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PROGRAM OVERVIEW. Electronic Freight Management Initiative U.S. Department of Transportation & Industry Partners. UN/CEFACT Symposium on Single Window Standards and Interoperability Geneva, Switzerland May 4, 2006. U.S. Department of Transportation & Industry Partners.

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PROGRAM OVERVIEW

Electronic Freight Management Initiative

U.S. Department of Transportation &

Industry Partners

UN/CEFACT Symposium on Single Window Standards and Interoperability

Geneva, Switzerland

May 4, 2006

U.S. Department of Transportation & Industry Partners


Purpose of presentation
Purpose of Presentation

  • Show support for Single Window Concept

  • Show support for International Transport Data Exchange Standards

  • Prepare to demonstrate both in a Proof of Concept deployment test called Electronic Freight Management (EFM)


Electronic freight management efm how we got there
Electronic Freight Management (EFM)How we got there…

  • Began with government and industry partnership:

    • Strong desire to leverage intelligent transport system technology

    • Improve capacity of the transportation network

  • Led to a desire for efficiency improvements in the movement of freight

    • throughout the supply chain (inherently industry)

    • throughout the transportation network (inherently government)

  • Led to interest in electronic data exchange “B to B” and “B to G” (data reusability or single window)

    • Like the Internet, freight has no political boundaries

    • Supply chains Involve many players throughout the world

  • Led to interest in an initial test

    • Needed willing partners

    • Needed data exchange standards

    • Need trade consultation in building the system


Benefits of efm
Benefits of EFM

  • Through use of Web Services in a Service Oriented Architecture:

    • Reduce paperwork

    • Improve cycle times

    • Reduce complexity to access pre-authorized information

    • Increase visibility into and across transactions – full cargo and asset visibility

    • Diminish dependencies on external entities for status notifications

    • Contributes to the objective of a “single window” portal


Single window connection
Single Window Connection

  • EFM ADHERES TO SINGLE WINDOW PRINCIPLES OF DATA STANDARDS, INTEROPERABILITY AND DATA SHARING

  • Reusability of data

    • Filings could be made to multiple agencies from single message:

    • Customs, Endangered Species, Health & Safety

  • Interoperability – Supply chain partners systems

  • Standard data – Core Component Library, TBG17 UNCEFACT

  • Export/Import -Trade use of same data (Importers, Exporters, Carriers)

  • Quota (Textile categories) and VISA

  • Advance filings (say, from manufacturer)


Efm deployment test apparel shipped from china to us
EFM Deployment Test:Apparel Shipped from China to US

  • Test Participants:

  • Two Chinese apparel manufacturers

  • Two freight forwarders

  • Air cargo terminal operator

  • Two charter air carriers

  • Buyer (Limited Brands, Inc.)

  • US 3PL

  • Import Broker


Boundaries of efm deployment test
Boundaries of EFM Deployment Test

Commercial transaction (Order) initiated

Order

delivered

Raw material

suppliers

Manufacturer’s Factory

Distribution Center

Retailers

Example is shown for Limited Brands’ test supply chain

  • “End-to-End” supply chain

  • Functions:

  • Procurement

  • Transportation

  • Distribution

  • Delivery


Supply chain focus for key standards development and implementation org s

Manufacturer’s Factory

Distribution Center

Supply Chain Focus for Key Standards Development and Implementation Org’s.

Customs

IATA

UN/CEFACT

OASIS


Standards strategy
Standards Strategy

  • Freight is global and requires global standards for information sharing

  • UN/CEFACT contributed: UNTDED, CCTS, CCL for international community

    • OASIS-UBL is using them

    • WCO is using them

    • Air Cargo Industry considering using them

    • EFM test will demonstrate them in a freight context

  • EFM test expects to use what’s available that has international consensus

    • OASIS-UBL version 2.0

    • UN/CEFACT TBG17 Core Component Library

  • Any gaps that may exist

    • Build data items/messages for test and share with standards community for further action and possible adoption


Ubl version 2 0 public review
UBL version 2.0 Public Review

  • EFM Team Conducted technical review of UBL

  • EFM Team Conducted business review of UBL, particularly with regards to the requirements of the EFM Demonstration Test

  • Posted comments on the public review website

  • Preliminary findings shared with UBL Transportation Subcommittee

  • Continue to participate on the UBL Transportation Subcommittee

    • Preparing for comment discussion in Brussels in May

    • Developing a transport status message to be added to version 2.0


Reference identifier to uniquely identify consignments
Reference Identifier to Uniquely Identify Consignments

Sample

PO #

Ship. #

BOL # 1

HAWB #

Split Shpt ID

Consolidated Shpt ID

MAWB #

BOL # 2

Examples of Identifiers used in baseline business process

Adopt WCO’s Unique Consignment Reference (UCR)

UCR maintained throughout the end-to-end supply chain

Manufacturer creates UCR

Anticipated scenario in EFM Demonstration Test


We are structuring our UCR design around four areas to meet EFM requirements while ensuring consideration of the WCO recommendations

Format

Creation

Management

Registration

  • Considerations around the design of the UCR identifier

  • Consideration of existing standards and/or technical solutions

  • Ensure uniqueness principle is met in an efficient and effective manner

  • Considerations around how the UCR will be stored

  • Considerations around how the UCR will be associated with other references

  • Considerations around how splits and consolidations will be handled

  • Considerations around the who, where, when, what, and how of creating the UCR

  • Considerations around the registration procedures for becoming an issuing agency

WCO UCR Recommendations


The “Freight Information Highway” (FIH) defines a freight transportation network using web services and a Service-Oriented Architecture framework.

  • Many partners’ legacy systems are built on a variety of platforms and operating systems such as ANSI EDI, EDIFACT, XML, FTP, etc. which do not allow for easy integration between partners.

  • Barriers to entry in today’s environment harm the ability of small/medium enterprises to compete in the sophisticated IT environments of their potential customers.

  • The FIH intends to create an information pipeline of data communication among supply chain partners to increase supply chain efficiency through improved data sharing.


In the Demonstration Test, Limited Brands and their supply chain partners will be interconnected in an FIH implementation.


Elements of the efm demonstration test
Elements of the EFM Demonstration Test chain partners will be interconnected in an FIH implementation.

  • Lead to these Demonstration Test components…

  • To create this expected value for stakeholders….

  • These EFM elements….

  • Reduce paperwork

  • Improve cycle time

  • Reduce complexity to access pre-authorized information

  • full cargo and asset visibility

  • Diminish dependencies on external entities for status notifications

  • Contributes to the objective of a “single window” portal

  • “Virtual” data record of the shipment, enabled by web services

  • Messaging schemas harmonized with emerging int’l standards

  • Definition and use of unique consignment references

  • Selected opportunities to help industry modify its business processes

  • Single window principles of data standards, interoperability, data sharing

Technology Architecture

Data Standards

Identity Management

Portions already successfully tested in two previous tests


Efm targets the time freight is at rest awaiting information exchanges
EFM targets the time freight is at rest, awaiting information exchanges.

Manufacturer’s Factory

Distribution Center

Time = 0

 Mean duration of the Limited Brand’s test supply chain 

160 hours

100 %

Target

Of Opportunity

Shipment awaiting information exchanges to take place

80 %

60 %

Percent of 160

Hour Duration

Shipment awaiting physical state change, such as shipment consolidation

40 %

20 %

Shipment is in movement

0 %

Data are based on preliminary qualitative findings collected during baseline activities along the target supply chain.


Request of the geneva cefact audience
Request of the Geneva CEFACT Audience information exchanges.

  • The Collaborative EFM test with industry and USDOT is in process

    • Freight data standards integration is part of that process

  • USDOT and its partners have been communicating with CEFACT, OASIS, IATA and WCO

    • CEFACT is harmonizing core components

    • OASIS-UBL has version 2.0 out for public review

    • Air Cargo industry has a Cargo 2000 and an eFreight initiative in process

    • WCO’s version 2.0 data model, and a UCR specification

  • Common interoperable eFreight standards have not yet emerged for deployment

    • We are looking to work with standards development and standards implementation organizations to help mature these standards

    • We would like to share our test design for standards with representatives of each of the 4 standards organizations.

    • We hope to have that opportunity here in Geneva this week.


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