Presentation at CIO Forum March 2019; Amsterdam organised by Eye for Transport

1. Impact of Digital Single Market Strategy
Several significant transformations will hit us in rapid succession.
How can you deal with them?
Jaco Voorspuij, Senior Manager Transport & logistics
6th March 2019

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GS1 – the global language of business
2
Since
1974
Harmonised
Transport
Label

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Last mile delivery
GS1 Transport & Logistics TOP priority
• > 100 billion parcels per year
• > 25.000 online retailers in Europe
• > 500 Thousand carriers
are waiting
for common standards……
65
2016

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What do we need standards for?
• Be able to uniquely identify each logistic unit
end-to-end
• Define what type of information to share
• Ensure interconnectivity to be able to
share the information
These are common concerns across Transport & Logistics
Parcel and Postal
Cross Border
If you do not identify it, you cannot manage it

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European standardisation
the European Committee for Standardization (CEN TC 331)
standardisation work commissioned to ease international e-retailing:
“European postal standards should be based on, and compatible with, the
open retail standards for end-to-end supply chain management systems
already used by B2C e-commerce retailers for the global trade in goods and
services”.

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CEN: European Committee for Standardization
Parcel Standards
CEN / European Commission

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The Vision: Harmonised label
Used by ALL end-to-end
Created and attached by SHIPPER at origin

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The European Harmonised Label
Worldwide
unique
parcel
identifier
Assigned
by the
SHIPPER

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Creating worldwide interoperability
GS1 SSCC
European
CEN standard
European
CEN standard
Parcel labels
Data exchange
Worldwide unique
Parcel identification
Future proof
Better service for
the customer
Lower delivery
costs

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Why May, Trump and Tusk look at standards

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Global politics
That Universal
Postal Union sucks.
I want to get out
I want VAT on low
value consignments
to protect my
economy
I want the best
deals: On my own
terms and with
borders still open

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CEN Data Exchange standard -
Electronic Advance Data
• Based on proven UPU/WCO Model
• Enhanced with Global Supply Chain Standards
• Include Goods Sender and Receiver in exchanges
• Enable use by all stakeholders (beyond Post)
• Same approach as followed for Harmonised
Parcel Label
• Driven by Supply Chain Stakeholder Needs
• Closely linked to EU Legislation
coming into effect 1st Jan 2021
• Aim: Ensure all stakeholders end-to-end
receive information they need
• Promote adoption of global data standards
for identification, labelling and Data Exchanges
Destination
Customs

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EU VAT Legislation impacting on end-to-end T&L
• Low Value Consignments imported into EU
(European Union) enjoy simplified border
procedures; Regulations are often abused -
Billions of Tax revenue lost to Member States
• 1st January 2021:
EU implements VAT e-commerce package
requiring ALL items to be declared and
taxes to be paid
• EU commission LVC working group aims to
prevent incidents in 2021
• GS1 is member of this group
EU targets Import Low Value
e-Commerce Consignments

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New LVC regulation impacts Global Value Chains
• Impacts all e-Commerce items
=> many billions of additional declarations to Authorities
• Border Authorities may need support to cope with this flood
• Border Authorities must receive Electronic Advance Data;
• Leverage existing standards / solutions

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Increasing Border Controls for e-Commerce (LVC)
Mitigating the impact - How can standards help?
• Wide range of options exists for stakeholders to reduce, avoid or
simplify border controls
• Bonded warehousing moves border controls to warehouse away from
physical border
• Provide high quality data (even additional data) to Cross-border
agencies resulting in higher levels of automatic processing, fewer
inspections and more reliable throughput
• Sealed unaccompanied trailers
• Import One Stop Shop (IOSS)
• All require unambiguous Identification numbers to be shared
across the stakeholders so they may access the relevant
information for their tasks as and when needed.

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Generic Process Overview – Cross Border
Stakeholders and Information Exchanges
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3.ShippingNotificationI
4. Shipping Notification II
5. Customs Confirmation I
9. Cross Border Transport Instruction
6.CustomsConfirmationII
7.DespatchInformationI
8. Despatch Information II
Web
Shop
2. Shipment handover
1. Order & Invoice
Information
Destination
Customs
IOSS
intermediary Customs for IOSS
Periodic Report
and Payment
Periodic Report
and Payment
Origin
Carrier
Destination
Carrier
Cross Border Transport
Service Provider
10.Consignment
Information

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Let’s go back to the Source – ISO 15459
• ISO/IEC 15459-1:2014 specifies a unique string of characters for the identification of
individual transport units.
The character string is intended to be represented in a bar code label or other AIDC
media attached to the entity to meet management needs.
https://www.iso.org/standard/54779.html
• ISO/IEC 15459-6:2014 specifies a unique string of characters for the identification of
groupings of products, product packages, transport units and items.
The character string is intended to be represented in a linear bar code symbol and two-
dimensional symbol or other automatic identification and data capture (AIDC) media
attached to the entity to meet management needs and/or regulatory needs (e.g.
customs clearance).
https://www.iso.org/standard/54786.html

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Preparing for Export – information provided
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Seller to IOSS /
Declaration to Export Authorities
Carrier Info to Destination
IOSS number Webshop
IOSS number Webshop

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Summary of the concept
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• All stakeholders may use Seller/Shipper assigned unambiguous
Identification Keys based on open Global Data Standards
• Clear links are established among all these numbers
• Information on Goods Content for each Transport Unit may be accessed using the
unambiguous ID Keys provided in the Electronic Advance Data Exchanges
Data-Element ID-Key Comment
Shipping Marks ISO 15459-1 SELLER assigned Transport Unit ID;
SSCC
COMMERCIAL
reference number
ISO 15459-6 SELLER assigned Transaction ID; GSIN
Additional Fiscal IDs IOSS ID Uniquely identifies SELLER

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Conclusions
• Common Supply Chain Standards will greatly improve efficiency and
effectiveness of cross border goods flows
• There is an increasing business need for tracking and managing
individual Pieces (transport units) everywhere in the Supply Chain
• Common SC Standards are being incorporated in the day-to-day
operational procedures in many different areas across Supply Chains
The time to act is NOW
Adopt / Promote common SC standards
to digitalise Supply Chain operations

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Swedish Use Case
• Swedish Post; Implemented EU Regulation March 2018.
• Hired 300+ staff for declaration administration;
• New warehouses to buffer LVC consignments
• 150,000+ shipments/day before; now 20,000 (appr. 90% drop)
Imports rerouted via other EU-countries;
Real reductions
• Implemented new IT systems to automate process
• Special arrangements with largest shipper (WISH)
• Initially many shipments rejected by Consumer
Well over 300,000 piled up in PostNord warehouses

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Other Use Cases
• Austria will implement Zero-Value limit by 1-Jan 2020
• Unclear what declaration requirements they will implement;
may be based on current EC LVC efforts.
• UK (EXPLANATORY MEMORANDUM 2018 No. 1376) to implement zero-value limit
in case of no-deal Brexit; effective date to be decided.
Will make foreign/remote Seller liable for VAT (like EU IOSS does).
• Iceland implemented Zero-Value limit for Ecommerce
• EFTA country; “linked to EU”;
unclear what declaration requirements have been implemented

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Transforming the Last Mile white paper
• For general publication
Posted on GS1 website
https://www.gs1.org/sites/default/files/gs1_customer-
centric_logistics_wp_a4_081018_hi-res.pdf
• Intended audience:
Executives and managers responsible
for Supply Chain operations involving
Last Mile (B2B and B2C)

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Questions

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