VALENTIN CARLAN (UA) & JOHN KERKOFS (PORT@PP)
STEVEN SCHUTTER (NXTPORT)
FERNAND RUTTEN (DELOITTE) & PHILIPPE HEEREN (LAGA)
QUESTIONS & ANSWERS
BLOCKCHAIN, INTERNET OF THINGS, ARTIFICIAL INTELLIGENCE
VALENTIN CARLAN JOHN KERKOFS
THE POTENTIAL OF BLOCKCHAIN TECHNOLOGY IN THE MARITIME SUPPLY
CHAIN
The potential of blockchain technology in the maritime
supply chain
CARLAN V., KERKHOF J., SYS C., VANELSLANDER T.
BRUSSEL, 14TH SEPTEMBER 2018
Rationale
• Growing trend on implementing ICT (digital) innovation in the supply chain
• Main characteristics:
1. growing need for innovation• cost savings
• increase the quality of products (and services), and
• further growth opportunities
2. technology (IT) push
3. The dynamic global context
• Further integration of the supply chain, is blockchain a possible solution?
4
Blockchain (Distributed Data Ledger technology): definition
• An authonomous, distributed and open database that intermediates the change of cryptographic verified data blocks.
• Distributed database that is operated through internet (Mougayar, 2016; Loklindt & Moeller, 2018) -> peer-to-peer consensus
• Advanced cryptographic technics to ensure high security of data (Loklindt & Moeller, 2018)
5
(2014)
(2017)
(2015)
(2016)
(2018)
Gartner Hype Cycle and Blockchain
IS DISILLUSIONMENT REALLY AROUND THE CORNER?
VC investment in blockchain startups
7
Maritieme keten – Haven van Antwerpen
8
Owner of the goods / shipperOrigin
Origin
DC
DC
Port
Port
Receiver of the goods
Shipping company
Terminal operating
company
Terminal operating
company
Hinterland transport
company
Hinterland transport
company
Forwarder
Agent
Customs broker
Customs broker
Government
Financial institutes
Insurance
Maritime supply chain integration barriersEconomical
• Market competition and uncertainty
• Lack of investing stakeholders’ involvement
• Financial constraints
Legal & political
• Multiple jurisdictions involved: no consistent legal framework
• Challenge of information disclosure policy between partners in the supply chain
• Lack of governmental policies
• Lack of rewards and encouragement programs
Technological
• Incompatibility of operating and strategic goals
• Lack of methodology for blockchain technology implementation in sustainable supply chains
• Security challenge
• Immutability challenge of blockchain technology
Cultural & managerial
• Resistance to change
• Lack of customers’ awareness and tendency about blockchain technology
• Hesitation to convert to new systems
• Lack of management commitment and support
Potential benefits of blockchain technology
10
*Carlan, V., Sys, C., Vanelslander, T., (2016)
**Halaburda (2018)
Blockchain
(distributed ledger alone)
Blockchain+
(enabled through smart contracts
and/or enhanced encryption tools**)
Digital economy benefits*
Reduces cost to access/receive
informationX
Reduces cost to send information XAvoid illicit transactions and/or their
prejudiceX X
Avoid error correction X XAvoid information matching (benefit
from automatic data matching – if
applicable)X X
Avoid information search X XEfficient use of resources/assets X
Community attendance benefits*
Access to broad (real-time)
informationX
Higher value-added services X
Compliance with standards and
regulationsX
Intermediate conclusions
11
• ICT innovation in the supply chain is seen as the key for keeping competitive advantage
• Blockchain technology can help further integration if standardization is achieved
• Full blockchain benefits are enabled only in combination with other technologies
EXAMPLE OF BLOCKCHAIN PROJECT IN THE PORT
John Kerkhof
MARITIME SUPPLY CHAIN INEFFICIENCIESPort and hinterland
stakeholdersAuthorities
Other
third
parties
Inefficiencies
Ship
per
Freig
ht f
orw
ard
er
Cus
tom
s d
ecl
ara
nt
Shi
pp
ing
lin
e
Term
ina
l op
era
tor
Hin
terl
and
tra
nsp
ort
Rec
eive
r o
f th
e go
od
s
Port
Aut
hori
ty
Cus
tom
s
Ha
rbor
ma
ster, p
ilota
ge e
tc.
Oth
ers
(e.g
. Police
, Sa
nita
ry
and
vete
rina
ry a
utho
rities)
Agent
Fina
ncia
lin
stitut
es
Roa
d
Ra
ilIW
W
(ba
rge
op
era
tor)
Time
ETA/ATA estimation X X X X X X X
Operations planning X X X X X X X
Document flow
Goods ownership documents (CMR, B/L,…) X X X
Hardcopy documents (Phytosanitary certif.) X X X X XCustoms declaration X X X X X X X X X X
Information flowTrack and Trace X X X XPayment confirmation X X X X X X X X X X X X
Cargo relatedShipment fragmentation X X X X X X XLoading units X X X X X
Financial flow X X X X X X
PILOT CASE: PHYTOSANITARY CERTIFICATEA declaration used in international commerce for shipments of plants and plant
products. Certificate issued by the National Plant Protection Organisation of the
exproting country to be presented to the NPPO of the importing country.
PILOT CASE: STAKEHOLDERS
PILOT CASE: PROCESS FLOW
PILOT CASE: BLOCKCHAIN INFRASTRUCTURE
Big potential and open for any type of certificate or authorisation
• Tresholds▪ legislation
▪ global aspect
▪ commercial risk
▪ time to market
CHALLENGE : FROM PILOT TO PRACTICE
CHALLENGE : FROM PILOT TO PRACTICE
CONTACT: [email protected]
STEVEN SCHUTTER
BEST IN CLASS VOORBEELDEN VAN DIGITALISERINGSPROJECTEN VOOR DOUANE IN DE
HAVEN
Best in-class examples for digital solutions, related to customs
Steven Schutter – Marketing Manager NxtPort14/09/2018
Waze is a navigation app…
But primarily a data platform where data from all connected users such as location, speed, accidents, obstacles … are being shared anonymously with all other users, allowing to adjust behaviour dynamically
OUTSMARTING LOGISTICS, TOGETHER
Just imagine…
Imagine what processes we could improve if we had the right DATA gathered, analysed, shared and applied properly.
25
Complex supply chain ecosystem lacking an
integrated information flow
“a simple shipment can go
through nearly 30 people and
organizations, including more
than 200 different interactions
and communications”
“up to 50% of the cost of
moving a container is related to
paperwork”
Consignee
Shipper- Deep sea Carrier- Forwarder- Terminal- Barge operator- Rail operator- Truck company- Subcontractor - Driver / Skipper- Authorities / Customs
source: NYT March 4, 2017; Forbes March 5, 2017
Silo’s have been optimized
resulting in sub optimization of
the supply chain.
20-sep-18 © 2018 NxtPort - Building the Port of the Future 27
Connections in the traditional supply chain
2 parties = 1 connection
3 parties = 2 connections
4 parties = 6 connections
8 parties = 28 connections
Your
company
30 parties = 435 connections
20-sep-18 © 2018 NxtPort - Building the Port of the Future 28
The profit paradigm
Fragmented supply chain
Paper based + data duplication
Non coordinated
ErrorsNo transparancyInefficiency+ capacity
underutilisation
Sub-optimized E2E flow despite efforts in optimizing company processes/scale and in point2point communication
4-5 43%stack moves
before picked by transporter
50%of the cost of moving a container is related
to paperwork
overall truck efficiency.
24% running empty /
57% average loading
30people and organizations, including more than 200
different interactions
Consignee
Shipper
API ENABLING DATA BACKBONE WITH SOLID
SHARING LOGIC
CO-CREATED SOLUTIONS (APP’s)
targeting # actors & cargo types
MARKETPLACE
OF AVAILABLE API’s AND APP’s
Private Company
CustomsOther
Authorities
1 connection 1 connection 1 connection
20-sep-18 © 2018 NxtPort - Building the Port of the Future 30
Connections in a NxtPort supported Supply Chain
n parties = 1 connectionNxtPort Common Data sharing Backbone
Your
company
20-sep-18 © 2018 NxtPort - Building the Port of the Future 31
Multiple Communities Powered by NxtPort
Combase
Private Company
Customs OtherAuthorities
Cpoint/PoAPort+Port@ppRx/SeaPort
Data Management Policy
……
Port+
eECDApp
… …
20-sep-18 © 2018 NxtPort - Building the Port of the Future 32
Solutions Domains & multiple Communities
NAUTICAL
END 2 END VISIBILITY / PLANNING / EXECUTION
PORTHINTERLAND PORT HINTERLAND
Nautical
Port Cargo
B2G
Hinterland
E2E visibility
Nautical
Port Cargo
B2G
Hinterland
E2E visibility
B2GB2G
# CARGO TYPES
•Containers•RoRo
•Breakbulk•Liquid Bulk•Dry Bulk
# ACTORS
•Shippers / Consignee(Industry/Retail)•Deep sea Carrier / Shipping Agent
•Terminal •Forwarder
•Logistics operator•Barge operator•Rail operator
•Trucking company•Authorities / Customs
20-sep-18 © 2018 NxtPort - Building the Port of the Future 33
NxtPort API’s and Solutions: www.nxtport.com
…
Nautical
Port Cargo
B2G
Hinterland
E2E visibility
Nautical
Port Cargo
B2G
Hinterland
E2E visibility
20-sep-18 © 2018 NxtPort - Building the Port of the Future 34
B2G - Customs & other Authorities
Port Cargo
B2G
Nautical
Hinterland
E2E visibility
Under developmentAPPUnder developmentAPP
VISIGIP
Visibility app for the inspections at the Grens Inspectie Post
Bulkchain
A full bodied application and a complete suite of API’s allowing for a digitization of the Antwerp Breakbulk activities.
Under developmentAPP
FAVV ePhyto
Phytosanitary certificates, are transferred via blockchain technology and the document flow is automated by means of so-called "Smart Contracts” to make document flows safer and more efficient.
Under discussionAPP
Digital emergency procedure
Emergency workaround in case direct communication with the PLDA application of customs is tempory not available.
www.nxtport.eu
/nxtport
@nxtportnews
03 808 59 60
20-sep-18© 2018 NxtPort - Building the Port of the Future 35
Questions ?
FERNAND RUTTEN PHILIPPE HEEREN
DIGITAL CUSTOMS NEXT GEN
Headline Verdana BoldNext Gen. AEOThe power of disruptive technologiesFernand Rutten (Deloitte) – Philippe Heeren (Laga)
10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 38
Business works together with the customs authorities toward the common objective of supply chain security
AEO – C2B partnership through IT
C 2 B
Trust-based control framework
U.S. ISA
© 2018 Deloitte Belgium 39
Benchmarking global supply chain security and trusted trader programmes
Focus on the benefits
10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 40
Global supply chain security and trusted trader programs
Benchmarking Study • Conducted end of 2017
• +120 global respondents
• Almost 50/50 EMEA / Americas
• 72% participates in a program
Desired benefits vs. actual benefits
10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 41
Global supply chain security and trusted trader programs
Benchmarking Study • Conducted end of 2017
• +120 global respondents
• Almost 50/50 EMEA / Americas
• 72% participates in a program
Desired benefits vs. actual benefits
© 2018 Deloitte Belgium 42
How the New ‘Disruptive’ Technologies will drive the Next Gen. AEO challenges
RPAIoT
AIBlockchain
10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 43
Let the Robot replace your recurring and repetitative work
Robotic Process Automation - RPA
RPA to automatebookings and upload of supply chain documents
Segregation of duty
10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 44
AI and Machine Learning
10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 45
Predictive modelling in the supply chain
Artificial intelligence - AI and virtual reality
Improve efficiency, e.g. in the loading process, in the delivery process
Improve safety and security
AI / VR can be used to classify goods or perform customs inspections
10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 46
Trade Master Data. How can I control it? How can Artificial Intelligence help me?
‘My material data base is 1 miomaterials big’
‘Our customs expert is leaving us soon, how do we captureand save theknowledge?’
‘We have NOcorrect HTS codes in our (ERP) system(s)’
‘We have 200 new material numbers every day!!’
‘Our HTS and ECCN codes are outdated and not maintained’
10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 47
Artificial Intelligence Classification Automation./ How does it work?
PROCESSINGACQUISITION OUTPUT & FEEDBACK
Extraction
Automated
classification
high
Manual
classification
low
medium
Classification
Engine
Enrichment
Pre-processing
& Cleansing
Remediation
Confidence Level
Step that requires manual intervention
Classified
material
Material that requires
classification
The Classification Engineer gathers
as much information as possible
information (product sheets,
intranet) to make a sound judgement
Based on his/her experience the
Classification Engineer tries to classify
the material
If the Classification Engineer is certain, a
classification is entered
If the Classification Engineer is not entirely
certain, he will ask another expert for support
The material is
classified
RESULT
Material that requires
classification
Using RPA the data extracted is
enriched with as much information
as possible (product sheets, intranet)
to feed into the Machine Learning
component
The Machine Learning solution –
trained by Classification Experts
tries to classify the material.
In addition, it returns a number that
reflects the confidence level linked
to the suggested classification code
When the Confidence Level is high, the
classification is automatically updated in the system
When the outcome is below a predefined
threshold, alternative options for classification
(when available) are provided to the user
The material is
classified
Re-train model
MANUAL
AUTOMATED
10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 48
Following up on the chain
Internet of things
Combined with blockchain, secure follow-up on goods can be ensured
Temperature HumidityMovement (shocks)…
Combined with AI powered predictive analytics, risks can be managed (e.g. risk of theft, risk of damage)
10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 49
Blockchain & Internet of Things
Blockchain
Blockchain based solutions linked to (NFC) chips to fight counterfeit
Blockchain based solutions to store and share certificates via QR code link
10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 50
Exchange of customs records through blockchain
(Belgian) customs blockchains
▪ Certificate of origin on blockchain
▪ Certificates tracking and verificationfor NAFTA / CAFTA
10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 51
Customs authorities’ involvement
What is customs doing on these New Technologies
Netherlands
USAU.S. Customs and Border Protection
Port of Rotterdam Singapore customs
Peru Customs
COMESACommon Market for
Eastern and Southern Africa
IBM/Maersk active customs authorities
COMESA customs collaboration
UKHMRC
HM Revenue & Customs for border controls
BEPort of
Antwerp authorities
Port of Antwerp/ NxtPort/ T-mining/ Enzafruit
Electronic certificate of origin (eCOs) on the blockchain.
Electronic phytosanitary certificates on the blockchain
Bill of Lading in the blockchain
Dubai / UAECustoms
Customs authorities activelyparticipate and lead the way
ALREADY TODAY
© 2018 Deloitte Belgium 52
Conclusions
10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 53
Next Gen. AEO?
Artificial intelligence is used to automate and improve the classification process
Virtual reality and artificial intelligence is used to visualize data and apply predictive analytics
Non-stop transparency on customs-relevant data through blockchain technology
Artificial intelligence combined with robotics to improve data quality
Internet of things combined with blockchain to track and trace goods
Automate and link the physical, documentary, financial flows in the supply chain and restore trust
Exponential technologies improve and ensure security and efficiency in the supply chain importance of data quality
Authorities use exponential technologies + push economic operators to use exponential technologies
Exponential technologies are (becoming) an integral part of trusted trader programmeslike AEO condition to get authorized
Real-life examples of technologyapplications in supply chain
ALREADY TODAY
Technologies lead to Digital transformation
ALREADY TODAY
10 jaar AEO / 10 ans AEO© 2018 Deloitte Belgium 54
THANK YOU !
Philippe HeerenLawyer, GTA, Laga
Fernand RuttenPartner Global leader, GTA
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© 2018 Deloitte Belgium
QUESTIONS & ANSWERS
THANK YOU!