Consider this example that helps illustrate the problem. The conveyance of a simple product such as avocado involves 30-40 actors and 200 information exchanges for a single conveyance from Nairobi (via Mombasa) to Rotterdam. The international trade cost of handling information is more than double the actual cost of the physical transport of a container.
Vision: All information in global containerized transport is seamlessly available directly from the source by any authorized actors at the time they need it according to their internal business rules, thereby reducing cost, increasing supply chain visibility and increasing security.
Motivation: Global manufacturers and retailers face an increasingly challenging environment in which they must connect and coordinate many partners along the supply chain in order to satisfy demand. The existence of multiple parties along the supply chain, a fragmentation of systems, lack of common documentation in international trade, limited and cumbersome information exchange, and lack of standardization in information and transportation conveyance processes are just a few reasons why the system of conveyances is far less efficient than it could be.
Focus: A recent World Economic Forum (WEF) study estimates that a 5% increase in global GDP is possible with improved coordination of logistics and supply chains among all the parties in the global supply chain. The WEF study recommends that Global Supply Chain leaders work together on practices to share information.
This teleconference intends to convene shippers, carriers, 3PLs and key subject matter experts in order to openly discuss the vision of simplified and effective information flows and how Global Supply Chain leaders collaboratively can address the challenges and realize the potential solutions to reach the vision of seamless exchange of global shipping information. It is the intention that the teleconference can conclude with recommendations on how Global Supply Chain leaders can work together to reach the vision of seamless information exchange for Global Containerized Trade.
The call will start with an overview of the challenges that motivate the need for the collaboration.
Subsequent to the initial discussion about the need, there will be a facilitated discussion regarding he issues that need to be addressed in order to achieve the collaboration and desired improvements (see Vision). Finally, the group will discuss potential next steps.
- Overview WEF Study – World Economic Forum
- What obstacles are there in today’s environment and what obstacles are there in overcoming these:
- From shippers’ perspective
- From carriers’ perspective
- From 3PLs’ perspective
- Outlining the initial vision