The papi Net Standard and Implementation Agenda

The papi. Net Standard and Implementation

Agenda • What is papi. Net? • papi. Net Goals • papi. Net Standard • 2003 -2004 Priorities • Implementation • Mill/Merchant Implementation 2

papi. Net Is… • An international paper and forest products industry ebusiness 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. 3

papi. Net Executive Committee Board papi. Net NA Membership Board 2003 papi. Net Organization papi. Net Euro Membership Segment Implementation Groups Implementation Coordinating Council 4 Central Work Group Convergence and Partnering Council Note: There is considerable collaboration between ALL the boxes in the papi. Net Organization model. Highest priority is Implementation!

papi. Net Europe Membership • • • 5 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 • • • 6 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 RR Donnelley Sappi Fine Paper, NA Seeburger SP Newsprint Stora Enso NA Tembec Tietoenator Majiq Time Inc UPM-Kymmene Weyerhaeuser Company

papi. Net 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 eb. XML envelope Engage other standards initiatives • To provide standards that are open and freely available 7

papi. Net Fits… Strategy Business Rules papi. Net Messages Message Transport 8 Partner 2 Partner 1 Processes

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 9

Collaboration Benefits • Simpler, cost effective and efficient business transactions using agreed-upon language • Increased data accuracy through less human intervention • Increased supply chain visibility • Less paper work 10

papi. Net and XML Benefits • • International XML message standard – common language for the industry Easier to implement and understand messages Less error prone - schema and data-typing Software tools support – new tools, effort going into XML, not EDI papi. Net tools – stylesheets, data mapping Comprehensive messages for today’s and future processes papi. Net is serious about the supply chain – comprehensive messages already in use, market segment support (RCF, Labels, Wood, Book, Pulp) and Transport Initiative with CIDX (Chem e. Standards). • UBL (eb. XML) compliant papi. Net message envelope 11

What is ‘The Standard”? • • • 12 Managed by the papi. Net Central Work Group XML messages defined in W 3 C Schema Message documentation Extensive Glossary eb. XML Message Envelope Implementation Guidelines Design tools Stylesheets Case Studies with message examples

Product Definition 13

Paper Properties 14

papi. Net Versions Complete the Set 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 15 Feb 2002 August 2002 December 2002 Release Industry Review

Supply Models papi. Net messages can be categorized according to the Supply-Chain Council’s, Supply-Chain Operations Reference (SCOR) model Catalogue Forecast Planning 16 Request For Quotation Availability Purchase Order PO 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

Simple Transaction Model 1 papi. Net Purchase. Order (Demand) 2 papi. Net Purchase. Order (Demand) 3 papi. Net Order. Confirmation 4 papi. Net Order. Confirmation Shipment occurs 5 papi. Net Delivery. Message 7 papi. Net Invoice Producer Merchant Buyer 17 6 papi. Net Invoice 5 papi. Net Delivery. Message

Extended Transaction Model 1 papi. Net Purchase. Order (Demand) 2 papi. Net RFQ 3 papi. Net RFQResponse 6 papi. Net Order. Confirmation 12 papi. Net Invoice 7 papi. Net Delivery. Message 8 papi. Net Product. Quality 11 papi. Net Goods. Receipt 14 papi. Net Complaint 16 papi. Net Complaint. Response 15 papi. Net Complaint. Response 18 papi. Net Credit. Debit. Note 18 13 papi. Net Invoice 14 papi. Net Complaint 17 papi. Net Credit. Debit. Note Producer 10 papi. Net Goods. Receipt Merchant Buyer 7 papi. Net Delivery. Message 9 papi. Net Product. Quality 4 papi. Net Purchase. Order (Demand) 5 papi. Net Order. Confirmation Shipment occcurs

A Collaboration Model 1 papi. Net Planning Repeat 2 papi. Net Planning 3 papi. Net Purchase. Order (Demand) 5 papi. Net Planning (Demand Plan or Material Requirements Forecast) 6 papi. Net Planning (“Agreed To” Demand Plan/Forecast) 7 Delivery Message Producer Buyer 19 8 Delivery Message Merchant consolidates demand 4 papi. Net Purchase. Order (Demand)

A Replenishment Model 1 papi. Net Inventory. Status (On. Hand) Merchant 11 papi. Net Planning (Supply Plan) 9 Review Plan 7 Delivery Messages 20 Updated Prodn Plan Producer ROPs ROQs In. Transit Forecast Inventory Prodn Plan Repeat

Collaboration Complex Process Forecast/Planning Supply Chain Product. Performance Collaboration Availability RFQ (ATP) Supply Chain Order. Status Inventory. Status/Change Visibility Product. Quality Supply Chain Call. Off Goods. Receipt Usage Metrics PO, POAck, Delivery, Invoice Simple Process BENEFITS Value 21

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 22

Total Live and Planned Implementation 23

Fine Paper Implementations Fine Paper Refers to Uncoated and Coated Free Sheet 24

Fine Paper Implementations by Continent 25

Fine Paper Transactions 26

Segment Implementation Groups (SIGs) • Groups Already Formed: - XBITS (NA Book Manufacturers) Pulp (Global) XML Saw (Europe) Transport (Global) Publication Papers (Europe) Fine Papers (Europe) Packaging (Europe) • Groups To Be Formed in 2003: - 27 Publication Papers (NA) Fine Papers (NA) Packaging - Containerboard and Paperboard (NA) Label Stock (Global) Recovered Paper (Global)

Fine Paper Segment Implementation Group (SIG) Activities • • 28 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