1. The papiNet Standard and Implementation

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

3. 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. 4 2003 papiNet Organization papiNet Executive Committee papiNet NA Membership Board papiNet Euro Membership Board Implementation Coordinating Council Convergence and Partnering Council Note: There is considerable collaboration between ALL the boxes in the papiNet Organization model. Highest priority is Implementation! Segment Implementation Groups Central Work Group

5. 5 papiNet Europe Membership 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

6. 6 papiNet NA Membership 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

7. 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. 8 papiNet Fits… Partner 1 Partner 2 Strategy Processes Business Rules papiNet Messages Message Transport

9. 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. 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. 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. 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. 13 Product Definition

14. 14 Paper Properties

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

16. 16 Supply Models papiNet messages can be categorized according to the Supply-Chain Council’s, Supply-Chain Operations Reference (SCOR) model Catalogue Forecast Planning 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

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

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

19. 19 A Collaboration Model Buyer Producer Merchant consolidates demand 1 papiNet Planning 6 papiNet Planning (“Agreed To” Demand Plan/Forecast) Repeat 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

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

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

22. 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. 23 Total Live and Planned Implementation

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

25. 25 Fine Paper Implementations by Continent

26. 26 Fine Paper Transactions

27. 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. 28 Fine Paper Segment 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