Two Industry Standards

•papiNet – Paper Supply Chain

•XML Production 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

• Product Attributes

• Planning

• Request ForQuotation

• Availability• Purchase Order• Order

Confirmation• Call-Off• Order Status• Inventory Status

• ProductQuality

• Usage• InventoryChange

• ProductPerformance

• Delivery Message• Goods Receipt• Invoice

• Credit/Debit Note• Business Acknowledgement

• Information Request• Complaint• Complaint Request

Plan Make Deliver Source Utility

papiNet messages can be categorized according to the Supply-Chain Council’s, Supply-Chain Operations Reference (SCOR) model

Supply Chain Model Foundation

Traditional The papiNet Way

Approach: “Efficient and cost effective transactions”

“An efficient and cost effective supply chain”

Scope: Transaction between trading partners

The entire supply chain

Objectives: Transactional efficiency Operational improvement

ROI: Break-even (at best) Positive

Impact: Enables reduced admin and systems cost

Enables reduced operating costs, improved quality, throughout and working capital

Potential $ Return:

Tens-hundreds of thousands/company

Tens-hundreds of millions/company

How viewed: An IT project A margin improvement project- strategic enabler for supply chain improvements

Execution Styles

Transactional Efficiency

Trim waste

Web breaks Process delays

Yield Excess freight

Late Deliveries

Transit damageMultiple handling

End-to-end cycle-time

Warehouse fees

Critical Data to improve:

Press delays

Delays

Press damage

Inventory turns

Strip wasteDamage

Perceived Value

Intrinsic Value

The Supply Chain “Iceberg”

Specifications

•papiNet Messages

•Common Definitions

•Standards

Specifications

•papiNet Messages

•Common Definitions

•Standards

Data Collection

•Publishers/ Catalogers

•Printers

•Paper Companies

Data Collection

•Publishers/ Catalogers

•Printers

•Paper Companies

DataTransmission

(XML)

DataTransmission

(XML)

…This must be done, but it only enables collaboration…This must be done, but it only enables collaboration

papiNet Value Proposition

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

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

Supply Chain Benefits

The Three Ts

The 3 Ts

Key IngredientsFor ImprovingSupply ChainEfficiencies

TimelinessVelocity

Acceleration

Trust

Collaboration

Empowerment

SharingInformation(eg. open schedules)

Accountability

Understanding the process

Transparency Ability to see the real situation

XML PROSE

XML PROSE is a proven standard format for

communicating job specifications from the publisher

to all parties in a consistent manner.

XML PROSE - Benefits

•Not locked into one recipient, can be used across

printers and list processors

•If publisher’s software is certified by the USPS

as accurate as to AD content and Weight

and XML PROSE is the output this can lead to a

number of benefits

XML PROSE - Benefits

•Through a collaborative process reduce cycle times

•Provides the acceptable format for electronic archived copies of an issue

• 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

Thank you!

If you should want to get into more detailplease contact me here at PRIMEX orat the following

F

Frank MontagueRR Donnelley3075 Highland ParkwayDowners Grove, IL 60515Telephone: 630.322.6772Fax: 630.322.6879Email: frank.montague@rrd.com