1. 3rd Executive Forum on Trade FacilitationPaperless Trade in International Supply Chains: Enhancing Efficiency and SecurityTechnology as Enabler of Innovation Geneva, 20 & 21 June 2005UN/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. 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

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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 * 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 UN/CEFACT