e-enabling an efficient supply chain robert pyzdrowski president, operations r.r. donnelley
TRANSCRIPT
e-Enabling an Efficient e-Enabling an Efficient Supply ChainSupply Chain
Robert PyzdrowskiPresident, OperationsR.R. Donnelley
Agenda
• papiNet Goals• Why Standards? • The Need for Collaboration• Other Industry Standards• Intel and RosettaNet• Benefits for the Print Supply Chain
papiNet’s Goal is …
• Improve the efficiency of the paper supply chain and remove cost by:
- Enabling collaboration- Documenting standard business processes- Improving communications- Reducing the cost of electronic communications
Standards enable collaboration
Why Standards?
• 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
The Need for Collaboration
• Challenging economic and market conditions• An inefficient supply chain • Significant “muda” in the supply chain• Our customers need and expect more from us
"90% of enterprises that fail to provide visibility and supply chain automation by 2004 will lose their status as preferred suppliers."
Karen Peterson, Director, Gartner Inc., August 2002
The Need for Collaboration
• Electrical safety
• Quality systems
• Internet
• Electronics Supply Chain
• Paper Supply Chain
• UL (Underwriters Labs)
• ISO
• HTML
• RosettaNet
• papiNet
Industry Standard
Other Industry Benefits From Standards
In 2002, Intel used RosettaNet standards for:
• 10% of revenue ($3 billion)
• 10% of supplier spend ($2 billion)
• 30,000 transactions/month
• 90 customers and suppliers in 17 countries
Intel’s objective 100% e-enabled corporation
Source: Intel press release 12/10/02
Intel Leverages RosettaNet Standards
Intel sees a $500 million long-term opportunity to reduce supply chain costs through collaboration and use of RosettaNet standards:
• Collaborative demand forecasting• Order management• Shipping/receiving logistics• Invoicing• Payments• Elimination of EDI
–Source: InformationWeek 12/9/02
Why Standards?
Standard or “one-off” custom interfaces?
Publishers/ Catalogers
Paper Companies
Printers/ Converters
AgentsBrokersMerchantsdot coms
Which is better for our supply chain?
Our Choice
• Improved customer satisfaction
• Reduced I.T. infrastructure investment
• Reduced administrative costs
• Faster communications
• Better information for decision making
A more efficient supply chain keeps print viable!
Benefits for Our Supply Chain
Defining papiNetDefining papiNet
Sara FreundExecutive Director, E-Business American Forest & Paper Association
• Defining papiNet
• papiNet Organization and Membership
• papiNet Goals
• How papiNet automates the Supply Chain
• Implementation Status
• How to Become a Member
Agenda
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.
papiNet Executive
Committee
papiNet NA Membership B
oard
papiNet Euro Membership
Board
Implementation Coordinating
Council
Convergence and Partnering
Council
Note: There is considerable collaboration between ALL the boxes in the papiNet Organization model. Highest priority is Implementation!
Segment Implementatio
n Groups
Central Work Group
2003 papiNet Organization
• Ahlström• AssiDomän• Burgo• ENCE• Expresso• Fedrigoni• Holmen Paper• International Paper• Kappa• Korsnäs• Lecta• Mayr-Melnhof
• M-real• Mondi• Myllykoski• Norske Skog• Portucel/Soporcel• Sappi• SCA• Smurfit• Södra• Stora Enso• UPM-Kymmene
papiNet Europe Membership
• 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
• Quad Graphics Inc.• Quebecor World• R.R. Donnelley• Sappi Fine Paper, NA• Seeburger• SP Newsprint• Stora Enso NA• Tembec• Tietoenator Majiq• Time Inc• UPM-Kymmene• Weyerhaeuser Company
papiNet NA Membership
• 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 Goals
• Set of common electronic formats and terminology for the
paper and forest products industry- Designed to facilitate system-to-system real time exchange of
information between buyers and sellers- Categories:
• Basic Order Fulfillment• Supply Chain Management• Product Quality
papiNet Standard
Plan Source Make Deliver Utility
papiNet messages can be categorized according to the Supply-Chain Council’s, Supply-Chain Operations Reference (SCOR) model
• Product Attributes
• Planning
• Request ForQuotation
• Availability• Purchase Order• Order Confirmation• Call-Off• Order Status• Inventory Status
• ProductQuality
• Usage• Inventory
Change• Product
Performance
• Delivery Message• Goods Receipt• Invoice
• Credit/Debit Note• Business Ack• Information Request• Complaint• Complaint Request
Supply Models
• 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
Implementation Status
papiNet Total Trading Partner Implementations; in Production and
Short Term Plans
51
29
0 10 20 30 40 50 60
Short Term
Production
Production
Short Term
Total Live and Planned Implementations
• Basic messages are used most frequently including Delivery Message, Purchase Order, Invoice, Order Confirmation, Business Acknowledgement and Goods Receipt
• There is still a long way to go on Basic messages before other messages will be implemented
• Europe is moving faster than North America
Implementation Comments
• Groups Already Formed:- XBITS (NA Book Manufacturers)- Publication Papers (Europe)- Fine Papers (Europe)- Packaging (Europe)
• Groups To Be Formed in 2003:- Publication Papers (NA)- Fine Papers (NA)- Packaging - Containerboard and Paperboard (NA)- Label Stock (Global)- Recovered Paper (Global)
Segment Implementation Groups (SIGs)
• Enhancements to the papiNet Standard• Understand benefits of integration and use of the standard• Develop ROI information• Develop typical business cases• Document best practices for use of the standard in this channel• Network and share implementation information• Collaborative web site
Segment Implementation Group (SIG)Activities
• Corporate Members ($10,000 for new members, $5,000 current members)
- Seat on papiNet NA Board; official member- Seat on One Segment’s SIG Oversight Council- Participation in One Segment’s Implementation Group- Support for Ongoing papiNet Operations
• Membership in an Implementation Group Only ($2,500)
papiNet NA Membership Categories
Implementing papiNetImplementing papiNet
Al IvanExecutive Director, E-Business MeadWestvaco Corporation
Paul ReidManager, Paper Systems Time Inc.
Agenda
• What are the papiNet Messages?
• How do I get a papiNet project started?
• How can I improve my chances of success?
• What are the benefits?
V2.0
August 2002
Release
Usage
Order Status
Inventory Status
Inventory Change
Information Request
Product Attributes
June 2001
Release
Purchase Order
Order Confirmation
Call Off
Delivery Message
Invoice
V1.0
Feb 2002
Release
RFQ
RFQ Response
Goods Receipt
Credit Debit Note
Business Ack
V1.1
Schema
V2.1
January 2003
Industry Review
Availability
Planning
Product Performance
Product Quality
Complaint
Complaint Response
papiNet automates the complete supply chain
• Use E-Business as an opportunity to review your entire supply chain• Recognize that papiNet is an industry-wide opportunity to lower costs• Position papiNet as a partnership with your key trading partners to
improve the supply chain- include suppliers, publishers, merchants, printers, component vendors
• Develop a vision of a papiNet-enhanced future business model that includes your trading partners
• Sell the project as essential to this future model of doing business
How Do I Get a papiNet project started?
• Dedicate key IT and business people to becoming knowledgeable about papiNet
• Recognize the learning curve of new technologies in trading XML over the internet
• Be realistic about the timeframe of an initial implementation- 6-9 months based on how papiNet fits with your existing systems- Services of 3rd party marketplace vendors may aid implementation
• Leverage experiences from other implementers• Use the papiNet Implementation Guide
How can I improve my chances of success?
• Consider using papiNet messages as a key component to retool your core systems
• Target simpler, logical message combinations first- Purchase Order, Order Confirmation- Delivery Message, Invoice
• Then build from these implementations to more complex messages like Planning
• Develop a comprehensive test plan that involves key trading partners
How can I improve my chances of success?
• Mutually supportive engagement with your trading partners • Modest cost savings in handling paper• Cost savings due to Value Added Network elimination if
migrating from EDI• Decline in errors• Reduced Paper Inventory
What are some Benefits?
• Motivated, XML-knowledgeable staff• XML is the directional “language of the Internet”• XML can open the door to smaller and medium size customers• papiNet is gaining traction in the entire paper and forest
products industry (Book, Wood, Label Stock, Pulp, Recovered Paper)
What are some Benefits?
Questions???Questions???