RosettaNet

ONCE Global Summit 2006BangkokMay 2006

Herman StiphoutPresident, RosettaNet &

Senior Vice President, GS1 US™

2005 GS1 US

Agenda

• RosettaNet Overview• GS1• Key elements of the Standard• Offerings and adoption• Organization and Global presence• Business drivers• Strategy• 2006 Progress

2005 GS1 US

The Rosetta StoneA slab of basaltCarved in 196 B.C.Deciphered in 1799 by Champillion.The 3 languages encrypted on the stone are: Hieroglyphic, Demotic and Greek

• A global, non-profit consortium formed in 1998

• Members include major industry players in hi-tech, logistics and adjacent industries

• Develops business process standards across the global supply chain

• Uses a collective effort to lower transaction costs and accelerate time-to-market

• Seeks to identify all common business-to-business touch points between trading partners in the supply chain

• Works with members to proliferate use of standards

• Thereby increasing Thereby increasing working capital working capital optimization for members and subscribersoptimization for members and subscribers

RosettaNet Overview

2005 GS1 US

The Structure of GS1 US™

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GS1 Worldwide Organizational Structure

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RosettaNet Worldwide

*Local presence

2005 GS1 US

• The core of RosettaNet is Partner Interface Processes®

– Defines business processes between trading partners

– Specifies structure and format of business document

– Developed in line with higher level business model/process

RosettaNet Key elements of RosettaNet Standard

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Trading Partner ConnectionsElectronic business interface

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RosettaNet Offerings Summary of currently standardized Processes Areas

Order

DemandCreation

ManufacturePayment

Logistics

Design Forecast

- Collaborative Forecasting

- Work Order- Work in Process- Material Composition- Semiconductor Test

Data Exchange

- Global Billing- Payment

- Vendor Managed Inventory

- Product Catalog Info- Sales Reporting- Request for Quote- Price & Availability - Order to Cash

- Design Win Mgmt

- Inventory Report- Ship Notice- 3PL- Warranty- E-Customs- Warranty - Returns

- Engineering - Information

Management

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Adoption Continues to GrowAll Councils Actual – 2005

Worldwide RosettaNet users• More than 7500 implementations in 2005• Logistics processes implementations is one of fastest growing areas

Forecast18.0%

Order37.6%

Manufacturing3.1%

Logistics21.5%

Payment14.3%

Design2.4%

Service0.3%

Demand Creation2.9%

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Impact on Marketplace

Measurable Results – 100% error-free forecast-to-cash procurement processes – 80% reduction in manual transactions – 50% reduction in contract costs

Market Endorsement“5 out of the top 10 world’s best-run supply chains use

RosettaNet” – 2005, AMR research annual Supply Chain Top 25 list.

“… customers and market demands are driving this year’s leaders to ramp up global supply networks in response to opportunity…”

– Kevin O’Marah, Vice President of Strategic Research for AMR.

2005 GS1 US

Solution Providers

Logistics

Current RosettaNet Global CouncilsSand to Hand

RosettaNet’s industry leadership is represented by six Global

Councils with members representing various industry sectors.

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Sem

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New

Ind

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ncils

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RosettaNet – Global Presence Worldwide affiliates

Americas

Europe

Korea

Japan

China

Taiwan

Philippines

Malaysia

Singapore Australia

Thailand

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Today’s Supply Chain Business Drivers

• Continued outsourcing and migration of manufacturing capabilities to lower cost countries in Asia and Latin America.

• Expansion of suppliers in all regions who do not have RosettaNet capability and the need for a low cost form-based solution to implement RosettaNet collaboratively.

– Requires community ability to manage and uniquely identify these forms across all trading partners.

• Over 800,000 companies* in Hi-Tech, Healthcare, Chemical, Automotive are facing increasing complexity in their supply chains

– Streamlining complicated Logistics & Customs requirements

– Mandates to track and trace: assets, hazardous materials, etc.

– Use of plastics, chemicals and semi-conductors across industries

* Based on a 2005 RosettaNet survey and a McKinsey & Co. report

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How can RosettaNet address these drivers?

• Standards that address emerging regional variances – Fast customs clearance– Supply chain traceability– Government mandates – bio-terrorism, hazmat, material

composition, Food Safety– Track and trace in Electronics industry– Shipping container security– Enhanced trading partner network and related services

• Industry expansion strategies– Adjacent industry engagement via channel masters and trade

organizations– Leverage GS1 US community reach to 26 industries

• RosettaNet Trading Network Enablement Milestone program– Low-cost form-based implementations (leveraging RAE)– Community support model

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Long Term Growth Strategy

Adjacent IndustriesRelated Business Process Standards

Hi – Tech IndustryCore Process

Standards

Increase reach across all levels of trading partners

Enable easy, fast & cost effective use of standards based processes

2005 GS1 US

Strategic Growth Initiatives

1. Continue Focus on Core Industries

2. Engage in adjacent Large (new) industries

3. RosettaNet Trading Network Enablement Milestone ProgramUnites standards and services to provide low-cost solutions for achieving community scale:

Standards• RAE – Program validation 99% complete (March), paper work in progress• RAE form capabilities• TPIR Gateway standard to define interfaces (TBD)

Solution Provider Community• Form design and engineering services (E2OPEN signed up)• TPIR Gateway services for routing, transformation and archiving

RosettaNet Services• On-boarding program management• TPIR-PIP constraining engineering support• Solution Provider Certification (future)

2005 GS1 US

• BOOST AERO – European Aerospace Industry

– MOU signed to investigate co-operation opportunities for RosettaNet standards in the industry.

• CIDX – Chemical Industry

– Proposal being evaluated by both organizations to better align and service respective constituencies.

• CARGO 2000 – Air Freight Industry

– MOU signed to investigate co-operation opportunities for RosettaNet standards in the industry.

• Joint EPCglobal US & RosettaNet offering being evaluated• Small & Medium Enterprises Engagement Program

– Key Channel Masters being identified for this program

2006 Progress To Date

Thank You

www.rosettanet.org