papi Net Overview For Solution Providers Contents

papi. Net Overview For Solution Providers

Contents • Introduction • Goals • Marketsize • • What is papi. Net? Opportunities for Solution Providers How to Become a Solution Provider Next Steps

Goals • Create awareness and interest in the papi. Net standard • Provide information on current status and future plans • Offer suppliers and customers suitable tools and processes to adopt the standard • Share opinions and expectations • Define next steps • Accelerating papi. Net implementation within the industry

Paper Demand Worldwide 29 25 10 Total demand in North America 41. 2 mio. tons Total demand in Western Europe 36. 5 mio. tons Total demand in Asia-Pacific 40. 2 mio. tons WFU WFC Newsprint Magazine Papers Source: Jaakko Pöyry Consulting

Market Size 201 303 2456 31 340 392 1285 29 Other Europe 316 Western Europe 807 North America Latin America 35 527 6 242 China Japan 15 Other Asian countries 148 Africa Oceania Whole world Source: PPI Annual Review 2002 127 Paper consumption, kg per capita: 52 Population, millions: 6, 090 30

World demand trends of graphic papers 1983 -2005 '000 tons Growth rate 2000 -05 Source: own research

papi. Net’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

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 Standards enable collaboration

The Need for Collaboration "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

Our Choice Publishers/ Catalogers Standard or “one-off” custom interfaces? Printers/ Converters Paper Companies Agents Brokers Merchants dot coms Which is better for our supply chain?

Benefits for Our Supply Chain 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!

papi. Net 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. • An enabler for collaborative electronic business using the internet.

Central Work Group • Standards Maintenance • Convergence and Partnering • Transport papi. Net Executive Committee Segment Implementation Groups Board papi. Net NA Membership Board papi. Net Organization papi. Net Euro Membership • • • Implementation Focus • Marketing Team Book Fine Paper Label Stock Packaging/Containerboard Publication Papers Pulp Recovered Paper Timber/Lumber

papi. Net Europe Membership • • • Ahlström Assi. Domän 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

papi. Net NA Membership • • • Abitibi-Consolidated Advance Magazine Publishers Bowater America Brown Printing Dupont Forest. Express G+J USA Publishing International Paper Lands’ End Madison Paper Industries Mead. Westvaco 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

papi. Net Standard 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 Standard includes the XML Schema and Stylesheets to render the messages as business forms

Supply Models papi. Net messages can be categorized according to the Supply-Chain Council’s, Supply-Chain Operations Reference (SCOR) model Product Attributes Planning Request For Quotation Availability Purchase Order Confirmation Call-Off Order Status Inventory Status Product Quality Usage Inventory Change Product Performance Delivery Message Goods Receipt Invoice Credit/Debit Note Business Ack Information Request Complaint Response

Segment Implementation Groups (SIGs) Groups Already Formed: • • XBITS (NA Book Manufacturers) Publication Papers (Europe) Fine Papers (Europe) Packaging (Europe) Publication Papers (NA) Label Stock (Global) Wood (Europe) Groups Yet To Be Formed in 2003: • Fine Papers (NA) • Packaging - Containerboard and Paperboard (NA) • Recovered Paper (Global)

SIG Activities • • Enhancements to the papi. Net 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

papi. Net automates the complete supply chain Purchase Order RFQ Usage Availability Order Confirmation RFQ Response Order Status Planning Call Off Goods Receipt Inventory Status Product Performance Delivery Message Credit Debit Note Inventory Change Product Quality Invoice Business Ack Information Request Complaint Product Attributes Complaint Response V 2. 0 V 2. 1 V 1. 0 V 1. 1 a m che S June 2001 Feb 2002 August 2002 April 2003 Release

www. papi. Net. org

Getting a Project Started • Use E-Business as an opportunity to review your entire supply chain • Recognize that papi. Net is an industry-wide opportunity to lower costs • Position papi. Net as a partnership with key trading partners to improve the supply chain • Include suppliers, publishers, merchants, printers, component vendors • Develop a vision of a papi. Net-enhanced future business model that includes your trading partners • Sell the project as essential to this future model of doing business • Partner with Solution Providers

The Solutions Horizon Enterprise Focus Solution Type Business Software EAI • Small • Medium • Large • Software Product • Business Service • Development Service Business Software Industry Exchange Message Service Auto Entry EAI Auto Population papi. Net Message Buyer Seller The Net Middleware Manual Entry Firewall Middleware Presentation

Solution Types Software Product • Business Software – Enterprise Resource Planning (ERP) – Customer Relationship Management – Supply Chain Management – Warehouse Management • Message Management – Manual Population – Automatic Population – XML Presentation – XML Translation • Middleware – Message Service • Development Environments – XML – Programming Business Service • • Industry Exchange Logistics Message Translation ERP connectors Development Service • Enterprise Application Integration • XML Services • Infrastructure Services

Example: Simple Ordering Tool A simple ordering tool is needed: web form, spreadsheet or WP doc • Send the Purchase Order to a supplier via a Message Service • Integrate Order Status checking viewable by a papi. Net standard stylesheet • Supplier confirms delivery via a Delivery Message • The Delivery could be accompanied by an automated Invoice viewable via a papi. Net stylesheet • Additional transaction capabilities including Request For Quotation, Usage, Inventory Status and others could be added to the tool • Accounting processes could be automated within the tool

Become a Solution Provider Why join papi. Net TODAY? • Accelerate Implementation • papi. Net is THE STANDARD • Connecting to other Standards and Advancements in Printing and Publishing: – Job Definition Format (CIP 4) • instructions for prepress, and postpress – SPACE/XML (IDEAlliance) • electronic insertion of advertising • Inside. Track – for a New Market AND papi. Net provides the Forum through the Solution Providers Council

Be a Part of the papi. Net Community • • 50+ Companies Engaged in papi. Net for Over 2 Years 90+ Companies Implementing 1, 800 Users Representing 300+ Companies Accessing www. papinet. org Expansion of the penetration is targeted by producers and printers

Access to Services and Programs Market & Promote Your Products • Online promotion through website profile and e-newsletter • Forums to Exhibit, Speak & Network – IDEAlliance XML Europe (May, 2003) and USA (December, 2003) • Cooperative programs to develop and distribution White Papers – Seeburger & Stora Enso Implementation Case Study Implementation Groups • Vertical Market Focus • Change Process – Inside Track for Early Updates & Information

Next Steps 1. 2. 3. 4. 5. Join as a Solution Provider Develop a profile of your offerings Provide us with a website link Give us information for a newsletter We will share target list of companies: – Current papi. Net users – Future papi. Net users – Contact list