Transcript papiNet and Your Supply Chain

e-Enabling an Efficient
Supply Chain
Robert Pyzdrowski
President, Operations
R.R. Donnelley
Agenda
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papiNet Goals
Why Standards?
The Need for Collaboration
Other Industry Standards
Intel and RosettaNet
Benefits for the Print Supply Chain
papiNet’s Goal is …
• Improve the efficiency of the paper supply chain and
remove cost by:
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Enabling collaboration
Documenting standard business processes
Improving communications
Reducing the cost of electronic communications
Why Standards?
• Standards are fundamental to an efficient supply chain:
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Enable timely, efficient and effective communications
Avoid costly/non-value added translation activities
Enable fast and widespread connectivity
Avoid “one-off”custom connections
Standards enable collaboration
The Need for Collaboration
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Challenging economic and market conditions
An inefficient supply chain
Significant “muda” in the supply chain
Our customers need and expect more from us
The Need for Collaboration
"90% of enterprises that fail to provide
visibility and supply chain automation
by 2004 will lose their status as
preferred suppliers."
Karen Peterson,
Director, Gartner Inc.,
August 2002
Other Industry Benefits From Standards
Industry
Standard
• Electrical safety
• UL (Underwriters Labs)
• Quality systems
• ISO
• Internet
• HTML
• Electronics Supply Chain
• RosettaNet
• Paper Supply Chain
• papiNet
Intel Leverages RosettaNet Standards
In 2002, Intel used RosettaNet standards for:
• 10% of revenue ($3 billion)
• 10% of supplier spend ($2 billion)
• 30,000 transactions/month
• 90 customers and suppliers in 17 countries
Intel’s objective
100% e-enabled corporation
Source: Intel press release 12/10/02
Why Standards?
Intel sees a $500 million long-term opportunity
to reduce supply chain costs through
collaboration and use of RosettaNet standards:
• Collaborative demand forecasting
• Order management
• Shipping/receiving logistics
• Invoicing
• Payments
• Elimination of EDI
–Source: InformationWeek 12/9/02
Our Choice
Publishers/
Catalogers
Standard or
“one-off”
custom
interfaces?
Printers/
Converters
Paper
Companies
Agents
Brokers
Merchants
dot coms
Which is better for our supply chain?
Benefits for Our Supply Chain
• Improved customer satisfaction
• Reduced I.T. infrastructure investment
• Reduced administrative costs
• Faster communications
• Better information for decision making
A more efficient supply chain
keeps print viable!
Defining papiNet
Sara Freund
Executive Director, E-Business
American Forest & Paper Association
Agenda
• Defining papiNet
• papiNet Organization and Membership
• papiNet Goals
• How papiNet automates the Supply Chain
• Implementation Status
• How to Become a Member
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.
papiNet
Executive
Committee
Board
papiNet NA
Membership
Board
2003 papiNet Organization
papiNet Euro
Membership
Segment
Implementatio
n Groups
Implementation
Coordinating
Council
Central Work
Group
Convergence
and Partnering
Council
Note: There is considerable collaboration between ALL the boxes in
the papiNet Organization model. Highest priority is
Implementation!
papiNet Europe Membership
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Ahlström
AssiDomän
Burgo
ENCE
Expresso
Fedrigoni
Holmen Paper
International Paper
Kappa
Korsnäs
Lecta
Mayr-Melnhof
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M-real
Mondi
Myllykoski
Norske Skog
Portucel/Soporcel
Sappi
SCA
Smurfit
Södra
Stora Enso
UPM-Kymmene
papiNet NA Membership
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Abitibi-Consolidated
Advance Magazine Publishers
Bowater America
Brown Printing
Dupont
ForestExpress
G+J USA Publishing
International Paper
Lands’ End
Madison Paper Industries
MeadWestvaco
Perry Judd’s
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Quad Graphics Inc.
Quebecor World
R.R. Donnelley
Sappi Fine Paper, NA
Seeburger
SP Newsprint
Stora Enso NA
Tembec
Tietoenator Majiq
Time Inc
UPM-Kymmene
Weyerhaeuser Company
papiNet Goals
• To increase efficiencies in transaction and marketplace activities through
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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
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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 Standard
• Set of common electronic formats and terminology for the
paper and forest products industry
- Designed to facilitate system-to-system real time exchange of
information between buyers and sellers
- Categories:
• Basic Order Fulfillment
• Supply Chain Management
• Product Quality
Supply Models
papiNet messages can be categorized according
to the Supply-Chain Council’s, Supply-Chain
Operations Reference (SCOR) model
Plan
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Product
Attributes
Planning
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Source Make
Request For
Quotation
Availability
Purchase Order
Order Confirmation
Call-Off
Order Status
Inventory Status
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Product
Quality
Usage
Inventory
Change
Product
Performance
Deliver
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Delivery Message
Goods Receipt
Invoice
Utility
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Credit/Debit Note
Business Ack
Information Request
Complaint
Complaint Request
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 Implementations
papiNet Total Trading Partner Implementations; in Production and
Short Term Plans
Production
29
Production
Short Term
Short Term
51
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60
Implementation Comments
• Basic messages are used most frequently including Delivery
Message, Purchase Order, Invoice, Order Confirmation,
Business Acknowledgement and Goods Receipt
• There is still a long way to go on Basic messages before
other messages will be implemented
• Europe is moving faster than North America
Segment Implementation Groups (SIGs)
• Groups Already Formed:
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XBITS (NA Book Manufacturers)
Publication Papers (Europe)
Fine Papers (Europe)
Packaging (Europe)
• Groups To Be Formed in 2003:
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Publication Papers (NA)
Fine Papers (NA)
Packaging - Containerboard and Paperboard (NA)
Label Stock (Global)
Recovered Paper (Global)
Segment Implementation Group (SIG)
Activities
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Enhancements to the papiNet Standard
Understand benefits of integration and use of the standard
Develop ROI information
Develop typical business cases
Document best practices for use of the standard in this channel
Network and share implementation information
Collaborative web site
papiNet NA Membership Categories
• Corporate Members ($10,000 for new members, $5,000 current
members)
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Seat on papiNet NA Board; official member
Seat on One Segment’s SIG Oversight Council
Participation in One Segment’s Implementation Group
Support for Ongoing papiNet Operations
• Membership in an Implementation Group Only ($2,500)
Contact Us
• www.papinet.org
• papiNet NA
- David Steinhardt, 703 837-1066 or [email protected]
Implementing papiNet
Al Ivan
Executive Director, E-Business
MeadWestvaco Corporation
Paul Reid
Manager, Paper Systems
Time Inc.
Agenda
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What are the papiNet Messages?
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How do I get a papiNet project started?
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How can I improve my chances of success?
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What are the benefits?
papiNet automates the complete supply chain
Purchase Order
RFQ
Usage
Availability
Order Confirmation
RFQ Response
Order Status
Planning
Call Off
Goods Receipt
Inventory Status
Product Performance
Delivery Message
Credit Debit Note
Inventory Change
Product Quality
Invoice
Business Ack
Information Request
Complaint
Product Attributes
Complaint Response
V1.0
V1.1
V2.0
V2.1
June 2001
Feb 2002
August 2002
January 2003
Release
Release
Release
Industry Review
How Do I Get a papiNet project started?
• Use E-Business as an opportunity to review your entire supply chain
• Recognize that papiNet is an industry-wide opportunity to lower costs
• Position papiNet as a partnership with your key trading partners to
improve the supply chain
- include suppliers, publishers, merchants, printers, component vendors
• Develop a vision of a papiNet-enhanced future business model that
includes your trading partners
• Sell the project as essential to this future model of doing business
How can I improve my chances of success?
• Dedicate key IT and business people to becoming knowledgeable
about papiNet
• Recognize the learning curve of new technologies in trading XML
over the internet
• Be realistic about the timeframe of an initial implementation
- 6-9 months based on how papiNet fits with your existing systems
- Services of 3rd party marketplace vendors may aid implementation
• Leverage experiences from other implementers
• Use the papiNet Implementation Guide
How can I improve my chances of success?
• Consider using papiNet messages as a key component to retool
your core systems
• Target simpler, logical message combinations first
- Purchase Order, Order Confirmation
- Delivery Message, Invoice
• Then build from these implementations to more complex
messages like Planning
• Develop a comprehensive test plan that involves key trading
partners
What are some Benefits?
• Mutually supportive engagement with your trading partners
• Modest cost savings in handling paper
• Cost savings due to Value Added Network elimination if
migrating from EDI
• Decline in errors
• Reduced Paper Inventory
What are some Benefits?
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Motivated, XML-knowledgeable staff
XML is the directional “language of the Internet”
XML can open the door to smaller and medium size customers
papiNet is gaining traction in the entire paper and forest
products industry (Book, Wood, Label Stock, Pulp, Recovered
Paper)
Questions???