Selling the OTM Value Message

Selling the OTM Value Message
July 2009

Agenda Sales Opportunities with OTM What is OTM? How to sell OTM
Value Messaging OTM Key Solution Components OTM Demo Where are the resources you need? Netting it out

Total Logistics Cost as % of Revenue
The cost differs by industry, ranges from 2.4%, which is for Pharma, to 10.8%. Now let’s drill down to transportation There are many sources of pressure on Transportation processes - many have always been present, many are associated with the e-business transformations that have occurred over the last few years. Customer Expectations: As the speed of information flow continues to increase and there is more insight into this information, customers continue to place higher expectations on all suppliers. Accurate, rapid global shipment dates and visibility into the shipment status at any time in the transport process are just two examples of what customers expect when orders are being shipped. Variable Demand: The order pattern for many organizations has changed from infrequent, predictable bulk orders to that of customized, smaller, more frequent orders. This has been driven by a combination of new sources of demand such as the Internet, and changes in the buying habits of traditional customers. This order fragmentation increases the complexity of shipping options and also adds pressure on transportation costs. Fragmented Market: Adding to the pressures for transportation solutions is the fragmentation of transportation globally. Many companies today have local solutions to address regional regulations and requirements. With manufacturing occurring on a global basis, complex shipping networks have evolved to deliver the right product to the right customer in a timely fashion. This transformation has led to increased pressure on transportation / logistics costs and made strategies such as FTL more important than ever. Regulatory Compliance: Recent events have drastically increased security and compliance requirements for all transportation methods. Heightened security, both in terms of inspections and paperwork authorizations, is leading to higher potential for delays in the delivery process. Global customers are adding to the compliance challenge by increasing the need to adhere to international trade regulations. Source: Values extrapolated from the Establish-Davis Benchmarking Study as presented at 2005 CSCMP Annual Conference 4

Transportation Cost as % of Revenue
Transportation accounts for HALF of Total Logistics Costs and may get higher! To reduce the cost has always been one of the key drivers for a customer to justify a TMS There are many sources of pressure on Transportation processes - many have always been present, many are associated with the e-business transformations that have occurred over the last few years. Customer Expectations: As the speed of information flow continues to increase and there is more insight into this information, customers continue to place higher expectations on all suppliers. Accurate, rapid global shipment dates and visibility into the shipment status at any time in the transport process are just two examples of what customers expect when orders are being shipped. Variable Demand: The order pattern for many organizations has changed from infrequent, predictable bulk orders to that of customized, smaller, more frequent orders. This has been driven by a combination of new sources of demand such as the Internet, and changes in the buying habits of traditional customers. This order fragmentation increases the complexity of shipping options and also adds pressure on transportation costs. Fragmented Market: Adding to the pressures for transportation solutions is the fragmentation of transportation globally. Many companies today have local solutions to address regional regulations and requirements. With manufacturing occurring on a global basis, complex shipping networks have evolved to deliver the right product to the right customer in a timely fashion. This transformation has led to increased pressure on transportation / logistics costs and made strategies such as FTL more important than ever. Regulatory Compliance: Recent events have drastically increased security and compliance requirements for all transportation methods. Heightened security, both in terms of inspections and paperwork authorizations, is leading to higher potential for delays in the delivery process. Global customers are adding to the compliance challenge by increasing the need to adhere to international trade regulations. Source: Values extrapolated from the Establish-Davis Benchmarking Study as presented at 2005 CSCMP Annual Conference 5

Transportation Mgmt Opportunity
50% 42.1% Transportation Mgmt Solutions can Save Most Companies 5-25% 40% 28.9% 30% % of Companies Researched 20% 13.2% 13.2% 10% 2.6% The good news is that statistics show most companies can achieve 5-25% savings after a TMS implementation 0% 1-5% 6-10% 11-20% 21-30% x > 30% Savings Opportunity Companies with Annual Transportation Spend > $10 Million Source: The Logistics Institute at Georgia Tech

TMS Forecast – APAC APAC – 100 mil opportunity for Logistics Apps TMS for 2009 as per IDC. Logistics Examples include software that automates distribution resource planning, warehouse management and transportation planning. Ref IDC report on the right and revenue in mil USD *These nos should be revised considering that these were before the economic downturn

Why World-Class TMS Is So Valuable
“The July 2008 Aberdeen report clearly makes the case that best-in-class companies that have TMS or similar capabilities and good processes report that they are able to control shipping costs and often decrease inventory carrying costs. These best-in-class companies enjoy: On-time performance of 95% or higher Savings on transportation spend management averaging 8.8% Expedited shipments of no more than 3%.” Source: Thomas Foster, “It’s High Time to See That Your Business’ Success Is Closely Tied to Transportation,” Global Logistics & Supply Chain Strategies / October 2008. Copyright 2008 – Oracle Confidential 8

Dan Gilmore, Supply Chain Digest
“If you can’t get a TMS justified now, good luck.” Dan Gilmore, Supply Chain Digest, May 15, 2008 Private and confidential

Value Messaging OTM Key Solution Components OTM Demo Where are the resources you need? Netting it out 10

Oracle Supply Chain Management Information Driven Value Chain
Business Intelligence: Visibility / Analytics PRODUCT LIFECYCLE MANAGEMENT New Product Introduction, Quality, Cost, Compliance, Design for Supply DEMAND MANAGEMENT Forecasting Promotions Mgt Demand Collaboration VMI ORDER MANAGEMENT Configuration Pricing SUPPLY PLANNING Sales & Operations Planning Planning & Scheduling Order Promising Network & Inventory Opt. Service Parts Planning SUPPLY MANAGEMENT Purchasing Settlement Supplier Mgt Contract Mgt Supplier Collaboration Strategic Sourcing SOURCING Collaboration Collaboration SERVICE Planning & Execution LOGISTICS & DISTRIBUTION Warehouse, Transportation MANUFACTURING Mixed-mode TAKEAWAY: Oracle SCM solutions footprint is broad, deep and open, providing all the required capabilities for supply chain excellence. This cuts across Product, Supply and Demand spanning from customer facing processes to supplier and partner facing processes. Financials / HR Master Data Management Customers Distribution Manufacturing Suppliers

Oracle Value Chain Execution Optimize Operations, Maximize Results
Warehouse Management Oracle Value Chain Execution Landed Cost Management Transportation Management Global Trade Management

Oracle + G-Log = A Winning Combination
G-Log is a Provider of Logistics Software Single Transportation Product 180 staff globally Market Growth Leader Over 45 customers using installations of the same product for leading: Logistics Service Providers Manufacturers Retailers November 2005 Bought By Now we know TMS has huge market. So what can Oracle offer? Some background story. The OTM product we are selling today was not an oracle home-grown product. It came from a company called Global Logistics Technology, G-Log for short. OTM was their only product. At that time it was called “Global Commend and Control Center”, GC3 for short. G-Log was acquired by Oracle in Best product joined a strong company. A winning combination! The reason I share this story with you is that when you talk about OTM to certain people, if they have been in transportation industry for many years, they may mention the company name “G-Log” or the product name “GC3”. They are considered the same with OTM today.

Elevator Statement Oracle Transportation Management (OTM)
Oracle’s Transportation Management (OTM) solution is a single platform, web-architected, transportation and logistics system that supports local and global requirements from a central repository of information. OTM was designed and built to support all your transportation needs in one system. This allows our customers to Reduce freight spend, Lower inventory levels, Increase customer satisfaction while Driving continuous improvement across the extended logistics network. Unlike SAP and some other competitors, whose transportation solutions are assembled from different stand-alone modules, OTM is built on ONE single platform. And is web-architected, supporting SOA.

Oracle Transportation Management
Process Flow Capture Orders Plan & Optimize 2 3 4 5 6 1 7 8 Improve Operations Execute Shipments Audit & Pay Freight – Accrue freight. Allocate costs to order lines. Establish Payment Rules and Tolerances. Set invoice approval authority. Match, approve and pay carrier invoices. Manage exceptions / accessorials. Plan & Optimize – Select order dataset to plan into shipments. Choose “Best” mode, route and carrier. Decide fleet versus common carriage. Coordinate with WMS and MFG. Improve Operations – Leverage reports and analytics to improve operations. Right size fleet. Procure better carrier rates (Sourcing). Feed network optimization with transportation data to analyze supply chain redesign. Report & Analyze – Monitor dashboard to identify logistics trends. Produce periodic reports for managing operations. Build ad hoc reports. Automate distribution of reports to key team members. Re-plan Shipments – Rerate and route shipments based on updates. Send shipment and order changes to OM, WMS, FINS. Generate customer freight charges (bills) to associate with the order. Sent to A/R. Execute Shipments – Perform Global Trade checks. Contact carriers (tender). Schedule appointments. Order equipment. Interface with parcel system for labels and manifests. Print shipping docs (BOL, SED, CI, SLI). Manage In-transit – Request and receive events from supply chain partners including carriers. Track shipments, gain visibility, identify delays. Update shipments with actual values (weight, pcs, equipment ID). Capture Orders – Import orders, purchases, returns, stock transfers into OTM. Use workflow to populate dates, sku size, planning preferences, etc. Report & Analyze Manage In-transit Fundamental Transportation Management can be summarized in eight primary steps. This graphic illustrates those steps at a high level. The message is that OTM enables all eight. Our solution is both broad and deep in Transportation Management. Clearly the industry leader as recognized by analyst firms Forrester Research and Gartner. Capture Orders – Import order, purchases, returns, stock transfers into OTM. Use workflow to fill in data gaps such as dates, sku characteristics, etc. Plan & Optimize – Select order dataset to plan into shipments. Choose “Best” mode, route and carrier. Decide fleet versus common carriage. Coordinate with WMS and MFG. Execute Shipments – Perform Global Trade checks. Contact carriers (tender if necessary). Schedule appointments. Order equipment. Interface with parcel manifesting solution to create labels and manifests. Produce other shipping documentation; international documentation if needed (SED, CI, SLI). Manage In-transit – Request and receive events from supply chain partners including carriers. Track shipments and related delays. Update shipments with actual values (weight, pcs, equipment ID). Re-plan Shipments – Rerate and route shipments based on updates. Communicate shipments and related order changes with OM, WMS, FINS. Generate customer freight billing amounts to be associated with the order and/or sent to A/R. Audit & Pay Freight – Match, approve and pay carrier invoices. Manage exceptions. Process accessorials. Report & Analyze – Monitor dashboard to identify logistics issues. Produce periodic reports for managing operations. Improve Operations – Leverage reports and analytics to improve operations. Right size fleet. Procure better carrier rates (Sourcing). Feed network optimization with transportation data to analyze supply chain redesign. Audit & Pay Freight Re-plan Shipments

Oracle Transportation Management
Process Flow Co-Operative Routing Business Intelligence 1 2 8 3 Sourcing Fleet Mgmt 7 4 Transportation Management can be summarized in eight primary steps. This graphic illustrates those steps at a high level. Capture Orders – Import order, purchases, returns, stock transfers into OTM. Use workflow to fill in data gaps such as dates, sku characteristics, etc. Plan & Optimize – Select order dataset to plan into shipments. Choose “Best” mode, route and carrier. Decide fleet versus common carriage. Coordinate with WMS and MFG. Execute Shipments – Perform Global Trade checks. Contact carriers (tender if necessary). Schedule appointments. Order equipment. Interface with parcel manifesting solution to create labels and manifests. Produce other shipping documentation; international documentation if needed (SED, CI, SLI). Manage In-transit – Request and receive events from supply chain partners including carriers. Track shipments and related delays. Update shipments with actual values (weight, pcs, equipment ID). Re-plan Shipments – Rerate and route shipments based on updates. Communicate shipments and related order changes with OM, WMS, FINS. Generate customer freight billing amounts to be associated with the order and/or sent to A/R. Audit & Pay Freight – Match, approve and pay carrier invoices. Manage exceptions. Process accessorials. Report & Analyze – Monitor dashboard to identify logistics issues. Produce periodic reports for managing operations. Improve Operations – Leverage reports and analytics to improve operations. Right size fleet. Procure better carrier rates (Sourcing). Feed network optimization with transportation data to analyze supply chain redesign. 6 5

Oracle Transportation Management Broad & Deep Transportation Platform
Order Plan Execute Monitor Settle Global Visibility Transportation Sourcing Cooperative Route Planning Contract Management Supply Chain Event Management Business Intelligence (Analytics & Reporting) I would like to take a moment to introduce Oracle Transportation and some of the capabilities that enhance and complete the order process Within the Core Technology of Oracle Transportation is the ability to take orders and process them through a constraint-based optimization process. Furthermore, to manage the carrier communication process such as Tender and Except. And then finally automating the Freight Payment and Audit process. (HIT ENTER KEY) However it does much more than this. From a strategic level Oracle Transportation can help you forecast what your Transportation Needs are and who should manage which shipments. Specifically helping you determine what your private fleet should cover vs. what outside carriers will. Then work with your carriers to do on-line bid analysis and contract awarding. As an additional layer, Oracle Transportation provides comprehensive visibility, business intelligence and execution management tools to keep you in the loop at all times. OTM can also help in making typical execution decisions FOR YOU and communicating this to all interested parties. This allows you to manage by exception rather than managing everything that hits your radar. Freight Forwarding and Brokerage Fleet Management

Multi-Tenant Configuration & Security Provide Simple Access to Contextual Information
Top Level Summary Top Level Users Full Visibility Parent Company … DEPT 1 DEPT 2 EXT USER Domain Users Secured Visibility Configure Software for Specific Look & Feel Access role-based info, including specific views for trading partners Prevent other users from accessing non-privileged info or taking non-authorized actions via role-based security Provides the ability to expand without having to buy another system

OTM Supports Parcel, LTL, TL, Air, Ocean, Rail…
Multi-mode Support Shippers Consolidators Carriers Truck Rail Air Ship Warehousing & Storage Cargo Handlers Tools to service your customers better Best in class suite CRM Transpotation and scheduling Financials OTM Supports Parcel, LTL, TL, Air, Ocean, Rail… Customers

References & Endorsements
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Gartner Magic Quadrant
What the Analysts say: Gartner Magic Quadrant Forrester Wave Source: Gartner (April 2009) Source: Forrester Research Inc (Q1 2008)

Logistics Service Providers
Retail Logistics Service Providers Manufacturing Recent wins The direction of Oracle Transportation development is guided by our active Customer Advisory Board which supports all aspects of our logistics solution. Many of them were tired of the costs associated with supporting existing bolt-on solutions and asked Oracle to develop a solution of our own. Their input, together with that of our early adopters will be an important factor in the success of Oracle’s Transportation solution.

Sample APAC Customers

Customer Momentum Reference success – proven value
Case studies at OpenWorld 2007 Baillie Lumber (Natural Resources) Doskocil (Consumer Goods) Electrolux (Consumer Goods) GE Healthcare (Life Sciences) Greif (Industrial Mfg) Kuehne+Nagel (Logistics) Newell Rubbermaid (Consumer Goods) Pella (Industrial Mfg) Schneider National (Logistics) Case Studies at SIG & OpenWorld 2008 Sears (Retail) Toyota (Automotive) American Power Conversion (High-Tech) Kraft Foods (Consumer Goods) BlueScope Steel (Natural Resources) US Steel (Natural Resources) Circuit City (Retail) ACCO Brands (Consumer Goods) Total Logistic Control (Logistics) Family Dollar (Retail) Copyright 2008 – Oracle Confidential 24

OTM Special Interest Group (SIG)
Very active community of customers and partners Run by the extended OTM community (not Oracle) Annual conference dedicated to OTM Information sharing - Online Forums / OTM Blogs Copyright 2008 – Oracle Confidential 25

OTM—Pricing Based on Freight Under Management (FUM), which is the amount of freight dollars that a company has under their control (or pay for). OTM Pricing Calculator available Product Group Product Family Module Product Family Grouping (Basic vs Advanced) SCM OTM Transportation Management OTM - Basic Transportation Operational Planning OTM – Advanced Logistics Inventory Visibility Freight Payment, Billing & Claims Forwarding & Brokerage Operations Transportation Sourcing Transportation Cooperative Routing Fusion Transportation Intelligence Fleet Management

Sales Stats Average sales price for OTM deals ~$300k
200% growth since acquisition Companies of all sizes and most industries Standalone or integrated to EBS Many SAP integrations Past success = future success Private and confidential

Qualification Opportunities

Verticals More than 300 Customers Status: June 2007

Logistics Service Providers
OTM Target Industries Industrial Manufacturing Automotive High Tech Life Sciences Consumer Products Chemicals Retail Wholesale Distribution Logistics Service Providers Corporate Shippers Fit 3rd party logistics 4th party logistics Lead logistics provider Freight forwarding Trucking company Difficult Courier Railway Airline Shipping line Logistics Service Providers

When to Walk vs When to Talk
Process Checklist Outbound Transportation Control of Inbound Freight Globalization, Global Transportation / Logistics International Inbound, Imports from China Shipment / Inventory Visibility Supply Chain Events Freight Settlement Internal 3PL / 4PL Optimize Transportation / Freight / Logistics Transportation Sourcing & Procurement Dock and Appointment Scheduling Fleet and Asset Mgmt for Scheduling of Driver, Tractor, Trailer Resources Process Checklist Completely Outsourced to a Single 3PL Imports / Exports & Global Trade Management Courier/Parcel Only Process Checklist Asset Management for Maintenance and Repair Street Level Routing & Scheduling - SIDEWINDER Ticketing Sales & Reservation Field Service, Repair Dispatch What kind of warehouse system do you need? This is determined by a combination of factors. These can be generalized into a combination of Complexity and Velocity or Volume. Measures of complexity include the nature of the product (high value, complex lot & serial control), the nature of the orders (complex product mix), the nature of the fulfillment process (kitting, CTO, ATO), or specific or regulatory needs for accuracy. Measures of Velocity or Volume include orders per day, warehouse size, different SKU’s handled, number of users, etc. As either of these increase, the demands placed on the warehouse system increase. From ManuaL Inventory Management through RF/Barcode support then Warehouse Management Systems to highly automated warehouses material handling equipment integration It is possible that within any given organization, there may be warehouse facilities that require only basic inventory control, while others require full Warehouse Management. It is important to have a system that provides deployment options that support this progression while simultaneously delivering a unified view of Inventory. Due to the issues discussed earlier, may organizations opt to stop at the Basic Inventory system included in their ERP or simply to add to this RF / Barcode capabilities. This can improve accuracy of the existing transaction, without introducing the added complexity integrating with an entirely new WMS system. However it can introduces complex support and upgrade issues.

Prospect Target Profile: OTM
Where OTM leads, compliments or supports High Volume Box* shippers (CPG, Indus Mfg, Retail), Global Shippers, Logistics Service Providers (3PLs), Best Fit Good Fit Medium Volume Box Shippers, High Volume Bulk Shippers (Chem, Oil/Gas) Partial Fit High Volume Parcel Shippers, Service Based Firms *Box = truck, flatbed, container

Preparing Conversations

Industry pressures and drivers

Typical Pressures for Transportation Corporate Shippers
Outsourced logistics to multiple 3PL/Trucking players is increasing Multiple service providers/carriers etc demand extensive collaboration Desire to retain logistics control while outsourcing transportation assets and operation Need for single point of visibility and control of their logistics operations Aware of opportunity to leverage carrier spend to reduce costs and improve service 36

OTM Qualifying Questions
What is your annual transportation spend? Outbound Spend (domestic and international) Inbound Spend (domestic and international) Spend by Mode (Truck, Rail, Air, Parcel, etc) Best Fit: Over $25M spend on multiple modes How are you managing transportation today? Manually,In-house system,Point solution (i2, Manugistics/JDA, etc) Outsourced or Inhouse Best Fit: Manual or in-house How is your transportation team organized? Centralized planning and execution? Decentralized management? (people at each plant/DC) Best Fit: Centralized transportation group Private and confidential

Identifying Stakeholders & Pain Points
VP Customer Service / Sales Visibility -Where is my stuff? Proactive notification of issues Accurate information regarding shipment transit times Accurate transportation costs to shipping of goods VP of IT Elimination of multiple vendors/solutions SOA Ease of administration and maintenance Reports / documentation VP/Director/Manager Transportation Reduce number of shipments (consolidations) Dock Scheduling Carrier Collaboration Reduce manual tasks, phone calls, etc. VP - Ops/Supply Chain Reduce cost of transportation Network Consolidation / Optimization Carrier Contracts When we talk to different people, we need to address different concerns they have. For Customer Service and Sales, customer retention is king. To make sure customers are happy and keep the service level, visibility and proactive notification will be their main interests. For people in charge of transportation, shipment optimization, route planning, dock scheduling and carrier collaboration will keep them interested. Usually we do not advise you to talk with IT folks as they do not face the challenge and pain that business people face every day, therefore they may not feel the need to get a TMS. However, if you have to speak to them, please talk about elimination of multiple vendors/solutions, SOA architecture and friendly user interface, etc. Last, for people in the Operation or Supply Chain line of business, we can talk about cost reduction, carrier contract negotiation and maintenance. 38

Corporate Shipper Challenges

Challenges, Capabilities and Value - Auto
REQUIRED CAPABILITIES VALUE Manual process to match invoices to POD and approving amount as per defined contractual terms Need for single point of visibility and control of their logistics operations Different load combinations to arrive at optimal utilization Managing milk runs for inbound items Required coordination for multi mode freight transit Multi mode, multi leg and multi stop shipment planning Loading plan for scheduled shipments Consider pick up schedule to plan milk runs Complete logistics network visibility Automated freight payment & settlement Configurable Business Process Automation and event management Reduction in Lead Time per Sold Vehicle Better control on logistics cost Implementation of Best Practices/Processes Improved in transit shipment visibility for better decision making Visibility of shipments to customers Transform from managing by report to managing by exception 40 40

The Business Challenges - CPG
Manual or supplier controlled transportation planning and execution Limited capability to control, track and trace transportation activities and supply Extensive outsourcing to 3PLs resulted in higher costs and less control Issues – Cost reduction through long term planning Exploit network density to identify cost savings Fleet network optimization Manage common carrier vs. private fleet costs Demand to capacity imbalance causing rate inflation, scarcity of equipment Improve service levels to customers Manage complex carrier contracts

General Trends in Steel, Cement and Industrial Manufacturing
High dependency on Railway networks High Demurrage costs – Ocean Liners and Railways International Multi-modal transportation involving Ocean /Rail / Truck Truck and Railcar Load Optimization Critical need for visibility across the supply chain Point to Point transportation planning vs integrated planning and optimisation Increasing need for collaboration between suppliers, transporters, Liners, 3PLs

Positioning OTM to shippers
Shipment visibility across complex distribution network– Strong Track and Trace Carrier collaboration, control and monitoring Customer billing and Freight payment OTM Positioning Collaboration, Control, Visibility, Settlement Typical BOM for OTM: Transportation Management (Base Product) Freight Settlement and Billing Fusion Transportation Intelligence For shippers, if they are managing the transportation in-house, we can propose every single benefit of OTM, including optimization, visibility, collaboration and automated settlement. Even if they out-source their transportation to LSPs, that does NOT mean they do not need OTM. We can simply skip the optimization part and help them on visibility, collaboration and settlement.

Positioning OTM to LSP’s “Quote to Cash”
Order Plan Execute Monitor Settle OTM Positioning End to End Quote to Planning, Execution and Settlement Managing all transportation requirements within Single integrated instance Typical BOM for OTM: Transportation Management (Base Product) Transportation Operational Planning Freight Settlement and Billing Fusion Transportation Intelligence For LSPs, we can propose to them that we have a comprehensive solution suite to manage their quotate-to-cash whole life cycle. We can help them to do planning and optimization to lower the cost, execution and monitoring can offer visibility and make sure the service level, automated settlement ensures every service is properly paid and billed, and that also reduce a lot of human effort. On top of that OTM has pre-packed integration with Siebel CRM to handle customer quotation and integration with EBS Financials to handle the actual bill and pay process. - Qualifying the scope of your LSP’s needs and the types of services they offer will help drive the Oracle’s solution. 44

LSP Quote-to-Cash Solution Process Integration Pack Overview
Order Management Financial Management Driver Management Siebel CRM Oracle E-Business Suite Products Customers Receivables Payables Human Resources Incentive Compensation Locations Order Management General Ledger Learning Management AIA Oracle Transportation Management (OTM) Customers Products Service Providers Bills Drivers Work Invoices Locations Order Management Currency Exchange Rates Vouchers Absences and Calendar Training Locations Accruals Training and Certifications <Course name> <Lesson number> - 45

Stand alone, best-of-breed transportation opportunities
Where can we sell OTM Stand alone, best-of-breed transportation opportunities Companies looking for a transportation management solution Penetrate as a stand alone application Upsell for Oracle install base E-Business Suite, JD Edwards, Retek Differentiate against SAP Private and confidential

OTM Sales Opportunities: Stand Alone
Stand alone, best-of-breed transportation opportunities Companies looking for a TMS Solution Companies who outsourced their TMS but looking for better visibility within their Supply Chain Position Strong Fusion Middleware (SOA/BPEL) supported by OTM (AIA Messaging) Value Proposition to the Prospect: Position OTM as a Transportation Hub. Build a Transportation Profit Center Reduce Costs by Optimizing your Transportation supply chain Improve Collaboration with Partners – Customers/Suppliers, Carriers, etc. Strong Technology & Integration Capabilities Better visibility within the Supply Chain, allowing Proactive Actions

OTM Sales Opportunities: Upsell
Strong Business Potential within existing Install Base itself for a TMS Solution Global OTM Executive Upsell Campaign available OTM is integrated to EBS out of the box OTM supports open Integration standards (XML) Value Proposition to the Upsell Prospect: Eliminate Traditional Logistics Operational Challenges through Integration Enable Lean Order Fulfillment via Seamless Application Integration TMS Integration is essential for Procure to Pay and Order to Cash Processes Complements Warehouse Management System (WMS) to Implement End-to-End Fulfillment Management Standardized, Packaged Integrations via BPEL available between OTM and EBS and now part of Application Integration Architecture (AIA).

Sample OTM-EBS Customers

OTM Sales Opportunities: SAP/i2 Install Base
Position OTM as a Best of Breed Solution to SAP customers Position proven experience with OTM References within SAP Install Base (Dupont, BlueScope, Coke, Toll, Halliburton, UPM, NOL APL, etc) Position OTM differentiators compared to SAP TMS Position Integrated Transportation Analytics i2 Position i2 Replacement References Position i2 Weak Financial stability and lack of strong R&D work compared to Oracle

Sample SAP Customers

Implementation of consistent processes across facilities
OTM - SAP Customers Provide a common software solution and process template that will integrate with the global ERP solution Generate efficiencies and cost savings by developing strategically optimized networks Collaborate between CCE, CCNA, Juice & Water facilities to determine high value opportunities, primarily with dedicated fleets Implementation of consistent processes across facilities Shipment consolidation in 6 sites in U.S. and Europe reduced cost by over $1 M Consolidated freight payment in Europe Formalized planning system drove reduction of Maverick freight spend Instituted consistent processes across facilities

Value Messaging 54

Why Oracle Transportation Management Maximum Benefit & Minimum Risk
Proven, Market-Leading Solution OTM is a proven, market leading product Proof point: Analyst reports by Gartner and Forrester Customer References Many companies use OTM every day to manage their transportation operations Proof point: Many SAP customers rely on Oracle for transportation management (Kraft, Case New Holland, Newell Rubbermaid, Coca-Cola). Ecosystem / Knowledge Base OTM has a very large and growing ecosystem of customers and partners. Oracle has many SI partners who have extensive, proven OTM practices. Proof point: The OTM Special Interest Group 2008 conference had over 250 OTM focused attendees from customers and partners around the world. Domain Expertise Oracle has a large base of transportation domain experts in Development, Sales, Consulting & Support on a global basis Proof point: Oracle has dedicated transportation resources across its business functions Strategy & Innovation Oracle has demonstrated a strong track record of transportation innovation. Oracle has a strong road map and the wherewithal to deliver. Proof point: OTM’s history goes back to Oracle has release 6 versions of OTM since G-Log acquisition in November 2005 Copyright 2008 – Oracle Confidential 55

OTM – Roadmap Release 2.0 Release 2.5 Release 3.0 Release 3.5
Application integration to the web infrastructure (industry standard XML). Settlement and content that close the loop on the full business cycle. Planning and optimisation for multi-tier distribution networks. SCEM, Reporting, and Order Management functionality, and security. Expand breadth and depth of the product footprint. Enhanced usability Procurement, Advanced Analytics,, 3D Load Configuration, ITL APIs and Workflow, Document Management, Claims Management, Appt Scheduling First release post acquisition Founded Release 1.0 Release 2.1 Release 2.6 Release 3.1 Release 3.7 Release 4.5 Focused on the global data model and Java code to provide the Web-designed infrastructure. Provided enhanced functionality related to early adopter implementation requirements. Reporting and status enhancements based on operational feedback. Reporting, Order Management, and Visibility. Enhancements to Inventory Visibility, and Optimisation functionality. Network-based Planning International RIQ Pier Assignment QuotingJobs/Consol’s Vessel Management Broadcast/Spot Tender Acquisition of G-Log Sign Sign May 1999 March 2000 July 2000 August 2000 October 2000 March 2001 August 2001 November 2001 June 2002 October 2002 June 2003 June 2004 March 2005 Nov 2005 May 2006 56

OTM – Roadmap: Post Acquisition
Release 5.5 Release 5.5 CU1 Release 5.5 CU2 Release 5.5 CU3 Release 6.0 Product Name Change & Re-Branding Integration with eBS, Consolidated Tender, Wireless Support, Enhanced UI, Scalability & Performance Enhancements Carrier Commitment Management. FF Enhancements, RIQ with Show Routing, Co-operative Routing Planning Container/Equipment Visibility Integration Enhancements Enhanced Help including “Show-me” & Custom Help Merge-In-Transit ID Enhanced Air Processing Simplified UI for mid-tier Sensor-Edge Server support UI Enhancements Dock Scheduling Enhancements Co-operative Routing Execution Fusion Transportation Intelligence Dock Scheduling Enhancements UI enhancements Container Optimisation Enhancements, incl cost-based optn Equipment Reference Units Shipment Cost Adjustment Customer Management (FF) Co-operative Routing Execution Enhancements Fleet & Asset Management Multi-Tier Network Optimisation Transport Capacity Planning Enhanced FF/Brokerage JDE Integration Oracle Retail Integration Siebel Integration eBS Integration Phase II Today Sign Sign Sign Sign Sign May 2006 August 2006 December 2006 May 2007 August 2009 57

Value Proposition: ROI based Selling
TMS projects have hard dollar, proven ROI business cases Business case drives high value for OTM license OTM priced based on customer’s freight spend Example: $1 billion annual revenue manufacturer 3% of revenue avg.  $30 million transportation spend 10% cost savings  $3 million bottom line improvements

Sources of TMS Savings Freight Spend Savings 2 - 5% Freight Spend Savings % Reduced Overhead % Freight Spend Savings % Freight Spend Savings 1 - 2% Optimal Mode/Carrier Decisions Optimized LTL to Multi-Stop Truckload Or Pool Carrier Consolidation Improved Efficiency In Operations Core Carrier Program/Using Data to Improve Negotiations Continuous Moves Basic Order Consolidation Improved Freight Settlement/Audit PERCENTAGE OF SAVINGS BENEFIT AREAS “Netting it all out, we typically see companies reducing transportation overhead between 10-30%, depending on factors related to centralization. We also see a reduction in freight spend of between 5 to 15%.” Source: Supply Chain Digest, “Where is the ROI in Transportation Management Systems?”, June 15, 2008. Copyright 2008 – Oracle Confidential 59

And the Results are Achieved Quickly…
“The good news is that TMS buyers…typically achieve an ROI within one to two years of the initial investment.” Source: 2008 Forrester Wave Report Presenters commentary: “To proactively address questions you may have about the impact a TMS may have on your business and what the cash flow might look like, lets go over these common questions.”

Competitive Landscape
Strategic/Platform Deals Standalone TMS Private and confidential

Contract Management Manage All Service Provider Information
OTM – Contract and Rate Management Manage Detailed Rate Structures Track Important Commitments Accurate Service Time Estimates Integrated with OTM Sourcing Rates and Contracts Equipment Types Rules and Regulations Contract Commitments Results External Data Sources Accurate Freight Settlement Better Carrier Retention Improved Shipment Optimization Increased Equipment Utilization Electronic Transfer via CSV Available Manual Edit and Entry Screens Division 1 Division 2 Division “n”

Transportation Order Management Manage All Transportation Orders
Planning & Execution Outbound Orders BPEL XSL Orders Received Purchase Orders Interfacility Orders EDI Sales Orders Batch Manual Transport Orders Inbound Orders Notice! … Ready to Ship Integrate with any ERP, Order Management, Purchasing and other systems to manage transportation orders Oracle Integrations: E-Business Suite, JD Edwards EnterpriseOne, Siebel CRM 64

Support a Wide Range of Optimization Needs –
Operational Planning Maximize Fulfillment Service, Minimize Transportation Costs Consolidation Service Provider Optimized Decisions Timing Equipment Route Mode Engines & Rules Algorithms Multi-Leg Multi-Mode Consolidation Common Leg Consolidation Multi Stop Consolidation Multi-Tier Networks LTL Consolidation Continuous Moves Service Time Calculation 3-Dimensional Container Optimization Itineraries & Profiles Carrier Capacity Throughput Rating Support a Wide Range of Optimization Needs – Simple Rules Based Planning to Complex Cost & Constraint Based Optimization

Operational Planning Optimize Shipments Across All Modes and Regions
Route Optimization Consolidation Multi-Leg Multi-Mode

Transportation Execution Collaborate with Service Providers
Your Company Service Providers Review & Approve Shipment Sched Appt Transport Deliver Pick-up Accept Tender Tender EDI 204: Load Tender Wireless: Picked-up EDI 214: Delayed Internet: Delivered Support for all modes: Ocean, Air, LTL, TL, Rail Electronic (EDI), Internet, and wireless communication Automated dock scheduling and partner collaboration 67

Dock Appointment Scheduling Improve Facility Efficiency & Partner Collaboration
Automate the dock appointment scheduling process Account for facility operations constraints – dock availability, operating hours, throughput Partner collaboration – carriers & suppliers can manage their appointments online User productivity – intuitive user interface with drag & drop appointment setting Integrate with WMS to optimize operating efficiency

Visibility & Event Management Proactive Issue Resolution
Alert: Shipment arrived late at HK Port Alert! Shipment is 12 hours behind schedule China Factory Vessel Carrier Kansas City DC 1 HK Port US Port Shipment to HK Planned vs. actual milestone tracking Proactive monitoring and notifications Automated, event-driven processes Track & Trace history

Freight Payment, Billing & Claims Improve Cash Flow and Accounting Accuracy
Allocate costs to orders & order lines for billing Apply appropriate GL codes based on order characteristics Calculate profit margin for each shipment VAT & NFRC* Carriers Shippers / Customers Match, validate, and pay invoices; flag exceptions Match & Pay Invoices via web or integration Bills via web or integration Pay based on actual shipment activity and contract rates Auto-Pay Intra-company cost transparency AR & AP Vouchers Allocated costs Payments Payments Financial System Support Settlements & Payments Based on Plans Generated in TM or Other System *Value-Added Tax and Non-Freight Related Charges

Oracle Fleet Management Support for Asset-Based Transportation Operations
Driver & asset management Optimized decision support Maximize of asset utilization Minimize operating costs Planning Settlement Driver / contractor pay 3rd party suppliers Customer billing Execution Dispatch Mobile communications Event management Visibility Asset activity & status tracking Asset inventory (pools) Sensor based data capture (GPS, RFID) Benefits Improved asset utilization & reduced costs Better service Increase driver retention Improve safety Reduce fuel costs and emissions (Sustainability)

Fleet Management Better Manage Assets and People
Manage drivers Manage assets Dispatch shipments with drivers and assets

Transportation Sourcing Secure Best Value from Service Providers
1 Establish project with history or forecast Award and convert into operational contracts Invite Carriers to Bid 5 2 Optimize Bids and Analyze Scenarios 4 3 Receive bids by spreadsheet or on-line 73

Transportation Intelligence Embedded, Actionable Information
Embedded within OTM – not a separate data warehouse Business intelligence for managers & operational users – BI workflows Create user specific reports and dashboards Perform ad hoc analysis Proactive alerts

Transportation Intelligence Measure Performance, Take Action
Drill to Specific Metric Drill to Additional Detail Measure Against Targets and Benchmarks Drill to Transaction Level

OTM Resources OTM Global Portal: OTM APAC Portal:
OTM APAC Portal:

Contacts Experts to Help Name Organization Email Subhomoy Sengupta
Senior Director, Edge Apps Sales Michael Maslen OTM Sales-ANZ Sunil Kumar OTM Sales-India Xie Xudong Edge Sales Manager-GC Sunil Wahi Director OTM/Demantra Sales Consulting Andrew Shang OTM Sales Consulting-ASEAN Lagnajit Patnaik OTM Sales Consulting-India Venkateshwaran Krishnan 24 58 26

In Summary Key Points/Differentiators
Global Solution Market Leader LSP and Shipper Capabilities Best-in-Class Functionality Planning, Execution, Payment/Billing, Event Management, Analytics Multi-tenant Single Platform OTM provides the industry-leading solution for shippers and logistics service providers, with key capabilities to enable global transportation processes

Selling the OTM Value Message

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