CrossMedia WP2: Flexible Supply Chain Management

1. CrossMediaWP2: Flexible Supply Chain Management FS CrossMedia Result Seminar 21.9.2010 Olli Kuusisto VTT Technical Research Centre of Finland Olli.Kuusisto@vtt.fi www.vtt.fi/media

2. Content Background and objectives Tailored magazines structure and supply chain Applicability of JDF in distribution data communication Demonstration system Conclusions

3. Background Several pilot projects on supply chain management and JDF-based data communication in production environment or by demonstration systems A project on data communication between publishers and printing houses about magazine product structure data and workflow control: JDF can be used in data communication, even with tailored magazines, but it requires well-documented processes A demonstration system was implemented and tested Tailored magazines - that is different magazine versions for different subscribers Partly same - and more - information needed by subscriber (or postal) distribution organisations. Publishers need to follow the costs and observe the progress of the process transparently in order to serve their subscribers and advertisers cost-effectively. Efficient supply chain management needs bidirectional electronic data communication (of distribution data) (in order to achieve transparency ) - for transparent and flexible supply chain ((especially with postpress, sorting and distribution in addition to data communication of tailored magazines)) Conclusion: data communication and new operations models are needed in subscriber distribution Tailored magazines - that is different magazine versions for different subscribers Partly same - and more - information needed by subscriber (or postal) distribution organisations. Publishers need to follow the costs and observe the progress of the process transparently in order to serve their subscribers and advertisers cost-effectively. Efficient supply chain management needs bidirectional electronic data communication (of distribution data) (in order to achieve transparency ) - for transparent and flexible supply chain ((especially with postpress, sorting and distribution in addition to data communication of tailored magazines)) Conclusion: data communication and new operations models are needed in subscriber distribution

4. Challenges Cost of distribution of tailored magazines Knowledge about the cost of distribution of tailored magazines Knowledge about the progress and the realization of the distribution Knowledge about the incoming products Opening of the postal market in Europe Challenges for transparent and flexible management of the whole supply chain including also the subscriber distribution, speeding up the process and minimizing errors Knowledge about the incoming products (is situated at both publisher and printing house) ja ennakkotieto (muutokset) puuttuvat jakeluorganisaatiolta jos kohta yleens� my�s kirjapainolta.Challenges for transparent and flexible management of the whole supply chain including also the subscriber distribution, speeding up the process and minimizing errors Knowledge about the incoming products (is situated at both publisher and printing house) ja ennakkotieto (muutokset) puuttuvat jakeluorganisaatiolta jos kohta yleens� my�s kirjapainolta.

5. Tasks - Deliverables 2.1 Examining information needs present state and information needs for networked tailored magazines supply chain new demands for tailored magazines supply chain management* possibilities to exploit the content metadata in cross media supply chain 2.2 Requirements specification and demonstration system Description of data communication and interphases between publisher / printing house and subscriber distribution organisation using appropriate structures and vocabularies *Benchmarking of operations to best European practices *Development and demonstration of new operations and business models 2.3 Operations and business models for afterward mailing incl. combining tailored address lists, storaging alternatives, separate mailings etc.

6. Flexible Supply Chain - steps Networked operation will be requirement for success, growth and globalization -> new operations models Cooperation between the different actors in the value network will lead to comprehensive control of the networked economy -> new business models The interoperability of different systems in the value chain will increase flexibility and efficiency -> systems development

7. JDF reference model (CIP4) JDF (Job Definition Format) is graphic arts XML-based vocabulary, which enables the communication of product structure and production methods up to distribution between different systems. CIP4 (The International Cooperation for the Integration of Processes in Prepress, Press and Postpress Organization) Tarkemmin tavoite: m��ritell� aikakauslehtikustantajan ja kirjapainon v�lill� tarvittavat JDF-pohjaisen s�hk�isen asioinnin ja siihen liittyvien tuotetietojen sanomat ja niiden sis�lt�, sek� soveltamisohjeet verrata em. tarpeita JDF-standardin mahdollistamaan tiedonsiirtoon, seurata ao. sanomia kehitt�v�n CIP4:n ty�ryhm�n toimintaa ja tarvittaessa v�litt�� lis�ysehdotukset ja kommentit ao. ty�ryhm�lle testata tiedonsiirtoa k�yt�nn�ss� muokata suomenkielinen terminologia em. tiedonsiirron osalta ja toimintamalli suomalaisen aikakauslehtiprosessin JDF-pohjaiseen ty�nkulkuunTarkemmin tavoite: m��ritell� aikakauslehtikustantajan ja kirjapainon v�lill� tarvittavat JDF-pohjaisen s�hk�isen asioinnin ja siihen liittyvien tuotetietojen sanomat ja niiden sis�lt�, sek� soveltamisohjeet verrata em. tarpeita JDF-standardin mahdollistamaan tiedonsiirtoon, seurata ao. sanomia kehitt�v�n CIP4:n ty�ryhm�n toimintaa ja tarvittaessa v�litt�� lis�ysehdotukset ja kommentit ao. ty�ryhm�lle testata tiedonsiirtoa k�yt�nn�ss� muokata suomenkielinen terminologia em. tiedonsiirron osalta ja toimintamalli suomalaisen aikakauslehtiprosessin JDF-pohjaiseen ty�nkulkuun

8. Example structure of an issue of a magazine The structure of a magazine issue consists of components, the edition versions made out of those components and the delivery lots for each edition version. Even a few different cover and body versions with targeted inserts lead to countless versions. Every new cover or body version or insert doubles the amount of possible versions. With 6 different cover and body versions and 6 different inserts the maximum amount of versions reaches over 200. And there might be even more delivery lots. However in practice the production and distribution processes and corresponding prices restrict this so that there seldom is more than 20 different versions if not something is done by digital printing and selective binding.The structure of a magazine issue consists of components, the edition versions made out of those components and the delivery lots for each edition version. Even a few different cover and body versions with targeted inserts lead to countless versions. Every new cover or body version or insert doubles the amount of possible versions. With 6 different cover and body versions and 6 different inserts the maximum amount of versions reaches over 200. And there might be even more delivery lots. However in practice the production and distribution processes and corresponding prices restrict this so that there seldom is more than 20 different versions if not something is done by digital printing and selective binding.

9. Supply chain of tailored magazines Here is the supply chain of tailored magazines with the different input and processes. Dispatch = bundling and unitizing. In distribution there are several phases - partly regarding on how long the magazines are going.Here is the supply chain of tailored magazines with the different input and processes. Dispatch = bundling and unitizing. In distribution there are several phases - partly regarding on how long the magazines are going.

10. Dispatching and distribution of subscriber issues In this picture the subscriber distribution part is opened further. This represents the process of one distribution organisation. For a specific issue of magazine there may be more of them either nationally or internationally. In this picture the subscriber distribution part is opened further. This represents the process of one distribution organisation. For a specific issue of magazine there may be more of them either nationally or internationally.

11. Starting point - communication between the parties The information needed by publishers, print shops and distribution organisations lies in different systems on different people's responsibility with long-term contract data not known to all people who need the information Communication of the information - which is only gradually becoming more precise before the issue date of the magazine issue takes place through several channels on different moments with different printing houses and distribution organisations (with different opportunities for product structure) in addition, publishers, printing houses and distribution organisations have company- and even person-specific conventions A distribution organisation - as well as a printing house - needs advance data concerning products to be delivered in order to have enough and not too much resources in every phase of the process. The information needed by publishers, print shops and distribution organisations lies in different systems on different people's responsibility with long-term contract data not known to all people who need the information Communication of the information - which is only gradually becoming more precise before the issue date of the magazine issue takes place through several channels on different moments with different printing houses and distribution organisations (with different opportunities for product structure) in addition, publishers, printing houses and distribution organisations have company- and even person-specific conventions A distribution organisation - as well as a printing house - needs advance data concerning products to be delivered in order to have enough and not too much resources in every phase of the process.

12. "The Bermuda triangle of magazine production data" The Bermuda triangle: data is lost or not communicated, and especially in change or error situations the need for it is acute and severe. The clarification of errors takes long time and much effort. The Bermuda triangle: data is lost or not communicated, and especially in change or error situations the need for it is acute and severe. The clarification of errors takes long time and much effort.

13. Future vision of the communication In the circle the focus area of this presentation. Future vision includes bidirectional data communication in a network of several publishers, printing houses and distribution organisations. In the circle the focus area of this presentation. Future vision includes bidirectional data communication in a network of several publishers, printing houses and distribution organisations.

14. General model about the data communication about the subscriber edition at present The red arrows are illustrating the current situation, where only realized data is communicated, sometimes also advance data is given if the changes are big, mostly not. That is illustrated with the dotted lines. Data communication to and from delivery organisation is done mainly manually.The red arrows are illustrating the current situation, where only realized data is communicated, sometimes also advance data is given if the changes are big, mostly not. That is illustrated with the dotted lines. Data communication to and from delivery organisation is done mainly manually.

15. General model about the data communication about the subscriber edition in the future In the future the data should be at least almost real-time and flow bidirectionally. In the left side there are advertisers as most of the tailoring comes from ad inserts to be delivered to specific target groups.In the future the data should be at least almost real-time and flow bidirectionally. In the left side there are advertisers as most of the tailoring comes from ad inserts to be delivered to specific target groups.

16. Distribution data -1 Common data for different distribution organizations: Order- / reference number Customer ID of the publisher Customer ID of the mailer The place of posting The date of posting Product ID The amount of products (delivery area -specificly) Unit weight and/or average weight The level of sorting Reference number of the mailer Additional information (in writing)

17. Distribution data -2 Distribution organization -specific data (Itella): OrderStatusCode PublicationDeliveryDate IssueIdentifier IssueIdentifierPrefix CombinationIssueIdentification UserIdentifier Delivery lot -specific data product ID* additional services amount of products* unit weight* delivery lot ID zone ID usage ID level of rosting* level of post-center-specific transport units the size of the product Itella is currently the only postal operator in Finland. (There are early delivery organisations for newspaper distribution in the early morning, and ad delivery organisations.)Itella is currently the only postal operator in Finland. (There are early delivery organisations for newspaper distribution in the early morning, and ad delivery organisations.)

18. The applicability of JDF for distribution data most of the generic information can be described with JDF most of Itella-specific information cannot be described with standard JDF Solution A: making JDF-extension for data that cannot be described with standard JDF Solution B: using UPU�s (Universal Postal Union, under UN) international EPPML specification for it Solution C: using EPPML specification for all data communication to and from a distribution organization Postal operators EPPML was not finalized when the project was in the making. That's why a decision was made to use Solution A.Postal operators EPPML was not finalized when the project was in the making. That's why a decision was made to use Solution A.

19. Demonstration system A small-scale internet-based demonstration system was imple-mented in order to illustrate and get feedback of the content and the functionality of distribution data communication system Includes delivery lot -specific manual input generic data distribution organization -specific data Inputted data can be printed out as JDF file A productional system would be integrated into existing systems and get the data from them and also include alerts and verifications in prder to avoid errors

20. Demonstration system for distribution data communication exploiting JDF specification Features Provides an easy and automated way of distribution data communication between publishers, printing houses and delivery organisations based on common specification Functionality Demonstrates subscriber distribution data of versioned magazine products to be checked, updated and sent to delivery organisation using graphic arts industry's JDF-format with necessary extensions Testing/evaluation Otavamedia and Forssan Kirjapaino tested the demonstration system while Itella studied possi-bilities to receive distribution data in proposed format The demonstration system, operations model and requirements specification was developed based on feedback of the forementioned parties and MIS -provider Logica

21. A couple of display images (shots) from the demonstration system with a simple example generic and distribution organisation -specific data.A couple of display images (shots) from the demonstration system with a simple example generic and distribution organisation -specific data.

22. This issue has two different subscriber versions, and two different distribution organisations. With every different delivery lot, the amount of information would double.This issue has two different subscriber versions, and two different distribution organisations. With every different delivery lot, the amount of information would double.

23. Conclusions Although a shift in electronic media can be seen in long-term, print remains the main channel during the target period of the project In addition to new operations models, efficient networked operation between organizations needs IT solutions for transparent processes Electronic data communication enables and demands documented processes which enable assessment and development of those The opening of postal markets in Europe will increase the need for common specifications in order to avoid organization-specific practices JDF suits well for communicating part of the distribution data, while international postal specifications (UPU's EPPML) may be more widely applicable solution in the future Data communication is especially needed when making tailored magazines with different delivery lots or with selective binding and mailing (different versions of products in same bundles) The present state and development potential of networked and print media combinations etc. reported in D2.1 - Printti toimintoketjun kehit�t�miseen tulee siis panostaa. JDF (as it is alredy used in the communication between publishers and printing houses) The present state and development potential of networked and print media combinations etc. reported in D2.1 - Printti toimintoketjun kehit�t�miseen tulee siis panostaa. JDF (as it is alredy used in the communication between publishers and printing houses)

24. Acknowledgements TEKES � the Finnish Funding Agency for Technology and Innovation TIVIT � the Strategic Centre for Science, Technology and Innovation in the field of ICT The Finnish Foundation for Graphic Arts Industry Participating companies: Otavamedia, Forssan Kirjapaino, Itella and Logica

26. Future vision of the communication T�m�n j�lkeen demototeutusT�m�n j�lkeen demototeutus

27. A simple example of the structure of a magazine A magazine issue consists of a cover, a body and inserts, which all can be versioned by for example target area or target group. A magazine may have wrapping with inserts or for example invoice or transpromo material. Address list or for possibly versioned subscriber issues, target-group -based address lists are needed as well.A magazine issue consists of a cover, a body and inserts, which all can be versioned by for example target area or target group. A magazine may have wrapping with inserts or for example invoice or transpromo material. Address list or for possibly versioned subscriber issues, target-group -based address lists are needed as well.

28. The structure of a magazine and the corresponding structure of a JDF file A magazine structure consists of issue, binding, layout, inserting and delivery, which apply to all components. Covers and bodies usually have different materials and often different layout, sometimes also different colors. Inserts are described either as components (bound and wrapped inserts), or in InsertingIntent (loose or glued inserts).A magazine structure consists of issue, binding, layout, inserting and delivery, which apply to all components. Covers and bodies usually have different materials and often different layout, sometimes also different colors. Inserts are described either as components (bound and wrapped inserts), or in InsertingIntent (loose or glued inserts).

29. Main research questions What metadata is needed for the distribution in flexible supply chain management of tailored magazines? How to provide global status information of the processes in production networks? What challenges will arise when implementing a demonstration system?

30. Cross Media supply chain Cross Media logistics ecosystem simplified representation (The production and delivery of customized multichannel magazines demands controlling both the customized contents and the metadata connected to them at every step of the process. With only 6 different cover, body and insert versions one gets over 200 possible end product versions which may subdivide to even smaller delivery lots. ) Monimediajulkaisemisen yleinen toimintakaavio, josta t�ss� l�pik�ynti l�hinn� aikakauslehden osalta. HUOM. Eri l�hteet sek� aineistoilla, ett� niit� koskevilla tiedoilla!Cross Media logistics ecosystem simplified representation (The production and delivery of customized multichannel magazines demands controlling both the customized contents and the metadata connected to them at every step of the process. With only 6 different cover, body and insert versions one gets over 200 possible end product versions which may subdivide to even smaller delivery lots. ) Monimediajulkaisemisen yleinen toimintakaavio, josta t�ss� l�pik�ynti l�hinn� aikakauslehden osalta. HUOM. Eri l�hteet sek� aineistoilla, ett� niit� koskevilla tiedoilla!

31. Present data communication The distribution data is mostly be derived from publisher's systems, but not communicated electronically distribution organisations may need advance data for their resource planning - especially in the future tracking data exists at some distribution organisations but cannot be communicated to publishers systems, only general documents in distribution organisation -specific presentation may be available The publisher needs to communicate partly same data to distribution organization as to printing house the printing house updates delivery lot -specificly the delivery data (dispatch list) of an issue - stored based on long-term contracts the data originates from publishers systems - and it might not be updated at all until the mailing starts... All goes well, if the issue is made as planned and the distribution organisation(s) as well as printing house(s) get data (according to agreed schedule). In the future the competition in postal distribution will increase. Thus, flexible supply chain management demands for better and more efficient data communication and operations models. the amount of products the unit weight of the product distribution organization-specific eg. customer, mailer and postal product codes most of which are the same as in the issue-specific dispatch lists based on long-term contractsAll goes well, if the issue is made as planned and the distribution organisation(s) as well as printing house(s) get data (according to agreed schedule). In the future the competition in postal distribution will increase. Thus, flexible supply chain management demands for better and more efficient data communication and operations models. the amount of products the unit weight of the product distribution organization-specific eg. customer, mailer and postal product codes most of which are the same as in the issue-specific dispatch lists based on long-term contracts

32. Present case-specific data communication the printing house updates delivery lot -specificly the delivery data (dispatch list) of an issue - stored based on long-term contracts the amount of products the unit weight of the product distribution organization-specific eg. customer, mailer and postal product codes most of which are the same as in the issue-specific dispatch lists based on long-term contracts the data originates from publishers systems - and it might not be updated at all until the mailing starts... Several delivery lots may result from tailored subscriber versions that are produced one after another leading to several delivery lots to same delivery areas if they cannot somehow be combined to same bundles and/or transport units (such as cages, roller cages) - demonstration system does not implicate the sender of distribution data - in practice most of the data originates from the publisher but some data is not known until in the printing house which normally communicates the data to distribution organisation (via web interface of the distribution org.) Several delivery lots may result from tailored subscriber versions that are produced one after another leading to several delivery lots to same delivery areas if they cannot somehow be combined to same bundles and/or transport units (such as cages, roller cages) - demonstration system does not implicate the sender of distribution data - in practice most of the data originates from the publisher but some data is not known until in the printing house which normally communicates the data to distribution organisation (via web interface of the distribution org.)

33. This is the case-specific data communication. There are two kinds of data, data concerning the physical product, and the data concerning the delivery addresses and their distribution into different delivery areas. The data concerning physical products is based on long term contracts which serve as the base for order-specific delivery lists made for every issue beforehand. In addition, a few days before the actual printing, subscriber data (that is address lists) are transferred to the printing house which does the mailing according to the instructions of the distribution organisation. That includes bundling and packing the magazines into transport units so that the units and bundles go as far as possible without the need for sorting, AND sorting the subscriber addresses in alphabetic order in each bundle. - transport units, roller cagesThis is the case-specific data communication. There are two kinds of data, data concerning the physical product, and the data concerning the delivery addresses and their distribution into different delivery areas. The data concerning physical products is based on long term contracts which serve as the base for order-specific delivery lists made for every issue beforehand. In addition, a few days before the actual printing, subscriber data (that is address lists) are transferred to the printing house which does the mailing according to the instructions of the distribution organisation. That includes bundling and packing the magazines into transport units so that the units and bundles go as far as possible without the need for sorting, AND sorting the subscriber addresses in alphabetic order in each bundle. - transport units, roller cages

34. Itella's process for magazine distribution The incoming transport units may go directly from one truck to another - or the bundles in them may have to be sorted to different transports to different delivery area post centers. This may happen in each post center. The bundles may have to be opened and sorted if the magazines in them are going to different delivery areas. Distribution organisation tries to minimize the sorting phases. In order to do this, it gives reduction in the distribution price if the magazes are sorted and the bundles and transport units made according to instructions it gives.The incoming transport units may go directly from one truck to another - or the bundles in them may have to be sorted to different transports to different delivery area post centers. This may happen in each post center. The bundles may have to be opened and sorted if the magazines in them are going to different delivery areas. Distribution organisation tries to minimize the sorting phases. In order to do this, it gives reduction in the distribution price if the magazes are sorted and the bundles and transport units made according to instructions it gives.

35. Postal data communication at present (Itella) (dispatch lists to be updated) The contracts between the parties are usually made for a longer period, typically for a year. The distribution organisation needs issue-specific product and distribution data (in advance), which may change during the year (depending for example on the amount of subscribers and the amount of inserts) while ### the format stays in most cases the same. The contracts between the parties are usually made for a longer period, typically for a year. The distribution organisation needs issue-specific product and distribution data (in advance), which may change during the year (depending for example on the amount of subscribers and the amount of inserts) while ### the format stays in most cases the same.

36. The structure of a tailored magazine with potential amounts of each component A tailored magazine must have at least one cover and one block, other components are optional and their number can vary. Most often it is the inserts that are tailored, but also covers and blocks can be tailored.A tailored magazine must have at least one cover and one block, other components are optional and their number can vary. Most often it is the inserts that are tailored, but also covers and blocks can be tailored.

37. WP2 Objective Flexible supply chain management work package focuses on modelling the networked cross media production/distribution chain and its interfaces and developing new operations and business models for tailored magazine supply chain. Participants: Otavamedia � publisher Forssan Kirjapaino � printing house Itella � distribution organisation Logica � systems provider

38. Objectives To enhance the cooperation over organisational borders by utilizing information technology: to model and define the information flow (product and distribution data) between a magazine publisher / printing house and distribution organisation(s) to study the possibilities offered by JDF and other suitable specifi-cations in data communication of subscriber distribution metadata to demonstrate distribution data communication system The objectives of the project were: The objectives of the project were: