papiNet Overview

For Solution Providers

Contents

• Introduction• Goals• Marketsize

• What is papiNet?• Opportunities for Solution Providers• How to Become a Solution Provider• Next Steps

Goals

• Create awareness and interest in the papiNet standard• Provide information on current status and future plans• Offer suppliers and customers suitable tools and processes to

adopt the standard• Share opinions and expectations• Define next steps• Accelerating papiNet implementation within the industry

Paper Demand Worldwide

WFU

WFC

Newsprint

Magazine Papers

33

14

28

Total demandin North America 41.2 mio. tons

23

19

29

Total demandin Western Europe36.5 mio. tons

46

1925

Total demandin Asia-Pacific 40.2 mio. tons

25

29

10

Source: Jaakko Pöyry Consulting

Market Size

Source: PPI Annual Review 2002

Western EuropeChina

Other Asian countries

Japan

Latin America

Africa

Oceania

Whole world

North America

Paper consumption, kg per capita: 52

Population, millions: 6,090

Other Europe

303

527

316

34031392

201

15

2456

127

242

148

30

35

1285

807

29

6

World demand trends of graphic papers 1983-2005

'000 tons

0

10,000

20,000

30,000

40,000

50,000

60,000

'83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05

WFuncoated + 0,9 % p.a.

Newsprint +0.6 % p.a.

WF ctd +3.1 % p.a.

Ctd mech.+2.8 % p.a.

Unctdmech. +2.2 % p.a.

Growth rate2000-05

Source: own research

papiNet’s Goal is …

Improve the efficiency of the paper supply chain and remove cost by:

• Enabling collaboration• Documenting standard business processes• Improving communications• Reducing the cost of electronic communications

Standards enable collaboration

Why Standards?

Standards are fundamental to an efficient supply chain:• Enable timely, efficient and effective communications• Avoid costly/non-value added translation activities• Enable fast and widespread connectivity• Avoid “one-off”custom connections

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 PetersonDirector, Gartner Inc.August 2002

Standard or “one-off” custom interfaces?

Publishers/ Catalogers

Paper Companies

Printers/ Converters

AgentsBrokersMerchantsdot coms

Which is better for our supply chain?

Our Choice

A more efficient supply chain keeps print viable!

Benefits for Our Supply Chain

Improved Customer Satisfaction• Reduced I.T. infrastructure investment• Reduced administrative costs• Faster communications• Better information for decision making

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.

• An enabler for collaborative electronic business using the internet.

papiNet Executive

Committee

papiNet NA Membership B

oar

dpapiNet Euro Membership

Bo

ard

Central Work Group

• Standards Maintenance

• Convergence and Partnering

• Transport

• Implementation Focus

• Marketing Team

• Book• Fine Paper• Label Stock• Packaging/

Containerboard• Publication Papers• Pulp• Recovered Paper• Timber/Lumber

Segment Implementation

Groups

papiNet Organization

papiNet Europe Membership

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

• M-real• Mondi• Myllykoski• Norske Skog• Portucel/Soporcel• Sappi• SCA• Smurfit• Södra• Stora Enso• UPM-Kymmene

papiNet NA Membership

• 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

• 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 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

Standard includes the XML Schema and Stylesheets to render the messages as business forms

Plan Source Make Deliver Utility

papiNet messages can be categorized according to the Supply-Chain Council’s, Supply-Chain Operations Reference (SCOR) model

Product AttributesPlanning

Request ForQuotation

AvailabilityPurchase OrderOrder ConfirmationCall-OffOrder StatusInventory Status

ProductQuality

UsageInventory

ChangeProduct

Performance

Delivery MessageGoods ReceiptInvoice

Credit/Debit NoteBusiness AckInformation RequestComplaintComplaint Response

Supply Models

Segment Implementation Groups (SIGs)

Groups Already Formed:• XBITS (NA Book Manufacturers)• Publication Papers (Europe)• Fine Papers (Europe)• Packaging (Europe)• Publication Papers (NA)• Label Stock (Global)• Wood (Europe)

Groups Yet To Be Formed in 2003:• Fine Papers (NA)• Packaging - Containerboard and Paperboard (NA)• Recovered Paper (Global)

SIG Activities

• 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

V2.0

August 2002

Release

Usage

Order Status

Inventory Status

Inventory Change

Information Request

Product Attributes

June 2001

Release

Purchase Order

Order Confirmation

Call Off

Delivery Message

Invoice

V1.0

Feb 2002

Release

RFQ

RFQ Response

Goods Receipt

Credit Debit Note

Business Ack

V1.1

Schema

V2.1

April 2003

Release

Availability

Planning

Product Performance

Product Quality

Complaint

Complaint Response

papiNet automates the complete supply chain

www.papiNet.org

Getting a 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 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• Partner with Solution Providers

Seller

Buyer

PresentationManual Entry

The Net

Firewall

papiNet Message

Firewall

Message Service

Middleware

Message Service

Middleware

Business Software

Business Software

AutoEntry

AutoPopulation

EAI EAI

Enterprise Focus• Small• Medium• Large

Enterprise Focus• Small• Medium• Large

Solution Type• Software Product• Business Service• Development

Service

Solution Type• Software Product• Business Service• Development

Service

Industry Exchange

The Solutions Horizon

Solution Types

Software Product• Business Software

– Enterprise Resource Planning (ERP)

– Customer Relationship Management

– Supply Chain Management– Warehouse Management

• Message Management– Manual Population– Automatic Population– XML Presentation – XML Translation

• Middleware– Message Service

• Development Environments– XML– Programming

Business Service• Industry Exchange• Logistics• Message Translation• ERP connectors

Development Service• Enterprise Application Integration• XML Services• Infrastructure Services

Example: Simple Ordering Tool

A simple ordering tool is needed: web form, spreadsheet or WP doc• Send the Purchase Order to a supplier via a Message Service • Integrate Order Status checking viewable by a papiNet standard

stylesheet• Supplier confirms delivery via a Delivery Message• The Delivery could be accompanied by an automated Invoice viewable

via a papiNet stylesheet• Additional transaction capabilities including Request For Quotation,

Usage, Inventory Status and others could be added to the tool• Accounting processes could be automated within the tool

Become a Solution Provider

Why join papiNet TODAY?• Accelerate Implementation• papiNet is THE STANDARD• Connecting to other Standards and Advancements in Printing and

Publishing:– Job Definition Format (CIP4)

• instructions for prepress, press, and postpress– SPACE/XML (IDEAlliance)

• electronic insertion of advertising• InsideTrack – for a New Market

AND papiNet provides the Forum through the Solution Providers Council

Be a Part of the papiNet Community

• 50+ Companies Engaged in papiNet for Over 2 Years• 90+ Companies Implementing• 1,800 Users Representing 300+ Companies Accessing www.papinet.org• Expansion of the penetration is targeted by producers and printers

Access to Services and Programs

Market & Promote Your Products• Online promotion through website profile and e-newsletter• Forums to Exhibit, Speak & Network – IDEAlliance XML Europe (May,

2003) and USA (December, 2003)• Cooperative programs to develop and distribution White Papers –

Seeburger & Stora Enso Implementation Case Study

Implementation Groups• Vertical Market Focus• Change Process – Inside Track for Early Updates & Information

Next Steps

1. Join as a Solution Provider2. Develop a profile of your offerings3. Provide us with a website link4. Give us information for a newsletter5. We will share target list of companies:

– Current papiNet users– Future papiNet users– Contact list