This document discusses concepts for optimizing resilient and secure global supply chains. It outlines challenges like complexity, conflicting demands, and changing threats. Key concepts proposed include increased visibility of supply chains and risks, seamless data sharing, integrating less intrusive security technologies, advanced risk management, and supply chain resilience. Collaboration is emphasized, like system-based supervision leveraging commercial controls, coordinated border management, and building global resilience. The expected impacts are reduced trade compliance costs, better societal protection, and new business models.

1. Consistently Optimised Resilient Secure
Global Supply-Chains
Nik DELMEIRE – European Shippers’ Council

2. CORE Overall Objective
Friction costs in int. Trade & Logistics
Societalrisksinint.Trade&Logistics
Current practises
Innovation potential
Current State of the Art
Awareness, best
practices &
deployment
CORE Key
Innovative
Concepts
Help!
Rising compliance
costs for
legitimate traders
and ineffective
security
procedures

3. Challenges
• Globalisation: complexity in managing fragmented value
chains
• Multiple potentially conflicting demands: lean, agile,
resilient, sustainable, compliant, secure
• Changing societal threats (e.g. cybersecurity, systemic risk
• WTO: from tariffs to trade
facilitation (NTB, TTIP)
• IT & Big data (opportunity &
threat)

4. CORE Key Concepts

5. Elaboration of CORE key concepts (1)
The fundament: key enabling technologies
1. Visibility of end-to-end supply chains and visibility of SC risks
– End-to-end: focus on upstream (consolidation): data capture & data quality
– SC Risks & control visibility: situational awareness
2. Seamless Data Interoperability
– Friction costs: ‘e-Freight’ business cases IATA & DG MOVE
– Standardisation, semantics and data governance
3. Integration of less-intrusive (security) technologies in SC
– Detection, scanning and cargo screening, Automatic identification and data
capture (e.g. CSD) and Tracking and tracing technologies
– Integration in seamless supply chain processes (container scan: € 1200)
– Composite container and temperature-controlled container concepts

6. Elaboration of CORE key concepts (2)
Proactive and responsive concepts
4. Advanced Supply Chain Risk Management (SCRM)
– 4T Portfolio mix: Terminate, Transfer, Tolerate, Treat
– Control capabilities: preventative, corrective, directive, detective
– Value chain driven: Metrics, best practices, business cases, value of trust
5. Supply Chain Resilience
– External threats and systemic vulnerabilities: natural disasters, demand shocks
dependence, information fragmentation, global cyber risks
– SC resilience framework (WEF, 2012):
• Partnerships (e.g. harmonised traffic control measures after volcano erupt
• Policy (Multi-stakeholder risk assessment approach)
• Strategy: Joint resilience adaption strategies
• Information Technology: use and expand data sharing platforms

7. Elaboration of CORE key concepts (3)
Collaboration and Recognition
6. System-based supervision
– Paradigm shift from individual transactions (declarations) to auditing the
corporate compliance system
– Maximise piggy backing on commercial controls and recognition of other
auditable security/quality programmes
– Beyond AEO: Trusted tradelane supervision
7. Coordinated Border Management
– Eliminate redundancies between different policies, regulations and
enforcement practices
– Support self-structuring process based on political will and trust
– Fact-finding: e.g. Potential synergies between food safety and customs
control

8. Contextual demo differences
• Geographic spread demonstrator
tradelanes: all continents!
• Import/entry, export/exit, transit
– Entry/exit modes: Sea, Air, Road, Rail
– Hinterland interfaces: Road, Rail, IWT,
Shortsea
• Product related compliance: Veterinary,
Phytosanitary, Dangerous goods,
Strategic/dual use goods, Electronics,
Automotive, FMCG, pharmaceutics

9. Major outcomes –> CORE Manifesto
• Advanced Supply Chain Risk Management
– Deployment of innovative control capabilities
– Transition in 4T-portfolio from transfer/tolerate to treat
– Sound business cases for transitions
• Reduced trade compliance costs for legitimate and trusted traders
– Adoption of supply chain driven supervision models
– Piggy backing on business and chain controls
– Boost mutual recognition of security programmes
– Accelerate Coordinated Border Management
• Society better protected against supply chain security risks
– Effective risk-based control and supervision
– Boost collaboration B2B, B2G and G2G
– Building global resilience: Agenda and roadmap

10. Expected impact
• Friction costs in international trade & logistics
– Trade Facilitation: compliance cost reductions
• NL-study (TNO): €248M reduction potential
– Other Total Landed Cost reductions
• Supply chain synchronisation / optimisation
• Societal risk reduction
– Resilience against systemic risks
– Effective risk-based control and supervision
– Boost to CSR and sustainability
• New value driven business models
Help!
Pushing
boundaries!
From
To