1. Connecting to Global Supply Chains 1

2. What can governments do to connect producers to global supply chains (SCs)? Aid for Trade for SPECA 10-11 July 2013 Geneva Maria Teresa Pisani Global Trade Solutions Section Trade Division - UNECE 2

3. 3 - 1 day to export/import …..+ 4% international trade - 4 days to export/import ….+ 0.1 % GDP per capita growth rate & Source: WTO 2012, OECD 2012, WB DB Report 2013 Economic growth through exports is a key strategy for developing and transition economies Trade facilitation is an essential component of such strategy

4. 4 From tariff barriers to non-tariff barriers Emergence of global value chains Need for more efficient, simple and transparent trade transactions and information exchange

5. Source: Analysis of OECD Minimum Wage Data Minimum Wage Cost (hour)

6. 6 Policy Rec.s Standards Guidelines, Briefs, Studies Capacity Building and Technical Assistance

7. 7 Present a model of regulatory, procedural and business processes, and requirements for information flow Identify the specific opportunities that better information sharing in global supply chains can bring Elaborate a roadmap for prerequisites and actions that government and businesses should put in place

9. 9.

10. 3) Pay Pay Customer’s Bank Supplier’s Bank 1) Buy Buy SupplierCustomer 2) Transport 2.1 Prepare Export Documents 2.2 Arrange Inspection 2.3 Obtain Cargo Insurance 2.4 Provide Customs Declaration Inspections Agent Insurance Agent Customs Transporter Domestic Transporter Cross- Border 2.5 Transport to Terminal 2.6 Clear Cargo Through Customs 2.7 Handle Container at Terminal 2.8 Prepare Documents Required by Customer Terminal Authority Security Agency

11. Contract Purchase Order Packing List Goods Receipt Letter of Credit Commercial Invoice Bill of Lading Insurance Certificate Certificate of Origin Certificate of Inspection Export Declaration Import Declaration

12. Data Elements OperationalCommercialControlRegulatory Supplier Identification  Buyer Identification  Carrier Identification  Port of Departure  Port of Arrival  Product List  Product Classification Information  Package List  Container List  Pricing Information  Value  Insurance Information  Country of Origin  Country of Manufacture  Quality Information  Inspection Information  Financing Information (Letter of credit)  Export License Information  Import License Information  Proof of Delivery  Sales Contract  Freight Contract  Terms (Sale, Payment, Delivery) 

14. Trends in International Supply Chain Organization of ProductionSpatial OrganizationPatterns of Product Flow Postponement Spatial Concentration of Production Nomination of Day and Time of Deliveries Vertical Disintegration of Production Spatial Concentration of Inventory Direct Deliveries Application of Time Compression Principles Wider Geographical Sourcing and Distribution Reverse Logistics Rationalization of Supply Base Development of Break Bulk / Transshipment Capabilities Development of Hub-satellite systems Concentration of International Trade on Hub Ports and Airports

16. 16 ExistingEmergingFuture Internal ERPWeb Enabled Shared Applications Contract ManagementWeb Enabled Shared Applications Document ManagementWeb Enabled Shared Applications Data Exchange Point to Point EDIEDI + Web Enabled Peer to Peer Data Exchange Communal Standards Database Single Window Port Community System Data Exchange Collaborative Stakeholder Portals Cloud Computing Shared Applications  Contract Management  Document Management  Event Management Functional BarcodeBarcode (3D) RFID Sensor Technology GPS Technology GMS Technology Cargo Scanning

17. 17

18. 18 Technical Capability Behaviour Policy and Regulations Commercial Construct

19. 19 AbsentBasicGoodAdvancedLeading Edge 1.Relationship maturity Transactional Relationship Contractual Relationship Competitive Strategic relationship based on enlightened self interest Strategic relationship based on shared interests Strategic relationship based on maximizing market opportunities 2.Trust No Basis for Trust Minimal level of trust based on contract enforcement Trust based on shared economic interests High level of trust based on shared economic interests High level of trust based on shared economic interest and understanding of opportunity to extend benefits 3.Transparency No Transparency Sharing of minimal operational and technical information Open sharing of planning and capacity information Joint planning of demand and capacity by key stakeholders. Development of shared plan Shared Strategic Plan based on shared goals and long term development of shared interests

20. 20 AbsentBasicGoodAdvancedLeading Edge 1.Import Export Processes Stand alone manual processes Streamlined integrated processes Streamlined integrated web enabled processes Streamlined integrated web enabled real time processes 2.Trade Documentation Stand alone documents for different agencies Minimize number of documents Shared documents between related agencies Single Administrative Document Shared across regulatory agencies within one jurisdiction Shared Single Administrative Document across trading partners 3.Capacity Building Stand alone programmes across multiple agencies Single development agency Stand alone programmes Single development agency Integrated programmes Single agency Client Directed Integrated programmes 4.Integration of Regulatory Bodies Multiple independent regulatory agencies Minimize number of agencies based on functional areas Single Regulatory agency operating multiple processes Single regulatory agency operating integrated processes

21. 21 Inefficiencies associated with fragmentation The risks of errors, delays and additional costs The importance of behavioral prerequisites The impact of the commercial model

22. 22 Governments can: Streamline processes and procedures Support advanced logistics platforms Support effective stakeholders engagement IT solutions can: Enhance efficiency and effectiveness of ISCs Enable collaborative SC models Facilitate the participation of SMEs

23. 23 Mixture of small scale and large scale farming Attractive market for retailers and food processors Issues of quality and safety, distrust, obsolete business models...But evidence of spill-over effects through FDI

24. For more see: www.unece.org http://www.unece.org/tradewelcome/capacit y-building-for-trade-facilitation/joint-unrcs- approach-to-trade-facilitation.html Contact: serguei-kouzmine@unece.org maria-teresa.pisani@unece.org 24