international federation of freight forwarders association (fiata

Version: 19 March 2012

International Federation of Freight Forwarders Asso ciation (FIATA)

Request for Expressions of Interest (EOI)

For the development of a system which entails the d igitalization of the FIATA Bill of Lading and Supporting FIATA Documents

Part A: Overview and Objectives 1. Introduction The International Federation of Freight Forwarders Association (FIATA) invites suitable interested parties to submit Expressions of Interest (EoI) to assist with the development of a system that allows the transfer of digitalized FIATA documents to members of the freight forwarding community all over the world. The objectives of this EoI are set out in section 4. In brief, we are seeking an experienced IT provider, preferably an organization that has past experience in the freight forwarding and logistics industry, to develop a platform that allows for the exchange of electronic FIATA documents, more specifically the FIATA Bill of Lading, to members all over the world. The general outline of this invitation is designed to elicit innovative and imaginative approaches as to how such a system is to be developed. We give proponents the opportunity to layout the steps they will undergo in order to develop our platform and explain their advantages to the FIATA Presidency for decision. This EoI invites Expression of Interest from small to large innovative IT Providers. We need IT Providers with imaginative, innovative and sound business ideas. We expect proponents to see opportunities in the approach suggested in this initiative and seek to improve it from a technical standpoint. FIATA will examine each proposal in great detail using evaluation criteria outlined in attachment 2. FIATA will inform all proponents of their outcome once all applications have been evaluated and the successful proponent has chosen to pursue the project. The Expression of Interest must be received by the FIATA Secretariat no later than 15 May at 17:30 CET (Central Eastern Time). 2. FIATA’s Background FIATA is a non-governmental organization founded in 1926 which represents an industry covering approximately 40,000 forwarding and logistics firms employing approximately 8 - 10 million people in 150 countries. FIATA has consultative status with the Economic and Social Council (ECOSOC) of the United Nations (inter alia ECE, ESCAP, ESCWA), the United Nations Conference on Trade and Development (UNCTAD), and the UN Commission on International Trade Law (UNCITRAL). It is recognized as representing the freight forwarding industry by many other governmental organizations, governmental authorities, private international organizations in the field of transport such as the International Chamber of Commerce (ICC), the International Air Transport Association (IATA), the International Union of Railways (UIC), the International Road Transport Union (IRU), the World Customs Organization (WCO), the World Trade Organization (WTO) and many more. To give you an idea of the structure of our Association, FIATA is an International Association with members including National Association Members and Individual Members. FIATA represents the global industry as a whole encompassing National Associations as members. The National Associations who represent and protect the interests of the industry within their respective countries encompass individual members which are freight forwarding organizations conducting day to day operations in the industry. FIATA serves as the watchful eye of all participants in the freight forwarding industry.


3. FIATA Documents Freight Forwarders mostly design and print their own forwarding instruction forms, which have to be filled in by their clients. However, the instruction forms of the various freight forwarders are non-uniform. In the interest of uniformity and a common layout, FIATA has drafted numerous documents including the FIATA model for forwarding Instructions. Our forms are aligned to the UN layout key for trade documents, which aim to provide an international basis for the standardization of documents used in international trade. Since 1955, as part of a membership deal, FIATA has allowed its Associations Members to distribute FIATA documents to their Individual Members. Such FIATA documents include:

• FIATA Forwarders Certificate (FCR) • FIATA Forwarders Certificate of Transport (FCT) • FIATA Negotiable Multimodal Transport Bill of Lading (FBL) • FIATA Warehouse Receipt (FWR) • FIATA Shippers Declaration for the Transport of Dangerous Goods (SDT) • FIATA Non-Negotiable Multimodal Transport Waybill (FWB) • FIATA Shippers Intermodal Weight Certification (SIC)

In today’s industry, freight forwarders which are individual members can approach their National Associations and request to purchase FIATA documents. Once purchased, freight forwarders fill out the hard copy of the FIATA document and send it to their clients, agents or other relevant counterparts, such as banks, insurers, authorities and other stakeholders of the supply chain. FIATA is moving away from this type of process and wishes to develop a system which allows and facilitates the transfer of electronic documents from the freight forwarder to third parties as listed above. We seek to digitalize our documents and place them in a system for our members to utilize in an electronic environment. An analysis conducted in June 2011 revealed the importance of several key documents. Our analysis discovered that the FIATA Bill of Lading was the most commonly used document amongst our members. Other popular documents included the FIATA Non-Negotiable Multimodal Transport Way Bill (FWB) and the FIATA Freight Forwarders Certificate (FCR). For a visual description of FIATA documents, please visit Appendices A through G. 3.1 FIATA Bill of Lading (FBL) Focus The FIATA Bill of Lading (FBL) is the most popular document circulating throughout our industry. In simple terms, the FBL is a document issued by a freight forwarder acting as a contractual carrier to a shipper, acknowledging that specified goods have been received as cargo for conveyance to a named place for delivery to the consignee who is usually identified. It must be noted that the FBL can be issued to order and is in principle a negotiable document. For a visual of the FBL please refer to Appendix A. The FBL can be used as a traded object and evidences a contract outlining the carriage of goods. Such objectives of the FBL include:

� A valid contract of carriage that may incorporate the full terms between the consignor and the carrier by reference (Two forms exist: The first, short form, refers to the main contract as an existing document, whereas the second, long form of a bill of lading sets out all the terms of the contract of carriage.)

� It is a receipt signed by the freight forwarder acting as a contractual carrier confirming whether goods matching the contract description have been received in good condition

� It is also a document of title, being freely transferable by endorsement and in such case it is a negotiable instrument in the legal sense. It describes the legal aspects of carriage, and, like a cheque or other negotiable instruments, it may be endorsed to transfer the goods described on the face of the document. It binds the carrier to its terms, irrespectively of who the actual holder of the FBL and/or owner of the goods may be at a specific moment.

The FIATA Bill of Lading identifies the individual who is warranted possession of the goods at the time of delivery. In paper format Bills of Lading are normally issued in sets of three originals and X copies. The carrier delivers the cargo against presentation of the Bill of Lading and it is not necessary for the holder of the Bill of Lading to present the entire set of Bill of Ladings (the first being accomplished the others stand void). The carrier’s duty is to deliver goods to the first person who presents any one of the original Bills of Lading. Because of the number of original Bill of Ladings used, the Bill of Lading presents some opportunities for fraudsters to manipulate the commodity traded.


The FIATA Bill of Lading is prone to switching hands between parties. The last party who is holding the FBL is guaranteed possession of the goods at the time of delivery. A mechanism or function would have to be developed in order to track the FBL’s movement throughout the system and ensure that only the individual holding the FBL last is entitled to the goods. The development of a FIATA system involving the transfer of digital documents may reduce the number of original FBLs from three to one thus reducing hard copy fraud. It will be necessary to ensure that the industry is protected from a new type of fraud, such as hacking and/or online replication of original FBLs or illicit trading and forgery... In order to ensure the authenticity of the FBL we need to develop a system that would not allow hackers access to replicate or steal FBL documents in order to take ownership of the goods. 4. Objective FIATA seeks the development of a system that allows FIATA documents to be digitalized and transferred electronically amongst freight forwarders and their counterparts. The system may expect freight forwarders to log onto a system where FBLs are made available by FIATA through its Association Members all over the world, by single application or multiple applications. It would allow them to fill out FIATA documents online and send them (or make them available) electronically to their freight forwarding agent/client through the Supply Logistics Chain by the time the goods are to be received. FIATA will develop this system and license its use to our National Association Members. Our National Association Members will in turn license the use of the system to their individual members. 4.1 Different levels of Access We wish the system to have different access levels depending on the user. Level 1: Administrator FIATA Access FIATA will oversee the majority of activity on the system and be the only user to be given Level 1 access. At this level, FIATA will be able to access all sections of the system and will be able to monitor and track all user activity. FIATA will be able to track the number of documents sold by its National Association Members and can examine how to improve the system in respective countries. FIATA will retain the right to stop the ability to issue FIATA documents. Level 2: Association Members Access Level 2 will include only National Association Members. At this level, the Association will be granted a high level of access to the system’s functionality at national level only. They will be given the ability to grant access to their individual members and oversee all operations conducted by their Individual Members and if necessary to stop them. Level 3: Freight Forwarders Access Level 3 is reserved for freight forwarders. At this level, freight forwarders will go to their National Associations requesting access to the system. If granted they will be given access to a number of specific functions with the main function being the ability to purchase, send and receive FIATA documents. Level 4: Viewer’s Access Level 4 access will be given to viewers. At this level, viewers will be able to view the operations conducted in the system, but will not have access to any of the functions within the system. The viewer’s access level will entail tracking sent and received FIATA documents, but will not include the option to send or receive FIATA documents. Level 4 users are given a spectator role with ability to view the activity but not to participate in the operations of the system. Alternatively this function may also consist of merely verifying the existence of a FIATA document. 4.2 Proponents Long–Term involvements with FIATA Proponents choosing to pursue this Expression of Interest must be aware that they will be contracted on a long –term basis with FIATA. In addition to developing the FIATA system, the successful proponent will be required to provide maintenance and support throughout the lifetime of the FIATA system and to provide sufficient guarantees to ensure continuity (if appropriate through a form of insurance). The successful proponent will enter into a long-term relationship with FIATA and work to continuously update and develop technical improvements to the FIATA system. If you believe you are unable to provide such support we cannot encourage you to apply for this proposal.


5. Technical Requirements We expect proponents who choose to bid on this proposal to have a thorough understanding of the Electronic Data Interchange (EDI) standards when digitalizing documents. The EDI standards explain which elements or components of information are mandatory for a particular document, which are optional and which give the rules for the structure. The standards prescribe the formats, character sets, and data elements used in the exchange of business documents and forms. If Proponents wish to be considered for this project, we expect, at minimum, the proponents to have a thorough understanding of the standards listed below:

• The UN-recommended UN/EDIFACT which is the only international standard and is predominant outside of North America and as well predominant in life science and pharmaceutical industry.

• The US standard ANSI ASC X12 (X12) is predominant in North America. • The TRADACOMS standard developed by the ANA (Article Numbering Association) is predominant in

the UK retail industry. • The ODETTE standard used within the European automotive industry • ebXML, used by many Asian community systems e.g. Rosettanet, as well as by OASIS • WCO standards, such as WCO data model • ASYCUDA

The successful IT Provider will have a good understanding of these standards and provide the explanation on how the compatibility between FIATA documents and such standards is ensured. Proponents will be given the opportunity to display their knowledge of document standards in section 4 of attachment 2. 5.1 Security and Safety of the system In order to minimize fraud and ensure the safety of our users, we need to develop a system that gives FIATA the ability to identify all subsequent users in its systems. The security system must effectively ensure the protection of the distributed documents and help avoid fraudulent practices without saddling the user with cumbersome procedures. We require proponents to provide a clear explanation as to how safety and security will be incorporated within the FIATA system to help ensure security for all users. Proponents will be asked to provide a description of security and safety measures to be developed alongside the FIATA system. Please refer to Attachment 1. Part B: Evaluation Criteria and Terms and Condition s 6. Evaluation of Expressions of Interests Proponents are expected to provide at a minimum the items listed in Attachment 1 when submitting the Expression of Interest. 6.1 Selection Criteria We invite all Expressions of Interest from any organization that believe it can contribute to and benefit from this initiative. Expressions of Interest will be assessed by an evaluation panel according to the criteria outlined in Attachment 2. Failure to address the criteria may result in the Expression of Interests not being further considered.

7. Terms and Conditions outlining the Expression of Interests When submitting the Expression of Interests, proponent must agree to abide by the terms and conditions contained herein. 7.1 General Terms The publication of this Expression of Interest does not, in any way commit, or otherwise oblige FIATA to proceed with all or any part of a procurement process.


The Expression of Interest is not the subject of any process contract or any contractual obligations between FIATA and potential Proponents. FIATA can choose to abandon any part or the entire process without giving prior notice to the Proponents or potential Proponents. 7.2. Deadline for submitting Expressions of Interest Written Expressions of Interest will be received until 15 May 2012, CET (Central European Time) at 17:30 hours. 7.3 Delivery Method Expressions of Interest must be delivered electronically to all names listed in section 7.8. Please note that submissions must include all necessary documents or it will be automatically rejected by the evaluation panel. Please visit attachment 1 for a detail of all necessary documents. 7.4 Extension of Deadline FIATA reserves the right to extend the deadline in exceptional circumstances. Such extension will be communicated in writing. 7.5 Copies of Expression of Interest We require one copy of your Expression of Interest that shall be sent electronically. In case of multiple copies please note that the last copy you send FIATA before the deadline of submission will be the one to be evaluated by our panel. Previous copies will be deleted upon receipt of the following. 7.6 Late Expression of Interest Any Expression of Interest that is received after the deadline will be deemed to be late. FIATA will not accept it. 7.7 Communication with Proponents FIATA reserves the right to engage in any clarification of any matter related to submitted EoIs. Proponents will not be permitted to provide additional information that could materially alter the EoI. Proponents are therefore advised to ensure that their case is fully and adequately stated in the EoI. Any request for clarification on FIATA’s part should not be taken as an indication that a Proponent will or will not be successful. All contacts will be strictly confidential. Proponents who fail to maintain confidentiality about such contacts may be excluded from further consideration. 7.8 Proponents’ Requests for Further Information reg arding the Expression of Interest All requests for further information regarding the EoI must be sent by email directly to all three of FIATA’s Contact Officers nominated below: Daniel Bloch Manager of AFI at FIATA Email: [email protected] Bassil Eid Project Manager at FIATA Email: [email protected] Marco Sorgetti Director General of FIATA Email: [email protected]


7.9. FIATA’s Further Information Policy Answers to requests for further information will be sent through email. Important information provided to one Proponent may be provided to all potential Proponents. FIATA will be the only judge as to what constitutes important information and if such information should be distributed to all potential proponents. Potential Proponents should note that FIATA would like to be aware of your participation if you choose to engage in this tender. Proponent’s contact details should be made available to FIATA. If contact has not been established Potential Proponents should contact FIATA after downloading and reading all Expression of Interest documents. If deciding to participate in this tender please relay your contact details to all names state in section 7.8. If a potential proponent does not provide these details to FIATA, we take no responsibility for failure to distribute any updated information. Proponents should note that confidentiality of information provided to FIATA will be taken into consideration when distributing further information. 8.0. Requests from Proponents on the Status of the Eva luation Process FIATA will not accept or respond to Proponents requesting information on the status and progress of their EoI. All Proponents will be informed in writing of the outcome of the EoI process at its conclusion. 8.1 Ownership of Expression of Interest Documents All Expressions of Interest documents will become the property of FIATA. In submitting the EoI the proponent is agreeing to allow FIATA to use the concepts proposed in the EoI with no amount to be payable to that respective proponent’s EoI. If the Proponent believes that information provided in the EoI:

• is, or should be, confidential; or • disclosure of this information would unreasonably affect the Proponent’s personal privacy and business

affairs

Notice is to be given at the time of delivery declaring such information to be ‘confidential’. If notice is given, FIATA will abide to the Proponent’s stated wishes. 8.2 No Contract between Proponents and FIATA FIATA is not bound contractually or in any other way to any Proponent’s Proposal. FIATA is not liable for any costs of compensation in relation to the consideration of the Expression of Interest. Nothing in the Expression of Interest constitutes a contract with the FIATA. FIATA intends that no agreement will be formed by the mere submission of the Expression of Interest. 8.3 Further Consideration of Short listed Proposals FIATA reserves the right to further investigate shortlisted proposals as appropriate and check the commercial information or references that are made available by the Proponent. 8.4 Consortium submitting Expression of Interests FIATA does not accept expressions of interest submitted by a consortium, but may accept EoI submitted by a party who is assisted by a number of named sub-contractors. 8.5 Involvement of other Organizations Proponents must provide the names and addresses of any other organization(s) which may be used to perform part of the proposed solution in developing the FIATA system. 8.6 Language of Proposals All Expressions of Interests and supporting material must be in English 8.7 Applicable Law All aspects of the relationship between FIATA and the Proponents that are not covered by this document will be governed the Swiss Law, as applicable in Canton Zurich.


8.8 Length of Offers Any offers given to a proponent will remain open for 20 days after the offer has been made. After 20 calendar days FIATA will be free to approach another proponent on the assumption that the original proponent is unable to proceed. 8.9 Preparation of Expression of Interest Expressions of Interest are made on the basis that each Proponent acknowledges that:

In the event that the nominated representative is not contactable at the email address provided, or does not timely respond to its mails (no reply in 48 hours), FIATA may choose not to proceed with consideration of that EoI. If a Proponent should find any errors in the Expression of Interest documents, FIATA should be notified as soon as possible before the deadline for submitting the Expression of Interests. 8.10 Conflict of Interest In the preparation of an EoI, no Proponent may:

- Have personal interest in mind that may affect its role in the development of the FIATA System - Have direct family connections with FIATA’s employees, directors or Members of the Board - Be directly or indirectly employed by any of FIATA’s members.

9.0 Evaluation and Selection of Expression of Interest Proponents are advised that detailed responses for each element contained in Attachment 2 will be assessed for overall best effectiveness. FIATA reserves the right to set priorities and weigh the assessment criteria or vary those priorities or weighting at its absolute discretion. FIATA reserves the right to make available to advisers and third parties a copy of any Proponent’s Expression of Interest or part of the Expression of Interest for evaluation purposes only. Proponents may be shortlisted and contacted in order to provide examples of past projects and solutions for the FIATA System. Upon request, FIATA may interview key personnel of customer(s) for whom the Proponent has previously carried out work to assess the similarity of the work to FIATA’s requirements and to obtain independent assessments of the Proponent’s performance. FIATA may accept all or part of an Expression of Interest, or may accept none of the Expression of Interest.

• The Expression of Interest specifies FIATA’s rights in respect of the Expression of Interest. The Proponent agrees that FIATA may exercise its rights set out in the Expression of Interest

• The proponent is to nominate a representative who will be responsible for: o Preparation and submission of the Expression of Interest; o Any subsequent discussions; o Any other action or response in relation to this Expression of Interest;

• FIATA is not responsible for any costs or expenses incurred by the Proponent or any other person in responding to the expression of interest.

• The proponent will comply with the rules set out in this Expression of Interest.


ATTACHMENT 1 EXPRESSION OF INTEREST FORMAT

Expressions of Interest not submitted in this format may be rejected. The whole Expression of Interest should be no more than 20 pages long (including attachments 1).

1. Summary and Contact Information: Name of Proponent ’s Organiza tion: Name of Contact Person for this Proposal: Address of Organisation : Phone: Email Contact:

2. Organizational Profile: In a separate document, please provide a brief description of the organization. Please include the following information:

(1) Mandate, Mission or Vision statement. (2) Legal status, and year and country of incorporation (3) Constituency / history (4) Partnerships with other organisation and IT companies

This information will help FIATA identify the future working relationship between us and the successful proponent. 3. Describe your experience in the Freight Forwardi ng or Logistic s Industry In a separate document, please describe any previous experience you may have working with a freight forwarding or logistic firm developing technical platforms. If you are legally able, we ask you specify,

1. The name of the firm(s) 2. Small description 3. The details of the project(s) 4. Project Result(s)

4. Technical Capacity and Development Plan : In a separate document, please provide a brief description of the technical capacity and capability of your organization, as relevant to areas of focus of this Expression of Interest. Describe the technical skills and experience that the organization has available in house that can support implementation of this project. Describe your approach as to how you seek to develop the FIATA system. Outline your preferred coding language. Will you develop through access from an online browser or downloadable software? What are your plans to ensure a secure and safe system for our users? What is your level of understanding regarding the technical standards identified in section 5? All technical qualification and details of development process should be listed in this section. This section should provide FIATA with your vision as to how you will develop this platform. 5. List 3 of your most recent or ongoing projects Please highlight your 3 most recent/ongoing projects. Focus on the sector’s areas of relevance to this Expression of Interest. We do not want long descriptions just key facts. (Please feel free to adjust the table below based on your entries) a. Summary of Relevant Projects

Name of Project

Name of Contracted Company

Description of Project Period of activity

Project Results


By signing below, you agree to participle and submit a proposal to be considered by our evaluation panel and potentially be chosen as the successful proponent to seek the completion of this project. If your proposal is not chosen, you agree that no compensation is warranted by the mere participation in the Expression of Interest and you will therefore receive no compensation for the proposal or its updates. By signing below you are also are aware of all the terms and conditions listed above and have agreed to abide by them during the preparation of your proposal, the evaluation criteria and the selection process. Name of Authorized Officer to Submit Proposal: __________________________________ Title: __________________________________ Organization: __________________________________ _________________________ _______________________________ Signature Date

6. Quotation of costs In a separate document, please draft a quotation outlining costs associated if your organisation were to undertake this project. The quotation should include all projected items that FIATA is to be billed for as well as costs associated with each specific item. Proponents who provide greater detail in this section may count on special attention. 7. Attachments Completed EoI must contain attachment 1 as well as all relevant documents below:

1. Organisational Profile 2. Experience in Freight Forwarding and Logistic Industry 3. Technical Capabilities and Development Plan 4. Quotation of Costs 5. If applicable, copy of incorporation, registration of the company or equivalent


ATTACHMENT 2

TECHNICAL AND MANAGERIAL REVIEW CRITERIA

Criteria Max. Points 1 Organisational profile

• Organization legally established • Appropriateness of Organizations Mandate and/or Mission aligned with

FIATA. • Organization’s supervision / governance structures • Examination of partnership arrangements its relevance to the Project • Organisation’s working relationship with FIATA • The capabilities to commit long-term to FIATA’s project are clearly identified • Guarantee to mitigate risks over long term commitment

20

2 Experience in Freight Forwarding and Logistic Indust ry • Demonstrates an understanding of the freight forwarding industry • Have worked in the past with freight forwarding and logistics firms to

develop ecommerce initiatives. • Identified themselves as a firm with the capabilities to understand the freight

forwarding industry. • Has other relevant experience in the Supply Chain and/or transport sectors

10

3 Technical Capabilities & Development Plan • Demonstrates technical capacity to successfully manage the project • Evidence of in house technical skills, or a strong subcontractor portfolio,

that are required to develop the project • Provided clear explanation as how they seek to develop the FIATA system • Identified coding language that is deemed up to date and secure. • Described strong arguments for choosing browser base, downloadable

software or other delivery methodology • Outlined different security measures to be integrated with the FIATA

system. • Display thorough understanding of technical standards

30

4 List 3 of your most recent or ongoing projects • Demonstrated experience on projects of similar scope and scale (at the

world level) • Projects listed successfully demonstrate the technical capacity of the

organisation • Demonstrated the ability to achieve results

15

5 Quotation of Costs • Outlined all projected items that FIATA is to be billed for as well as costs

associated with each item • The quotation is reasonable based on market conditions and comparable

offers. • Identified long-term costs for maintenance and support • Evidence of a long term commitment discount

25

Total 100 In addition the following criteria will apply:

• The Expression of Interest significantly meets the objectives outlined in section 4

• From a holistic posit of view the Expression of Interest presents a well-clarified and substantial business case that demonstrates a viable business proposition.


• The Expression of Interest is focused on long-term, strategic investment and mutual development of the initiative as outlined in section 4.2. It is not focused on short-term commercial opportunities.

• The Expression of Interest outlines a business case that articulates the tools and methods that will be used to develop the FIATA System.

• The Expression of Interest indicates any planning and consideration required from FIATA’s before the commencement of the project and during its running over a period of at least ten years.


Appendices – FIATA Documents and Forms

Appendix A: FIATA Bill of Lading


Appendix B: FIATA Non-Negotiable Multimodal Transp ort Waybill (FWB)


Appendix C: FIATA Forwarders Certificate (FCR)


Appendix D: FIATA Forwarders Certificate of Transpo rt (FCT)


Appendix E: FIATA Shippers Declaration for the Transp ort of Dangerous Goods (SDT)


Appendix F: FIATA Warehouse Receipt (FWR)


Appendix G: FIATA Shippers Intermodal Weight Certification (SIC)