Community Research and Development Information Service - CORDIS

Periodic Report Summary 3 - CORE (Consistently Optimised Resilient Secure Global Supply-Chains)

Project Context and Objectives:
One of the basic requirements of Customs is for three essential pieces of information they need to have for risk analysis: (1) the names of the true buyer and seller, (2) the accurate description of the goods and (3) the country of origin. However, in many cases accurate information on “Who” actually owns the goods and “Who” are they being sold to is missing as Consignor and Consignee can be shown as the consolidator and the de-consolidator who, sometimes are just two branches of the same company. This is useless for risk assessment as it does not identify the buyer, the seller or the country of origin. The same is true for “What” actually is in the box (too many descriptions are incomplete or false). This is not surprising: carriers do not know what boxes contain – in many cases they have to submit the ENS days before the Export Manifest and the Bill of Lading are produced.
If Customs had better Quality of data they would have better risk analysis, better risk management and therefore improved efficiency in the deployment of resources which would be concentrated in the deterrence of illegal trade and not in delaying legitimate trade.
For trade too, better Quality of data would lead to improved accuracy of ETAs, reduced delays both in Customs inspections and on route and consequent reductions in Lead Times, transaction costs and capital tied up in stock.
To improve the Quality of the data, CORE is developing secure mechanisms to collect and distribute information which are inexpensive and, even more importantly provide collateral benefits, so that industry is eager to implement them for their own sake. Providing information to Customs will then be a by-product, though a very important by-product.
If we manage to produce early, accurate and complete data then, the different border agencies will be able to align their controls and formalities and we will be able to achieve Coordinated Border Management, and we will also be able to transition from the present transaction-based supervision to system-based supervision where the focal point of assessment is no longer the transactions and the paperwork but the system of controls which generates the transactions.
For efficient data collection and distribution, we need to reduce the friction costs that hamper the transmission of data and therefore CORE is creating mechanisms for seamless interoperability in the exchange of data in B2B, B2G and G2G.
As we are already moving into Year 4 of the project, quite a lot of these functionalities are already developed and deployed and showing practical benefits in demonstrators throughout Europe and the US. For instance, in Felixstowe, 4 data pipelines are already in place which have already collected 5,000 files from 97 companies covering 3 modes of transport – sea, air and road and including intra-EU information which provided extra insight. The results were evaluated by a team of 60 stakeholders from 12 UK border agencies who concluded the following: pipeline data comes earlier and it is of better quality, more precise than previously, and with a lot more detail, for instance on routes inside and outside the EU. The better quality of the data allows better risk analysis, better risk management and therefore improved efficiency in the deployment of resources, allowing resources to be deployed in the deterrence of illegal trade and not in delaying legitimate trade. It can even lead to the creation of green lanes and a move towards system-based supervision
For trade, one of the great benefits of CORE is overall visibility of the whole supply-chain, which will lead to improved accuracy of ETAs, reduced delays both in Customs inspections and on route and the consequent reduction in transaction costs and capital tied up in stock. The other great benefit is resilience which again will reduce time for recovery as well as the costs caused by incidents and therefore increase profits

Project Results:
• Requirements Analysis and Impact Assessment
The analysis covered a comprehensive depiction on theory, practice and context of modern supply chain security and on all the themes that the CORE project and its demonstrations seek to address.
SC Stakeholder Requirements
A detailed design for a Localisation and tracking solution focusing on the intermodal transport of Dangerous Goods has been finalised.
Multi-method Threat & Vulnerability Analysis (MTVA)
A list of threat and vulnerability analysis methods and associated configurable and interconnected “MTVA Suit of Services” has been implemented.
SC Situational Awareness Tools & Maps (SSATM)
A first version of the Supply Chain Data Model has been developed. A Cyber Situation Awareness architecture have been designed and developed.
Real-time Lean Agile Resilient Green Optimised (LARG+O) SC
The final version of Optimisation Interoperability Services and APIs that are the enabling technology for the interoperability among the external systems and the LARG+O systems was completed
SCS Reference Framework and Standards
An initial Public-Private Governance Model (PPGM) was developed. A classification and taxonomy for risks associated with different types of goods depending on the mode of transport was produced. An initial version of SCSRF was produced.
CORE Connectivity Infrastructure and Solutions Development
The Connectivity Infrastructure, together with associated standards, provides input to the EC DG Move Digital Transport and Logistics Forum (DTLF).
CORE Ecosystem
The technical components and solutions that underpin the CORE Ecosystem have been detailed.
EU-US Analysis and Testing of a Secure Hybrid Composite Container
The process of the installation of sensors and data collection devices which monitor the structural and environmental performance of the fibre-reinforced, TEU-type shipping container prototype has been documented
P&G Demonstrator
The P&G Ariel Pods US-EU tradelane, plus 5 GDM tradelanes have been identified and analysed.
Felixstowe Demonstrator
Four pipelines are operational and commercially successful (Warrant Group, Metro Shipping, Uniserve and Descartes with BAP Logistics).

Schipol Demonstrator
The Connectivity infrastructure, Business and Customs Dashboards are in place leading to improved insight into future improvement scenarios related to Coordinated Border Management.
Belgium Demonstrator
The Living Lab solutions configuration was made operational. ICT measures that can be used to support both logistics as well as security concerns on long-range rail transportation of sensitive goods have been defined.
FALACUS Demonstrator
Security threats and risk indexes in ST2SP (Secure Transport Terminal Services Publishing) have been included. The NGSS demonstration has been prepared.
BSH Demonstrator
System development of BSH simplified transit declaration and a dashboard for the Global Supply Chain Visibility Tool have been achieved.
Intermodal transport of dangerous goods demonstrator
The solution, definition of the system architecture/elements and relevant interfaces and high-level design shave been specified and developed.
DHL Demonstrator
Modelling and simulation indicated that there is 85% probability chance that 1 set of ICECUBE would be sufficient to cover the entire trade lane.
A website, an Information Observatory, several articles, press releases, presentations and scientific papers have been published. A video explaining the benefits of CORE has been released.
Stakeholder Engagement Diffusion and Sustainable Development
The Exploitation Manager in collaboration with the Exploitation Committee has drafted and will maintain an evolving Exploitation Strategy.
Large Scale Demonstrator
The technology has been tested with several shipments, including shipments from Africa to Europe. A trade lane going from France to The Netherlands and ending up in USA has been established and a major shipper from France has been engaged.

Potential Impact:
CORE will demonstrate how a powerful and innovative Consistently Optimised REsilient ecosystem implementation, integrating interoperability, security, resilience and real-time optimisation can produce cost effective, fast and robust solutions that will guarantee the efficient and secure transit of goods through the worldwide Global Supply Chain system.
CORE will show how protecting and securing the Global Supply Chain, and reducing its vulnerability to disruption (whether caused by natural disasters, terrorism or other forms of undesirable or illegal activity), can be done while guaranteeing the promotion of a timely and efficient flow of legitimate commerce through the European Union (EU) and other nations around the world. CORE will demonstrate that this can be done while at the same time offering tangible benefits to involved stakeholders (transaction, transport, regulatory and financial operators), thus facilitating its adoption by commercial entities.
Using CORE’s real-time optimisation tools, security and tracking data will be integrated into supply chain operations whilst ensuring that process efficiency is improved and the environmental impact (including CO2 emissions) reduced. CORE will offer solutions that cover all levels of time granularity, ranging from strategic models to dynamic daily plans to real-time fast reacting scheduling and optimisation tools. These will guarantee that operators can create resilient contingency plans and be able to react in real-time to unexpected major events in a fast and cost-effective way, avoiding serious economic collapse.
CORE will address in an integrated and stakeholder-friendly way three main areas:
1. End-to-end Supply Chain Security fostering standardisation, harmonisation and mutual recognition;
2. Controlled global visibility of security risks and other supply chain threats and their impact on supply chain flows around the world;
3. Real-time Lean Agile Resilient Green Optimised supply chain solutions offering a highly innovative approach to designing supply chains resilient (in real-time) to major disturbances caused by high impact events
Furthermore the results of CORE will help the EU (and other countries) introduce changes to Customs policy which strike a balance between public and business interests, within reasonable regulatory constraints. The vision of changing Customs reporting procedures “from push to pull” using secure data pipelines for the whole value and transport chain has already started in a number of previous EU-funded projects. CORE will demonstrate this approach in a broader dimension addressing security and supply chain optimisation. CORE will generate a security and SC resilience ecosystem which will operate in an international context and support the implementation of the various EU security and information management policies and directives, with evolving international regulations and standards, including collaborations models with the US and other nations all over the world. CORE’s Supply Chain Security Reference Model (SCSRF) will be flexible and powerful enough to establish the basis for standardisation of secure transport & logistics as part of an integrated framework of trusted worldwide networks. In summary, the CORE Ecosystem will offer a distributed adaptive open sociotechnical system, with properties of self-organisation, scalability and sustainability, inspired by natural ecosystems, including data, knowledge, best practices and services that can be plugged in to existing IT systems with minimum effort yielding maximum benefits in terms of enhanced security, resilience and efficiency.

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