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e-Enabling an Efficient Supply Chain

e-Enabling an Efficient Supply Chain. Robert Pyzdrowski President, Operations R.R. Donnelley. Agenda. papiNet Goals Why Standards? The Need for Collaboration Other Industry Standards Intel and RosettaNet Benefits for the Print Supply Chain. papiNet’s Goal is ….

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e-Enabling an Efficient Supply Chain

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  1. e-Enabling an Efficient Supply Chain Robert Pyzdrowski President, Operations R.R. Donnelley

  2. Agenda • papiNet Goals • Why Standards? • The Need for Collaboration • Other Industry Standards • Intel and RosettaNet • Benefits for the Print Supply Chain

  3. 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

  4. 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 Standards enable collaboration

  5. The Need for Collaboration • Challenging economic and market conditions • An inefficient supply chain • Significant “muda” in the supply chain • Our customers need and expect more from us

  6. 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

  7. UL (Underwriters Labs) • ISO • HTML • RosettaNet • papiNet • Electrical safety • Quality systems • Internet • Electronics Supply Chain • Paper Supply Chain Other Industry Benefits From Standards Industry Standard

  8. 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

  9. 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

  10. Agents Brokers Merchants dot coms Our Choice Publishers/ Catalogers Standard or “one-off” custom interfaces? Paper Companies Printers/ Converters Which is better for our supply chain?

  11. 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!

  12. Defining papiNet Sara Freund Executive Director, E-Business American Forest & Paper Association

  13. Agenda • Defining papiNet • papiNet Organization and Membership • papiNet Goals • How papiNet automates the Supply Chain • Implementation Status • How to Become a Member

  14. 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.

  15. papiNet NA Membership papiNet Euro Membership Board Board 2003 papiNet Organization papiNet Executive Committee Segment Implementation Groups Implementation Coordinating Council Convergence and Partnering Council Central Work Group Note: There is considerable collaboration between ALL the boxes in the papiNet Organization model. Highest priority is Implementation!

  16. 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

  17. 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

  18. papiNet Goals • To increase efficiencies in transaction and marketplace activities through • 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 • 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

  19. 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

  20. Supply Models papiNet messages can be categorized according to the Supply-Chain Council’s, Supply-Chain Operations Reference (SCOR) model • Request For Quotation • Availability • Purchase Order • Order Confirmation • Call-Off • Order Status • Inventory Status • Product Attributes • Planning • Product Quality • Usage • Inventory Change • Product Performance • Delivery Message • Goods Receipt • Invoice • Credit/Debit Note • Business Ack • Information Request • Complaint • Complaint Request

  21. 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

  22. Total Live and Planned Implementations

  23. 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

  24. Segment Implementation Groups (SIGs) • Groups Already Formed: • XBITS (NA Book Manufacturers) • Publication Papers (Europe) • Fine Papers (Europe) • Packaging (Europe) • Groups To Be Formed in 2003: • Publication Papers (NA) • Fine Papers (NA) • Packaging - Containerboard and Paperboard (NA) • Label Stock (Global) • Recovered Paper (Global)

  25. Segment Implementation Group (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

  26. papiNet NA Membership Categories • Corporate Members ($10,000 for new members, $5,000 current members) • 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)

  27. Contact Us • www.papinet.org • papiNet NA • David Steinhardt, 703 837-1066 or dsteinhardt@idealliance.org

  28. Implementing papiNet Al Ivan Executive Director, E-Business MeadWestvaco Corporation Paul Reid Manager, Paper Systems Time Inc.

  29. Agenda • What are the papiNet Messages? • How do I get a papiNet project started? • How can I improve my chances of success? • What are the benefits?

  30. RFQ RFQ Response Goods Receipt Credit Debit Note Business Ack Usage Order Status Inventory Status Inventory Change Information Request Product Attributes Availability Planning Product Performance Product Quality Complaint Complaint Response Purchase Order Order Confirmation Call Off Delivery Message Invoice V1.1 V2.0 V2.1 V1.0 Schema June 2001 Release Feb 2002 Release August 2002 Release January 2003 Industry Review papiNet automates the complete supply chain

  31. 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

  32. 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

  33. 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

  34. 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

  35. What are some Benefits? • 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)

  36. Questions???

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