Enabling the Supply Chain in an Electronic World.

The Global Electronic Standards Initiative for the Paper and Forest Products Industry

Nigel SavilleSenior Business Systems ConsultantTietoEnator Majiq Inc.November, 28 2002Paris, France

papiNet Is…

• An international paper and forest products industry e-Business initiative.

• A set of standard electronic documents that facilitates the flow of information among parties engaged in the buying, selling, and distribution of paper and forest products.

• Enabler for collaborative electronic business using the internet.

A Response to Market Needs

Globalization

Threats and opportuniti

es of external

marketplaces

Uneven adoption of

EDI

High order managemen

t costsChanging customer demands

Customers open to new technologie

s

Emergence of the

Internet for Business

ROI

Supply Chain

Inventory

Supply Chain

Visibility

Obligatory Quotation

“The Industry has not done its best over the last 10-15 years to give return on capital invested.

papiNet is one of the keys to driving out cost in the way business is done.”

LH Puckett

VP Coated Division

International Paper

papiNet Evolution

IDEAlliance

B2B Committee

European Paper

Consortium

American

Forest & Paper

Association

papiNet Evolution

papiNet

papiNet Global Organization

papiNet Executive CommitteepapiNet NA

Membership Bo

ard

papiNet Euro Membership

Bo

ard

Central Work Group

(15 members)

Implementation Coordinating Council

Convergence and Partnering

Council

Publication PapersFine Paper Packaging

BookPulp

Recovered FibreTimber – Lumber

Label Stock

Solutions Provider CouncilMessage Service Compliance

Standards Convergence Issues

Support Quality Aspects

Message Task GroupsInteroperability & TechnicalTransportationDocumentation

papiNet Europe Membership

• Ahlström• AssiDomän• Burgo• ENCE• Expresso• Fedrigoni• Holmen Paper• International Paper• Kappa• Korsnäs• Lecta• Mayr-Melnhof

• M-real (Metsä Serla)• Mondi• Myllykoski• Norske Skog• Portucel/Soporcel• Sappi• SCA• Smurfit• Södra• Stora Enso• UPM-Kymmene/Haindl

papiNet NA Membership

• Abitibi-Consolidated Inc.• Bowater America Inc.• Brown Printing Company• Dupont Titanium Technology• ForestExpress• G+J USA Publishing• Glatfelter Company• International Paper Company• Lands’ End• Madison Paper Industries• MeadWestvaco Corporation• Perry Judd’s Inc.• Quad Graphics Inc.

• Quebecor World• R. R. Donnelley• Sappi Fine Paper, NA• Seeburger Inc• Smurfit-Stone Container Corp• SP Newsprint Co.• Stora Enso NA• Tembec• TietoEnator Majiq• Time Inc• UPM-Kymmene• Weyerhaeuser Company• XBITS

papiNet Goals

• To increase efficiencies in transaction and marketplace activities through

- documented business processes, with- Supporting standard XML messages, and- consistent data definitions, common terminology and formats- “real-time” exchange of information through the internet

• To ensure that the standards are interoperable- Between trading partners in the paper and forest products industry.- Between trading partners in other industries- ebXML envelope- Engage other standards initiatives

• To provide standards that are open and freely available

papiNet Fits…

Partn

er 1

Partn

er 2Strategy

Processes

Business Rules

papiNet Messages

Message Transport

papiNet Fits…

Partn

er 1

Partn

er 2Strategy

Processes

Business Rules

papiNet Messages

Message Transport

Collaboration Benefits

• Supply Chain Collaboration- Cost reductions & Productivity Improvements- Supply Chain visibility

• Value Chain Collaboration- Emphasis on effectiveness and collaboration- An operating strategy linking the enterprises in the chain

• Requires Trust• Requires Collaborative Processes

What is ‘The Standard”?

• Managed by the papiNet Central Work Group• XML messages defined in W3C Schema• Message documentation• Extensive Glossary• ebXML Message Envelope• Implementation Guidelines• Design tools• Stylesheets• Case Studies with message examples

Product definition

Paper Properties

Rapid Development

First joint meeting

Brussels

August 2000

Version 1.0

Version 1.1

Pulp additions released

August 2001

June 2001

August 2002

Version 2.0

June 2002

BookLumber

initiated

December 2002

Version 2.1

November 2002

TransportLabel Stock

RCFinitiated

PurchaseOrderOrderConfirmation

CallOffCallOffConfirmation

DeliveryMessageGoodsReceipt

InvoiceCreditDebit

UsageOrderStatus

InventoryStatusInventoryChange

InformationRequestProductAttributes

UsageBusinessAcknowledgement

2002 Schedule

June 2002 July 2002

Aug 2002 Dec 2002

V2.0

Book Industry Complete

Timber/Lumber

Complete

InvestigateRecovered

Fibre

Investigate Transport

Schema for all messages

ebXML Envelope

PlanningOrderStatus

InventoryStatusInventoryChange

InformationRequestProductAttributes

Usage

Industry Review

Period For

Version 2.0

Industry Review

Period For

ForecastPlanning

Complaint & ResponseProductQuality

ProductPerformanceAvailability

V2.1

Dec 2002

Supply Models

Plan Source Make Deliver Utility

papiNet messages can be categorized according to the Supply-Chain

Council’s, Supply-Chain OperationsReference (SCOR) model

CatalogueForecastPlanning

RequestForQuotationAvailabilityPurchaseOrderPO ConfirmationCallOffOrderStatusInventoryStatus

ProductQualityUsageInventoryChangeProductPerformance

DeliveryMessageGoodsReceiptInvoice

CreditDebitNoteBusinessAckInformationRequestComplaintComplaintResponse

Transaction Model

Purchase OrderOrder ConfirmationDeliveryInvoiceCallOff

PaperProducer

Printer/Converter

Publisher/Cataloger

Purchase Order

Order Confirmation

Purchase Order

Order Confirmation

Transaction Model

Purchase OrderOrder ConfirmationDeliveryInvoiceCallOff

PaperProducer

Printer/Converter

Publisher/Cataloger

DeliveryMessage

Invoice

Invoice

DeliveryMessage

CallOff

Collaboration ModelPlanningForecastDeliveryMessageGoodsReceiptUsage

PaperProducer

Printer/Converter

Publisher/Cataloger

DeliveryMessage

GoodsReceipt

DeliveryMessage

Forecast

Plan

ned

Wor

k &

Prin

t Sch

edul

e

Usage

Goo

dsR

ecei

ptU

sage

Co

mp

lex

ity P

roc

ess

Mig

ration

Value Automation Supply Chain Velocity

PO, POAck, Delivery, Invoice

CallOff GoodsReceipt Usage

Forecast/Planning ProductPerformance Availability RFQ (ATP)

OrderStatus InventoryStatus InventoryChange ProductQuality

Supply Chain Metrics

Supply Chain Visibility

BENEFITS

Supply Chain Collaboration

Not just A2A

• To be effective, the papiNet standard must support a range of trading partner capabilities

- Three tiers of trading partners- Top – Comprehensive ERP system- Middle – Separate database systems- Bottom – maybe a PC and Internet connection

• Engage all trading partners- Single “e-business pipe” for all tiers- Middleware support multiple delivery types

• Stylesheets and other tools• A range of alternative uses

Implementation Status

• Implementation benchmark survey completed November 2002

• 80 trading partners engaged in implementation• 2003 goal

- All 80 in production- 50 more in testing

• Quarterly surveys throughout 2003

Total Live and Planned Implementation

papiNet Total Trading Partner Implementations; in Production and Short Term Plans

51

29

0 10 20 30 40 50 60

Short Term

Production

Production

Short Term

Total by Continent

papiNet Production and Short Term Trading Partners by Continent

41

21

10

7

0

1

0 10 20 30 40 50 60

Short Term

Production

EU

NA

SA

Implementation by Transaction

papiNet Production and Short Term Plans by Transaction

0 10 20 30 40 50 60 70

BAProdAttr

RFQRFQRes

AvailPO

OrdCnfPln

CallOffDlv

GRecptInv

CrDrUsg

InvChgInfReq

InvStQual

OrdSts

Production

Short Term

Some of Who are Live or Testing

• Axel Springer• Abitibi-Consolidated• Bowater America• Brown Printing• Burda• Burgo• Expresso• ForestExpress• Glatfelter• Holmen Paper• International Paper

• Land’s End• Madison Paper• Mayr-Melnhof• MeadWestvaco• News International• Norske Skog• PakPrint• PapeX• Perry Judd’s• Quad Graphics• Quebecor World

• R. R. Donnelley• Sappi• SCA• Smurfit• Södra• SP Newsprint• Stora Enso• Tembec• Time Inc.• UPM-Kymmene• Weyerhaeuser

Industry Segments

• Initial focus on Publishing Paper, Fine Paper and Packaging Paper

• Pulp segment embraced in 2001• papiNet has begun the process of expanding outside its

current domain - Wood products segment underway- Book publishers segment underway- Recovered paper industry segment starting- Label Stock segment starting- Logistics XML standards initiative launched

Transportation

papiNet launched an initiative to develop a set of XML Business Transactions to support Transport and Logistics processes in the Paper and Forest Products Industry

12 November 2002

papiNet Transport

1. Engage the CIDX standards group in the enhancement of their transport and logistics messages to incorporate paper and forest products industry requirements.

2. Initial pilot of one message – Shipment Status – for Q1 20033. Explore the opportunities to participate with CIDX Convergence

and Partnering group in monitoring the XML global cross industry standards landscape

papiNet will engage the CIDX standards group to further our common objectives in transportation and logistics message standards.

Background

• In 2001, an investigation of the transport electronic message standard landscape.

• Fragmented and disorganized industry with pockets of independent activity

• Enthusiasm for and recognition of the need for a single global cross-industry transport and logistics electronic business message standard

• No comprehensive Transport Industry initiative underway.• Too many

- proprietary messages standards,- too many independent standards being developed, and- too much reliance on 30 year old EDI messages

Background

• Highly desirable that such messages be cross industry, as well as global, i.e. not just for paper.

• The goal of engaging the transport and logistics standards arena is to fill a gap in our ability to business in a common way electronically

• The need for a single Transport Industry initiative is well recognized by transport providers, but Transport Industry organizations are not “doing anything”

Scope

• No message development by papiNet• Concentrate on the major business functions between Shipper,

Carrier, and Customer/Consignee (e.g., Shipment Status, Load Tender, Load Tender Response, Freight Bill).

• The initiative should consider all Forest and Paper Industry requirements.

• Utilize existing papiNet messages where appropriate for business processes

• Out of scope:- Customs - Air Shipments

Transport Industry Contacts

• NA:- CN- CSX- VCML- IntelliTrans- NISTEVO- Schneider- Meyer´s & Sohn- Irving Transport - Transplace - Judge Organization

• EU: - EDI-Management- Transwide- PHAROS- Schenker- Meyer´s & Sohn- Pohls- SCA Transforest- Expro- DB Cargo

Operational Structure

papiNet Executive Committee(Direct)

Central Work Group(Manage)

Transport Task Group3 EU + 3 NA

(Implement)

Transport Community(Requirements)

Road, Rail, Ocean - Users & Suppliers

CIDX Joint AdvisoryCommittee

(Operating Management Team)

LogisticsSub-Group(3 people)

StandardsDevelopment

Convergenceand

Partnering

Paper and Forest Industry Transport

Requirements

CIDXpapiNet

Roadmap

• November – papiNet join CIDX as Associate member• December – papiNet Transport Task Team meets• January – 2 day meeting of Paper and Forest

Europe Products Transport Community• January - 2 day meeting of Paper and Forest

North Products Transport CommunityAmerica

Paper Industry Messages

• ContractWeight List (EU), Manifest (US) = papiNet Delivery message• Load Tender (Booking, Rating, CarrierAssignment) • Load Tender Response• Load Consolidation (incl. multidrop)• Shipment Status (one message with different types)Delivery Confirmation = papiNet Goods Receipt• Bill of Lading = no papiNet transactions Invoicing Process using papiNet Invoice and CreditDebitNoteComplaint Process using papiNet Complaint messages

Issues and Challenges

• “Standards wars”• Core Components• Globalization of the standard• Capabilities of Trading Partners• Reluctance to re-engineer processes• Trading Partner relationships• Myths and Rumors

Summary

• The papiNet organization is committed to providing the means to utilize electronic business messages over the Internet to improve supply chain efficiency and effectiveness

• The papiNet Standard provides the XML messages, tools and extensive documentation to do this

• The Transport Initiative will broaden the scope of where improvements can be made

• Introducing more industry segments will enrich the standard and broaden its acceptance and use

• Fully engaged in supporting the industry and our goals of driving out cost.

Get Plugged In…

• Visit our web site at www.papinet.org- Contact the papiNet leadership

• Become a member of papiNet.• Ask questions.• User Group – first meeting Q1 2003