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Less and Better Data to build Trust and Efficiency

Less and Better Data to build Trust and Efficiency. Pioneering Paperless Trade: The way covered and the way ahead Experience of DAKOSY/Germany UN/CEFACT Executive Forum Geneva , 20-21 st June 2005. Who we are …. Name: DAKOSY Datenkommunikationssystem AG

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Less and Better Data to build Trust and Efficiency

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  1. Less and Better Data to build Trust and Efficiency Pioneering Paperless Trade: The way covered and the way ahead Experience of DAKOSY/Germany UN/CEFACT Executive Forum Geneva , 20-21st June 2005

  2. Who we are … Name: DAKOSY Datenkommunikationssystem AG Board: Mr. Dieter Spark, Mr. Ulrich Wrage Employees: 88 and 5 trainees Capital: 1,53 mio. Euro Turnover 2004: 10,5 mio. Euro Service times: 24 hours / day 7 days / week Shareholder: 33,33 % DHU = terminals 33,33 % DIHLA = lineragents 33,33 % DIHS = forwardingagents

  3. …and what we do Start • EDI-Services alongside the whole Transport Chain Shipper / Supplier / Factory Hinterland- transport Forwarder End Authorities, Customs, Police Consignee / DC / Buyer Stevedore / Terminal Hinterland- Transport Oversea Carrier Stevedore / Terminal Authorities, Customs, Police Forwarder

  4. …and what we do DAKOSY offers today... • EDI Services, • ASP Services, • Internet Services and • IT Services ... for more than 1.370 clients

  5. Background/Business Drivers • In 1981 4 major groups working within the Port of Hamburg (Forwarder, Liner Agent, Tally and Quay Operator) decided to set up a Port – Communication – System • The main target: Speed up the flow of information! • The main problems: • No standards available! • Hardly no software available with inbuild EDI-function • The challenge: Reducing the vision, concentrate on a small number of business cases to start with

  6. Project Phases and Evolution • Phase 1: Port-Communication-System for Seaport Forwarder, Tally, Liner Agent and Quay Operator only • Phase 2: From a mere EDI-Clearing-Center to a Systemhouse Applications and IT-Services for the transport sector • Phase 3: Neutral Platform The public sector orders IT-infrastructure (Dangerous Cargo, Harbour Rail) • Phase 4: “DAKOSY leaves the Port” and offers EDI- and IT-Services alongside the whole Transport Chain (cross border) • Future: Bank, Insurance, …

  7. Project Phases and Evolution 3.5 mio transactions per day

  8. EDP - Centre ASP SW-Licence EDI Outsourcing User Community and Services ZODIAK Global Connect Authorities Customs 850 Forwarder EDI HABIS 200 Shipper/Supplier/Factory ZAPP 36 Terminals GEGIS UNIKAT 22 Rail Operator ACTION TRUCK 25 Container-Trucker Airlines 70 Ocean Carrier / Liner Agents Figures of May 2005

  9. The Business Model • Shareholders to pay a yearly fee for the so called „traditionell EDI-Business within the port - community“ • Each participant has to sign a contract with one of the shareholders and has to pay to them for the usage of the EDI-Network of DAKOSY • Additional services of DAKOSY (EDI, ASP and IT- Services) are charged by DAKOSY directly (e.g. per transaction)

  10. Financing Development and Maintenance • Initial invest: DM 2.000,000.- • Average cost per transaction: Depending on complexity between € 0.01 and € 1.00 • Some services are mandatory (Dangerous Cargo Movement Control, Customs Export Control) • Our shareholder get their share indirectly (by reselling our services) • The money we earn we spend on Maintenance and Development!

  11. Standards • Problem of the “early bird”: We had to create our own standards (syntax and content)! • With the framework of EDIFACT live became easier! • XML – beloved by Newcomers in the EDI-Business – can still not compete with the existing “message library of EDIFACT” • Trend: Focus on content and not on syntax! • In future first the core components are to be defined! • Messages are build on those core components… • and only at the end lays the decision for the syntax !

  12. What are the Benefits? No double input Reusage of data Exporter / Importer Data Quality Forwarder Saved Time and Money Intermodal Transport Efficiency Customs / Authorities Statusinformation Terminal Operator Other Visibility Control Single Window with ASP- and EDI-Conversion-Services: Barrier-free access for small and medium enterprises

  13. Integration of paper, application and EDI to one process, based on standards ( ) paperflow and EDI Business Logic in cooperation with ADOBE Systems Key Trends • Low-level entrance, e.g. at DAKOSY  eDocs eDocs

  14. Forwarder (EDI-capable) eDoc - Services eDoc eDoc B/L preview B/L preview eDoc EDI Forwarder (without EDI) B/L interface Key Trends  Low-Level Entry to the World of EDI! DAKOSY EDI- Services EDI EDI Carrier

  15. The Top 5 Crucial Success Factors… and Lessons Learned Success Factors? • To hit the spot at the right time meeting real pioneer spirit! • Neutrality! • Easy to use! …and Lessons learned…. • 90 % Talking, 10 % Doing • Forget the mission! • Keep it simple and cheap • “Eat the elephant piece by piece”

  16. To make paperless trade happen we need to.. • harmonize standards, messages, rules, procedures. • build up a “core component library”. • ban the “red stamp” in favor of the electronic signature! • learn from the EU and their Customs Procedure NCTS!!

  17. Thank you Evelyn Eggers Manager Sales Department eggers@dakosy.de

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