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, oil

dependence, information fragmentation, global cyber risks

– SC resilience framework (WEF, 2012):

• Partnerships (e.g. harmonised traffic control measures after volcano eruption)

• 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 supervisionSystem 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 ManagementAlignment 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 risks)

– 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 (2/2)• INLECOM Systems Ltd ILS

• INSTYTUT LOGISTYKI I MAGAZYNOWANIA ILiM

• CONCEPTIVITY SARL CPT

• MJC2 Limited MJC2

• FUNDACION ZARAGOZA LOGISTICS CENTER ZLC

• ENIDE SOLUTIONS .S.L NIDE

• TOTALFORSVARETS FORSKNINGSINSTITUT FOI

• CLMS (UK) LIMITED CLMS • eBOS Technologies Ltd eBOS

• ATOS Spain SA ATOS

• Cross-border Research Association CBRA

• CENTER FOR SECURITY STUDIES KEMEA

• INSTITUT FUER SEEVERKEHRSWIRTSCHAFT UND LOGISTIK ISL

• TECHNISCHE UNIVERSITEIT DELFT TUD

• SECURITY PROJECTS UK LIMITED SEP

• GEORGIA TECH RESEARCH CORPORATION GT

• ICONTROL INCORPORATED iCON

• VLTN GCV VLTN

• ADVANCED TRACK AND TRACE SA ATT

• LOADSTAR (USA) INC LSTR

• LOGIT SYSTEMS BVBA LOGIT

• CONEX SA CX

• LOGISTIEK ZONDER PAPIER BV LZP

• TTS Italia TTS

• BRIMATECH SERVICES GMBH BRI

• TRANS SESE SOCIEDAD LIMITADA SESE

• SEABRIDGE NV SB

• TECHNISCHE UNIVERSITEIT EINDHOVEN TUE

• MAJORCA SPA MAJ

• EUROPEAN ORGANISATION FOR SECURITYSCRL EOS

• Uniserve (Holdings) Limited UNI

• PROCTER & GAMBLE SERVICES COMPANY NV P&G

• Sunwell Technologies Inc. SUN

• BSH ELECTRODOMESTICOS ESPANA SA BSH

Project partners (1/2)• EUROPEAN COUNCIL OF TRANSPORT USERS (EUROPEAN SHIPPERS

COUNCIL) ESC

• NEDERLANDSE ORGANISATIE VOOR TOEGEPAST

NATUURWETENSCHAPPELIJK ONDERZOEK - TNO

• CUSTOMS CO-OPERATION COUNCIL WCO

• THE INTERNATIONAL CRIMINAL POLICE ORGANIZATION IPOL

• Clecat - European Association for Forwarding, Transport, Logistics and

Customs Service CLE

• IRU PROJECTS ASBL IRU

• EUROPEAN INTERMODAL ASSOCIATION EIA

• ENI S.p.A. ENI

• COOPERATIEVE BLOEMENVEILING FLORAHOLLAND U.A. FH

• DHL EXEL SUPPLY CHAIN Spain SL DHL

• SWISSPORT INTERNATIONAL AG SWP

• HM REVENUE AND CUSTOMS HMRC

• MINISTERIE VAN FINANCIEN DIRECTORAAT GENERAAL BELASTINGDIENST

DCA

• SERVICE PUBLIC FEDERAL FINANCES BC

• MINISTERIE VAN BINNENLANDSE ZAKEN EN KONINKRIJKSRELATIES KLPD

• Italian Ministry of Infrastructure and Transports MIT

• MINISTERE DE L'ECOLOGIE, DU DEVELOPPEMENT DURABLE ET DE

L'ENERGIE MEDDE

• NEDERLANDSE VOEDSEL EN WARENAUTORITEIT NVWA

• dbh Logistics IT AG dbh

• TERMINAL MARITIMA DE ZARAGOZA SL TmZ

• CONSORZIO IB INNOVATION IBI

• LA SPEZIA CONTAINER TERMINAL SPA LAS

• Senator fuer Wirtschaft und Haefen Bremen SEPL

• PORTIC BARCELONA S.A POR

• SMITHS HEIMANN SAS SMH

• INTRASOFT INTERNATIONAL SA INT

• TELESPAZIO SPA TPZ

• DESCARTES SYSTEMS (BELGIUM) DESC

• 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

• JRC -JOINT RESEARCH CENTRE- EUROPEAN COMMISSION JRC

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 n.delmeire@euuropeanshippers.eu

Technical manager: Gerwin Zomer, TNO gerwin.zomer@tno.nl

Admin manager: Rory Doyle, BMT rdoyle@bmtmail.com

FP7-CORE

Consistently Optimised Resilient

Secure Global Supply-Chains

CORE-project

CORE is one of the largest European research anddemonstration projects. Around 70 Partners aim todemonstrate that supply chain security and tradefacilitation can go hand in hand, building uponproven concepts from previous R&D projects suchas CASSANDRA, INTEGRITY, CONTAIN, EUROSKY andSAFEPOST.

The project is strongly supported by a number ofEU-Directorates, particularly, DG-TAXUD (eCustomsand customs risk management policy), DG-HOME(security policy), DG-MOVE (e-freight/e-maritimeand land transport security policies) and DG-JRC(scientific support in policy implementation), and ismanaged by the Research Executive Agency (DG-REA). The daily management of this 4-year project isdone by an Executive Committee consisting of theEuropean Shippers’ Council (ESC), NetherlandsOrganisation for Applied Scientific Research TNO(TNO) and BMT Group Ltd (BMT).

International trade is surrounded by commercialand societal risks. CORE starts from the belief thatcommercial and societal objectives can be betterbalanced and even be optimized simultaneously byapplying the right innovative concepts.

In order to better cope with the societal risks andchallenges, Europe developed ‘rules of the game’,economic operators in trade have to comply tothese rules. Control authorities such as customshelp shaping, supervising and enforcing them. Thedevelopment of these set of rules and regulationhas evolved in a ‘silo’ approach, resulting inunnecessary and disturbing interventions in thesupply chain and high compliance costs for trustedand compliant companies.

CORE-project

On the business side, commercial actors along thechain manage the associated commercial risks by aportfolio of transfer, tolerate, terminate andactively treat or mitigate these risks. Many of themhave sophisticated strategies so transfer risks andcontrol the most pertinent enterprise riskseffectively, but they lack capabilities to seriouslyconsider deploying collaborative chain controlmeasures, despite the fact that it often provides asound commercial business case to deploy them.

Within CORE, the partners have committed to worktogether with the objective of maximizing the speedand reliability as well as minimizing the cost offulfilling global trade transactions, making supplychains more transparent and resilient and bringingsecurity to the highest level. CORE will show howprotecting and securing the Global Supply Chain,and reducing its vulnerability to disruption (whethercaused by natural disasters, terrorism or otherforms of undesirable or illegal activity), can be donewhile guaranteeing the promotion of a timely andefficient flow of legitimate commerce through theEuropean Union (EU) and other nations around theworld.

CORE will demonstrate that this can be done whileat the same time offering tangible benefits toinvolved stakeholders (transaction, transport,regulatory and financial operators), thus facilitatingits adoption by commercial entities. Within manydemonstrators, a challenge is capturing high qualitydata along the transport chain and enabling datasharing. This would allow businesses along thesupply chain to better control their risks andoptimize their processes. On the other hand,control agencies like Customs can improve their riskanalysis allowing for alternative ways of supervision(and by doing this reduce physical checks).

CORE-project

CORE will address in an integrated and stakeholder-friendly way three main areas:a. End-to-end Supply Chain Security fosteringstandardisation, harmonisation and mutualrecognition;b. Controlled global visibility of security risks andother supply chain threats and their impact onsupply chain flows around the world;c. Real-time Lean Agile Resilient Green Optimisedsupply chain solutions offering a highly innovativeapproach to designing supply chains resilient (inreal-time) to major disturbances caused by highimpact eventsd. New and innovative supervision models fortrusted and secure supply chains

To reach the challenging target, variousdemonstrations transporting goods with differenttrade compliance requirements, with differenttransport modes and from different geographicscopes are included in the project. CORE will focuson demonstrating practical solutions to beimplemented within the current legislativeframework. Thus, the results also provide input forEU policies or drafting future legislation.