enabling the supply chain in an electronic world. the global electronic standards initiative for the...
TRANSCRIPT
Enabling the Supply Chain in an Electronic World.
The Global Electronic Standards Initiative for the Paper and Forest Products Industry
Nigel SavilleSenior Business Systems ConsultantTietoEnator Majiq Inc.November, 28 2002Paris, 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 opportuniti
es of external
marketplaces
Uneven adoption of
EDI
High order managemen
t costsChanging customer demands
Customers open to new technologie
s
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 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
B2B Committee
European Paper
Consortium
American
Forest & Paper
Association
papiNet Global Organization
papiNet Executive CommitteepapiNet NA
Membership Bo
ard
papiNet Euro Membership
Bo
ard
Central Work Group
(15 members)
Implementation Coordinating Council
Convergence and Partnering
Council
Publication PapersFine Paper Packaging
BookPulp
Recovered FibreTimber – Lumber
Label Stock
Solutions Provider CouncilMessage Service Compliance
Standards Convergence Issues
Support Quality Aspects
Message Task GroupsInteroperability & TechnicalTransportationDocumentation
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…
Partn
er 1
Partn
er 2Strategy
Processes
Business Rules
papiNet Messages
Message Transport
papiNet Fits…
Partn
er 1
Partn
er 2Strategy
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
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
BookLumber
initiated
December 2002
Version 2.1
November 2002
TransportLabel Stock
RCFinitiated
PurchaseOrderOrderConfirmation
CallOffCallOffConfirmation
DeliveryMessageGoodsReceipt
InvoiceCreditDebit
UsageOrderStatus
InventoryStatusInventoryChange
InformationRequestProductAttributes
UsageBusinessAcknowledgement
2002 Schedule
June 2002 July 2002
Aug 2002 Dec 2002
V2.0
Book Industry Complete
Timber/Lumber
Complete
InvestigateRecovered
Fibre
Investigate Transport
Schema for all messages
ebXML Envelope
PlanningOrderStatus
InventoryStatusInventoryChange
InformationRequestProductAttributes
Usage
Industry Review
Period For
Version 2.0
Industry Review
Period For
ForecastPlanning
Complaint & ResponseProductQuality
ProductPerformanceAvailability
V2.1
Dec 2002
Supply Models
Plan Source Make Deliver Utility
papiNet messages can be categorized according to the Supply-Chain
Council’s, Supply-Chain OperationsReference (SCOR) model
CatalogueForecastPlanning
RequestForQuotationAvailabilityPurchaseOrderPO ConfirmationCallOffOrderStatusInventoryStatus
ProductQualityUsageInventoryChangeProductPerformance
DeliveryMessageGoodsReceiptInvoice
CreditDebitNoteBusinessAckInformationRequestComplaintComplaintResponse
Transaction Model
Purchase OrderOrder ConfirmationDeliveryInvoiceCallOff
PaperProducer
Printer/Converter
Publisher/Cataloger
Purchase Order
Order Confirmation
Purchase Order
Order Confirmation
Transaction Model
Purchase OrderOrder ConfirmationDeliveryInvoiceCallOff
PaperProducer
Printer/Converter
Publisher/Cataloger
DeliveryMessage
Invoice
Invoice
DeliveryMessage
CallOff
Collaboration ModelPlanningForecastDeliveryMessageGoodsReceiptUsage
PaperProducer
Printer/Converter
Publisher/Cataloger
DeliveryMessage
GoodsReceipt
DeliveryMessage
Forecast
Plan
ned
Wor
k &
Prin
t Sch
edul
e
Usage
Goo
dsR
ecei
ptU
sage
Co
mp
lex
ity P
roc
ess
Mig
ration
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 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
51
29
0 10 20 30 40 50 60
Short Term
Production
Production
Short Term
Total by Continent
papiNet Production and Short Term Trading Partners by Continent
41
21
10
7
0
1
0 10 20 30 40 50 60
Short Term
Production
EU
NA
SA
Implementation by Transaction
papiNet Production and Short Term Plans by Transaction
0 10 20 30 40 50 60 70
BAProdAttr
RFQRFQRes
AvailPO
OrdCnfPln
CallOffDlv
GRecptInv
CrDrUsg
InvChgInfReq
InvStQual
OrdSts
Production
Short Term
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 Q1 20033. 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 Group3 EU + 3 NA
(Implement)
Transport Community(Requirements)
Road, Rail, Ocean - Users & Suppliers
CIDX Joint AdvisoryCommittee
(Operating Management Team)
LogisticsSub-Group(3 people)
StandardsDevelopment
Convergenceand
Partnering
Paper and Forest Industry Transport
Requirements
CIDXpapiNet
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 CommunityAmerica
Paper Industry Messages
• ContractWeight 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 CreditDebitNoteComplaint 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.