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Consistently Optimised Resilient Secure Global Supply-Chains Antwerp – 24/9/2015 CORE Key Concepts Elaboration of CORE key concepts (1) The fundament: key enabling technologies 1. Visibility of end-to-end supply chains and visibility of SC risks – End-to-end: focus on upstream (consolidation): data capture & data quality – SC Risks & control visibility: situational awareness 2. Seamless Data Interoperability – Standardisation, semantics and data governance 3. Integration of less-intrusive (security) technologies in SC – – – Detection, scanning and cargo screening, Automatic identification and data capture (e.g. CSD) and Tracking and tracing technologies Integration in seamless supply chain processes (container scan: € 1200) Composite container and temperature-controlled container concepts Elaboration of CORE key concepts (2) Proactive and responsive concepts 4. Advanced Supply Chain Risk Management (SCRM) – 4T Portfolio mix: Terminate, Transfer, Tolerate, Treat – Control capabilities: preventative, corrective, directive, detective – Value chain driven: Metrics, best practices, business cases, value of trust 5. Supply Chain Resilience – External threats and systemic vulnerabilities: natural disasters, demand shocks dependence, information fragmentation, global cyber risks – SC resilience framework (WEF, 2012): • Partnerships (e.g. harmonised traffic control measures after volcano erupt • Policy (Multi-stakeholder risk assessment approach) • Strategy: Joint resilience adaption strategies • Information Technology: use and expand data sharing platforms Elaboration of CORE key concepts (3) Collaboration and Recognition 6. System-based supervision System based supervision occurs when a government inspection agency audits business processes to reduce the required physical inspections at the border. This is different from transaction-based inspection. 7. Coordinated Border Management Alignment of controls and formalities to be carried out by different enforcement agencies . At logical moments and places in the supply chain. Recognizing each other’s security programs and certification requirements, risk assessment processes and outcomes, etc. Government inspection agencies of different countries in the supply chain or different government inspection agencies at one nation’s border. Environment • Globalisation: complexity in managing fragmented value chains • Multiple potentially conflicting demands: – lean, agile, resilient, sustainable, – compliant, secure • Changing societal threats (e.g. cybersecurity, systemic risk – Bad guys are always one step ahead • Tadefacilitation : WTO , TAXUD,.... • Digitalisation : DTLF from DG-Move Major outcomes • Advanced Supply Chain Risk Management – Deployment of innovative control capabilities – Transition in 4T-portfolio from transfer/tolerate to treat • Reduced trade compliance costs for legitimate and trusted traders – Adoption of supply chain driven supervision models – Boost mutual recognition of security programmes – Accelerate Coordinated Border Management • Society better protected against supply chain security risks – Effective risk-based control and supervision – Boost collaboration B2B, B2G and G2G – Higher resilience Contextual demo differences • Geographic spread demonstrator tradelanes: all continents! • Import/entry, export/exit, transit – Entry/exit modes: Sea, Air, Road, Rail – Hinterland interfaces: Road, Rail, IWT, Shortsea • Examples – Airbus spares from USA to Spain – Coffee from Columbia to Antwerp – Flowers from Africa to Holland – Spares from Europe to USA – Householdgoods from China to Spain – Dangerous goods within Europe / Intercontinental According to HSBC-bank Project partners (1/2) Project partners (2/2) • EUROPEAN COUNCIL OF TRANSPORT USERS (EUROPEAN SHIPPERS • INLECOM Systems Ltd ILS COUNCIL) ESC • INSTYTUT LOGISTYKI I MAGAZYNOWANIA ILiM • NEDERLANDSE ORGANISATIE VOOR TOEGEPAST • CONCEPTIVITY SARL CPT NATUURWETENSCHAPPELIJK ONDERZOEK - TNO • MJC2 Limited MJC2 • CUSTOMS CO-OPERATION COUNCIL WCO • FUNDACION ZARAGOZA LOGISTICS CENTER ZLC • THE INTERNATIONAL CRIMINAL POLICE ORGANIZATION IPOL • ENIDE SOLUTIONS .S.L NIDE • Clecat - European Association for Forwarding, Transport, Logistics and • TOTALFORSVARETS FORSKNINGSINSTITUT FOI Customs Service CLE • CLMS (UK) LIMITED CLMS • eBOS Technologies Ltd eBOS • IRU PROJECTS ASBL IRU • ATOS Spain SA ATOS • EUROPEAN INTERMODAL ASSOCIATION EIA • Cross-border Research Association CBRA • ENI S.p.A. ENI • CENTER FOR SECURITY STUDIES KEMEA • COOPERATIEVE BLOEMENVEILING FLORAHOLLAND U.A. FH • INSTITUT FUER SEEVERKEHRSWIRTSCHAFT UND LOGISTIK ISL • DHL EXEL SUPPLY CHAIN Spain SL DHL • TECHNISCHE UNIVERSITEIT DELFT TUD • SWISSPORT INTERNATIONAL AG SWP • SECURITY PROJECTS UK LIMITED SEP • HM REVENUE AND CUSTOMS HMRC • GEORGIA TECH RESEARCH CORPORATION GT • MINISTERIE VAN FINANCIEN DIRECTORAAT GENERAAL BELASTINGDIENST • ICONTROL INCORPORATED iCON DCA • VLTN GCV VLTN • SERVICE PUBLIC FEDERAL FINANCES BC • ADVANCED TRACK AND TRACE SA ATT • MINISTERIE VAN BINNENLANDSE ZAKEN EN KONINKRIJKSRELATIES KLPD • LOADSTAR (USA) INC LSTR • Italian Ministry of Infrastructure and Transports MIT • LOGIT SYSTEMS BVBA LOGIT • MINISTERE DE L'ECOLOGIE, DU DEVELOPPEMENT DURABLE ET DE • CONEX SA CX L'ENERGIE MEDDE • LOGISTIEK ZONDER PAPIER BV LZP • NEDERLANDSE VOEDSEL EN WARENAUTORITEIT NVWA • TTS Italia TTS • dbh Logistics IT AG dbh • BRIMATECH SERVICES GMBH BRI • TERMINAL MARITIMA DE ZARAGOZA SL TmZ • TRANS SESE SOCIEDAD LIMITADA SESE • CONSORZIO IB INNOVATION IBI • SEABRIDGE NV SB • LA SPEZIA CONTAINER TERMINAL SPA LAS • TECHNISCHE UNIVERSITEIT EINDHOVEN TUE • Senator fuer Wirtschaft und Haefen Bremen SEPL • MAJORCA SPA MAJ • PORTIC BARCELONA S.A POR • EUROPEAN ORGANISATION FOR SECURITYSCRL EOS • SMITHS HEIMANN SAS SMH • Uniserve (Holdings) Limited UNI • INTRASOFT INTERNATIONAL SA INT • PROCTER & GAMBLE SERVICES COMPANY NV P&G • TELESPAZIO SPA TPZ • Sunwell Technologies Inc. SUN • DESCARTES SYSTEMS (BELGIUM) DESC • BSH ELECTRODOMESTICOS ESPANA SA BSH • A.P. Moller - Mærsk A/S MAER • SO.GE.MAR. SOCIETA GENERALE MAGAZZINI RACCORDATI INTERPORTO SPA SOG • METRO SHIPPING LIMITED MET • BAP Logistics Ltd BAP • MARITIME CARGO PROCESSING PLC MCP • Seacon Venlo Expeditie B.V. SEA FP7-CORE Consistently Optimised Resilient Secure Global Supply-Chains Reference: FP7-SEC-2013-1 Project Number: 603993 Funding body: European Commission, 7th Framework Programme Type of Funding: Public Start date: 01/05/2014 End date: 30/04/2018 Duration: 4 years http://www.coreproject.eu/ Contact Information Coordinator: Nik Delmeire , ESC [email protected] Technical manager: Gerwin Zomer, TNO [email protected] Admin manager: Rory Doyle, BMT [email protected] CORE-project CORE-project CORE-project CORE is one of the largest European research and demonstration projects. Around 70 Partners aim to demonstrate that supply chain security and trade facilitation can go hand in hand, building upon proven concepts from previous R&D projects such as CASSANDRA, INTEGRITY, CONTAIN, EUROSKY and SAFEPOST. On the business side, commercial actors along the chain manage the associated commercial risks by a portfolio of transfer, tolerate, terminate and actively treat or mitigate these risks. Many of them have sophisticated strategies so transfer risks and control the most pertinent enterprise risks effectively, but they lack capabilities to seriously consider deploying collaborative chain control measures, despite the fact that it often provides a sound commercial business case to deploy them. CORE will address in an integrated and stakeholderfriendly way three main areas: a. End-to-end Supply Chain Security fostering standardisation, harmonisation and mutual recognition; b. Controlled global visibility of security risks and other supply chain threats and their impact on supply chain flows around the world; c. Real-time Lean Agile Resilient Green Optimised supply chain solutions offering a highly innovative approach to designing supply chains resilient (in real-time) to major disturbances caused by high impact events d. New and innovative supervision models for trusted and secure supply chains The project is strongly supported by a number of EU-Directorates, particularly, DG-TAXUD (eCustoms and customs risk management policy), DG-HOME (security policy), DG-MOVE (e-freight/e-maritime and land transport security policies) and DG-JRC (scientific support in policy implementation), and is managed by the Research Executive Agency (DGREA). The daily management of this 4-year project is done by an Executive Committee consisting of the European Shippers’ Council (ESC), Netherlands Organisation for Applied Scientific Research TNO (TNO) and BMT Group Ltd (BMT). International trade is surrounded by commercial and societal risks. CORE starts from the belief that commercial and societal objectives can be better balanced and even be optimized simultaneously by applying the right innovative concepts. In order to better cope with the societal risks and challenges, Europe developed ‘rules of the game’, economic operators in trade have to comply to these rules. Control authorities such as customs help shaping, supervising and enforcing them. The development of these set of rules and regulation has evolved in a ‘silo’ approach, resulting in unnecessary and disturbing interventions in the supply chain and high compliance costs for trusted and compliant companies. Within CORE, the partners have committed to work together with the objective of maximizing the speed and reliability as well as minimizing the cost of fulfilling global trade transactions, making supply chains more transparent and resilient and bringing security to the highest level. CORE will show how protecting and securing the Global Supply Chain, and reducing its vulnerability to disruption (whether caused by natural disasters, terrorism or other forms of undesirable or illegal activity), can be done while guaranteeing the promotion of a timely and efficient flow of legitimate commerce through the European Union (EU) and other nations around the world. CORE will demonstrate that this can be done while at the same time offering tangible benefits to involved stakeholders (transaction, transport, regulatory and financial operators), thus facilitating its adoption by commercial entities. Within many demonstrators, a challenge is capturing high quality data along the transport chain and enabling data sharing. This would allow businesses along the supply chain to better control their risks and optimize their processes. On the other hand, control agencies like Customs can improve their risk analysis allowing for alternative ways of supervision (and by doing this reduce physical checks). To reach the challenging target, various demonstrations transporting goods with different trade compliance requirements, with different transport modes and from different geographic scopes are included in the project. CORE will focus on demonstrating practical solutions to be implemented within the current legislative framework. Thus, the results also provide input for EU policies or drafting future legislation.