Presentation delivered during the Dutch Trade Mission (lead by Minister Harbers) to India (2-6 April 2023) as part of the workshop "Securing Supply Chains through Digitization".
The presentation covers why it is imperative that Supply Chains and Global Transport and Logistics networks digitalise much more of their daily operations; huge amounts of trade is not happening due to the lack of data being available when it is needed.
It then covers a few industry initiatives (a big fail and a success).
It concludes global data standards are needed to develop so-called Federated Networks of Systems that can also be used easily by the large numbers of small and n medium stakeholders that make up the vast majority of transport and logistics network service providers.
2. CONAS 2
Consensus: Digitalisation helps Supply Chains
McKinsey report estimates digital bill of lading
will deliver
– USD 6.5 Billion reduction in direct costs
– USD 40 Billion in additional Trade
Electronic CMR for hinterland Road transport are
estimated to save over 70% of cost (vs paper CMR)
World Trade Organisation states
80-90% of international trade relies on trade finance
Asian Development Bank estimates USD 1,700 Billion trade finance gap,
meaning financing was requested but denied (and trade did not happen)
Main cause for denial:
– Paperwork/Information available insufficient to grant financing
Digitalisation helps making available data needed to increase trade
3. CONAS 3
Industry initiatives to digitalise documents
Tradelens (IBM – Maersk)
– “Created to make a leap in the digitalisation of Supply Chain”
– Technically viable but complex; very secure (using blockchain)
– Commercial failure (Too few other stakeholders joined).
FIATA electronic bill of lading (eFBL)
– Multi-modal approach (maritime, air)
– Built on proven technology (supported by global standards)
– Improving trust in the paper document
– Easy to implement also for SME stakeholders
– Many solution providers can develop/offer their applications and be connected in the
FIATA eFBL ecosystem; over a dozen now listed on FIATA eFBL page.
– Adoption is increasing; appr. 20 FIATA countries now offer the eFBL option.
All of these are “proprietary” and focussed on aspects of the Supply Chain
4. CONAS 4
Supply Chains are complex ecosystems
Large numbers of very diverse stakeholders: Sellers/Buyers of Goods, Authorities,
Freight Forwarders, carriers (road, rail, air, maritime, parcel, postal), solution
providers), and many many more
SC intertwine to form extensive networks of transport and logistics
Stakeholders will rely on many other stakeholders without knowing about each other
Many levels of subcontracting across each leg of the journey through the SC
Cargo does not move unless data moves
Systems of stakeholders must be connected easily, reliably, securely and in a
trustworthy fashion.
Proprietary silo solutions do not scale across the Supply Chains network ecosystem
5. CONAS 5
Federated systems based on global standards
Federated systems adopt “connect once, collaborate everywhere” approach.
Systems connect with the federated network over a single access point.
The many access points in the network communicate with each other.
Thus, any network participant can communicate with any other participant.
”Ensuring what is sent is what is understood”.
Communications with the federated network as well as communications within the
network are all standardised and secured.
The network takes care of identity management, discovery of participants,
authentication; participants control access to their systems (data).
Federated systems (regional or worldwide) exist and are being built:
PEPPOL (global, 10+ years), FENIX project (EU), just completed, eCMR (EU),
electronic Freight and Transport Information (pan-European Law, go-live 2025).
6. CONAS 6
Securing Supply Chains - Recommendation
Familiarise yourself with concepts of federated networks of systems
Promote the adoption of federated networks of systems to enable as many as feasible
stakeholders of any size to (start) exchanging data so the cargo can also move.
Forget about “winner takes all”.
The industry will not accept a monopolist. Nor will governments.
Develop systems based on global standards, so they can be connected with federated
networks as and when they emerge.
7. <footer> 7
CONAS
Robert van der Holst
Managing Director
robert.vanderholst@conasbv.com
+ 31 (0)6 33 58 34 11
https://www.conasbv.com/digital_link.php
Contact details
Jaco Voorspuij
Product Manager Digital Services
jaco.voorspuij@conasbv.com
+31 (0)6 57 15 49 99
https://www.linkedin.com/in/jacovoorspuij/
Service Logistics Consultancy
Thank You
8. CONAS 8
Global
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deep grove ball bearing d x D x w:
20 x 47 x 14 mm
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Part ID 900000001
Keys from the Entities
Entity Entity Part ID Entity Part Description
Entity 1 45-23234 Bearing
Entity 2 89-2983 Ball Bearing
Entity 3 121-123 Both side seal bearing
Entity 4 900000001 deep grove ball bearing d x D x w: 20 x 47 x 14 mm
Keys from the Manufacturers
Manufacturer Manufacturer
Part ID GTIN
SKF 6204-2Z 7316570471304
FAG 6204-ZZ 714998209566
Entities
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