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A few months back, I wrote an article on the need for more adoption and global harmonization of data standards in logistics. The current landscape of supply chain applications is marred by a lack of standardized data formats and definitions or what can be referred to as the supply chain lexicon.
Regulations around the world are increasingly pushing for standardization. The EU Supply Chain Law and Deforestation Regulation, along with the Securities and Exchange Commission’s environmental, social and governance rules in the U.S., highlight the growing emphasis on sustainability and traceability. These regulations, coupled with initiatives like the U.N. Commission on International Trade Law’s Negotiable Cargo Document, are driving the need for standardized data exchange across the entire supply chain.
ASTM’s F49 Committee is taking a bold step to address this challenge by harmonizing supply chain terminology across industries. By aligning commonly used glossaries with the Maritime Transportation Data Initiative (MTDI) lexicon, the committee is fostering a shared language that will enhance understanding, efficiency and, ultimately, the resilience of our supply chains.
This initiative supports several U.N. Sustainable Development Goals, contributing to a more sustainable and prosperous future for all. The initiative has already garnered significant support, with over 40 endorsements from industry leaders. “There are several overlapping vocabularies that support digitalization of cross-border trade, including those from UN/CEFACT, WCO, GS1, IMO, IATA, ICC and many more,” says Steven Capell, vice chair of the U.N. Center for Trade Facilitation and Electronic Business (UN/CEFACT). “While each organization has a different mandate and focus area, the overlaps remain. Mapping the overlaps via a common lexicon will release greater value to all supply chain actors by providing interoperability between overlapping vocabularies.”
Standards in terminology create many benefits for the industry. A standardized vocabulary would ensure everyone in the industry, from ship captains to port workers, logistics managers to legal professionals, is speaking the same language. This reduces ambiguity, misunderstandings and the potential for costly errors. Clear communication is critical for safety at sea and in port operations. Standardizing terminology ensures that instructions, warnings and procedures are universally understood, minimizing the risk of accidents and injuries.
Standardization streamlines operations and facilitates faster and more accurate communication as well. This leads to improved productivity, reduced delays and lower operational costs. A standard vocabulary would also simplify training and education programs, making it easier for newcomers to enter the industry and for experienced professionals to stay current on best practices. Standardization further enables smoother data exchange among different systems and organizations, fostering greater interoperability and improving the efficiency of digital solutions in the maritime sector. And finally, a common language facilitates communication and collaboration across borders, fostering international cooperation and harmonization of practices.
For years, creating a standard was filled with challenges as the maritime industry has a long history with various regional and cultural influences on language. Reconciling these existing variations and achieving consensus on a standard vocabulary can be a complex and time-consuming process. Industry professionals may be resistant to adopting a new standardized vocabulary, especially if they’ve been using traditional terms for years.
Overcoming this resistance and ensuring widespread adoption requires strong leadership and effective communication. The maritime industry is also constantly evolving with new technologies and practices. A standardized vocabulary must be adaptable and capable of incorporating new terms as they emerge. Finally, ensuring compliance with a standardized vocabulary across the industry can be challenging. It requires effective governance, communication and, potentially, enforcement mechanisms.
To achieve a successful outcome, a wide range of stakeholders are involved in the development process, including industry professionals, regulatory bodies, educational institutions and technology providers. This ensures diverse perspectives and buy-in from the entire industry. A clear governance structure is put in place to oversee the development, maintenance and evolution of the standardized vocabulary. This includes mechanisms for updating the vocabulary as new terms and technologies emerge.
ASTM continues to communicate the benefits of standardization to the industry and to provide resources and training to facilitate adoption of the new vocabulary. Technology platforms and digital solutions are being utilized to support the implementation and maintenance of the standardized vocabulary. This can include online glossaries, translation tools and data exchange standards. It is essential to foster collaboration with international organizations and maritime bodies to promote the adoption of a globally recognized standard.
Creating a standard for maritime terminology is a significant undertaking, but the benefits far outweigh the challenges. By promoting clear communication, improving safety and increasing efficiency, standardization can contribute to a more sustainable and successful maritime industry.
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About the author
Bart De Muynck is an industry thought leader with over 30 years of supply chain and logistics experience. He has worked for major international companies, including EY, GE Capital, Penske Logistics and PepsiCo, as well as several tech companies. He also spent eight years as a vice president of research at Gartner and, most recently, served as chief industry officer at project44. He is a member of the Forbes Technology Council and CSCMP’s Executive Inner Circle.