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, 28 2002
Paris, France
papiNet Is…
• An international paper and forest products industry eBusiness 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
Supply Chain
Inventory
ROI
Threats and
opportunities
of external
marketplaces
Emergence of
the Internet
for Business
Uneven
adoption of
EDI
Supply Chain
Visibility
High order
management
costs
Changing
customer
demands
Customers
open to new
technologies
Obligatory Quotation
“The Industry has not done its best over the last
10-15 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
European
Paper
B2B
Committee
Consortium
American
Forest & Paper
Association
papiNet Evolution
papiNet
Implementation
Coordinating Council
Publication Papers
Fine Paper
Packaging
Book
Pulp
Recovered Fibre
Timber – Lumber
Label Stock
papiNet Executive
Committee
Central Work
Group
(15 members)
Message Task Groups
Interoperability & Technical
Transportation
Documentation
Board
papiNet NA
Membership
Board
papiNet Global Organization
papiNet Euro
Membership
Convergence
and Partnering
Council
Solutions Provider Council
Message Service
Compliance
Standards Convergence
Issues
Support Quality Aspects
papiNet Europe Membership
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Ahlström
AssiDomän
Burgo
ENCE
Expresso
Fedrigoni
Holmen Paper
International Paper
Kappa
Korsnäs
Lecta
Mayr-Melnhof
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M-real (Metsä Serla)
Mondi
Myllykoski
Norske Skog
Portucel/Soporcel
Sappi
SCA
Smurfit
Södra
Stora Enso
UPM-Kymmene/Haindl
papiNet NA Membership
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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.
•
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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…
Strategy
Business Rules
papiNet Messages
Message Transport
Partner 2
Partner 1
Processes
papiNet Fits…
Strategy
Business Rules
papiNet Messages
Message Transport
Partner 2
Partner 1
Processes
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
Version Version
1.0
1.1
First joint
meeting
Pulp
Brussels
August
2000
June
2001
Version
2.0
Book
Lumber
additions
released
initiated
August
2001
June
2002
Transport
Label Stock
RCF
initiated
Version
2.1
August November December
2002
2002
2002
2002 Schedule
Industry
Review Period
For
Version 2.0
Planning
OrderStatus
InventoryStatus
InventoryChange
InformationRequest
ProductAttributes
Usage
June 2002
PurchaseOrder
OrderConfirmation
Industry
CallOff
Review Period
CallOffConfirmation
Book Industry
For
DeliveryMessage
Complete
GoodsReceipt
Invoice
Timber/Lumber
CreditDebit
Complete
Usage
OrderStatus
Investigate
InventoryStatus
Recovered
Fibre
Forecast
InventoryChange
Planning
InformationRequest
Complaint & Response
Schema for all
Investigate
ProductAttributes
ProductQuality
messages
Transport
Usage
ProductPerformance
Availability
BusinessAcknowledgement
ebXML Envelope
July 2002
V2.0
V2.1
Aug 2002
Dec 2002
Dec 2002
Supply Models
papiNet messages can be categorized according
to the Supply-Chain
Council’s, Supply-Chain Operations
Reference (SCOR) model
Plan
Catalogue
Forecast
Planning
Source Make
Deliver
RequestForQuotation
DeliveryMessage
Availability
GoodsReceipt
ProductQuality
PurchaseOrder
Invoice
Usage
PO Confirmation
InventoryChange
CallOff
ProductPerformance
OrderStatus
InventoryStatus
Utility
CreditDebitNote
BusinessAck
InformationRequest
Complaint
ComplaintResponse
Transaction Model
Purchase Order
Order Confirmation
Delivery
Invoice
CallOff
Publisher/
Cataloger
Purchase Order
Printer/
Converter
Paper
Producer
Order Confirmation
Transaction Model
Purchase Order
Order Confirmation
Delivery
Invoice
CallOff
Publisher/
Cataloger
CallOff
Printer/
Converter
DeliveryMessage
Invoice
Paper
Producer
Collaboration Model
Publisher/
Cataloger
Planning
Forecast
DeliveryMessage
GoodsReceipt
Usage
Forecast
Printer/
Converter
DeliveryMessage
GoodsReceipt
Usage
Paper
Producer
Complexity
Forecast/Planning
Supply Chain
ProductPerformance
Collaboration
Availability RFQ (ATP)
Supply Chain OrderStatus InventoryStatus
InventoryChange
Visibility
Process Migration
ProductQuality
Supply Chain CallOff
GoodsReceipt Usage
Metrics
PO, POAck, Delivery,
Invoice
Value
Automation
BENEFITS
Supply Chain Velocity
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 2002
• 80 trading partners engaged in implementation
• 2003 goal
- All 80 in production
- 50 more in testing
• Quarterly surveys throughout 2003
Total Live and Planned Implementation
papiNet Total Trading Partner Implementations; in Production and
Short Term Plans
Production
29
Production
Short Term
Short Term
51
0
10
20
30
40
50
60
Total by Continent
papiNet Production and Short Term Trading Partners
by Continent
Production
21
7
1
EU
NA
SA
Short Term
41
0
10
20
10
30
40
0
50
60
Implementation by Transaction
papiNet Production and Short Term Plans by
Transaction
OrdSts
Qual
InvSt
InfReq
InvChg
Usg
CrDr
Inv
GRecpt
Dlv
CallOff
Pln
OrdCnf
PO
Avail
RFQRes
RFQ
ProdAttr
BA
Production
Short Term
0
10
20
30
40
50
60
70
Some of Who are Live or Testing
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Axel Springer
Abitibi-Consolidated
Bowater America
Brown Printing
Burda
Burgo
Expresso
ForestExpress
Glatfelter
Holmen Paper
International Paper
•
•
•
•
•
•
•
•
•
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•
Land’s End
Madison Paper
Mayr-Melnhof
MeadWestvaco
News International
Norske Skog
PakPrint
PapeX
Perry Judd’s
Quad Graphics
Quebecor World
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•
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•
•
•
•
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
12 November 2002
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
papiNet Transport
papiNet will engage the CIDX standards group to
further our common objectives in transportation and
logistics message standards.
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 Q1 2003
3. Explore the opportunities to participate with CIDX Convergence
and Partnering group in monitoring the XML global cross
industry standards landscape
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)
CIDX Joint Advisory
Committee
(Operating Management Team)
Convergence
and
Partnering
Standards
Development
Transport Task Group
3 EU + 3 NA
(Implement)
Transport Community
(Requirements)
Road, Rail, Ocean - Users & Suppliers
papiNet
Logistics
Sub-Group
(3 people)
Paper and Forest
Industry Transport
Requirements
CIDX
Roadmap
• November
• December
• January
Europe
• January
North
America
– papiNet join CIDX as Associate member
– papiNet Transport Task Team meets
– 2 day meeting of Paper and Forest
Products Transport Community
- 2 day meeting of Paper and Forest
Products Transport Community
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 www.papinet.org
- Contact the papiNet leadership
• Become a member of papiNet.
• Ask questions.
• User Group – first meeting Q1 2003