Enabling the Supply Chain in an Electronic World. The Global Electronic Standards Initiative for the Paper and Forest Products Industry Nigel Saville Senior.

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Presentation transcript:

Enabling the Supply Chain in an Electronic World. The Global Electronic Standards Initiative for the Paper and Forest Products Industry Nigel Saville Senior Business Systems Consultant TietoEnator Majiq Inc. November, Paris, France

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.

A Response to Market Needs Globalization Threats and opportunities of external marketplaces Uneven adoption of EDI High order management costs Changing customer demands Customers open to new technologies Emergence of the Internet for Business ROI Supply Chain Inventory Supply Chain Visibility

Obligatory Quotation “The Industry has not done its best over the last years to give return on capital invested. papiNet is one of the keys to driving out cost in the way business is done.” LH Puckett VP Coated Division International Paper

papiNet Evolution IDEAlliance B2B Committee European Paper Consortium American Forest & Paper Association

papiNet Evolution papiNet

papiNet Global Organization papiNet Executive Committee papiNet NA Membership Board papiNet Euro Membership Board Central Work Group (15 members) Implementation Coordinating Council Convergence and Partnering Council Publication Papers Fine Paper Packaging Book Pulp Recovered Fibre Timber – Lumber Label Stock Solutions Provider Council Message Service Compliance Standards Convergence Issues Support Quality Aspects Message Task Groups Interoperability & Technical Transportation Documentation

papiNet Europe Membership Ahlström AssiDomän Burgo ENCE Expresso Fedrigoni Holmen Paper International Paper Kappa Korsnäs Lecta Mayr-Melnhof M-real (Metsä Serla) Mondi Myllykoski Norske Skog Portucel/Soporcel Sappi SCA Smurfit Södra Stora Enso UPM-Kymmene/Haindl

papiNet NA Membership Abitibi-Consolidated Inc. Bowater America Inc. Brown Printing Company Dupont Titanium Technology ForestExpress G+J USA Publishing Glatfelter Company International Paper Company Lands’ End Madison Paper Industries MeadWestvaco Corporation Perry Judd’s Inc. Quad Graphics Inc. Quebecor World R. R. Donnelley Sappi Fine Paper, NA Seeburger Inc Smurfit-Stone Container Corp SP Newsprint Co. Stora Enso NA Tembec TietoEnator Majiq Time Inc UPM-Kymmene Weyerhaeuser Company XBITS

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

papiNet Fits… Partner 1 Partner 2 Strategy Processes Business Rules papiNet Messages Message Transport

papiNet Fits… Partner 1 Partner 2 Strategy Processes Business Rules papiNet Messages Message Transport

Collaboration Benefits Supply Chain Collaboration -Cost reductions & Productivity Improvements -Supply Chain visibility Value Chain Collaboration -Emphasis on effectiveness and collaboration -An operating strategy linking the enterprises in the chain Requires Trust Requires Collaborative Processes

What is ‘The Standard”? Managed by the papiNet Central Work Group XML messages defined in W3C Schema Message documentation Extensive Glossary ebXML Message Envelope Implementation Guidelines Design tools Stylesheets Case Studies with message examples

Product definition

Paper Properties

Rapid Development First joint meeting Brussels August 2000 Version 1.0 Version 1.1 Pulp additions released August 2001 June 2001 August 2002 Version 2.0 June 2002 Book Lumber initiated December 2002 Version 2.1 November 2002 Transport Label Stock RCF initiated

PurchaseOrder OrderConfirmation CallOff CallOffConfirmation DeliveryMessage GoodsReceipt Invoice CreditDebit Usage OrderStatus InventoryStatus InventoryChange InformationRequest ProductAttributes Usage BusinessAcknowledgement 2002 Schedule June 2002July 2002Aug 2002 Dec 2002 V2.0 Book Industry Complete Timber/Lumber Complete Investigate Recovered Fibre Investigate Transport Schema for all messages ebXML Envelope Planning OrderStatus InventoryStatus InventoryChange InformationRequest ProductAttributes Usage Industry Review Period For Version 2.0 Industry Review Period For Forecast Planning Complaint & Response ProductQuality ProductPerformance Availability V2.1 Dec 2002

Supply Models papiNet messages can be categorized according to the Supply-Chain Council’s, Supply-Chain Operations Reference (SCOR) model Catalogue Forecast Planning RequestForQuotation Availability PurchaseOrder PO Confirmation CallOff OrderStatus InventoryStatus ProductQuality Usage InventoryChange ProductPerformance DeliveryMessage GoodsReceipt Invoice CreditDebitNote BusinessAck InformationRequest Complaint ComplaintResponse

Transaction Model  Purchase Order  Order Confirmation  Delivery  Invoice  CallOff Paper Producer Printer/ Converter Publisher/ Cataloger Purchase Order Order Confirmation Purchase Order Order Confirmation

Transaction Model  Purchase Order  Order Confirmation  Delivery  Invoice  CallOff Paper Producer Printer/ Converter Publisher/ Cataloger DeliveryMessage Invoice DeliveryMessage CallOff

Collaboration Model  Planning  Forecast  DeliveryMessage  GoodsReceipt  Usage Paper Producer Printer/ Converter Publisher/ Cataloger DeliveryMessage GoodsReceipt DeliveryMessage Forecast Planned Work & Print Schedule Usage GoodsReceipt Usage

Complexity Process Migration Value Automation Supply Chain Velocity PO, POAck, Delivery, Invoice CallOff GoodsReceipt Usage Forecast/Planning ProductPerformance Availability RFQ (ATP) OrderStatus InventoryStatus InventoryChange ProductQuality Supply Chain Metrics Supply Chain Visibility BENEFITS Supply Chain Collaboration

Not just A2A To be effective, the papiNet standard must support a range of trading partner capabilities -Three tiers of trading partners -Top – Comprehensive ERP system -Middle – Separate database systems -Bottom – maybe a PC and Internet connection Engage all trading partners -Single “e-business pipe” for all tiers -Middleware support multiple delivery types Stylesheets and other tools A range of alternative uses

Implementation Status Implementation benchmark survey completed November trading partners engaged in implementation 2003 goal -All 80 in production -50 more in testing Quarterly surveys throughout 2003

Total Live and Planned Implementation

Total by Continent

Implementation by Transaction

Some of Who are Live or Testing Axel Springer Abitibi-Consolidated Bowater America Brown Printing Burda Burgo Expresso ForestExpress Glatfelter Holmen Paper International Paper Land’s End Madison Paper Mayr-Melnhof MeadWestvaco News International Norske Skog PakPrint PapeX Perry Judd’s Quad Graphics Quebecor World R. R. Donnelley Sappi SCA Smurfit Södra SP Newsprint Stora Enso Tembec Time Inc. UPM-Kymmene Weyerhaeuser

Industry Segments Initial focus on Publishing Paper, Fine Paper and Packaging Paper Pulp segment embraced in 2001 papiNet has begun the process of expanding outside its current domain -Wood products segment underway -Book publishers segment underway -Recovered paper industry segment starting -Label Stock segment starting -Logistics XML standards initiative launched

Transportation papiNet launched an initiative to develop a set of XML Business Transactions to support Transport and Logistics processes in the Paper and Forest Products Industry 12 November 2002

papiNet Transport 1.Engage the CIDX standards group in the enhancement of their transport and logistics messages to incorporate paper and forest products industry requirements. 2.Initial pilot of one message – Shipment Status – for Q Explore the opportunities to participate with CIDX Convergence and Partnering group in monitoring the XML global cross industry standards landscape papiNet will engage the CIDX standards group to further our common objectives in transportation and logistics message standards.

Background In 2001, an investigation of the transport electronic message standard landscape. Fragmented and disorganized industry with pockets of independent activity Enthusiasm for and recognition of the need for a single global cross-industry transport and logistics electronic business message standard No comprehensive Transport Industry initiative underway. Too many -proprietary messages standards, -too many independent standards being developed, and -too much reliance on 30 year old EDI messages

Background Highly desirable that such messages be cross industry, as well as global, i.e. not just for paper. The goal of engaging the transport and logistics standards arena is to fill a gap in our ability to business in a common way electronically The need for a single Transport Industry initiative is well recognized by transport providers, but Transport Industry organizations are not “doing anything”

Scope No message development by papiNet Concentrate on the major business functions between Shipper, Carrier, and Customer/Consignee (e.g., Shipment Status, Load Tender, Load Tender Response, Freight Bill). The initiative should consider all Forest and Paper Industry requirements. Utilize existing papiNet messages where appropriate for business processes Out of scope: -Customs -Air Shipments

Transport Industry Contacts NA: -CN -CSX -VCML -IntelliTrans -NISTEVO -Schneider -Meyer´s & Sohn -Irving Transport -Transplace -Judge Organization EU: -EDI-Management -Transwide -PHAROS -Schenker -Meyer´s & Sohn -Pohls -SCA Transforest -Expro -DB Cargo

Operational Structure papiNet Executive Committee (Direct) Central Work Group (Manage) Transport Task Group 3 EU + 3 NA (Implement) Transport Community (Requirements) Road, Rail, Ocean - Users & Suppliers CIDX Joint Advisory Committee (Operating Management Team) Logistics Sub-Group (3 people) Standards Development Convergence and Partnering Paper and Forest Industry Transport Requirements CIDX papiNet

Roadmap November– papiNet join CIDX as Associate member December– papiNet Transport Task Team meets January– 2 day meeting of Paper and Forest Europe Products Transport Community January - 2 day meeting of Paper and Forest North Products Transport Community America

Paper Industry Messages Contract  Weight List (EU), Manifest (US) = papiNet Delivery message Load Tender (Booking, Rating, CarrierAssignment) Load Tender Response Load Consolidation (incl. multidrop) Shipment Status (one message with different types)  Delivery Confirmation = papiNet Goods Receipt Bill of Lading = no papiNet transactions  Invoicing Process using papiNet Invoice and CreditDebitNote  Complaint Process using papiNet Complaint messages

Issues and Challenges “Standards wars” Core Components Globalization of the standard Capabilities of Trading Partners Reluctance to re-engineer processes Trading Partner relationships Myths and Rumors

Summary The papiNet organization is committed to providing the means to utilize electronic business messages over the Internet to improve supply chain efficiency and effectiveness The papiNet Standard provides the XML messages, tools and extensive documentation to do this The Transport Initiative will broaden the scope of where improvements can be made Introducing more industry segments will enrich the standard and broaden its acceptance and use Fully engaged in supporting the industry and our goals of driving out cost.

Get Plugged In… Visit our web site at -Contact the papiNet leadership Become a member of papiNet. Ask questions. User Group – first meeting Q1 2003