Tw o In dustr y Standards

Supply Chain

Order Specification - e

Enabling Supply Chain Collaboration

papiNet Mission and Goals
“papiNet is the global initiative to develop, maintain and promote the implementation of standard electronic transaction standards to facilitate the flow of information and facilitate computer to computer communications among all parties engaged in the buying, selling, and distribution of forest, paper and wood products. The set of standards is referred to as the papiNet standard. The standards include common terminology and standard business documents (e.g. purchase orders, shipping notices, and invoices). The goals are to improve the reach and richness of communication throughout the supply chain, increase efficiencies in transactions and marketplace activities, and to support interoperability among trading partners. The papiNet standards are open and freely available.”

Source: papiNet website

Needs for and Benefits of Standards
"The Internet offers new opportunities for efficient and cost-effective execution of transactions. It is a truly global infrastructure available to all. It is also more costeffective than the value-added networks (VANs) that EDI is built upon. “ "The papiNet standard is open, free, and easy to adopt, providing common benefits to supply chain participants. With the papiNet standard, companies will no longer need to negotiate and agree on data definitions and formats with each trading partner, a costly and arduous task. Instead, papiNet provides a common messaging interface to enable supply chain partners to have: • • a simplified process for dealing with multiple suppliers and customers through use of common business solutions. reduced manual work, resulting in fewer entry errors and improved supply chain management (e.g. replenishment, VMI).

• more "real-time" exchange of information and greater electronic information availability. • the opportunity to participate in e-business transactions, irrespective of company size or technical expertise. "

Source: papiNet website

papiNet Mission and Goals – Simplified

•Develop the tools needed to enable the process of creating a more efficient supply chain •Take costs out of the supply chain for the Publisher, Printer and Papermaker

The RosettaNet Value Proposition
“A

company's demand management, direct material procurement, logistics, part management and order fulfillment processes are closely linked to supply chain partners. Value is created by close integration of these processes among the company’s suppliers, logistics & service providers and customers. Collaborative processes that provide visibility to forecasts, inventory levels, order execution, and shipments between trading partners achieve this. The collaborative process is hampered by lack of industrywide processes and data standards that enable system-to-system automation of core processes…..” “In today’s competitive world, well-oiled and responsive extended supply chains are increasingly becoming a foundation for competitive advantage. No longer can companies restrict their focus on increasing supply chain efficiencies within the four walls of the enterprise. The supply chain that extends beyond a company’s organizational boundaries increasingly determines its effectiveness. There is an increasing dependence on "collaboration" as key to bridging the boundaries – not only within the enterprise, but also between enterprises and across industry boundaries.” “Adoption of RosettaNet standards could well be a critical factor in bringing the high technology dream of dynamic value chain management to fruition.”
Source: RosettaNet website, Implementing RosettaNet E- Business Standards for Greater Supply Chain Collaboration and Efficiency

Supply Chain Mo del Foundation
papiNet messages can be categorized according to the Supply-Chain Council’s, Supply-Chain Operations Reference (SCOR) model Plan Source Make Deliver Utility

• Product Attributes • Planning

• Request For Quotation • Availability • Purchase Order • Order Confirmation • Call-Off • Order Status • Inventory Status

• Product • Delivery Message Quality • Goods Receipt • Usage • Invoice • Inventory Change • Product Performance

• Credit/Debit Note • Business Acknowledgement • Information Request • Complaint • Complaint Request

Ex ecutio n St yle s
Traditional
Approach: Scope: Objectives: ROI: Impact: “Efficient and cost effective transactions” Transaction between trading partners Transactional efficiency Break-even (at best) Enables reduced admin and systems cost Tens-hundreds of thousands/company An IT project

The papiNet Way
“An efficient and cost effective supply chain” The entire supply chain Operational improvement Positive Enables reduced operating costs, improved quality, throughout and working capital Tens-hundreds of millions/company A margin improvement projectstrategic enabler for supply chain improvements

Potential $ Return: How viewed:

The Supply Chain “Iceberg”
Perceived Value
Transactional Efficiency

Critical Data to improve:
Trim waste Web breaks Press delays Multiple handling Transit damage Strip waste Press damage End-to-end cycle-time Yield Delays Excess freight Inventory turns

Intrinsic Value

Process delays Damage

Warehouse fees

Late Deliveries

papiNet Value Proposition
Specifications •papiNet Messages •Common Definitions •Standards Data Collection
•Publishers/ Catalogers •Printers •Paper Companies

Data Transmission (XML)

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

…This must be done, but it only enables collaboration

Supply Chain Benefi ts
 Cost  Reduced inventories  Reduced waste  Reduced total system costs  Quality  Reduced variation and increased quality through data-driven performance feedback  Service  Establishment of a collaborative framework  Near real time information flow

Business growth opportunities
 

Preferred source for new opportunities Expanded benefits to other customers

Th e Th ree Ts
Velocity Acceleration Collaboration Empowerment

Timeliness

The 3 Ts

Trust

Sharing

Information(eg. open schedules) Accountability

Key Ingredients For Improving Supply Chain Efficiencies

Understanding the process Transparency Ability to see the real situation

XML PROS E

n standard format for

ecifications from the publisher

istent manner.

XML P ROS E - B enefi ts

e recipient, can be used across

rocessors

ware is certified by the USPS

AD content and Weight is the output this can lead to a

s

XML P ROS E - B enefi ts • An example of improved flow, would be where a XML PROSE file is sent to the list processor, using this data they will process the job and create a mail.dat file that will allow for electronic postage payment without requiring the traditional 10 marked up and weighed copies of each edition

ative process reduce cycle times

able format for electronic n issue

Thank you!
If you should want to get into more detail please contact me here at PRIMEX or at the following
Frank Montague RR Donnelley 3075 Highland Parkway Downers Grove, IL 60515 Telephone: 630.322.6772 Fax: 630.322.6879 Email: frank.montague@rrd.com

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