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  1. 1. Two Industry Standards <ul><li>papiNet – Paper Supply Chain </li></ul><ul><li>XML P roduction O rder S pecification - e </li></ul>
  2. 2. Enabling Supply Chain Collaboration papiNet
  3. 3. 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
  4. 4. Needs for and Benefits of Standards <ul><li>&quot;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. “ </li></ul><ul><li>&quot;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: </li></ul><ul><ul><li>a simplified process for dealing with multiple suppliers and customers through use of common business solutions. </li></ul></ul><ul><ul><li>reduced manual work , resulting in fewer entry errors and improved supply chain management (e.g. replenishment, VMI). </li></ul></ul><ul><ul><li>more &quot;real-time&quot; exchange of information and greater electronic information availability. </li></ul></ul><ul><ul><li>the opportunity to participate in e-business transactions , irrespective of company size or technical expertise. &quot; </li></ul></ul><ul><li>Source: papiNet website </li></ul>
  5. 5. papiNet Mission and Goals – Simplified <ul><li>Develop the tools needed to enable the process </li></ul><ul><li>of creating a more efficient supply chain </li></ul><ul><li>Take costs out of the supply chain for the </li></ul><ul><li>Publisher, Printer and Papermaker </li></ul>
  6. 6. 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 &quot;collaboration&quot; 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
  7. 7. <ul><li>Product Attributes </li></ul><ul><li>Planning </li></ul><ul><li>Request For </li></ul><ul><li>Quotation </li></ul><ul><li>Availability </li></ul><ul><li>Purchase Order </li></ul><ul><li>Order Confirmation </li></ul><ul><li>Call-Off </li></ul><ul><li>Order Status </li></ul><ul><li>Inventory Status </li></ul><ul><li>Product </li></ul><ul><li>Quality </li></ul><ul><li>Usage </li></ul><ul><li>Inventory </li></ul><ul><li>Change </li></ul><ul><li>Product </li></ul><ul><li>Performance </li></ul><ul><li>Delivery Message </li></ul><ul><li>Goods Receipt </li></ul><ul><li>Invoice </li></ul><ul><li>Credit/Debit Note </li></ul><ul><li>Business Acknowledgement </li></ul><ul><li>Information Request </li></ul><ul><li>Complaint </li></ul><ul><li>Complaint Request </li></ul>Supply Chain Model Foundation Plan Make Deliver Source Utility papiNet messages can be categorized according to the Supply-Chain Council’s, Supply-Chain Operations Reference (SCOR) model
  8. 8. Traditional The papiNet Way Execution Styles A margin improvement project- strategic enabler for supply chain improvements An IT project How viewed: Tens-hundreds of millions /company Tens-hundreds of thousands /company Potential $ Return: Enables reduced operating costs, improved quality, throughout and working capital Enables reduced admin and systems cost Impact: Positive Break-even (at best) ROI: Operational improvement Transactional efficiency Objectives: The entire supply chain Transaction between trading partners Scope: “ An efficient and cost effective supply chain” “ Efficient and cost effective transactions” Approach:
  9. 9. Transactional Efficiency Trim waste Web breaks Process delays Yield Excess freight Late Deliveries Transit damage Multiple handling End-to-end cycle-time Warehouse fees Critical Data to improve: Press delays Delays Press damage Inventory turns Strip waste Damage Perceived Value Intrinsic Value The Supply Chain “Iceberg”
  10. 10. <ul><li>Specifications </li></ul><ul><li>papiNet Messages </li></ul><ul><li>Common Definitions </li></ul><ul><li>Standards </li></ul><ul><li>Data Collection </li></ul><ul><li>Publishers/ </li></ul><ul><li>Catalogers </li></ul><ul><li>Printers </li></ul><ul><li>Paper Companies </li></ul>Data Transmission (XML) … This must be done, but it only enables collaboration papiNet Value Proposition <ul><li>Standards are fundamental to an efficient supply chain: </li></ul><ul><ul><li>Enable timely, efficient and effective communications </li></ul></ul><ul><ul><li>Avoid costly/non-value added translation activities </li></ul></ul><ul><ul><li>Enable fast and widespread connectivity </li></ul></ul><ul><ul><li>Avoid “one-off”custom connections </li></ul></ul>
  11. 11. <ul><li>Cost </li></ul><ul><ul><li>Reduced inventories </li></ul></ul><ul><ul><li>Reduced waste </li></ul></ul><ul><ul><li>Reduced total system costs </li></ul></ul><ul><li>Quality </li></ul><ul><ul><li>Reduced variation and increased quality through data-driven performance feedback </li></ul></ul><ul><li>Service </li></ul><ul><ul><li>Establishment of a collaborative framework </li></ul></ul><ul><ul><li>Near real time information flow </li></ul></ul><ul><li>Business growth opportunities </li></ul><ul><ul><li>Preferred source for new opportunities </li></ul></ul><ul><ul><li>Expanded benefits to other customers </li></ul></ul>Supply Chain Benefits
  12. 12. The Three Ts
  13. 13. XML PROSE XML PROSE is a proven standard format for communicating job specifications from the publisher to all parties in a consistent manner.
  14. 14. <ul><li>Not locked into one recipient, can be used across </li></ul><ul><li>printers and list processors </li></ul><ul><li>If publisher’s software is certified by the USPS </li></ul><ul><li>as accurate as to AD content and Weight </li></ul><ul><li>and XML PROSE is the output this can lead to a </li></ul><ul><li>number of benefits </li></ul>XML PROSE - Benefits
  15. 15. <ul><li>Through a collaborative process reduce cycle times </li></ul><ul><li>Provides the acceptable format for electronic </li></ul><ul><li>archived copies of an issue </li></ul><ul><li>An example of improved flow, would be where </li></ul><ul><li>a XML PROSE file is sent to the list processor, </li></ul><ul><li>using this data they will process the job and </li></ul><ul><li>create a mail.dat file that will allow for electronic </li></ul><ul><li>postage payment without requiring the traditional </li></ul><ul><li>10 marked up and weighed copies of each edition </li></ul>XML PROSE - Benefits
  16. 16. Thank you! If you should want to get into more detail please contact me here at PRIMEX or at the following F Frank Montague RR Donnelley 3075 Highland Parkway Downers Grove, IL 60515 Telephone: 630.322.6772 Fax: 630.322.6879 Email: