Geneva, 20 & 21 June 2005 UN/CEFACT

3rd Executive Forum on Trade FacilitationPaperless Trade in International

Supply Chains: Enhancing Efficiency and Security

Technology as Enabler of Innovation

Geneva, 20 & 21 June 2005UN/CEFACT

UN/CEFACT 2

Agenda• Global Environment of the Supply Chain• Impact on Supply Chains• Microsoft Supply Chain • Technology as:

– an influence– an opportunity– a challenge

• Benefits to:– Governments– Business

• Microsoft Cooperation with the UNECE• Future Opportunities• Future UNeDocs scenarios

UN/CEFACT 3

Express Courier Industry - Global

> 200 Countries

> 20 Million Daily Shipments

Express Courier Service - EU

3% by Weight of all goods

40% by Value

Global Environment of the Supply Chain

• Multinational & related companies trading among themselves

• Changing security requirements*

• eCommerce making optimum use of information and communication technologies

• Exploitation of many opportunities

UN/CEFACT 4

Impact on Supply Chains

• Increasing volume of smaller shipments• Changing trade patterns – countries exporting

different goods to different countries• Importers importing different goods from

different countries• Shipping patterns changing• Increasing pressure from traders and partners • Increasing expectations for Customs

administrations to execute their mandates – Consistently, – Quickly – Harmonized

UN/CEFACT 5

SW ManufacturingIreland

Console Manufacturing China

Peripheral Suppliers

SW ManufacturingGermany

Domestic Carrier

International Carrier

International Carrier

International Carrier

International Carrier

EU ReturnsWarehouse

EU ReturnsSoftware Peripheral

Warehouse

EU DistributionWarehouse

Retailer

DomesticChannel Partner

InternationalChannel Partner

Customs

Customs

Customs

UN/CEFACT 6

Log

istic

s

Build PlanReleased

PO Created for Load Plan

3 wks prior to shipping

Build Product

SAP PO Closed

EDI 861 Good Receipt

Wkly Load Plan Created

RTM

(Release to Manufacture)

Ma

nufa

ctur

erD

istr

ibut

or Physically receive product

For Xbox/PC HW

Ship Product

EDI 850 for XBOX, others via email16 days prior to ship PCHW

18 to 25 Days prior to ship for XBOX

3PL

Send ASN

Triggers 856 for XBOX ConsolesEmail spreadsheet for other products

Notify ConsigneeEDI 856/ or for APOC EDI 861

Bro

ker

Use MFG invoice for customs clearance

If not xbox/pc hw

Benchmark Process

Virtual Receipt of Product

Immediate

Transmit release to ship

Cus

tom

s

Process forCustoms

Clearance

Transmit Customs Declaration

TransmitRelease info

NotifyDistributor

UN/CEFACT 7

Log

istic

s

Build PlanReleased

PO Created for Load Plan

3 wks prior to shipping

Build Product

SAP PO Closed

EDI 861 Good Receipt

Wkly Load Plan Created

RTM

(Release to Manufacture)

Ma

nufa

ctur

erD

istr

ibut

or Physically receive product

For Xbox/PC HW

Ship Product

EDI 850 for XBOX, others via email16 days prior to ship PCHW

18 to 25 Days prior to ship for XBOX

3PL

Send ASN

Triggers 856 for XBOX ConsolesEmail spreadsheet for other products

Notify ConsigneeEDI 856/ or for APOC EDI 861

Bro

ker

Use MFG invoice for customs clearance

If not xbox/pc hw

Benchmark Process

Virtual Receipt of Product

Immediate

Transmit release to ship

Cus

tom

s

Process forCustoms

Clearance

Transmit Customs Declaration

TransmitRelease info

NotifyDistributor

UN/CEFACT 8

Log

istic

s

Build PlanReleased

PO Created for Load Plan

3 wks prior to shipping

Build Product

SAP PO Closed

EDI 861 Good Receipt

Wkly Load Plan Created

RTM

(Release to Manufacture)

Ma

nufa

ctur

erD

istr

ibut

or Physically receive product

For Xbox/PC HW

Ship Product

EDI 850 for XBOX, others via email16 days prior to ship PCHW

18 to 25 Days prior to ship for XBOX

3PL

Send ASN

Triggers 856 for XBOX ConsolesEmail spreadsheet for other products

Notify ConsigneeEDI 856/ or for APOC EDI 861

Bro

ker

Use MFG invoice for customs clearance

If not xbox/pc hw

Benchmark Process

Virtual Receipt of Product

Immediate

Transmit release to ship

Cus

tom

s

Process forCustoms

Clearance

Transmit Customs Declaration

TransmitRelease info

NotifyDistributor

UN/CEFACT 9

Log

istic

s

Build PlanReleased

PO Created for Load Plan

3 wks prior to shipping

Build Product

SAP PO Closed

EDI 861 Good Receipt

Wkly Load Plan Created

RTM

(Release to Manufacture)

Ma

nufa

ctur

erD

istr

ibut

or Physically receive product

For Xbox/PC HW

Ship Product

EDI 850 for XBOX, others via email16 days prior to ship PCHW

18 to 25 Days prior to ship for XBOX

3PL

Send ASN

Triggers 856 for XBOX ConsolesEmail spreadsheet for other products

Notify ConsigneeEDI 856/ or for APOC EDI 861

Bro

ker

Use MFG invoice for customs clearance

If not xbox/pc hw

Benchmark Process

Virtual Receipt of Product

Immediate

Transmit release to ship

Cus

tom

s

Process forCustoms

Clearance

Transmit Customs Declaration

TransmitRelease info

NotifyDistributor

UN/CEFACT 10

Log

istic

s

Build PlanReleased

PO Created for Load Plan

3 wks prior to shipping

Build Product

SAP PO Closed

EDI 861 Good Receipt

Wkly Load Plan Created

RTM

(Release to Manufacture)

Ma

nufa

ctur

erD

istr

ibut

or Physically receive product

For Xbox/PC HW

Ship Product

EDI 850 for XBOX, others via email16 days prior to ship PCHW

18 to 25 Days prior to ship for XBOX

3PL

Send ASN

Triggers 856 for XBOX ConsolesEmail spreadsheet for other products

Notify ConsigneeEDI 856/ or for APOC EDI 861

Bro

ker

Use MFG invoice for customs clearance

If not xbox/pc hw

Benchmark Process

Virtual Receipt of Product

Immediate

Transmit release to ship

Cus

tom

s

Process forCustoms

Clearance

Transmit Customs Declaration

TransmitRelease info

NotifyDistributor

UN/CEFACT 11

Log

istic

s

Build PlanReleased

PO Created for Load Plan

3 wks prior to shipping

Build Product

SAP PO Closed

EDI 861 Good Receipt

Wkly Load Plan Created

RTM

(Release to Manufacture)

Ma

nufa

ctur

erD

istr

ibut

or Physically receive product

For Xbox/PC HW

Ship Product

EDI 850 for XBOX, others via email16 days prior to ship PCHW

18 to 25 Days prior to ship for XBOX

3PL

Send ASN

Triggers 856 for XBOX ConsolesEmail spreadsheet for other products

Notify ConsigneeEDI 856/ or for APOC EDI 861

Bro

ker

Use MFG invoice for customs clearance

If not xbox/pc hw

Benchmark Process

Virtual Receipt of Product

Immediate

Transmit release to ship

Cus

tom

s

Process forCustoms

Clearance

Transmit Customs Declaration

TransmitRelease info

NotifyDistributor

UN/CEFACT 12

Our Critical Success Factors

• High speed, low cost, communication and collaboration

• Effective information and material flow

• Improved productivity, cost reduction and customer service

• Demand Information

SME*

* MS has 225,000 resellers in Europe; 11,000 in Africa; Serving 6M SMEs in EMEA

UN/CEFACT 13

Benefits to Governments

• Advanced Customs Clearances• Increased ability to collect revenue• Increased audit capabilities and real-time

data confirmation• Increased reporting capabilities

– Standard and ad hoc reports could be available to any party with access

• Secure Supply Chains

UN/CEFACT 14

Benefits to Business

• More Efficient Trade• Lower Transactions Costs

– Lower technical barriers– Widespread acceptance of standards– Leverage existing technologies

• Flexibility for usage, systems and 3rd party partners

• Quicker border clearance• Supply Chain Security• IPR Protection

UN/CEFACT 15

Technology as an opportunity

• More information being available in an electronic format Structured trade data,

• Automated processes provide – Consistency – Transparency– Increased efficiency – Better risk assessment – Better security

• Relationship with Customs administrations can begin long before the goods arrive at the border.

• Early transmission of trade information • Early determination of risk and admissibility.

UN/CEFACT 16

Technology as a challenge

• Overcome the independent & unilateral development of country-specific automated systems

• Flexible and far-sighted in developing electronic methods

• Harmonized Customs procedures and processes

• Standardized data requirements at export and import

• Comprehensive IT security strategy• Appropriate rules applied uniformly• Computer related crime

UN/CEFACT 17

Microsoft Supporting UNeDocs

• UNECE call to industry for commercial solution support

• 2003 – 2004: joint development of MS Office InfoPath prototype

• 2005: referential solution First 12 InfoPath forms published

• Partnering with IT industry for custom implementations

http://www.unemed.net/edocs/IP/xml/UNeDocs.Infopath.Docs.htm

UN/CEFACT 18

Product Support – SME ERP

• Microsoft’s Navision & Axapta

• Business Solutions - Included in MS Office

• Enabled for electronic trading today!

• Supports XML schemas, EDIFACT, XBRL, MS BizTalk, etc.

• Uses Commerce Gateway or Commerce Portal

UN/CEFACT 19

Future Opportunities• Enterprise solutions: Customs and cargo safety outreach –

joint workshops, know-how transfer, capacity building• SME campaigns, channelled via local Chambers of Commerce

or Trade associations – Adopt easily standards for paperless trading incl. e-Customs

and e-Invoicing– SME benefits: reduce cost of entry into int’l supply chains– Low cost solutions: MS Office InfoPath, Navision / Axapta ERP

• Outreach to Solution Providers:– Joint seminars with UNECE for the IT solution industry– Opportunity for ISV‘s from Emerging markets: Web services

• Promotion and awareness: – “Trade enablement area” at major portals, eg. MS Office

Online– Drive customer case studies– Promote commercial solution offerings

UN/CEFACT 20

Conclusions

• Microsoft totally dependent on electronic trading

• We are committed to following approved international trade standards

• Incorporating own knowledge into our product offerings to our customers