SITPRO exists to ensure that the international trading process for UK businesses is simple, standard, speedy, certain and low in total cost. SITPRO can do little about duties, taxes and other aspects of fiscal and social policy operated by governments throughout the world. We have no direct concern in the "fairness" of international tariffs and local subsidies, which can sometimes be seen as protecting the developed countries against the less developed and vice versa.
Given legitimate fiscal regimes, SITPRO endeavours to define the most cost-effective way they should be run across the world. Firstly, to the benefit of British traders, but ultimately to the advantage of the total global economy.
At first sight, this may seem rather a narrow, if not "mean", objective. However, if one accepts that the greatest good for the greatest number of people comes from people, firms and countries engaging in international trade by making and selling products for which they have a comparative advantage, it follows that they should be able to export and import in ways that are consistent, fast and cost-effective. This means that the total cost and time for getting goods to a customer should be at a predictable minimum. Therefore Customs authorities, Health and Safety inspectors, port authorities, freight forwarders, airlines and shipping fleets, etc, etc, should all be encouraged to adopt best practices in administration and value chain management.
Why?
Because in a world where most products are made from a variety of components or ingredients assembled from across the world, no country, and particularly the UK, wants to be a comparative disadvantage because products take longer or cost more to be processed within its borders than by its competitors. Economic success derives from high customer service and low total cost, actively supporting the intrinsic desirability of the product or service.
How are these to be achieved?
In my publication "KISS - Keep it simple, standard, speedy and certain" (published by e.centre 1999), I argued that a modern value chain could only achieve optimum speed, certainty and low total cost if joint processes among all participants were simplified and standardised. Furthermore, the greater the degree of simplification and standardisation, the easier it is to apply electronic communications among participants. Indeed, optimum speed, certainty and low total cost can only be realised by applying electronic business to simple, standard processes.
In my latest publication "B.e.e. - Business enabled electronically" (published by UK Partners for electronic business - SITPRO, APACS, DTI, e-envoy, e.centre, BSI and UkceB, I argue that business-orientated standards for processes, data, codes, master data and messages are essential pre-requisites to the cost-effective application of e.business, irrespective of the technology. Given these, and the willingness by private and public organisations to collaborate and share data and decisions, e-business is necessary for economic success, though never sufficient of itself.
About the author
Tom McGuffog was the Director of e-business for Nestle UK until he retired in March 2001. For the last 10 years, he has been a Director of SITPRO (see page 2). He is also Head of UK delegation to the UN(CEFACT) for trade facilitation and e-business,Chairman of UK Partners for electronic business and a visiting Professor in business at the University of Glasgow. His publications, KISS and B.e.e., are available from the UKP.eb website, www.ukpeb.org (Link to an external site - Disclaimer 
).
This is why SITPRO has developed ElecTra to allow UK businesses (and through the UN, all traders worldwide) to complete their trading documents accurately and speedily on-line, and have these communicated worldwide in whatever form is most likely to be accepted immediately by the local authorities.
For this reason, SITPRO is encouraging the UK to complete the Single Window whereby all traders can electronically identify themselves, their goods and services, and their customers and suppliers, once to all authorities. This will ensure that our ports of entry and exit are not clogged by a variety of un-coordinated requests for data. The further benefit of a Single Window is that legitimate needs for data and for control can be met more quickly and cost-effectively than hitherto without damaging customer service and the profitability of legitimate business.
So, trade facilitation is alive and kicking via SITPRO, in the UK, and across the globe.
Return to SITPRO News: Issue 42, December 2002/January 2003
