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Global Business Blueprint (GBB) : Business Process Overview To The Trade Community
Global Business Blueprint (GBB) : Business Process Overview To The Trade Community
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Agenda
Opening Remarks .. 1:00 1:15 SAP Fundamentals 1:15 1:45 GBB Approach. 1:45 2:15 Break ..2:15 2:30
GBB Results .2:30 5:00 Integration Scenario (Designer Apparel Incorporated) Scenario & Supportive System Solution Process Improvement Opportunities Bureau of Customs and Border Protection (CBP) Issues being Addressed Business Benefits for the Trade Community
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Opening Remarks
CBP 2005-2009 Strategic Goals; Modernization Mission and Vision Commissioner Bonner has established the following prioritized strategic goals for the next five-year period: Preventing Terrorism Balancing Legitimate Trade and Travel with Security One Face at the Border Strengthening Our Control of the United States Borders Protecting America and its Citizens Modernizing and Managing
The U.S. Customs and Border Protection Modernization Mission and Vision:
is to build a dynamic CBP organization, enabled by information and technology to meet agency business expectations and thrive in the midst of tumultuous change. This new environment will build on robust technologies and global best practices with the capacity and flexibility to support future growth and changing business requirements in an ever-changing world.
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SAP Fundamentals
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Evolution of ERP
What is ERP?
Enterprise Resource Planning is a software solution that enables integration of various departments and functions across a company onto a single computer system that can serve all those different departments particular needs.
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SAP Benefits
Flexible: Configurable to meet business needs Real-time Validation: Updates information immediately in the system as the data is saved Provides direct access to current data and reports Reduces operation costs Audit Trail: All transactions can be tracked to the person entering or changing data Integrated: Data entry in one module is immediately available in others Eliminates duplication of data and increases data accuracy Increases the coordination between departments
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SAP at CBP:
Office of Finance
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SAP
Master Data
Transactions
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Reporting, Workflow, Case Management, etc * Configuration and Master Data must be set up to run Business Transactions
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SAP Components
CRM: Customer Relationship Management Communication Tools Business Partner SD: Sales & Distribution Sales Order Outbound Delivery Billing Foreign Trade GTS: Global Trade Services Foreign Trade Sanction Party List Denied Party List FI: Financial Accounting General Ledger Accounts Receivable Accounts Payable Special Ledgers IS-PS: Industry Solutions for the Public Sector Budgetary Ledger Postings Proprietary Ledger Postings
FI
SAP
R/3
MM WF IS-PS
SCM: Supply Chain Management Event Management Delivery Scheduling Demand Management
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Questions
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GBB: Purpose
Define an end-state integrated process vision for future technology which is a collection of documentation defining to be business processes and how CBP will use SAP and other technology applications and tools to perform these functions Define an integration approach leveraging current ACE technologies
Develop or refine existing program strategies, including project schedule, cost and implementation sequence
Define the baseline scope Provide updates to the ACE Program Plan
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GBB: Approach
Refined process flows as a result of GBB Business Process Decomposition: GBB started by performing
A breakdown of a business process to the subprocess level to obtain a high level understanding of the business process requirements, synergies with other common processes, and the key inputs and outputs.
FOCUS on What needs to be done, why it needs to be done, & who does it
Where we ended up was understanding the integrated processes and how they will work in the future end state Where we are now. . . Analysis has been completed within the team that reviewed the collected business processes and determined appropriate technical solutions for each business process.
FOCUS on how SAP or other technical components may be used to support CBP business processes in the future.
Confirm Model #1
February
March/April
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The following SAP Software Components have been initially identified as necessary to enable the business process scope.
Finance
FI G/L General Ledger FI A/R Accounts Receivable FI FM Funds Management ISPS-CD- Public Sector Collections & Disbursement Financial Reporting
CRM Customer Relationship Management SD Sales & Distribution GTS Global Trade Services EM Event Manager
GTS Global Trade Services CRM Customer Relationship Management SD Sales & Distribution MM Materials Management EM Event Manager
BI Reporting, Analysis
Post Release
SAP Technical
CRM Customer Relationship Management GTS Global Trade Services SD Sales & Distribution MM Materials Management EM Event Manager
Enterprise Portal
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Key Themes
The solution framework we will be walking through today is focused on the following themes:
GBB Combined People, Process, & Technology Perspective Process and Technical Integration Standardization / Commonality of Processes Data and Process Discipline Information Accuracy, Harmonization, and Accessibility Quality at the Source: Right Information Available to the Right People at the Right Time throughout the Process Building on ACE work done to date End-to-End solution showing one thread Trade Incorporates Best Business practices from the trade community Opportunity to re-engineer the Trade processes to fit within proposed CBP design Ensures the smooth flow of legitimate trade Reduces redundant information requirements Promotes uniformity among CBP ports Reduces reliance on paper processes Eliminates unnecessary processes Provides for incorporation of PGA requirements
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Auth Move
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Auth Move
ENFORCEMENT F I N A N C E - REVENUE & COLLECTIONS Other Legacy and Touch Point Systems Other Government Agency Systems Office of Finance - SAP Legal and Policy
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Incoming Documents
E-Manifest
GTS
CRM
Accounts Account Mgmt Case Mgmt Protest DTF Billing FI Rebates Tariff Rate Quota Drawback
R/3 Enterprise
= Data, Transaction, and Work Flows
Event Manager
Business Warehouse Portal
* See Appendix for definitions
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Integration Scenario
This Transaction scenario depicts the to be end-toend process for importing and exporting goods into and out of the commerce of the United States
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Integration Scenario
Designer Apparel Inc.
Designer Apparel, Inc. has been importing for three years and has decided to initiate an import venture of silk from Hong Kong from Wormer, Inc., a silk producing factory. There are manufacturing plants in the U.S. and Canada that will each receive portions of the shipments to be manufactured into the Evans fall 2004 Clothing Line. Designer Apparel, Inc. will send a portion of their imported cargo to a subsidiary company in England and claim drawback against the import entries. Additionally, Designer Apparel wants to use a new Broker, Hall Brokerage.
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Account Validation
Step 7: ACE validates that The address is correct and within the accepted format, A duplicate account is not entered by verifying that the combination of Broker EIN number and address does not exist Step 8: ACE account activation and notification sent After all validations and verifications have passed, a notification is sent to Sara Combs at Hall Brokerage that the ACE account has been created and is provided an ACE Broker account, user ID, and password
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Account Management
Designer Apparel has expanded their line of business to accessories by acquiring a new subsidiary, Accessories Etc Company. Now that Mark has an ACE user ID, he would like to update the Designer Apparel account with new information Step 10: Mark Porter logs onto ACE using his ACE user ID and password to maintain the Designer Apparel account Mark searches for the Designer Apparel account using his Importer of Record number The Designer Apparel account number is a uniquely generated by SAP and is different than the Importer of Record (IR) number; however, the IR number is an attribute of the account
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Account Management
Step 11: Within the Designer Apparel account, Mark Porter has the authority to: Maintain Designer Apparel, Inc.s name, address, and updates his new contact information within the account. Assigns user access rights to specific account information to those individuals involved with the Designer Apparel, Inc. account. Grants access to his Brokers: Hall Brokerage (existing CBP account) Grants access to his Carriers: Sunkist Ocean Liners (existing CBP account) Grants access to his Surety (existing CBP account) Maintain Designer Apparel, Inc. account structure by linking existing Importer of Record (IR) numbers of newly acquired Accessories Etc Company.
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Account Management
Step 12: ACE validates updated/changed data Once the account information is updated and changed by Mark, ACE will validate the data
Step 13: Notification After all validations are passed, a notification is sent to Mark and the account manager that the ACE account has been updated
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Account Management
Process Improvements Mistake-proofing the account creation and maintenance processes through the use of SAP CRM account data edit checking and portal technologies. Ensuring account data is set up properly up-front in the process reduces the number of times the account data is handled during routine maintenance, as well as daily in the field.
Elimination of duplicate account entries and centralized account data, affording full visibility to accounts; better decision support in the field and at HQ
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Account Management
CBP Issues Being Addressed Creating an account for every entity that does business with CBP Maintaining centralized data Requiring accurate account data up-front Eliminating the port-generated ID ACE-generated unique identifier
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Account Management
Business Benefits to the Trade Community Use of current and consistent technology enablers Access to ACE with a single user ID and relevant security permissions Access to CBP forms & communications according to need Uniform account view for both CBP, account, and authorized government agencies Access to historical and transactional information Centralized account updates, rather than port-by-port Visibility to special instructions for trade community from CBP headquarters Improved and streamlined communication with CBP, PGAs
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Step 14: Fred, working for Sunkist Ocean Liners, submits the Manifest Information manifest data via EDI Available
Real Time Report
A list of the separate items of merchandise being transported by the carrier Includes both trip and shipment data twenty-four hours in advance of lading in Hong Kong Includes in-bond data for the 6 containers (900 rolls) of goods being exported to Canada, filed as part of the MultiModal Manifest data filed twenty-four hours prior to lading The silk shipment is expected to arrive in San Francisco from Hong Kong in twenty working days after departure.
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Step 17: Following the successful correlation, ACE indicates two containers require further review.
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Quota Information
Real Time Report
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Step 25: The containers are processed via the mobile VACIS and the findings are recorded. The first container (shipment) is released. The second container requires further examination: Route to CES for further examination
Step 26: CBP officer informs carrier (electronically) that container 2 is required at a local CES.
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Move Status
Step 28: Once container 2 arrives at the CES, the CBP officer performs the examination and releases the container. Meanwhile . . . Back at the pier. . .
Step 29: The remaining 9 containers have been released upon arrival
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Step 30: CBP receives in-bond (T&E) initiation message from the carrier once the freight is in possession.
Step 31: 25 days has elapsed and the in-bond cargo has not arrived in Blaine. The system automatically notifies the carrier that 5 days remain to complete the authorized movement.
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Manage Release
Process Improvements Better security due to improved conveyance and equipment tracking Improved data accuracy - the manifest information is filed only once, electronically. (This does not imply that changes cannot be processed) All import and export manifests will use the same format for filing of data (Multi-Modal Manifest). This will ease operational complexities for both the trade community and CBP. A more tightly integrated process from pre-arrival through release. Maintaining certificates electronically will greatly reduce the need for paper and manual verification which facilitates reduced cycle times for release processing Better tracking and visibility of all warehouse transactions/movements Common verification process for all transport modes
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Manage Release
CBP Issues Being Addressed Developing a common manifest document for import and export Matching the entry to the corresponding manifest item to secure release of the merchandise Tracking and status for Authorized Movements (including Delivery Tickets and PTT) Requiring advanced manifest data which will include information about the cargo, conveyance, individuals and equipment in compliance with the Trade Act of 2002 Handling User fees in ACE Developing a mitigation strategy for the accumulation of transaction data for shipments that never arrive Reviewing regulations which address the automation of the zone admission process
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Manage Release
Business Benefits to the Trade Community Common processes and new technology for all modes of transport Integration of the Import & Export processes Greater visibility of data for Trade & PGAs ACE will be the one system that will support the life cycle of a shipment within CBP Automation of Entrance & Clearance process Elimination of paper documents Improve data accuracy for intermodal moves Improve ease of use by utilizing Web Portal and/or EDI Increased uniformity of CBP processes between ports Faster processing and releasing of cargo Master/House bill processing will be common to all modes Opportunity to re-engineer trade processes to fit within proposed CBP design
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Accounts Receivable / Revenue is recognized and posted to the general ledger accounts
Step 34: Subsequent to the successful verification of the entry summary (7501) or certified at entry (3461), SAP billing process is initiated, accounts receivable is recognized.
Step 35: During the month, the importer / broker logs onto the ACE portal to review their outstanding accounts receivable(s). The importer / broker verifies the entry summaries / accounts receivables that will appear on periodic statements and / or bills.
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Manage Finance
Process Improvements Refunds / Payments SAP to act as single source for all refunds / payments to the trade community for both check and EFT payments routed through Treasury Bond Sufficiency real-time direct relationship between entry summary IR and associated bond sufficiency for given IR Liquidate and Master File Extract / FOIA Requests manual process reduction and query development reduced with all requisite data stored within ACE
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Manage Finance
CBP Issues Being Addressed Assess bond sufficiency formula Allowable participation for end-state periodic statement processing and / or other payment types beyond daily statements Netting of receivables / refunds on same statement
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Manage Finance
Business Benefits to the Trade Community Periodic Monthly Statement Increased monetary float All inclusive (goal, pending policy change) Reduced number of payments Reduction of refund number not amount Real-time check on bond sufficiency Electronic Bond Transparency of all receivable types to view amount due to CBP at any given time Increased use of electronic funds transfers and report distribution Description for each transaction on the statement. Each transaction uniquely identified.
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Step 40: ACE determines whether entry summary 1987234113 (for the 4 containers) should be bypassed.
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Step 43: George uses the tools available in BW (Business Warehouse) to do a trend analysis of Designer Apparel Inc. buying patterns and detects that their prices are lower than market value. Step 44: George notifies the account via a CF-29 that he is proposing to add to the appraised value of all the open entries of Designer Apparel, Inc. The system automatically extends all Designer Apparel, Inc. open entries with the same characteristics. Step 45: Designer Apparel Inc. provides further clarification but Import Specialist Curious is not satisfied
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Process Protest
Protest Report
Step 50: As soon as the entry summaries are liquidated, Designer Apparel, Inc. files an electronic protest on all the entry summaries. The protest includes various data elements including the value the importer believes is the correct value. ACE uses those data elements to fill in the protest fields. The new e-protest will include all the data elements needed to process protests electronically.
Step 51: The protest includes additional value information not available when the entry summary was appraised.
Step 52: Import Specialist Curious reviews the additional information and agrees in part with the importer. He decides on a new value that is less than the appraised value he had originally decided but more than the entered value.
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Process Protest
Step 53: The importer did not file for Application for Further Review so the protest does not have to go to Headquarters. He inputs the new value and uses workflow to route the protest to the Supervisory Import Specialist to approve. After approval, ACE calculates the new extended value and the new duties.
Step 54: A notification is sent to the protest filer and the surety
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Step 56: Since Designer Apparel pays via ACH debit, the payable due will be remitted as an ACH debit adjustment during the next statement / bill cycle.
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Managing Compliance
Step 57: The CBP Account Manager for Designer Apparel, Julie Johnson, executes the compliance report for Designer Apparel. Account Manager reviews the status of Designer Apparel, Inc. Account Manager analyzes Designer Apparel, Inc. and runs compliance reports Compliance Account Manager analyzes Designer Apparel, Inc. transactions
Real Time Report
Step 58: Mark Porter at Designer Apparel, Inc. is notified by Julie that Designer Apparel is having classification problems. Mark logs into ACE to view compliance report. Mark researches Designer Apparel, Inc. transactions within ACE to investigate compliance issues.
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Managing Compliance
Step 59: Mark Porter works with the Account Manager to add an item to their Action Plan and the agreed upon action is placed within the Account information in ACE for visibility.
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Step 66: Virgin Atlantic departs and the departure message is sent to CBP.
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Drawback Claim
Designer Apparel files a drawback claim based on the export of cargo to England.
Step 67: The importer provides the necessary information on the drawback claim (referenced to the entry summary as well as the proof of export). Note: The classification of the goods on the import entry was 5007.10.60 and the classification of the exported goods was 5007.10.60. The importer also provided the average duty per unit of the line item on the entry summary and the average duty per unit of the exported item determined by applying the duty rates on the designated entry summary to the value and quantity of the exported item Step 68: The original entry exists and the monies are available. Step 69: The drawback claim is approved and CBP issues the drawback to Designer Apparel.
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Integration and automation between entry and receivables will minimize handling costs of the transaction and create the visibility of an accounts balance and integrity of the data
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Appendix
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Glossary
BW (Business Information Warehouse) is SAPs data warehouse and business intelligence solution for reporting, decision support, analysis and data mining. It will enable CBP to access and analyze combined historical data from GTS, CRM, R/3 and non-SAP applications. Master data (like account, HTS, DTF) and transaction level data (entry/entry summary, authorized movements, quota, AD/CVD etc) will be extracted from the SAP solutions to provide both operational and analytical reporting to support the Cargo Management Lifecycle. COTS Acronym for Commercial Off the Shelf product and is used to describe SAP. CRM - (Customer Relationship Management) enables key processes in Account Management, Release, and Post Release. It incorporates CBPs integrated processes into CRM and will automate core business operations across all account touch points, for primary processes like; Entry/Entry Summary, Quota, DTF (CRM Sales), Account Management (CRM Business Partners), Trend analysis (CRM Marketing), and Case Management, Verification (CRM Service).
DTF Duties, Taxes, and Fees ERP Enterprise Resource Planning. A packaged system that offers a single interface for performing major company transactions. GTS - (Global Trade Services) is an international trade compliance solution that provides import and export control functionality for screening legal responsibilities, business partners and trade documents. Key processes for GTS automation include: processing the in bound manifest, entry and authorized movement documents. The correlation of trade data for checking for licenses, permits, certificates and integrated admissibility screening prior to release. GUI Acronym for Graphical User Interface.
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Glossary (continued)
HTS Harmonized Tariff Schedule MID Manufacturer Identification number mySAP Business Suite A series of packaged SAP modules and New Dimension Products developed by SAP. New Dimension Products Series of products developed by SAP in the mid-Nineties. Portal One entry point for various system applications including ERP systems as well as legacy systems. R/3 - Enterprise handles Billing, Inventory Management and Finance. All of the SAP solutions listed above are born out of SAP R/3. Any sales document created in the GTS/CRM system will be replicated into R/3 so that process in Billing, Statement Processing, and Finance can be executed. Master data like Account Data will be replicated to R/3 while data like HTS and DTF will be maintained in R/3 and replicated to the appropriate systems real-time. SAP Acronym for Systems, Applications, and Products in Data Processing. It is an enterprise resource planning (ERP) system. Transaction Code Shortcuts that take you directly into the SAP R/3 screen that begins a particular transaction. Workflow - Functionality of routing tasks and approvals through SAP.
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Glossary (continued)
SAP Federal Clients:
Bureau of Engraving & Printing DLA: Defense Logistics Agency DOD: Department of Defense Enterprise Software Initiative GSA: General Services Administration IRS: Internal Revenue Service NASA: National Aeronautics and Space Administration NAVAIR: Naval Air Command NAVSEA: Naval Sea Systems Command NAVSUP: Naval Supply Command NAVY Moral Welfare & Recreation Oakridge National Lab Picatinny Arsenal SPAWAR: Space and Naval Warfare Command SPR: Strategic Petroleum Reserve UNICOR: Federal Prison Industries, Inc U.S. Army (Logistics Modernization Project) USGS: U.S. Geological Survey
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