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Achieving Logistics Excellence with Oracle Value Chain Execution

Derek GittoesVice President, Logistics Product StrategyOctober 2010

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Agenda

• Importance of Logistics to Enterprise Performance

• Overview of Oracle’s Value Chain Execution Solution

• Question & Answer Session

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Importance of Logistics to Enterprise Performance

5Copyright © 2010, Oracle and/or its affiliates. All rights reserved.

Why Logistics MattersThen…

“My logisticians are a humorless lot; they know if my campaign fails they are the first ones I will slay.”

--Alexander the Great (356-323 BC)

6Copyright © 2010, Oracle and/or its affiliates. All rights reserved.

Why Logistics Matters…and now

• Financial Impact– Logistics accounts for significant component of economy

• ~9% of USA gross domestic product (GDP)• ~10% of European Union GDP • ~18% of China GDP• ~13% of India GDP• ~17% of Brazil GDP

– Major impact on corporate performance• Profitability of products & services• Ability to serve new markets• Ability to utilize new sources of supply

• Environmental Impact (USA figures)– 20% of all energy consumed– 35 billion gallons of diesel (USA rail & truck transportation)– 350 million tons of carbon dioxide

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Improve on time deliveries Improve customer service Improve fulfillment & planning

coordination Reduce order cycle time Improve carrier coordination Reduce returns

Reduce freight and logistics costs Reduce stockout losses Streamline transportation systems Reduce inventory carrying costs Reduce labor costs Reduce inventory levels &

carrying costs

Reduce Working CapitalReduce Operating Costs

Increase RevenueIncrease Operating IncomeIncrease Capital Efficiency

Increase Sales Volume Increase Market Share

Increase Shareholder Value

Why Logistics MattersImpact on Enterprise Performance

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Focusing on LogisticsKey Business Objectives

• Control and minimize logistics costs

• Increase service and order fulfillment performance & flexibility – anywhere to anywhere global operations

• Accelerate supply chain and increase working capital utilization by minimizing lead times

• Visibility and control of global orders, shipments & inventory across multi-enterprise supply chain

• Better, timely information to improve decision making

• Mitigate supply chain and compliance risk worldwide

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Overview of Oracle’s Value Chain Execution Solution

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Complete Supply Chain ManagementBest-in-Class, Integrated Applications

Supply Chain Management

Service & ALM

Sourcing & Procurement

Manufacturing

PlanningVCE / Logistics

PLM

Order Fulfillment

Fusion Middleware

Real-TimeInformation

Product Innovation

Demand Supply

Product

DemandDriven

FulfillmentExcellence

AIA

Information-Driven Value Chain

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Oracle Value Chain ExecutionDriving Business Value from Logistics Best Practices

Align Business Processes

Optimize Execution

Expand Global Reach

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Oracle Value Chain ExecutionDriving Business Value from Logistics Best Practices

Oracle Warehouse Management• Optimize order fulfillment• Minimize handling and inventory costs

Oracle Transportation Management• Optimize product movements• Minimize freight costs

Oracle Global Trade Management• Optimize import/export compliance• Minimize lead times and trade costs

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SeamlessIntegration

Transportation Manufacturing FulfillmentPurchasing

RTVs OrdersTransfers

RMAs Purchases

Transfers TailorableRules &

Workflow ProcessGlobal Visibility

RF Support

InspectReceive

Ship Pack Directed Pick

CostCost

AssembleAssemble

WIPIssuesWIP

Issues

TransferTransferCountCount

MoveMove

Replen-ish

Replen-ish

LabelLabel

Cross DockPutaway

Cross DockPutaway

Oracle Warehouse ManagementComplete Warehouse Management Platform

Oracle Warehouse ManagementUnique Global Warehouse Management Platform

Converge… • Execute seamless handoff between warehouse and ERP

• Support task execution for customer orders, supplier receipts, internal shipments, production, service and repair orders using one common task framework

• Support process, discrete, ATO & kitting styles of production

Adapt…• Respond to business changes easily using rules based

architecture

• Comply with evolving industry, customer and technology mandates

• Vary material handling flows by product, location, customer or other user needs

Scale… • Advanced distribution center management to handle high volume facilities

• Fulfill even the most complex orders easily & efficiently

• Multi-lingual, currency & site capabilities to support global rollout

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Oracle Transportation ManagementComplete Transportation Management Platform

Order

Global Visibility

Supply Chain Event Management

Business Intelligence (Analytics & Reporting)

Freight Forwarding and Brokerage

Plan Monitor

Fleet ManagementCo

op

erat

ive

Ro

ute

Pla

nn

ing

Tran

spo

rtat

ion

So

urc

ing

SettleExecute

Co

ntr

act

Man

agem

ent

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Oracle Transportation ManagementUnique Global Transportation Management Platform

Execute Locally… • Accommodate line of business, geographic region, and supply chain flow-specific business practices

- Workflows, business logic, reports, etc.

• Using multiple languages and currencies- Multiple languages in single system- User interface configuration by region / country, user groups

Control Globally… • Plan, execute, track and settle for all orders / shipments- All divisions- All product flows (inbound, outbound, internal)- All modes: truck, ocean, air, rail, private / dedicated fleet

• Visibility across the global network

Manage Centrally… • All operational information in one location- Centralized visibility- Centralized reporting

• Single set of integration points for customers, carriers, partners• Single IT infrastructure to support

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Oracle Global Trade ManagementGlobal Trade Compliance Platform

Global Trade Data Repository Next-Generation Screening Global Compliance Platform

• Robust, configurable Restricted Party & Sanction screening engine

• Screen all types of orders from external systems

• Enhanced audit capabilities

• Industry’s first natively developed platform to manage trade and transportation data

• Master Trade Repository for Party and Item Data

• Extensive Product Classification features

• Manage legal, regulatory & corporate compliance policies globally

• Flexible rules-engine to identify trade-related controls on cross-border transactions

• License, license exception & document determination

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Oracle Global Trade ManagementUnique Global Trade Management Platform

Integrated… • Manage transportation trade compliance for imports/exports on a single platform

- Oracle Global Trade Management & Oracle Transportation Management

• End-to-end process control and visibility for all orders and shipments from point of origin to final destination

Global Control… • Configure all import/export trade compliance policies- Country / region specific policies- Corporate / line of business specific policies

• Manage compliance globally- All orders and shipments

Accelerate… • Decrease supply chain lead times with automated import/export trade compliance processes

- Minimize time to “clear” orders & shipments- Minimize time to prepare supporting documentation

• Minimize delays from supply chain disruptions- Visibility to in-transit delays

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Global Logistics Platform Regardless of ERPChoice of ERP Backbone

• Oracle Value Chain Execution as global solution across multiple ERP systems• Oracle and/or non-Oracle• Prebuilt integrations with Oracle systems

• Deploy standardized best practices across the enterprise for maximum benefit

ERP Host Systems (Oracle or Non-Oracle)

Integrated Logistics Operations

ProcurementOrder Management Financials Master Data Hubs

Oracle Value Chain ExecutionOracle Value Chain

Execution

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Proven Customer Success

HighTechnology

ConsumerGoods

Life Sciences

Industrial Mfg

LogisticsService

Provider

NaturalResources

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What Analysts are Saying…Gartner, Inc.

Note: “This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from Oracle.”

The Magic Quadrant is copyrighted April 13, 2010 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Gartner, Inc., “Magic Quadrant for Transportation Management Systems”, by C. Dwight Klappich, April 13, 2010

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Summary

Opportunity

•Logistics has a significant impact on enterprise performance: corporate profitability, customer service, new market growth

Enabler

•Oracle Value Chain Execution products support best practices across logistics functions: warehouse, transportation, global trade

Results

•Improved order fulfillment & customer service

•Reduced transportation costs

•Reduced inventory & handling costs

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Questions and Answers

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