Reliable, accurate, complete data for efficient risk analysis is the key enabler for the security of the supply chain and enables effective risk management by both public sector authorities and private sector companies.
However, data inaccuracy among the United Kingdom’s top five retailers and their suppliers is costing as much as £1.4 billion per year – 1 per cent of total revenue. Annual losses in international trade caused by maritime fraud are estimated to be as high as US$31 billion. Documentary maritime frauds involving the letter of credit and traditional ocean bills of lading account for nearly two-thirds of these losses.
The concept of a seamless integrated data pipeline linking the seller/consignor and the buyer/consignee, as well as the interested economic operators in between, has been spearheaded by UK Customs since 2007. The concept was developed in the EU, FP7 funded projects of Integrity from 2008 to 2011 and Cassandra from 2011 to 2014 when we discovered that some commercial supply chain visibility solutions already existed. Typically these are web-based, electronic data ‘pipelines’ that can link the seller, buyer and interested parties; as well as the controlling authorities. All parties benefit from information exchange through the supply chain, use of a single data format and reduced documentation. It simplifies collection and transmission of data for pre-arrival, pre-departure, import and export declarations, and other legal purposes.
The CORE Project, Work Package 10 started in May 2015. It has built on progress achieved in the previous Cassandra Project with new elements such as better co-ordinated border management, stronger engagement by shippers, buyers and sellers and making better use of existing initiatives and products.
The Felixstowe centric Work Package 10 has explored, developed and demonstrated five commercial seamless, web based, data pipelines that link buyers and sellers with accurate commercial data providing supply chain visibility. For selected customers in selected trade lanes that data will be passed from the pipeline using a new data carrying structure built within the project to international UN/CEFACT standards to the port community system of Destin8 operated by Maritime Cargo Processing. This has been facilitated by a highly experienced data standards team from Conex. The consignment data, that complements existing manifest data, will be passed from Destin8 to participating UK border management agencies for risk assessment and compliance purposes. Destin8 will co-ordinate responses.
Consortium partners in WP10 include Descartes and BAP Logistics servicing the Sainsbury’s trade lane from China to Felixstowe. Metro Shipping will be servicing the JCB trade lane from Felixstowe to
Australia and the Uniserve, One World system services a range of customers importing and exporting through Felixstowe.
But the commercial and regulatory benefits have attracted the attention of others who are now part of Work Package 10 but not part of the CORE Consortium. Marks and Spencer are participating using the ediTRACK system and possibly Descartes and the Warrant Group have brought their Ingot data pipeline system along with various customers.
We have developed four Waypoints along the supply chain at which we consolidate and send data to a central point for distribution to the regulatory authorities. Those new Waypoints are when the sea container has finished being loaded (the Consignment Completion Point), after the container has been loaded onto a ship and it has sailed, shortly before the ship arrives at the port of discharge and finally when the container is unloaded and all the data can be verified. Each waypoint will have its own XML schema which will contribute to a comprehensive picture.
At the end of the first year of CORE, Work Package 10 has made good progress in what is an innovative but challenging environment. We are on track with our CORE deliverables and development process. The recent significant, strategic, co-ordinated border management project by UK Government called One Government at the Border has recognised the value of the seamless, integrated data pipeline concept and the opportunities for better and more timely and accurate data presented by CORE Work Package 10 and the pipeline participants. We will be working within this 1G@B project, alongside Work Package 10, to provide commercial data and further develop this ground-breaking initiative to improve supply chain visibility and security to the benefit of the public and private international trade sector.
