Measuring the Performance of a Single Window

Dr. Somnuk KerethoDirector, INOVA

Kasetsart University, Bangkok

Workshop on the impact of single windows on the passage of goods across ports and on the trade facilitation in general

Douala, Cameroun, 08-11 September 2014.

2

Agenda

1. General Concept: TF/SW Continuous Improvement Cycle

2. AACE/WB Project: Building an Effective Single Window

for International Trade – Country Progress Assessment

and Benchmarking for SW Development

Objectives

Overall Peer Review Activities in 3 Steps

Peer Review Week

3. A systematic framework for moving to an effective SW

4. Peer Review Country Report Template

5. Conclusion/Recommendations

3

1. TF/SW Improvement Cycle

1.Assessment

(Understanding

the as-is process, e.g.

strength, weaknesses,

Improvement opportunities)

2. Improvement Plan

(analyzing and prioritizing

the improvement

measures, e.g. proposing

“to-be” process)

3. Implementation of

the new “to-be” process

4. Change Adoption

of the new

environment

4

1. TF Assessment Tools

UNNExT Business Process Analysis Guide (BPA)

- a snapshot study of a process

WCO Time-Release Study (TRS)

- a statistical quantitative data collection of

time to release

Time/Cost-Distance Chart (TCD)

– Quantitative data collection about time & cost of

haulers carrying cargos

Peer Review Methodology

etc.

5

BPA Guide

A Business Process Analysis

1. Buy - Conclude sales contract and trade terms2. Obtain export permit3. Arrange transport

4. Arrange the inspection and fumigation 5. Obtain cargo insurance6. Provide customs declaration 7. Collect empty container(s) from yard

8. Stuff container(s)9. Transfer to port of departure10. Clear goods through customs 11. Handle container at terminal and stow on vessel12. Prepare documents required by importer13. Verify the accuracy/authenticity of exported cargo14. Pay - Claim payment of goods

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Day

Process

20

10

0

5

15

3 days

2 days

3 days

4 days

1 day

1

3

5

6 7 8 9

12

14

2

2 days

4

2 days 10

1 day

131 day

16

11

Time-Procedure Chart

5

6

Activity Diagram

Exporter (or Representative) Department of Fisheries (DoF)

Authorized Private Inspector

2.1) Have

product sampledand examined

Exporter orRepresentative

Departmentof Fisheries (DoF)

Authorized PrivateInspector

Collectsample

Examine

sample

Record the result

of examination

Test Report

Deliversample

Collect

Test Report

Additional

examination required

Additional examination

not required Schedule thesampling date

Record result

of examination

Examine

sample

Collect

Test ReportTest Report

Have productready for sampling

Notify the date for sample collection

Submit Requestfor Sampling

Record sampling

result

Request for

Sampling

Collect

sample

6

7

7

Shipping companyShipping agentPort Authority,

etc.

Customs,Bank,

Customsbroker

Port AuthorityContainer Yard

Warehouse,Forwarder,

etc.

Importer,Customs brokerContainer Yard

OGAs, etc.

What is TRS?

Arrival of cargo

Unloading/Storage

Submission ofDeclaration

Customsrelease permission

Removal of cargo 7

8

Transport to border

Wait at border

crossing/change

transport mode

Transport

to sea port

Wait at

sea port

Sea transport

500 km 1000 km 2000 km1500 km

Day 4

Day 3

Day 2

Day 1

$400

$300

$200

$100

Point of

Origin

Destination

Time/Cost Distance Chart

9

Integrated Methodology: BPA+TCD+TRS

Trade-related

procedures

before cargo

movement

Cargo

origin

Border

crossing

point

Border

crossing

point

Cargo

destination

Trade-

related

procedures

after cargo

arrival

TRS TRS

TCD

BPA of Trade Procedures

Business Process Analysis (BPA) for diagnosis of TF bottlenecks along entire supply chain

Time-Cost Distance Method (TCD) & Time Release Study (TRS)to Improve/verify BPA time and cost estimates

10

2. AACE/World Bank Project

Project: Building an Effective Single Window for International

Trade – Country Progress Assessment and Benchmarking

for SW Development

Objectives: To assess and peerly review the context,

undertakings and achievements of each participating country’s

Single Window, and also to share experience and

propose recommendations for the enhancement.

Overall Methodology and Steps:

Step 1: Country self-assessment

Step 2: Peer Review Week

Step 3: Path of improvement, an international SW conference

and national conference in each country for sharing lessons learn,

communicating and gaining understanding and buy-in from the community for further improvement

11

Step 1: Self Assessment

Each participating country, conduct the self

assessment of each own SW platforms using

– A common self-assessment questionnaire –

assessing on “the country’s context”,

“what we have or provide to ”

“what have beed utilized (usage),

and

“what are the impactic/benefits etc.”

– Consolidating own data, and giving self-

assessment presentation/report

(in Saly,Senegal – 21-23 May 2014)

12

Step 2 – Peer Review Week

For what (Objectives): To assess the current SW environment, and identify strengths and opportunities for improvement

– by reviewing the country’s self-assessment information, e.g. from the country’s SW self-assessment presentation

and the SW self-assessment questionnaire data,

– by systematically verifying, validating and corroborating informationfrom different sources, e.g. presentations, interviews, onsite visit, walkthough demonstrations and document reviews

By Whom: To be conducted by

– Independent/external expert

– Representative(s) from the Peer review’s country

– Representative(s) from the SW under peer review.

13

Step 2 - Peer Review/Assessment Methodology

ASSESSMENT PROCESS

Planning

Data Collection

Data Verfification & Validation

Corroboration of Data/Evidences

Reporting

INITIAL INPUTOUTPUT

SW REFERENCE MODEL

AACE SW 3 Models (Formalities, CCS, B2B)

UNCEFACT Int’ Supply Chain Process Model

SW Self-Assessment Form/Issues, e.g

context, undertakings/having, usage and impacts

ROLES AND RESPONSIBILITIES

Sponsor/Management of the SW

Assessment Team Members (ATM)

Presenters/Interviewees

Objectives

Scope of SW

Constraints

Self-assessment

presentation

Self-assessment

filled form

Additional info

Assessment data

Identification and

corroboration of

data/evidences

Strengths and

weaknesses/

improvement

opportunities

14

Step 2 - Peer Review Teamor called Assessment Team Member (ATM)

An example

1. Dr.Somnuk Keretho – International/Independent Consultant, World Bank

2. Mr. Jonathan Ofori – Peer Review Team Member,

from the Peer Country (Ghana)

3. Mr. Vicky Kunniah – Peer Review Team Member,

from SW under the review (Mauriti

Peer Review Team articipate actively for the entire week of peer review activities.

15

Step 2 - Other roles & responsibilities

Roles Responsibilities Names

Sponsor/Management of

SW under assessment

Policy support/taking

ownership of the outcome of

this project

Presenters of the SW Self-assessment

presentations of the SW

(e.g. its context, current

services, usage data,

impacts/benefits)

Demonstrators of the SW Demonstrating the usages

of the SW services

Interviewees (Business users of the SW)

Providing information about

the services & benefits,

observation and suggestions

for improvement

Interviewees (Government/Authority users of the

SW)

Providing information about

the services & benefits,

observation and suggestions

for improvement

16

Step 2 - Peer Review Activities

17

Step 2 - Schedule Concept

Day 1: - Opening & Briefing

- Presentation of SW

- Demo of overall SW services

- Documents & questionnaire review

Day 2-4: - Onsite visits, interviews, scenario walkthrough,

document reviews with business users,

government stakeholders, and key personnels.

- Daily schedule for scripting of observations/findings

by the ATMs will be allocated.

Day 5: - Consolidation of findings by the ATMs

- Preparing of the draft preliminary findings ppt

- Presenting the draft preliminary findings, and

obtaining an feedbacks and refinements

- Wrapping up and briefly discussing ways forward

18

Step 2 - Peer Review Guiding Principles

The consultants, the AACE and the reviewing country will attend the first

on-site review. This review will serve as a test base for the methodology

and provide lessons for the reviews to follow.

Each subsequent review will be attended by one of the consultants and

the reviewing country.

The review methodology and templates will serve as the standardiser for

the different reviewers, to counteract any individual bias that may

inadvertently exist.

Outputs and information obtained during the review will classified as:

– Red (Sensitive): To be shared only with the country being reviewed

– Green (Open): May be shared with the other countries and

stakeholders.

19

Step 2: Peer Review Charter

The consultants and reviewing countries will act in

good faith regarding information shared and

observations made during the review.

Information received and discussed will be held in

strictest confidence and not be shared with anyone

outside the project team.

20

3.Why a systematic approach is needed?

* Referring to World Bank’s Trading Across Border Indicators (www.doingbusiness.org)

Vision

Realization

Complicated

Trade Procedures

Because there are so many complicated challenges to be managed

such that the SW Vision could be transformed into reality.

Laws and RegulationsMany Document Requirements

Inadequacy in Technology Infrastructure

Many StakeholdersConflict of Interest

Compliance

GovernanceMany different ICT systems

People and Business

In-Readiness

Difficulty in trade

data exchange

Barriers in interoperability

Regional Connectivity

Connectivity within

the country

System Development

Change

Management

achieving

trade transaction

cost and time

reduction, and

compliance

goals

e.g.

25% better,

faster,

cheaper

trading

across

border*

within

5 years

(2013-2018)**

Standards

Lack of Understanding

Political Will

**Within an economy or a regional economic cooperation, measurable goals should be mandated by its Leaders.

SecurityData Privacy

21

Vision

Realization

Complicated

Trade ProceduresLaws and Regulations

Many Document Requirements

Inadequacy in Technology Infrastructure

Many Stakeholders

Conflict of Interest Compliance

GovernanceMany different ICT systems

People and Business

In-Readiness

Difficulty in trade

data exchange

Barriers in

Interoperability

Regional Connectivity

Connectivity within

the country

System Development

Change

Management

achieving

trade transaction

cost and time

reduction, and

compliance

goals

1. Stakeholders’ needs and requirements

From the “As-Is”

conditions (architectures)

of all these components

Migrating to the target

“To-Be” architectures

of all these 10 components

timeline

Recommendation 2: Applying Enterprise Architecture Concept*

for strategic planning, detailed design, implementation & operations

10 critical componentsmust be considered for

SW planning and implementation

e.g.

25% better,

faster,

cheaper

trading

across

border*

within

5 years

(2013-2018)**

For large-scale e-government projects, EA frameworks are recommended in many literatures and in practices, e.g. TOGAF, and US FEA.Refer to UNNExT SW Planning and Implementation Guide, 2012.

Complexity of Single Window can be handled by decomposing its challenges into smaller and more manageable sub-components.

22

Recommendation 2:Ten Critical Success Components

must be analyzed to understand the “as-is” and its bottlenecks, propose the “to-be”, reconcile and agree.

1. SW Vision Articulation and Political Will Creation

2. Stakeholder Collaborative Platform Establishment

3. Governance & Finance Model

4. Business process analysis and improvement

5. Data Harmonization and document simplification

6. Application architecture design

7. Technology architecture design including standards & technical interoperability

8. Legal Infrastructure

9. IT infrastructure & solutions design

10. Change adoption, operations, and sustainability

Management

& Technical

Strategic

IT Systems

Implementation

Operations

23

The First Three (3) Critical Challenges cited in several SW case studies*

Creating Political Will, e.g.

Establishing it as the national commitment (by developing national

strategic plan, and obtaining endorsement by the highest political

institution, e.g. the Prime Minister, the Cabinet, the President, ….).

Establishing it as a regional commitment, e.g. MOU signing among

the Head of States to develop the National SW and the Regional SW.

Institutionalizing the Policy, i.e. transforming the policy

mandates into normal routine management, e.g.

Institutionalize the National High-level Committee, and

Project Management Group for steering and overseeing the SW

implementation, by the Cabinet’s mandates and by laws (with the

support from several working groups, governments, business sectors and academia)

Securing the necessary budgets to finance the project.

Establishing an effective inter-agency collaboration platform* As cited by case studies of Singapore’s TradeNet, Korea’s uTradeHub, Malaysia NSW, Japan’s NACCS, and Thailand NSW

in the UNNExT Policy Brief No. 02, 03, 04, 06 and 08 respectively, and

also in the UNECE Single Window Repository.

Recommendation 3:

SW Vision & Goals Alignment National SW Vision, measureable Goals and

its Planning should be aligned and integrated as a part

of the related national/regional development agenda(quantitative goals with a time frame should be defined and mandated)

Page 24

Thailand Case – Trade Facilitation & SW agenda is holistically integrated within the National Logistics Development Plan

NSW Vision &

Goals

are aligned with

National

and

Regional

Agenda

25

Recommendation 4:Systematically managing NSW projects with

Collaborative Project Management Methodology (5 phases)

Agreed

Conceptual

Design

Detailed Architecture &

Implementation Plans

Secured

Resources &

Implementation

Adoption,

Measure &

Next

Improvement

High-level

Architecture

Blueprints

Political Will

Creation

Institutionalized

Collaboration

In each phase, all 10 critical

components shall be revisited

and refined (as-is to-be).

26

4. Peer Review Country Report Template

1. National Institutional and Legal Framework

1. National policy direction and mandate

2. National Governance Model & Stakeholder Collaboration

3. Legal Framework

2. Business Model

1. Corporate Governance Structure

2. Corporate Strategy and Financial Model

3. Performance and Process Monitoring

4. Human Resources

5. Client Relationship

3. International Trade Procedures, Processes and Sevrices provided by SW

4. System Architecture & Technical Issues

5. Impacts

6. Strengths, Weaknesses and Improvement Opportunities

27

Conclusion/Recommendation#1

1. A simplified Evolutionary Long-term Roadmap for SW Development is proposed such that policymakers/managers can use this model to

a) assess their current status in the country by comparing with different stages and their preferred functions in this model, and

b) determine the next stage for their phased SW development.

For example, not just regulatory SW that should be developed, but the countries

with major sea/air portsshould also develop PCS platforms.

28

Recommendation #2

2. A systematic approach based on Enterprise Architecture concept is proposed such that policymakers/managers can manage the complexity of project initiation, SW feasibility study, strategic and detailed planning and overseeing the SW implementation, e.g.

Decompositing complicated challenges into smaller sub-components.

Ten (10) critical components are proposed.

And each of these ten (10) critical components must be systematically analyzed to understand the “as-is” conditions and its bottlenecks, propose better “to-be” conditions (architectures), collaboratively refine and agree before escalating them into actual implementation.

For example, the ”as-is” business processes & bottlenecks must be analyzed, then propose “to-be” business process, refine and agree among key stakeholders before IT systems implementation.

29

Recommendation #3

3. SW Vision & Goals Alignment: National SW Vision, measureable Goals and its planning should be clearly articulated, aligned and integrated as a part of the related national (and regional) economic development agenda.

a) quantitative goals with a time frame should be defined and mandated by the highest-possible policy decision makers, e.g. by the Cabinets or Leaders of the State.

b) Institutionalizing the policy agenda, i.e. transforming those policy mandates into normal routine management, e.g.

Institutionalize the National High-level Committee, and Project Management Group for steering and overseeing the SW implementation, by the Cabinet’s mandates and by laws (with the support from several working groups, governments, business sectors and academia)

30

Recommendation #4

4. An effective Collaborative Project Management Approach is needed to systematically manage and drive the SW vision into reality.

5-phase collaborative project management approach is proposed.(Inception, Elaboration, Planning, Execution/Implementation, Change Adoption)

In each phase, the ten (10) critical components will be analyzed (as-is & bottlenecks analyzed, and the to-be are proposed), refined and agreed iteratively from the strategic level, to management and implementation levels with different depths.

31

Reference

UNNExT Single Window Planning and Implementation Guide, 2012.http://unnext.unescap.org (available also in Russian)

Thank You

Dr. Somnuk KerethoDirector, INOVA Institute

Kasetsart University, Bangkok

Workshop on the impact of single windows on the passage of goods across ports and on the trade facilitation in general

Douala, Cameroun, 08-11 September 2014.