papiNet a Response to Market Needs & Emerging Opportunities

© papiNet 2

Supply chains are complex

Pace of business is increasing, placing demand on information made available to the supply chain

Manual processes and older automation systems are not keeping up

Why it started ?

GlobalizationThreats and

opportunities of

external marketplac

esUneven

adoption of EDI

High order manageme

nt costs

Changing customer demands

Customers open to

new technologie

s

Emergence of the

Internet

© papiNet 3

GBI USA, CDN

F, B

IL

J

INDCH

AUS

D, A, NL, S, N, SF

Why Standards ?

© papiNet 4

Why Standards ?

© papiNet 5

Ahlström Arjo Wiggins AssiDomän Burgo ENCE Fedrigoni Haindl Holmen International Paper Smurfit Kappa Korsnäs Lecta Mayr-Melnhof

papiNet Founding Members EU

M-real Mondi Myllykoski Norske Skog Portucel Sappi SCA Södra Soporcel Stora Enso UPM-Kymmene Billerud

© papiNet 6

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

papiNet Founding Members NA

Quad Graphics Inc. Quebecor World R.R. Donnelley Sappi Fine Paper, NA SP Newsprint Stora Enso NA Tembec Tietoenator Majiq Time Inc UPM-Kymmene Weyerhaeuser Company

© papiNet 7

• To create and maintain an e-business standard for the paper and forest industry and where possible align it with other standards.

• To provide assistance implementing the standard, implementation groups within the market segments of the industry have been formed. They agree upon the general business rules, processes and then a suggested implementation of the standard that is applicable for the particular industry segment.

papiNet Mission

© papiNet 8

papiNet

Executive Committee

Central Work Group

• Standards Maintenance• Convergence and Partnering• Interoperability

• Business Processes• Marketing

• Book• Fine Paper• Label Stock• Packaging• Publication Papers• Pulp• Recovered Paper• Transport• Timber• Forest

User Groups

papiNet Organization

© papiNet 9

How We See XML

• XML definition• by W3C

• Business process definition

• Data dictionary• by papiNet

• Gaining intrinsic value

• by companies

© papiNet 10

papiNet SCOR Model

Product Attributes

Planning

Request For Quotation

Availability Purchase Order Order

Confirmation Call-Off Order Status Inventory Status

Product Quality Usage Inventory

Change Product

Performance

Delivery Message

Goods Receipt Invoice

Credit/Debit Note Business

Acknowledgement Information Request Complaint Complaint Request

Plan Make Deliver Source Utility

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

© papiNet 11

Stylesheet Example

© papiNet 12

Transactional Efficiency

Waste Process Delays Excess

freight

Late Deliveries

Multiple handling

End-to-end cycle-time

Warehouse fees

Critical Data to improve:

Inventory turns

Damage

Perceived Value

Intrinsic Value

Waiting timesLoad fill rate

The Supply Chain Iceberg

© papiNet 13© papiNet 13

papiNet Evolution

effort

time2000 2005 2010 2015

Paper & Packaging

Wood, Book

Forest Wood

BioEnergy

© papiNet 14

Not an electronic marketplace !

• An enabler for collaboration, information sharing, process improvement and shared decision making

• The opportunity to improve processes across the entire supply chain

papiNet: Industry Group for Customers & Suppliers

© papiNet 15

www.papiNet.org