The Global Electronic Standards Initiative

February 13, 2003

papiNet is …

An International Initiative

papiNet is …

• An international initiative

– European and North America geographies today

– Reaching out to South America and Asia geographies

– Reaching out to additional market segments

• Chartered to develop a set of standard electronic documents for the paper, printing, publishing, and forest products industries enabling an improved Supply Chain

– Developed and designed to facilitate the flow of electronic information between parties within the paper supply chain

– Support the implementation of the documents with implementation tools and guidelines

papiNet’s Goals are …

• To improve the efficiency of the paper supply chain and to remove cost

- By enabling a collaborative business model- By documenting business processes- By consistent implementation of standards so as to improve communication of business information- By defining interoperability guidelines to decrease costs and reduce the time & effort to establish electronic communication between trading partners

papiNet’s Evolution

•Convergence of three related efforts:

-IDEAlliance

•Formerly the Graphics Communications Association with its publication emphasis

-The European Paper Consortium for e-business

•A consortium of European suppliers cooperating with customers within the industry

-AF&PA

•US trade association for manufacturers of forest, paper and wood products.

papiNet is a Global Organization

• AssiDomän

• Ahlström

• Burgo

• ENCE

• Fedrigoni

• Holmen Paper

• International Paper

• Kappa

• Korsnäs

• Lecta

• Mayr-Melnhof

• Metsä Serla (M-real)

• Mondi

• Myllykoski

• Norske Skog

• Portucel/Soporcel

• Sappi

• SCA

• Smurfit

• Södra

• Stora Enso

• UPM-Kymmene/Haindl

papiNet Europe Membership:

papiNet is a Global Organization

• Abitibi-Consolidated

• Bowater America

• Brown Printing

• Conde Nast

• ForestExpress

• Georgia-Pacific

• Glatfelter

• Gruner & Jahr

• International Paper

• Lands’ End

• Madison Paper

• MeadWestvaco

• Perry Judd’s

• Quad Graphics

• Quebecor World

• R.R. Donnelley

• Sappi Fine Paper, NA

• Smurfit-Stone

• SP Newsprint

• Stora Enso NA

• Time Inc.

• UPM-Kymmene

• Weyerhaeuser

papiNet North America Membership:

The papiNet standards are open, free and easy to adopt;providing common benefits to supply chain participants

papiNet standard documents

• Availability• Business Acknowledgment• Call-Off• Complaint (Claim)*• Complaint Response*• Credit/Debit Memo• Delivery• Forecast/Planning*• Goods Receipt• Information Request• Inventory Change

• Inventory Status• Invoice• Order Confirmation• Order Status• Product Attributes• Product Performance*• Product Quality*• Purchase Order• Request For Quote• Request For Quote Response• Usage

*Released for industry review January 31, 2003

Message/TransactionInitializing Customer

Printer/ Converter

Paper Supplier Warehouse Transport Release

Purchase Order (Original and Amended)

S R

Order Confirmation (Original and Amended)

R S

Call OffS R R

DeliveryR R S S R

InvoiceR S

Goods ReceiptR S R

UsageR S R

Inventory StatusR S S/R S

Inventory ChangeR S S/R S/R

Request For Quote (RFQ)S R

Request For Quote (RFQ) - Response

R S

Information RequestS S/R S/R R

Order StatusR R S R

Complaint (Claim)S S R R

Complaint (Claim) - Response

R R S S

Credit/Debit MemoR S

Product AttributesS/R* S/R* S/R* S/R*

AvailabilityS R

PlanningS/R S/R S/R

Product QualityR R S

Product PerformanceS R

Business AcknowledgmentS/R S/R S/R S/R S/R

papiNet Message Matrix

Plan Source Make Deliver Utility

papiNet Documents Matrix

A Supply Chain Scenario – Replenishment Model

Using the North American business model:

• The Publisher/Cataloger negotiates the, “deal”, with the Paper Supplier• The Publisher/Cataloger informs the Printer/Converter which Paper Supplier(s) they want to use and the quantity negotiated with the supplier(s)• The Printer/Converter and the Paper Supplier collaborate to insure timely delivery and an effective supply of paper in place

PaperProducer

Printer/Converter

Publisher/Cataloger

PaperProducer

Publisher

Printer

European

North American

AgentsBrokersMerchantsASPs

AgentsBrokersMerchantsASPs

Representative Existing Business Models

PaperProducer

Printer/Converter

Publisher/Cataloger

Plan

ned

Wor

k &

Prin

t Sch

edul

e

Estim

ated

Pap

er R

equi

rem

ents

Purchase Order (Blanket)

A Supply Chain Scenario – Replenishment Model

A Supply Chain Scenario – Replenishment Model

PaperProducer

Printer/Converter

Publisher/Cataloger

Forecast By Grade (Annual/Quarterly)Planned Print Production By Issue/Event

Call-Off/PO Release

A Supply Chain Scenario – Replenishment Model

PaperProducer

Printer/Converter

Publisher/Cataloger

Call-Off/Order ConfirmationDelivery

Goods ReceiptUsage

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

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