American business media june 14 2006
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American Business Media June 14, 2006. Agenda. Industry Overview eBusiness Overview Nextier Overview Description Nextier’s “fit” Benefits Wrap Up. What are we talking about?. US Coated Paper Market – 2005* 5.6 million tons coated freesheet 6.1 million tons coated groundwood

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Agenda l.jpg

Agenda

Industry Overview

eBusiness Overview

Nextier Overview

Description

Nextier’s “fit”

Benefits

Wrap Up


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What are we talking about?

  • US Coated Paper Market – 2005*

    • 5.6 million tons coated freesheet

    • 6.1 million tons coated groundwood

    • Estimated annual growth: 1-3%

  • Associated $ for 2005*

    • $4.9 Billion coated freesheet

    • $5.6 Billion coated groundwood

  • Raw Material Prices rising

  • Advertising pages flat

*Source: RISI – May 2006


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Current Situation

  • “Perfect Storm”

    • Escalating costs

    • Pressure to reduce inventories / working capital

    • Need for speed

  • What level of accuracy / perfection?

  • How can we do “more” with “less”?


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eBusiness Definition

The simple definition of eBusiness is the process of conducting business transactions, electronically, with trading partners.

A customer or a supplier or a printer is often referred to as a trading partner.

eBusiness is simply another channel for doing business, but with mutual benefits enabled by self-service capabilities.


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eBusiness Overview

  • Drivers of eBusiness:

    • Continuing business pressures

      • Increased prices

      • Need to reduce costs

    • Faster technology commoditization

      • Cost barriers have been reduced

    • Progress on technology standards

      • papiNet has 29 publication paper messages

  • Benefits of eBusiness:

    • Real Time information

    • Error reduction

    • Richness of data

      • Automation can create Inventory reduction of .25 - .50 issues on floor

      • eBusiness can reduce cost to serve by 50-60%

  • eBusiness Solutions:

    • Websites/Extranets

    • Internally developed solution with B2B integration

    • 3rd Party Enablers e.g. - Nextier


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3rd Party Enablers

  • Additional value or capability enabled by allowing a single company to have multiple transaction partners

  • Servers reside outside of home environment

System-to-System

(Both party’s systems are connected directly together)

  • Real Time information (XML, EDI, etc.)

  • Reduced errors

  • Increased visibility

(Trading partners send simple files to each other electronically using international standards)

EDI

  • Files are sent in “groups” at predefined times since “real time” information is not needed

  • Sufficient for general planning

Transactional Website

(Parties can view information and conduct some business transactions)

  • Ease of use

Informational Website

(Customers view information on a website, however must contact company to conduct business)

  • Convenient

  • 24/7 access

eBusiness Evolution

eBusiness Evolution

Value to Supply Chain

Phone/Fax

  • Trading partners communicate via phone or fax

  • Either side initiates the transaction

Sophistication


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Invoice Payment

Budget Planning

Purchase Order Management

Inventory Management

Post Production Analysis

Paper Usage Planning

Production Scheduling

Paper Purchasing Life Cycle

Excel spreadsheets, ERP systems, Custom Systems, Extranet sites:

Invoice Payment

Budget Planning

Purchase Order Management

Inventory Management

Post Production Analysis

Paper Usage Planning

Production Scheduling

Typically, companies have multiple disparate systems that automate specific touch points in the Paper Purchasing Life Cycle

Nextier:

Nextier automates the entire paper supply chain.


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Who is Nextier?

  • Nextier provides application software for managing the paper procurement process.

  • Designed for trading partners participating in the paper supply chain…mill producers, end users, printers, distributors

  • Nextier is web based and papiNet compliant


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End User

ERP System

Supplier Order Management System

Printer Inventory Management System

Two Tiered Nextier Benefits

End User Functionality

Paper Management

Consolidate and Recommend Orders

Places the PO

Manifest Visibility

Production Planning

Confirms the Order

Receipts + Usage Visibility

Provides Order Status

Invoices Visibility

Inventory Visibility

Invoices

Data Exchanged

Usage

Order Status & Acknowledgement

Manifest

Goods Receipt


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Nextier Value Proposition

  • Saves time by streamlining and automating manual processes

    • Eliminates spreadsheets, email collaborations, manual calculations, etc. while standardizing the process.

      • Sample customer results:

        • 2000 (19) vs. 2004 (12) buy more paper with less people

      • INCREASED PRODUCTIVITY, REDUCTION IN ERRORS

  • Information is more accessible

    • Eliminates time spent tracking orders.

      • Sample customer had 50% reduction in total phone calls for one Purchase Order.

      • ENABLES TIME SPENT ON HIGH VALUE ADD ACTIVITIES


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Nextier Value Proposition

  • Provides near real-time, up-to-date information from trading partners

    • Delivery messages, invoices, receipt and usage.

      • Customers enjoy time saving benefit of seeing status of orders in real time.

      • TIMELY FACT-BASED DECISION MAKING

  • Provides easy integration to all of my trading partners

    • Single point of integration with participants

      • Customers enjoy one-to-many connectivity

      • DEVELOPMENT COST SAVINGS VS. DIRECT INTEGRATIONS

  • Helps to better manage inventory

    • Recommended orders, issues on the floor, target inventory

      • Sample customer reduced issues on floor from 2 issues to 1.25.

      • INVENTORY COST REDUCTION, MANAGE BY EXCEPTIONS


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USS Nextier

Wrap Up

  • How are you weathering the “Perfect Storm”?

    • How will you change to weather the “Perfect Storm”?

    • What strategies do youhave in place to make the supply chain more efficient?


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