RosettaNet Press Release
High Technology Companies Commit to Ten Production Milestones Using RosettaNet Standards in 2001

IT, EC and SM Supply Chains Focus on Solving Industry Challenges Around Supply and Demand Management, Design Win, Manufacturing WIP and B2B Integration for Small- and Medium-Sized Partners

For Release May 14, 2001

Santa Ana --

RosettaNet, high technology industries' leading e-business process consortium, today announced significant commitments by major information technology (IT), electronic components (EC) and semiconductor manufacturing (SM) companies to RosettaNet production implementation milestones. The 2001 milestones are partner-driven goals of larger RosettaNet programs that are focused on strategic e-business processes, such as supply and demand management and B2B integration with mid-tier partners.

Historically, RosettaNet milestone programs have served as unifying forces within the industry -- driving collaboration to solve critical supply chain challenges, aligning priorities within the high technology trading partner and solution provider communities, and speeding development and production implementation of RosettaNet Partner Interface Process™ (PIP™) standards.

"These activities show how aggressively companies are working toward solving critical challenges in the supply chain through B2B integration," said Jennifer Hamilton, CEO of RosettaNet. "The production commitments represent a massive industry movement to implement RosettaNet's standardized, Internet-based processes in the high technology trading network. By year-end, we anticipate thousands of RosettaNet implementation touch-points will be active across the globe."

The following production milestones have been established by RosettaNet's global supply chain boards and are backed by strong corporate commitments:

Supply and Demand Management  

In the high technology industry, companies are working to synchronize critical supply and demand planning activities.   The iHub initiative is focused on implementing a broad range of RosettaNet's business process standards in an effort to gather and distribute data for supply chain visibility and decision support, via a private or public repository . Led by Cisco Systems, the iHub initiative involves numerous IT and EC industry leaders including Arrow Electronics, Avnet, Hewlett-Packard, Intel, Motorola, Philips Semiconductors, STMicroelectronics and Tyco Electronics, with approximately 10 committed to production implementation of an initial set of supply and demand processes in Q3 2001.   Among the solution providers supporting this milestone are Manugistics, PricewaterhouseCoopers, Viacore, webMethods and Xoriant. Public exchanges, such as e2open, are also leveraging RosettaNet supply and demand management processes to facilitate supply visibility across their trading community.  

B2B Integration with Mid-Tier Partners

Two milestones focus on enabling B2B integration with small- and medium-sized trading partners. The RosettaNet Basics program defines a set of core PIPs that address baseline B2B functionality, and aligns with efforts of solution providers to develop affordable, turnkey solutions that ease adoption. Led by Intel, approximately 10 IT and EC Board Member companies, including Hewlett-Packard and Insight, are participating in the RosettaNet Basics program and have committed to connecting with 50 to 100 mid-tier suppliers by Q4 2001. Among the solution providers that are partnering with supply chain companies to ensure that turnkey solutions are available to support implementation and quick entry are Peregrine/Extricity, Infoteria Corporation, Microsoft, NEC, TIBCO Software and webMethods.  

Closely aligned with this effort, the RosettaNet Express milestone involves 15 computer manufacturers and assemblers in Taiwan that are also focusing on the same core PIPs, with the goal to automate several business processes with multiple mid-tier trading partners each by Q4 2001, totaling approximately 75 touch-points. Companies include Acer, ADI, Arima Group, Asus, Compal Electronics, Compeq, Delta Electronics, First International Computer, Insight, Inventec, Micro-star International, Mitac, Primax, Sampotech, Tatung and Twinhead .

Collaborative Forecasting

Working to reduce inventory stockpiles and misalignments in product mix ratios, RosettaNet's collaborative forecasting processes allow trading partners to work interactively to manage forecast requirements by sharing information affecting materials management decisions. Measurable benefits include an expected reduction of inventory throughout the IT and EC supply chains, increased product turns and improved on-time delivery. Led by STMicroelectronics and Texas Instruments, more than 15 RosettaNet IT and EC Board Member companies including Arrow Electronics, Compaq Computer, Hitachi, IBM, Lucent Technologies, Micron, Motorola, National Semiconductor, NEC, Nokia, Philips Semiconductors, Samsung and Solectron are participating in the Collaborative Forecasting program -- planning to implement the forecast/response process standard with multiple trading partners each by Q4 2001.

Order Management

Three implementation milestones focus on order management processes. Semiconductor manufacturers, foundries, materials suppliers and service providers are collaborating to address the unique order management needs within the semiconductor supply chain. At least 10 SM Board Member companies -- including Agilent Technologies, ASE, Intel, Micron, NEC, SPIL, Texas Instruments, TSMC, UMC and Windbond Electronics -- have committed to implementing RosettaNet Order Management PIPs by Q4 2001, with expected gains to include reduced IT and order transaction costs.

In a separate milestone effort, SM materials companies, including JSR, Shin-Etsu Handotai, Shinko Electric Industries, Sumitomo Bakelite, Sumitomo Metal Industries, Tokyo Ohka Kogyo and Toppan, and their partners, such as Amkor Technology, Intel, NEC, Toshiba and Xilinx, are focusing on the same goal while addressing specific business requirements of process manufacturing.

Concentrated efforts around order management are also underway in Japan, where electronic component suppliers are driving implementation of global RosettaNet standards. Led by Sony, Japan-based companies including Fujitsu, Hitachi, NEC and Toshiba, as well as Intel's operations in Asia, have committed to implementing order management PIPs with at least 60 partners in Q4 2001.   SAP is also working to support these efforts.

Design Win Manageme nt

More than 15 RosettaNet EC Board Member suppliers and distributors are uniting to automate design win processes by implementing multiple PIPs with multiple trading partners by year-end 2001. Standardizing and automating design win processes will eliminate manual data collection from multiple collection points, increase data reporting accuracy and timeliness, speed data collection and improve data alignment. Led by Motorola, additional companies committed to the milestone include Arrow Electronics, Avnet, Future Electronics, Hitachi, Lucent Technologies, Memec, National Semiconductor, Philips Semiconductors, Pioneer-Standard Electronics, STMicroelectronics, Texas Instruments and Xilinx.

S hip From Stock

A large portion of the ship from stock and debit process in the EC industry is manual -- resulting in costly wages, processing-time delays and errors from manual transactions. By leveraging the standardized e-business processes being developed as part of RosettaNet's Ship From Stock program, companies can reduce inefficiencies by automating processes, reduce data errors and improve cash flow. Led by Arrow Electronics, FCI and Texas Instruments, 15 EC Board Member companies and 10 additional Partners are committed to implementing Ship From Stock PIPs with multiple partners each by Q4 2001.

Manufacturing WIP

Automation of inquiries and responses for semiconductor manufacturing work-in-process (WIP) on the factory floor would enable better supply visibility -- reducing inventories and allowing for more flexible operations. At least nine SM Board Member companies including Amkor Technology, ASE, Chartered, IBM, Lucent Technologies, Motorola, National Semiconductor, SPIL, TSMC, UMC and Winbond Electronics, have committed to implementing Manufacturing WIP PIPs by Q3 2001.   Collaborating on the implementation milestone are solution providers including BEA Systems, Peregrine/Extricity and webMethods.

Related Implementation Programs

Other significant RosettaNet activities are underway, including the formation of additional programs as identified and prioritized by committed Partner companies. Specifically, Compaq Computer is championing development and implementation efforts around warranty processes; strategy efforts are being led by Hewlett-Packard, Cisco Systems and IBM for standardized configure-to-order (CTO) processes in the IT supply chain; and product data standardization plans are being driven by Ingram Micro and Insight.   In addition, KEMET Electronics and TTI are leading the way in using RosettaNet standards to automate the quoting process.

For more information on RosettaNet membership, or to participate in RosettaNet's programs, please visit www.rosettanet.org.

About RosettaNet

RosettaNet is an independent, non-profit consortium dedicated to the collaborative development and rapid deployment of open Internet-based business standards that align processes within the global high-technology trading network.

More than 400 companies representing over $1 trillion in annual information technology, electronic components and semiconductor manufacturing revenues currently participate in RosettaNet's standards development, strategy and implementation activities. A complete list of member companies and more information on RosettaNet is available at www.rosettanet.org.