1. Training Workshop on Business Process Analysis in International Trade Joint Workshop on Trade Facilitation and the Single Window 23-25 September 2015, Moscow Module 1: Preliminary stage. Preparation for the BPA. 1.2. Determining the scope of the BPA Somnuk Keretho, PhD Director, Institute of IT Innovation Kasetsart University, Bangkok

2. Training Workshop on Business Process Analysis in International Trade, 23-25 September 2015, Moscow@Somnuk Keretho, PhD Objectives of this session  To understand the key rational for defining the scope of a BPA project.  To propose candidate strategic BPA projects for the country’s international trade improvement. 2

3. Training Workshop on Business Process Analysis in International Trade, 23-25 September 2015, Moscow@Somnuk Keretho, PhD Three (3) main phases to conduct a BPA Project 1.Defining Scope of and Planning a BPA Project 2.Capturing and Modelling the As-Is Process 3.Analyzing Findings of the BPA and Proposing Recommendations for Improvement (Proposing the To-Be Process) 3 Ref: Business Process Analysis Guide to Simplify Trade Procedures, Updated 2012, UNESCAP/UNECE. http://unnext.unescap.org

4. Training Workshop on Business Process Analysis in International Trade, 23-25 September 2015, Moscow@Somnuk Keretho, PhD Roles and Activities for defining the Scope of a BPA Project Project Manager/ Project Leader Process Participants/ Business Domain Experts Project Sponsor Identify a business domain of interest Conduct desk research Extract key process participants and business processes Visualize collected information Use Case Diagram Review and provide feedback Inaccurate Accurate Approve Project Sponsor Process Participants/ Business Domain Experts 1.1) Define a project scope Project Manager/ Project Leader Objective – To define a scope of the BPA project for conducting detailed Business Process Analysis and improvement recommendations. 4

5. Training Workshop on Business Process Analysis in International Trade, 23-25 September 2015, Moscow@Somnuk Keretho, PhD Rationals for defining Scope of a BPA Project Business domain of interest  Within an organization, e.g. customs declaration and customs clearance.  Across organizations, e.g. customs clearance, along with the issuance of export permits for rice exportation Coverage  The stage of the international supply chain under investigation, e.g. “Buy”, “Ship”, or “Pay” (all related procedures, or only some parts of them)  The environment and conditions in which the business domain of interest operates such as mode of transport, term of delivery, term of payment, country of destination, country of origin (given that regulatory requirements vary from one country to another) Strategic importance  Economic rationale, e.g. strategic export products, perceived threats in the international trade  Legislative priorities  Public sentiment/Public interest 5

6. Training Workshop on Business Process Analysis in International Trade, 23-25 September 2015, Moscow@Somnuk Keretho, PhD Buy-Ship-Pay Model 6 Buy Pay Ship Prepare for export Import Prepare for import Transport Export Commercial Procedures Establish sales contract Order goods Advise on delivery Request payment Transport Procedures Establish transport contract Collect, transport and deliver goods Provide waybills, Goods receipts, etc. Regulatory Procedures Obtain im/export licenses etc. Provide Customs Declarations Provide cargo Declarations Apply security measures Clear goods Financial Procedures Provide credit rating Insurance Execute payment Issue statements International Trade Reference Model

7. Training Workshop on Business Process Analysis in International Trade, 23-25 September 2015, Moscow@Somnuk Keretho, PhD Tips  Be precise on the scope of the BPA Specify the environment and conditions in which the business domain of interest operates at the early phase of the BPA project  Set the scope from the project beneficiary’s perspective With a limited resource, a detailed modeling and analysis of business process for every stakeholder related to exporting one product may not be possible. In this case, the project emphasis should be oriented towards the project’s beneficiary.  If the beneficiary is an exporter, the emphasis is on what the exporter has to do in order to ship the cargo to the destination country.  If the beneficiary is a carrier, the emphasis is on what the carrier has to do in order to leave the port of departure.  Break the project into sub-projects if the scope is relatively large E.g., if the project requires the analysis of business process for exporting 10 country’s strategic products, break the project into 10 sub-projects and define the project scope for each of them 7

8. Training Workshop on Business Process Analysis in International Trade, 23-25 September 2015, Moscow@Somnuk Keretho, PhD Based on the outcome of desk research,  Identify key business processes and name it using a descriptive verb phrase  Identify stakeholders  Identify relationships between stakeholders and key business processes Drawing a Use Case Diagram Clear goods through customs Handle Container and stow it on vessel Exporter or Representative Customs Port Authority Carrier (Shipping Line) Inland Haulage Clear goods through customs Handle Container and stow it on vessel Exporter or Representative Customs Port Authority Carrier (Shipping Line) Inland Haulage Department of Fisheries 8

9. Training Workshop on Business Process Analysis in International Trade, 23-25 September 2015, Moscow@Somnuk Keretho, PhD  Where there are many business processes of the same category, may be used to group them together. An Example – Scope of a BPA Project (precisely illustrated with a Use Case Diagram) 2.9) Prepare documents required by importers 2.6) Stuff container and transfer to port of departure 1) Buy 3) Pay 2.4) Apply for cargo insurance 2.5) Prepare and submit customs declaration 2.1) Have product sampled and examined 2.7) Clear goods through customs 2.8) Handle Container and stow it on vessel Exporter or Representative Importer Exporter’s Bank Importer’s Bank Customs Department of Foreign Trade The Central Islamic Committee Office Thailand Port Authority Department of Consular Affairs Insurance Company Carrier (Shipping Line) Inland Haulage Department of Fisheries Authorized Private Inspector 2) Ship Customs’ Bank … Boundary For Simplification: * L/C * CIF * FCL * CY/CY 9

10. Training Workshop on Business Process Analysis in International Trade, 23-25 September 2015, Moscow@Somnuk Keretho, PhD Practical Exercise 2 – Determining the scope of a BPA project - Working within each group to determine the scope of analyzing trade and transport processes and directions of movement of goods.  Discuss the scope of a BPA project (that the group thinks is very useful to be carried on even after this workshop), e.g. Identifying one strategic export (or import) product of your country Identifying a major mode of transport (and/or major corridor/major port), e.g. because of its high volume of export activities with some economic impacts. Identifying some complicated processes, e.g. customs clearance with some certain permits and/or special inspection (involving with not just customs but other regulatory agencies), or covering all or some Buy/Ship/Pay related procedures. Identifying stakeholders / institutions of key business processes and their relationships.  Prepare a presentation on the selected scope of a BPA project, and reasons why this scope is selected. 10