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 cost-
effective 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 industry-
wide 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 • Request For • Product • Delivery • Credit/Debit Note

Attributes Quotation Quality Message • Business
• Planning • Availability • Usage • Goods Receipt Acknowledgement
• Purchase Order • Inventory • Invoice • Information Request
• Order Change • Complaint
Confirmation • Product • Complaint Request
• Call-Off Performance
• Order Status
• Inventory Status
Ex ecutio n St yle s

Traditional The papiNet Way

Approach: “Efficient and cost effective “An efficient and cost effective
transactions” supply chain”
Scope: Transaction between trading The entire supply chain
partners
Objectives: Transactional efficiency Operational improvement

ROI: Break-even (at best) Positive

Impact: Enables reduced admin and Enables reduced operating costs,

systems cost improved quality, throughout and
working capital
Potential $ Tens-hundreds of Tens-hundreds of millions/company
Return: thousands/company
How viewed: An IT project A margin improvement project-
strategic enabler for supply chain
improvements
 The Supply Chain “Iceberg”
Perceived Value

Transactional
Efficiency

Critical Data to improve:

Trim waste
Multiple handling
Intrinsic Value
Transit damage
Web breaks Process delays
Strip waste
Press delays Damage
Press damage
Delays
End-to-end Yield
Excess freight
cycle-time

Inventory turns
Warehouse fees

Late
Deliveries
 papiNet Value Proposition

Specifications
Data Collection
•papiNet Messages •Publishers/ Data
Catalogers Transmission
•Common Definitions
•Printers (XML)
•Standards
•Paper Companies

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
Timeliness
Acceleration

Collaboration
Empowerment
The 3 Ts Trust Information(eg. open schedules)
Sharing
Accountability
Key Ingredients
Understanding the process
For Improving
Supply Chain Transparency
Ability to see the real situation
Efficiencies
 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
F Fax: 630.322.6879
Email: frank.montague@rrd.com