The papiNet Standard and Implementation

1. The papiNet Standard and Implementation

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

3. 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.

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

5. Ahlström AssiDomän 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 papiNet Europe Membership

6. Abitibi-Consolidated Advance Magazine Publishers Bowater America Brown Printing Dupont ForestExpress G+J USA Publishing International Paper Lands’ End Madison Paper Industries MeadWestvaco 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 papiNet NA Membership

7. 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

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

9. papiNet 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

10. 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

11. papiNet 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 • papiNet tools – stylesheets, data mapping • Comprehensive messages for today’s and future processes • papiNet 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 eStandards). • UBL (ebXML) compliant papiNet message envelope

12. 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

13. Product Definition

14. Paper Properties

15. RFQ RFQ Response Goods Receipt Credit Debit Note Business Ack Usage Order Status Inventory Status Inventory Change Information Request Product Attributes Availability Planning Product Performance Product Quality Complaint Complaint Response Purchase Order Order Confirmation Call Off Delivery Message Invoice V1.1 V2.0 V2.1 V1.0 Schema June 2001 Release Feb 2002 Release August 2002 Release December 2002 Industry Review papiNet Versions Complete the Set

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

17. 1 papiNet PurchaseOrder (Demand) 2 papiNet PurchaseOrder (Demand) 3 papiNet OrderConfirmation 4 papiNet OrderConfirmation 5 papiNet DeliveryMessage 5 papiNet DeliveryMessage 6 papiNet Invoice 7 papiNet Invoice Shipment occurs Simple Transaction Model Buyer Merchant Producer

18. 1 papiNet PurchaseOrder (Demand) 4 papiNet PurchaseOrder (Demand) 2 papiNet RFQ 10 papiNet GoodsReceipt 5 papiNet OrderConfirmation 6 papiNet OrderConfirmation 7 papiNet DeliveryMessage 7 papiNet DeliveryMessage 12 papiNet Invoice 3 papiNet RFQResponse 9 papiNet ProductQuality 8 papiNet ProductQuality 16 papiNet ComplaintResponse 14 papiNet Complaint 15 papiNet ComplaintResponse 17 papiNet CreditDebitNote 18 papiNet CreditDebitNote 11 papiNet GoodsReceipt 13 papiNet Invoice 14 papiNet Complaint Shipment occcurs Extended Transaction Model Buyer Merchant Producer

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

20. 1 papiNet InventoryStatus (OnHand) 7 Delivery Messages ROPs ROQs InTransit Forecast Inventory Prodn Plan Repeat Updated Prodn Plan 9 Review Plan 11 papiNet Planning (Supply Plan) A Replenishment Model Merchant Producer

21. Collaboration Complex Process Forecast/Planning ProductPerformance Availability RFQ (ATP) Supply Chain Collaboration OrderStatus InventoryStatus/Change ProductQuality Supply Chain Visibility CallOff GoodsReceipt Usage Supply Chain Metrics PO, POAck, Delivery, Invoice BENEFITS Simple Process Value

22. 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

23. Total Live and Planned Implementation

24. Fine Paper ImplementationsFine Paper Refers to Uncoated and Coated Free Sheet

25. Fine Paper Implementations by Continent

26. Fine Paper Transactions

27. 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: • Publication Papers (NA) • Fine Papers (NA) • Packaging - Containerboard and Paperboard (NA) • Label Stock (Global) • Recovered Paper (Global)

28. Fine PaperSegment Implementation Group (SIG)Activities • Enhancements to the papiNet 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