EDISTRIBUTION INITIATIVE

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E-DISTRIBUTION INITIATIVE

• Ya-Ping Zhou
• Greater China Director, NPES
• Tucson, AZ
• April 12, 2003

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Chinese Printing Market

• GDP 2001-2002 7.3
• Printing establishments 100,000
• Employees 2 million
• Annual book titles published 150,000
• Magazines 9,000
• Newspapers 2,100
• Paper consumption 3 million tons

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Import market (2001 equipment)

• Computer-to-plate 78
• Web offset press 72
• Sheet-fed offset press 81
• Small sheet-fed offset press
  7
• Other offset press 397
• Web letter press 34
• Other letter press 143
• Flexo press 25
• Gravure press 162
• Web screen printing machine 23
• Flat screen printing machine 200
• Other screen printing machine 104
• Other printing equipment 5,594
• Total units 6,920

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Import market (2001 supply)

• Printing writing paper 1,390,000 tons
• Ink 24,700 tons
• PS plates 2,875,000 sq.m.
• Film 3,810,000 sq.m.

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Top ten imports

• Multicolor sheet-fed offset printing press
• Computer-to-plate system
• Perfect binding machine
• Digital printing press
• Commercial web offset printing press
• Newspaper printing press
• Hard-cover book production line
• Flexo printing press
• Converting machine
• Digital proofing

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Internet impact
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Internet and printing

• 130 million computer users
• 300 million at end of 2010
• lt5 printers and establishments use Internet for
  business
• 80 printers and 95 distributors use Internet
  for information
• 1-2 printers use online production

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E-Distribution Initiative

• Objectives
• Design and build a dual-language B-2-B,
  E-Distribution network platform
• Establish an e-channel of communication between
  NPES members and Chinese distributors
• Enable small and medium companies to expand
  market share with minimum cost
• Platform elements
• 5 Modules
• Platform engineering architecture
• Based on Windows Info Server Oracle Database
  Server
• Broadband support for voice and video interactive
• Two-site servers for redundancy
• Hardware firewall, software encryption for
  security

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FUNCTION MODULES

• 1. E - Information
• 2. E - Business
• 3. E - Trade
• 4. E - Training
• 5. E - Assistance

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Modules
Trainees
E-Assistance
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Modules
Trainees
Login
E-Assistance
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Modules
Trainees
E-Assistance
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Home page
E-Information
E-Business
advertisement
E-Trade
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E - Information Module

• Chinese/English directories
• Virtual showrooms
• NPES news
• Suppliers news room
• Announcements
• World market news

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Directories
NPES MEMBER DIRECTORY
CHINESE DISTRIBUTORS DIRECTORY
CHINESE CUSTOMER DIRECTORY
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News announcements
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Virtual product showroom
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E - Business Module

• Online conferencing
• Distributor and customer data management
• Sales and marketing management
• Product and service promotion
• Online receipt and delivery of sales and
  marketing materials
• Estimating, purchase order and invoice management

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E - Business
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E - Trade Module

• Chinese/English Directory of importers/exporters
• Online bidding
• Online purchasing
• Online auction
• Procedures and Regulations

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E - Trade
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E - Training Module

• After-sale technical training offered for
  customers by suppliers
• Web offset, flexo, CTP and others, customized by
  suppliers
• Online training/learning
• Graphic arts institution educational courses and
  certificate programs
• NPES China Training Center training programs
• Color management and quality control and
  technical standards

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E - Training
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Demand for e-training

• Availability of PCs and Internet access
• Rapidly changing technologies, processes,
  procedures, and resulting volume of information
  to be absorbed
• Increased need for educating customer and
  customers customers in order to achieve
  successful sales
• Increased demands for cutting costs
• Not enough qualified employees
• Too slow to gather and process market information
• Globalization of corporations and digital
  workflow require more effective ways of
  distributing knowledge

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E - training possible

• Access to anyone, anywhere
• On-line access via 56K modem or better
• Broadband is better, but not required
• CD-ROM courseware requires minimal platform
  (Pentium 3, 200 MHz, 64 MB RAM, 500 MB disk)

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Member benefits
Trainees (Potential buyers)
E-training
Qualifying
Support through membership
Trainee profile
Follow up close sales
NPES members
NPES members
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Architecture
Members
Registration, Security, Payment, etc.
Training Environment
Search
InfoFind
Course Access
Direct Access
Term Search
Quick Reference Descriptions
Course Z Topic 1 Topic 2 Topic 3 Topic 4 Topic 5

Course A Topic 1 Topic 2 Topic 3 Topic 4 Topic 5
Course B Topic 1 Topic 2 Topic 3 Topic 4 Topic 5
Course C Topic 1 Topic 2 Topic 3 Topic 4 Topic 5
Course D Topic 1 Topic 2 Topic 3 Topic 4 Topic 5
Course Y Topic 1 Topic 2 Topic 3 Topic 4 Topic 5
Reference
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Search engine
Members
Registration, Security, Payment, etc.
Term 14, Term 2689Term 8344, Term 8345
Full Text
Context
Reference
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E - Assistance Module

• Export/import
• Shipping and warehousing
• Trade show calendar and participation
• Market study and research
• Literature design and production
• Advertising placement

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Management structure
NPES CA Office
China Rep. Office
China Training Center
Eng. Office
Server
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Rep. Office - NPES Center

• Common objective
• Different structure
• Resource sharing
• Support

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Facility

• Head office
• Room B, 22F Jian Hui Bldg. 922 Hengshan Rd.,
  Shanghai 200030
• Project management
• Data processing and contents editing
• Marketing and sales
• Technical office
• 4F, 477 Aomen Rd., Shanghai 200060
• System design
• system management and maintenance
• Server site
• NA (located within an existing local IT company)
• Hardware server
• 24-hour site maintenance

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Finance (Nov. 02 - Oct. 05)

• US Department Commerce 180,000
• NPES matching fund 380,000
• Total 560,000
• - Head office legal establishment
• - Onsite staff
• - Hardware and software
• - Marketing and promotion
• - General operations and taxes
• NPES Shanghai Center 203,000
• - Support personnel
• - Office equipment
• - Business expenses
• NPES Rep. Office business revenue
• - Membership fees NA
• - Service fees NA

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Timetable

• November 2002 - April 2003
• Preparation and legal establishment
• April 10, 2003
• System structure design begins
• May 15, 2003
• Proposed opening ceremony date
• July 1, 2003
• Marketing promotion begins in China and US
• August 15, 2003
• Basic function modules ready for use
• December 31, 2003
• Full function modules ready for use

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To participate

• Membership
• Member access procedure
• Member benefits
• Member rights and responsibilities

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Contact

• US project office
• PO Box 81928, San Diego, CA 92138-1928
• Tel [phone] Fax [phone]
• Email npeszhou_at_aol.com
• China Rep. Office
• Room B203, 22F Jian Hui Bldg. 922 Hengshan Rd.,
  Shanghai 200030
• Tel [phone] x 127, x128,
  x129
• Fax [phone]
• URL http//www.npes.ebis.com.cn
• Technical office (NPES Shanghai Training Center)
• 4F, 477 Aomen Rd., Shanghai 200060
• Tel [phone]
• Fax [phone]
• URL http//www.meihu.com.cn

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Thank you!