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Enabling the Supply Chain in an Electronic World. The Global Electronic Standards Initiative for the Paper and Forest Pr

Enabling the Supply Chain in an Electronic World. The Global Electronic Standards Initiative for the Paper and Forest Products Industry. Nigel Saville Senior Business Systems Consultant TietoEnator Majiq Inc. November, 28 2002 Paris, France. papiNet Is….

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Enabling the Supply Chain in an Electronic World. The Global Electronic Standards Initiative for the Paper and Forest Pr

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  1. Enabling the Supply Chain in an Electronic World.The Global Electronic Standards Initiative for the Paper and Forest Products Industry Nigel Saville Senior Business Systems Consultant TietoEnator Majiq Inc. November, 28 2002 Paris, France

  2. 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.

  3. papiNet

  4. A Response to Market Needs Globalization Supply Chain Inventory ROI Threats and opportunities of external marketplaces Emergence of the Internet for Business Uneven adoption of EDI Supply Chain Visibility Customers open to new technologies High order management costs Changing customer demands

  5. 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

  6. IDEAlliance B2B Committee European Paper Consortium American Forest & Paper Association papiNet Evolution

  7. papiNet Evolution papiNet

  8. papiNet NA Membership papiNet Euro Membership Board Board papiNet Global Organization papiNet Executive Committee Implementation Coordinating Council Convergence and Partnering Council Central Work Group (15 members) Publication Papers Fine Paper Packaging Book Pulp Recovered Fibre Timber – Lumber Label Stock Solutions Provider Council Message Service Compliance Standards Convergence Issues Support Quality Aspects Message Task Groups Interoperability & Technical Transportation Documentation

  9. 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 Europe Membership

  10. 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 NA Membership

  11. 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

  12. papiNet Fits… Strategy Partner 1 Partner 2 Processes Business Rules papiNet Messages Message Transport

  13. papiNet Fits… Strategy Collaboration Partner 1 Partner 2 Processes Business Rules papiNet Messages Message Transport

  14. 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

  15. 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

  16. Product definition

  17. Paper Properties

  18. Rapid Development Version 1.0 Version 1.1 Pulp additions released Version 2.0 Version 2.1 First joint meeting Brussels TransportLabel StockRCFinitiated BookLumber initiated August 2000 June 2001 August 2001 November 2002 December 2002 June 2002 August 2002

  19. 2002 Schedule PurchaseOrder OrderConfirmation CallOff CallOffConfirmation DeliveryMessage GoodsReceipt Invoice CreditDebit Usage OrderStatus InventoryStatus InventoryChange InformationRequest ProductAttributes Usage BusinessAcknowledgement Industry Review Period For Version 2.0 Industry Review Period For Book Industry Complete Timber/Lumber Complete InvestigateRecovered Fibre Investigate Transport Forecast Planning Complaint & Response ProductQuality ProductPerformance Availability Planning OrderStatus InventoryStatus InventoryChange InformationRequest ProductAttributes Usage Schema for all messages ebXML Envelope V2.0 V2.1 Dec 2002 June 2002 July 2002 Aug 2002 Dec 2002

  20. Supply Models papiNet messages can be categorized according to the Supply-Chain Council’s, Supply-Chain Operations Reference (SCOR) model RequestForQuotation Availability PurchaseOrder PO Confirmation CallOff OrderStatus InventoryStatus DeliveryMessage GoodsReceipt Invoice CreditDebitNote BusinessAck InformationRequest Complaint ComplaintResponse Catalogue Forecast Planning ProductQuality Usage InventoryChange ProductPerformance

  21. Transaction Model • Purchase Order • Order Confirmation • Delivery • Invoice • CallOff Publisher/ Cataloger Order Confirmation Purchase Order Purchase Order Printer/ Converter Paper Producer Order Confirmation

  22. Transaction Model • Purchase Order • Order Confirmation • Delivery • Invoice • CallOff Publisher/ Cataloger DeliveryMessage Invoice CallOff Printer/ Converter Paper Producer DeliveryMessage Invoice

  23. Collaboration Model • Planning • Forecast • DeliveryMessage • GoodsReceipt • Usage Publisher/ Cataloger Planned Work & Print Schedule DeliveryMessage GoodsReceipt Usage Forecast DeliveryMessage Printer/ Converter Paper Producer GoodsReceipt Usage

  24. Forecast/Planning ProductPerformance Availability RFQ (ATP) Supply Chain Collaboration Complexity Process Migration OrderStatus InventoryStatus InventoryChange ProductQuality Supply Chain Visibility CallOff GoodsReceipt Usage Supply Chain Metrics PO, POAck, Delivery, Invoice BENEFITS Value Automation Supply Chain Velocity

  25. 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

  26. 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

  27. Total Live and Planned Implementation

  28. Total by Continent

  29. Implementation by Transaction

  30. 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 Some of Who are Live or Testing • R. R. Donnelley • Sappi • SCA • Smurfit • Södra • SP Newsprint • Stora Enso • Tembec • Time Inc. • UPM-Kymmene • Weyerhaeuser

  31. 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

  32. Transportation 12 November 2002 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

  33. papiNet Transport • Engage the CIDX standards group in the enhancement of their transport and logistics messages to incorporate paper and forest products industry requirements. • Initial pilot of one message – Shipment Status – for Q1 2003 • 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.

  34. 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

  35. 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”

  36. 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

  37. 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

  38. Operational Structure papiNet Executive Committee (Direct) CIDX Joint Advisory Committee (Operating Management Team) Central Work Group (Manage) Convergence and Partnering Standards Development Transport Task Group 3 EU + 3 NA (Implement) Logistics Sub-Group (3 people) Paper and Forest Industry Transport Requirements Transport Community (Requirements) Road, Rail, Ocean - Users & Suppliers papiNet CIDX

  39. 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 Community America

  40. Paper Industry Messages • Contract • Weight 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 CreditDebitNote • Complaint Process using papiNet Complaint messages

  41. 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

  42. 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.

  43. 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

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