1. 1

2. Achieving Logistics Excellence with Oracle Value Chain Execution Derek Gittoes Vice President, Logistics Product Strategy October 2010

3. 3 Agenda Importance of Logistics to Enterprise Performance Overview of Oracle’s Value Chain Execution Solution Question & Answer Session

4. 4 Importance of Logistics to Enterprise Performance

5. 5 Copyright © 2010, Oracle and/or its affiliates. All rights reserved. Why Logistics Matters Then… “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)

6. 6 Copyright © 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

7. 7 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 Capital Reduce Operating Costs Increase Revenue Increase Operating Income Increase Capital Efficiency Increase Sales Volume Increase Market Share Increase Shareholder Value Why Logistics Matters Impact on Enterprise Performance

8. 8 Focusing on Logistics Key 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

9. 9 Overview of Oracle’s Value Chain Execution Solution

10. 10 Complete Supply Chain Management Best-in-Class, Integrated Applications Fusion Middleware AIA Information-Driven Value Chain

11. 11 Oracle Value Chain Execution Driving Business Value from Logistics Best Practices Align Business Processes Optimize Execution Expand Global Reach

12. 12 Oracle Value Chain Execution Driving 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

13. 13 Seamless Integration Transportation Manufacturing FulfillmentPurchasing RTVs Orders Transfers RMAs Purchases Transfers Tailorable Rules & Workflow Process Global Visibility RF Support Inspect InspectReceive Ship Pack Pack Directed Pick Directed Pick Cost Assemble WIP Issues Transfer Count Move Replen- ish Label Cross Dock Putaway Oracle Warehouse Management Complete Warehouse Management Platform

14. Oracle Warehouse Management Unique 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

15. 15 Oracle Transportation Management Complete Transportation Management Platform Order Global Visibility Supply Chain Event Management Business Intelligence (Analytics & Reporting) Freight Forwarding and Brokerage PlanMonitor Fleet Management Cooperative Route Planning Transportation Sourcing Settle Execute Contract Management

16. 16 Oracle Transportation Management Unique 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

17. 17 Oracle Global Trade Management Global Trade Compliance Platform Global Trade Data RepositoryNext-Generation ScreeningGlobal 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

18. 18 Oracle Global Trade Management Unique 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

19. 19 Global Logistics Platform Regardless of ERP Choice 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 ManagementFinancials Master Data Hubs Oracle Value Chain Execution

20. 20 Proven Customer Success High Technology Consumer Goods Life Sciences Industrial Mfg Logistics Service Provider Natural Resources

21. 21 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

22. 22 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

23. 23 Questions and Answers

24. 24