Updates on Pilot Project on APEC Global Data Standards for ...
Transcript of Updates on Pilot Project on APEC Global Data Standards for ...
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2016/PPFS/012 Agenda Item: 2
Updates on Pilot Project on APEC Global Data Standards for Improvement of APEC Supply Chains
Purpose: Information Submitted by: ABAC
Policy Partnership on Food Security MeetingPiura, Peru
23-25 September 2016
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APEC Global Data Standards (GDS) for improvement of APEC supply chains
October 2016
Patrik Jonasson
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Background
APEC Global Data Standards
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Background
• The Global Data Standards (GDS) initiative has been driven by ABAC since2012
• Proposing that Governments leverage business data and systems such asbarcoding and data sharing platforms in cross – border control and supplychains for improved transparency and better risk management
• Result could be better product visibility and improved efficiencies, fasterclearance, less spoilage etc.
• Global Data Standards received endorsement in the Leaders’ Declaration andin the Ministers’ Statement in Beijing in 2014 with official support for pilotprojects and again in the Ministers’ Statements 2015 & 2016
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APEC GDS Pilots – Why?
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APEC pilots were conducted to demonstrate how utilisation of GDS can improve supply chain connectivity across borders.
Improvements via GDS would help relieve the APEC/ABAC identified supply chain chokepoints and deliver a 10% reduction in trade costs.
Benefits were assessed across 4 variables; 1. Visibility2. Efficiency3. Innovation4. Integrity
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Already identified benefits of using Global Data Standards
• In a pilot project focusing on meat exports from Australia to the US Global Data Standards facilitated Supply chain visibility with traceability improving from 43% to 93% of events and it enabled automation of messages around transport instructions, which reduced manual entry errors with potential savings of US$57,000 per annum.
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To the Australian meat exporters, savings could be around USD 15M in the Australia – US meat supply chain per annum
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Pilot Projects
APEC Global Data Standards
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APEC GDS Pilots Project 2016 Expected Results
Track progress and cost benefit analysis through pilot projects onapplication of GDS at product level with the aim to:
“enhance supply chain visibility as related to traceability andexpedited product admission while coping with existing customsclearance system and future single window”
Objectives: 1. demonstrate how GDS will enhance supply chain performance
and contribute to better compliance; 2. identify enablers, challenges and mitigation policies;3. determine if it is cost effective to adopt GDS in supply chains4. Depending on the results, encourage wider adoption of
interoperable GDS to facilitate trade and to assist economies to implement their commitments under WTO TFA
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Policy Recommendations
Overall objective to identify next steps to implement the commitments by Ministers and Leaders
• PSU study also aims to propose recommendations on future actions to enhance supply chain performance through the application of GDS which could include policy recommendations
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No. Lead Economy Product Trade Routes Transportation
2015 1 Hong Kong Wine Australia to HK By Sea
2 Australia Boxed Beef Australia to US By Sea
2016 3 Malaysia Durian (Fresh/Frozen) Malaysia to HK & China By Air & By Sea
4 Peru Asparagus Peru to US By Air
5 Mexico Tequila Mexico to US By Land
2017 6 ABAC/LSIF Pharma TBC TBC
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APEC GDS Pilot – OverviewPrimarily focusing on food supply chains
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APEC Policy Support Unit (PSU)
Pilot participants worked closely with Victoria University working on behalf of the APEC PSU to;
• Conduct an analysis to develop KPI’s that measure the benefits of GDS.
• Propose ‘policy’ recommendations on possible future actions to enhance SC performance through the application of GDS.
• Identify the next steps to implement the commitments by Ministers and Leaders on this issue, building upon existing APEC/ABAC work.
.
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Beef pilots executed in 2015Overview
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Key Objectives
• Demonstrate how GDS can deliver direct
benefits for traders, customs & gov’ts
• Demonstrate how GDS compliments WCO AEO
programs (Trusted Trader)
• Reinforce use of barcoding for missing shipping
mark protocol (Beef Pilot)
• Demonstrate how to leverage GDS based
services including National Product Catalogue,
Recall portal & EDI via Transport Instruction
message & Au MeatMessaging Portal)
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AU/US Beef Export Pilot Supply Chain
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Courtesy of Google Maps
Transport to wharf(Chalmers Transport)
Shipping Line(Hamburg Sud)
Teys USCustomer
3PL Cold Storage
3PL Cold Storage
Shipping Line
Teys Australia(Meat Producer)
Brisbane
Longbeach Philadelphia
Shipping Line
New Zealand
Loading Container
GS1 AustraliaAU Customs
AU DoAg
GS1 USUS Customs
US DoAg
Picking & Staging
Port of Brisbane
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Beef Pilot: 10 supply chain events captured (AU leg & voyage)
Beef to USA
1.
Pic
kC
arto
ns
(Bee
nle
igh
)
2. L
oad
Car
ton
s in
to C
on
tain
er
3. P
ick
up
C
on
tain
er
4. C
on
tain
er
Arr
ives
(B
risb
ane
Term
inal
)
5. L
oad
Co
nta
iner
to
Sh
ip
6. S
hip
Sai
ls
7. O
bse
rve
Sh
ip
8. U
nlo
ad c
on
tain
er
fro
m S
hip
(A
uck
lan
d)
9. L
oad
Co
nta
iner
on
to S
hip
10
. Sh
ip S
ails
(A
uck
lan
d)
SUDU1189217
SUDU1103574
SUDU1173036
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Beef Pilot: 5 supply chain events captured (USA leg)
Beef to USAcont’d
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. Sh
ip A
rriv
esU
SA
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. Un
load
Co
nta
iner
13
. Co
nta
iner
leav
es
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. Co
nta
iner
arr
ives
at W
areh
ou
se
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. Un
load
Pac
ksfr
om
Co
nta
iner
SUDU1189217
SUDU1103574 SUDU1173036 Longbeach
Philadelphia
Philadelphia
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EZTRACK was critical to success of both pilots used by participants to load and query critical SC event data and supported by GS1 HKC.
Use of Supply Chain Visibility Platform
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Visibility Platform Search Options……
Trading partners and authorised 3rd parties and Government can search the visibility platform for information to assist decision making.
• Search for a specific pack number- urn:epc:id:sgtin:9332218.902017.010034310220
• Search for all packs by GTIN- urn:epc:id:sgtin:9332218.902017.*
• Search for all packs by Order #- 33790
• Search for Packs by Shipping Mark- TBN/33790A
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What Supply Chain benefits have been demonstrated….
> Visibility> Efficiency> Innovation> Integrity
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APEC PSU Report on Global Data Standards prepared for CTI
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• Reporting on Global DataStandards pilot projects
• Focus on beef exports fromAustralia to US; wine exports fromAustralia to Hong Kong
• Benefits were measured onefficiency; integrity; visibility andinnovation
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Report Findings: Need to manage risks associated with lack of visibility & traceability
• Lack of visibility and hence poor traceability of goods that move along the supply chains can challenge the APEC principles of Trade Facilitation
• Managing supply chain risks associated with lack of visibility and poor traceability of goods that move along the supply chains is crucial to enhance trade facilitation
• This is particularly relevant in the context of dealing with customs and border control agencies across different trading economies
• In this regard the use of GDS can play a crucial role
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APEC Economies surveyed for the research indicated:
• Sensitive products such as pharmaceuticals and food productstraded cross-border were identified as a priority for traceability andsupply chain visibility
• APEC member economies could envisage global data standards beingintrinsic to assurance and compliance verification by tradeagencies such as Customs and food safety/biosecurity inspection
• Concerns regarding product inputs, the conditions of production,compliance with product assurance and quality systems, tamperingand biosecurity risks can translate into applications using the GDS toenable monitoring across borders, transport modes and supplychain events.
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Report Findings: Product Integrity Benefits of using GDS
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Supply Chain Visibility benefits
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• Beef: Supply Chain visibility increased traceability from 43% to 93%
• Visibility can be further improved using container tracking technology. Decision taken not to include in scope of pilots.
• Customs support container tracking for risk mgt.
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Efficiency Improvements
Beef pilot: • Benefits quantified were associated with
savings in manual data entry ($57K pa - t’port EDI)
container demurrage / detention (US side)
Mitigating the impact of missing/damaged ship marks.
• Benefits from using GDS account for 0.67% of the value of this SC.
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Automated messaging
used by only 14% of participants
in pilot
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Innovation
There is clear potential to leverage product master data for B2G.
Beef pilot: AU Meat Messaging system – online portal for creation, sending, receiving of information and compliance declaration to meet AU DoAg “Alternate protocol for managing missing ship marks for USA” and USDA-FSIS Notice 41-15.Cost: $5,000 ave lost product + $10,000 time & fees in mitigation per failure
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$14.5m in lost meat exports in 2013 owing
to missing ship marks
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Integrity
Defined as protection of product authenticity, management of defined risks & product quality.
Beef pilot: focus on compliance time / cost impacts on border clearance
procedures & traceability Using GDSN to provide product content to Gov’t
(future) attaining Trusted Trader Program status.
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Opportunities
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• Develop further use of GDS in collaboration with local peak industry bodies & Government
• Promote and support Industry & Government use of GDS in Trusted Trader/AEO programs
• GS1 and ABAC continued support for APEC initiatives including the GDS SC Interoperability agenda
• Advancing the ability of industry to utilise data from visibility platforms
• Implementing GDS in domestic compliance systems related to freight operations.(eg GS1 AU Freight Labelling & T’port EDI stds)
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Challenges
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Key challenges to GDS implementation within APEC nations were identified as; • High investment costs • Regulations• Legal aspects
Also……
• The lack of EDI-enabled interfaces with border & trade regulatory agencies in pilots meant that GDS data identifying each item/transport asset/party must be uploaded manually causing errors & inefficiency.
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How to progress with GDS
• The report highlights that in order to progress with GDS regulators are in a position to encourage the adoption of standards to enable visibility in sensitive supply chains such as pharmaceuticals and certain food products where the visibility is critical for product safety and managing risk.
• A strategy was advised to facilitate the adoption of GDS led by industry and supported by governments.
Report findings: How to progress with GDS
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Ongoing pilots focusing on food productsAsparagusDurian
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Opportunities & Challenges of 2016 Pilots
• Opportunities: expanded scope– More types of products: Fresh fruit & vegetables (Malaysia
Durian , Peru Asparagus)– Different modes of transportation: air and by truck– Additional scope: Risk management system study for cross
border agencies
• Challenges: stakeholders engagement – Involvement of cross border agencies at importing economies
(Durian to China, Asparagus to US)
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Peruvian Asparagus to US
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Peruvian Asparagus to US
• Products:- Emerald Valley & MUCHIK fresh asparagus
• Current Status:- Finalizing business steps and completing technical development. 1st
shipment to be started by end Sep 2016- Interviewed Peruvian & US border agencies on risk management study.
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Supply Chain Standards usedGS1 standards
GTIN Used on the product including Emerald Valley Fresh Asparagus(i.e. 0033383702209)Muchik Fresh Asparagus (i.e. 9336191000491)
SSCC – unique serial number – 18 numeric
Used on the pallet level for the above product
GIAI for truck id Used for the identify the truck – include truck license plate number
GIAI for the flight number
Used for the identify the truck – include flight number(i.e. LA601 – LAN Airline flight 601)
GLN– unique umber – 13 numeric
Peru Asparagus Processing HousePeru Asparagus Loading BayPeru Airport Terminal
EPCIS 1.1 GS1 Hong Kong ezTRACK
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Supply Chain Visibility Platform
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KPI
• Increase supply chain visibility from 80% to 100%
• Reduce 10% cost in information searching time & cost
• Avoid 10% loss by temperature (cold chain) monitoring
• Reduce 20% response time in Acceptance/Reception of pallet, Truck attention and reduce 10% response time in Pallet assembly
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Malaysian Durian to HKC & China
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Malaysian Durian to HKC & China
• Product: Musang King durian- Fresh whole fruit to HKC- Frozen durian to China
• Current Status:- Completed three shipments to HKC.
1st shipment to China started by end Sep 2016.
- Arranging interview with China Government agencies in risk management study.
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Supply Chain Standards usedGS1 standards
SGTIN – unique serial number
Used on the product including MUSANG KING/ D197 DURIAN (i.e. 9554100253367)XO / D24 DURIAN (i.e. 9555861100044)RED PRAWN / D175 DURIAN (i.e. 9555861100051)LABU / D163 DURIAN (i.e. 9555861100068)GOLDEN PAU / D13 DURIAN (i.e. 9555861100006)MILKY PAU / D28 DURIAN (i.e. 9555861100013)RED MEAT / D101 DURIAN (i.e. 9555861100020)
SSCC – unique serial number – 18 numeric
Used on the case level for the above product
GIAI for truck id Used for the identify the truck – include truck license plate number
GIAI for the flight number
Used for the identify the truck – include flight number(i.e. MH6114 – Malaysia Airline flight 6114)
GSIN – unique number – 17 numeric
Unique Consignment Reference No.(i.e. 95558611034054624)
GLN– unique umber – 13 numeric
Malaysia Durian Processing House (i.e. 9554100367675)Malaysia Durian Loading Bay (i.e. 9554100367682)Malaysia Airport Terminal (i.e. 9554100367699)
EPCIS 1.1 GS1 Hong Kong ezTRACKGS1 China EPCIS networkMIMOS EPCIS network
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Interoperability
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Event data upload to MIMOS
Event data upload to ezTRACK
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KPI
• Increase supply chain visibility from 40% to 100%. Support authentication that the Musang King Durian fruit is from Malaysia.
• Enable Real Time data capture and retrieval.
• 100% documentation compliance e.g. HACCP, Halal, MyGAP(Malaysian Good Agricultural Practices), SALM (Good Farm Practice Scheme Malaysia), Good Manufacturing Practices (GMP)
• Temperature to be recorded in the EPCIS platform for verification.
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APEC Cross-border risk management research
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The APEC risk management -background
• We were asked to:- Examine border agency risk management systems (outside of the pilots)- Advise on how GDS could help improve agency risk management
• Approach – desk study on risk management systems and country interviews- So far Peru and United States and Malaysia complete- China to come
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So what’s border agency risk management about?
• Border agency objectives:i. Timely and efficient clearance of wanted goods ii. Detection of unwanted goods crossing the border
• Risk management aims to efficiently identify the wanted goods, and then re-allocate agency resources to inspect ‘high risk’ potentially unwanted
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The physical inspection trade-off
Potential of Global Data Standards
Agency costs Up Same
Clearance speeds / business costs
Down Up
Detection rates Up Up
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Where border agencies want to focus inspection efforts
Decide not to comply
Don‘t want to comply: effort & cost
Try to comply but don’t always manage
Consistently do the right thing
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Trade volumesAgency effort
Regulatory Compliance Pyramid
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Where border agencies can end up focusing inspection efforts due to:
Decide not to comply
Don‘t want to comply: effort & cost
Try to comply but don’t always manage
Consistently do the right thing
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Data entry errors• e.g. wrong
port origin listed
Insufficient data• e.g. HS code for
products to broad for accurate identification
Data not timely• e.g. out of sync
with shipment
Non-unique data• Multi
addresses, spelling errors
GDS can help overcome these data problems and facilitate trade
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Border agency appreciation of GDS possibilities
• Border agency systems ‘proven’ and purpose built for the task:- Fairly standardised content declaration forms e.g. who, what, port of
origin…- But also localised requirements e.g. special import permits- Agency coordination growing – e.g. single trade windows
• Much border agency consignment information is already catered for in product master data fields – but largely unknown to border agencies
• Some GDS developments in the US: - US Consumer Product Safety Commission – using product recalls and
beginning to use GPC and GTIN at the border – very strong supporter- USFDA - rule making flexibility to adopt GDS e.g. Australian boxed
meat exports using meat industry EDI and GS1 identifiers
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So how might this be taken forward
• Pilots should continue – but pilots need to be led by border agencies in partnership with business
• The focus of future pilots- progressively build value for agencies – e.g. provision of GPC
standard- add supplemental data to enhance existing agency processes,
in areas of high volume regular trading area e.g. packaged foods
- support ‘trusted trader/AEO programmes’ aimed at faster border clearance, where GDS could substantially enhance existing processes
- high risk goods – e.g. traceability and authentication high risk food and pharmaceutical products
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Next steps in APEC
• Final report due to be ready for APEC SOM1 2017 in Vietnam
• APEC PSU are also planning to issue a separate synthesis report that could combine the key findings from all five pilots.
• Final report will identify next steps to implement GDS in APEC and enhance supply chain performance through the application of GDS which could include policy recommendations
• APEC economies are looking to developing phase 2 of pilots with added functionalities
• APEC economies are working to implement GDS systems locally to support key areas of trade, AEO, single window etc.
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