the UK Department of Trade and Industry
[email protected]
Overview
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What is the Centre’s Goals and Vision?
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How did it start?
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How is it organised and how does it work ?

What is Trade Facilitation and what benefits does it
bring?

What are the key issues in e-business?
for Global Commerce
Simple, Transparent and Effective Processes

Points to take home
UN/ CEFACT
UN/CEFACT’s Fundamental Goals
and Vision
Fundamental Goals
To accelerate the growth of global commerce so that the economic
benefits arising from it can sustain a secure, integrated, but diverse
world, where there are no “divides” and which is culturally
respectful
Vision
Simple, Transparent, Effective Processes for Global Commerce
UN/CEFACT – Background
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1965: Early work on trade documents in Sweden
1968: UN task force established in Geneva
1970: Working Party 4 established; Trade Facilitation work starts
1973: Work starts on EDI (TDI)
1978: First global trade data elements directory published
(UNTDED); Legal work starts
1983: First international EDI syntax published;
1987: UN/EDIFACT syntax approved as an ISO standard
1990: First UN/EDIFACT messages published
1996: Over 150 UN/EDIFACT messages developed and approved
www.uncefact.org
UN/CEFACT – Background
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1997: UN/CEFACT established
1999: ebXML project launched
2001: ebXML approved.
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To date over 30 practical Recommendations have been made to
governments to improve Trade Facilitation and e-business
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Many Guidelines for best practice have been published
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The use of Business Process Information Modelling unites the
approach to both Trade Facilitation and e- business issues
www.uncefact.org
UN/CEFACT- Organisation
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Plenary: Centre’s highest decision making body
Steering Group: Centre’s management and coordination
body
Groups: Main bodies for undertaking or supporting the
work programme
Working groups: Sub–element of a Group dedicated to a
specific work item
Projects: Sub–element of a group or Working Group
UN/CEFACT- Organisation
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Plenary is made up of delegations from UN member states
and international organisations representing the public
and private sectors e.g. World Customs Organisation,
International Chamber of Commerce, EAN International
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All delegations have the same rights e.g. An international
organisation has the same rights as a member state
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This is a very special feature which emphasises our
objective of an open interface between public
organisations and private business
UN/CEFACT- Organisation
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The Chair, and the 5 Vice Chairs (2 from ECE member
states, 2 from other UN regions and 1 from international
organisations) are elected by the Plenary. Currently, the
Chair is from Germany, and the Vice – Chairs are from
Japan, Nigeria, UK, USA and the IAPH.
Steering Group (CSG) is also elected by the Plenary and is
chaired a one of the VC nominated by the Chair and
approved by the Plenary
CSG meets physically 4 times a year but works daily by email
UN/CEFACT - Work Programme
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The current work programme includes the analysis and
modelling of business processes particularly in global
trade , the rationalisation of international trade
procedures, the development of electronic business
exchange standards (e.g.UN/EDIFACT, ebXML), coding,
and associated legal aspects
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It is carried out through empowered permanent and ad
hoc working groups and through joint ventures
www.uncefact.org
Proposed New Group Structure
There will be five Groups, three operational and two in support.
Operational Groups
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Global Commerce Processes Group
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Information Content Management Group
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Standards and Technologies Application Group
Support Groups
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Techniques and Methodologies Group
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Legal Group
The Groups and their Initial
Constituents
Global Commerce Processes Group – GCPG
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Business Process Analysis (BPAWG)
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International Trade Procedures (ITPWG)
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Trade Facilitation Policy and Best Practice*
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Specification of Common Business Processes (eBTWG)
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Specification of Reference models (BPAWG/ITPWG)
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Specification of UN Recommendations (ITPWG)
The Groups and their Initial
Constituents
Information Content Management Group – ICMG
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Semantic Rules*
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Code Directories (CDWG/EWG)
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Library Management (eBTWG)
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Business Information Objects Reference Library (eBTWG)
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Catalogue of Common Business Processes
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Business Document Library (eBTWG)
The Groups and their Initial
Constituents
Standards and Technologies Group (STAG)
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Business Domain Groups (EWG)
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Cross Domain Harmonisation (EWG)
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Cross Domain Assessment and Approval (EWG)
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Technical Production and Maintenance (EWG)
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Core Component Technical Specification (EWG/eBTWG)
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Design Rules (EWG)
The Groups and their Initial
Constituents
Techniques and Methodologies Group
(TMG)
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UN/CEFACT Modelling Methodology-UMM
(TMWG)
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Base (Meta) Specifications (eBTWG)
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Technical Research in Trade Facilitation and e-
The Groups and their Initial
Constituents
Legal Group (LG)
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Legal Processes and Issues
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UN/ECE Legal Recommendations
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Legal Guidelines and Legal Advice to UN/CEFACT
Groups
The UN/CEFACT Forum
It is important to understand that neither the Operational or Support
Groups are Silo’s. They are intimately related and collectively will be
called
The UN/CEFACT Forum
The Forum will meet twice a year with all the Groups and their Working
Groups present.
ebXML
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ebXML is set of interoperable specifications developed by
over a 1000 experts worldwide covering infrastructure (
the technology of message interchange) and content (the
messages)
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The specifications are freely available and are being
implemented by major vendors today
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
www.ebXML.org
UN/CEFACT
SIMPLE, TRANSPARENT AND EFFECTIVE PROCESSES
FOR GLOBAL BUSINESS.
What are International Trade Transaction Costs?
The costs of meeting commercial, governmental, transportation and
payment procedures in international trade, compared with the
costs of meeting the equivalent procedures in national trade
Procedures are the collection, presentation, communication and
processing of information in paper or electronic format
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
How do these extra costs occur ?
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Every international trade transaction involves a minimum of 7
participants. They are: Exporter, Freight Forwarder/Transporter,
National Customs, Foreign Customs, Importer, Importer’s Bank,
Exporters Bank
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All deep sea or air transactions have at least 10 participants (Add a
minimum of 2 Air/Sea Ports and one Carrier)
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For movements that transit third countries add at least another 2
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
How do these extra costs occur ?
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Each movement incurs procedural costs as it moves along
the transaction chain
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Information exchange costs are very high e.g. each deep
sea shipment involves at least 24 documents/information
exchanges
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Over 80% of the information exchanged is the same!
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
The International Trade Transaction involves:
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Participants
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Procedures
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Documents especially aligned documents
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Data exchange (EDI, XML)
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
Example transaction: seaport
[bill_lading]
Issuing
Bank
[lc]
Corresponding
Bank
[bill_lading]
Import
Customs
Import
Port Authority
Export
Port Authority
Export
Customs
[customs_
release]
[lc_ request]
[customs_
declare]
[bill_
lading]
Importer
(Consignee)
[bill_lading]
[clearance]
Import [delivery_
Forwarder order]
[arrival_
notify]
[delivery_
order]
[eta]
[arrival_
notify]
[manifest]
Import
Liner
Agent
[eta]
[exp_
approval]
[stowage_
plan]
[bill_
lading]
[ship_
details]
Export [ship_
Export
Import
Shipping
Liner
Shipping
ins_act]
[stowage_
Line
Agent
Line
plan]
[manifest]
[load_
instruct]
[manifest]
[goods_
available]
[manifest]
[lc_
[remittance_
advice]
[exp_
declare]
[commercial_
Invoice]
Export
Exporter
[despatch_
[ship_
(Shipper)
Forwarder notice
request]
[ship_
instruct]
[bill_
lading]
[manifest]
[trans_ [trans_
notify] interest]
[delivery_ Import
Import
Transporter
Stevedore
Export
Stevedore
order]
import
export
Export
Transporter
Insurance
How much are the extra costs?
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
How much are the extra costs?
Expressed as a percentage of invoice value, studies have
shown that the extra costs are between 2% and 7 %
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
How much are the extra costs?
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7%
NCITD (USA) 1971 published study (deep sea markets)
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2%
SITPRO (UK) 1987 unpublished study (EU markets only)
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2% Cechini report (EC) 1988 published
study (EU markets only)
for Global Commerce
Simple, Transparent and Effective Processes
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4%
SWEPRO (Sweden) 1994 published study (all markets )
UN/ CEFACT
How much are the extra costs?
3%
is probably a good working average
The actual costs will depend on the market and on the level of
Trade Facilitation measures in place
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
Can these extra costs be reduced?
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
Can these extra costs be reduced?
YES but it requires leadership, knowledge and
effort!
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
Can these extra costs be reduced?
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Most CEO’s have no experience of international trade,
and in general, little interest in effective export practice
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Some CEO’s also seem to think that “one size fits all”
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
Can these extra costs be reduced?
Applying Trade Facilitation and other best
practice techniques in can substantially reduce
the extra costs – by up to 60%
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
What is Trade Facilitation?
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
What is Trade Facilitation?
It is the technique that improves the ability of entities to exchange
products and services through the simplification, rationalisation,
and whenever possible, the elimination of procedures
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
Effective trade facilitation is achieved
through the combination of :
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Rigorous analysis of the international trade transaction
process
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Simple and efficient information exchanges
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Skillful implementation of best practice within companies
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Effective cooperation between commerce and government
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Successful inter-governmental policy negotiations
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Practical steps at border points
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
UN/ CEFACT
Simple, Transparent and Effective Processes
for Global Commerce
What are the key issues in e-business?
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
e-business:what is it?
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It is the use of Information and Communication
Technologies (ICT) to radically improve business and
administrative processes and practices
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But it is not just about technologies; it is equally about
rationalising and integrating the underlying business
UN/ CEFACT
for Global Commerce
Simple, Transparent and Effective Processes
processes
e-business is already well established!
Globally EDI , Bar Coding, CAD/CAM are widely used
in all sectors of industry and commerce.
EDI, especially UN/EDIFACT, is also extensively used in
many government departments worldwide e.g. Customs,
Purchasing, Healthcare, Statistics, etc.
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
e-business developments
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Collaborative business concepts (e.g. online exchanges)
and supporting applications, including Portals, with
contract, transaction and security tools, are appearing
almost on a daily basis
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In this development frenzy it is very easy to lose focus
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
e-business:what should I focus on?
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Framework issues need to be carefully considered
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Interoperability - deploying products that are built on
open standards and which can work together - is critical
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Agreeing common data definitions, with precise and
unambiguous meanings, and using them in all exchanges
with business partners is the foundation of success
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
e-business: what are the framework issues?
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Relevant Law
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Trust & Security
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Intellectual property rights
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Privacy
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Consumer protection
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ICT Standards
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
In today’s world information standards are
absolutely critical to interoperability and,
therefore, the key to the success of e-business
In particular, structured information exchanges
are fundamental
for Global Commerce
Simple, Transparent and Effective Processes
UN/ CEFACT
UN/ CEFACT
Simple, Transparent and Effective Processes
for Global Commerce