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Oracle Transportation Management Directions Jon Chorley VP, Supply Chain Product Strategy Information Age Applications.

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Presentation on theme: "Oracle Transportation Management Directions Jon Chorley VP, Supply Chain Product Strategy Information Age Applications."— Presentation transcript:

1 Oracle Transportation Management Directions Jon Chorley VP, Supply Chain Product Strategy Information Age Applications

2 G-Log Acquisition  Oracle has acquired Global Logistics Technologies, Inc. (“G-Log”) – Transaction closed Nov 2, 2005  About G-Log – Leading provider of logistics and transportation management solutions used globally – G-Log’s GC3 (Global Command and Control Center) is a segment leading solution – Marquee customers in multiple key industries: retail, manufacturing, and logistics service providers – World-class talent with deep domain expertise across R&D, sales and services

3 Strategic Rationale  Logistics and transportation management is a large, growing segment with attractive dynamics  G-Log has proven segment leadership and world- class capabilities  Creates platform for Logistics Hub solution for Fusion – Combination extends Oracle’s logistics footprint – Complementary products in an integrated solution for planning, optimization, execution and analysis – Most compelling, comprehensive applications / infrastructure logistics and transportation offering for combined customers – Compatible with Oracle’s Fusion application and technology strategy

4 Here’s what the analysts think … "The G-Log acquisition is a smart move for Oracle and lays the groundwork for the company to take a more active leadership role in integrated supply chain processes." —Beth Enslow, Vice President, Enterprise Research, Aberdeen Group, Sept 20, 2005. "Oracle's market share in TMS climbs significantly as a result of this acquisition, making it the number two player worldwide in Transportation Planning and Execution, ahead of its arch-rival SAP.” —Adrian Gonzalez, Director, Logistics Executive Council, ARC Advisory Group, Sept 20, 2005. "With this acquisition, SAP and i2 Technologies find themselves under increasing pressure in the SCM market. For Oracle and G-Log, it's a hugely strategic move.” —Lora Cecere, AMR Research, Sept, 2005.

5 Transportation Management At-a-Glance “76% of logistics managers at major companies couldn’t trace the products en route or get updates.” Tracking Real-time shipment status checking Exception management and notifications Billing & Settlement Freight payment and audit Cost allocation Book / Tender Full visibility to tender status Direct link from system to carrier Load consolidation and route planning Mode & service provider selection Planning & Optimization

6 Business Pressures …Impact Increased Demand for Comprehensive Transportation Mgmt Solutions Transportation costs (6% of GDP) growing at an increasing rate Expansion, consolidation, and globalization of outsourcing suppliers Carrier Pressures… Shipper Pressures… Capacity shortages of drivers, railcars, ocean slots, and ports Increased regulation on hours of service rules and security procedures Escalating fuel costs Shrinking margins due to commoditization of basic services Escalating end-customer expectations Globalization driving complex global supply chains Lean initiatives and increased volatility increasing supply risks Shrinking margins due to commoditization of basic services

7 Transportation Mgmt Opportunity 28.9% 42.1% 13.2% 2.6% 0% 10% 20% 30% 40% 50% % of Companies Researched 1-5% 6-10% 11-20% 21-30% x > 30% Companies with Annual Transportation Spend > $10 Million Source: The Logistics Institute at Georgia Tech Savings Opportunity Transportation Mgmt Solutions can Save Most Companies 5-25%

8 Oracle Transportation Management Open and Scalable Service ProvidersTrading Partners Internal Systems Global Transportation Management Order Mgmt Warehouse & Inv Mgmt Financials Tender Offer Tender Response Ship Status Invoice Planned Shipment Order Status ASN Order / Release Information 100% Web-Based Highly Configurable Global Business Support Consolidate Loads / Moves Orders Product Location Item Master Planned Shipment Confirmed Shipment Payment Vouchers Invoice Check and Match Select Modes & Carriers Book / Tender Book / Tender Track & Trace Audit / Settle Continuous Planning Event Management Carrier Analysis On-TimePerformanceCustomerSatisfaction *Currently re-implementing analytic capabilities using Oracle technology

9 Oracle Transportation Management Best-In-Class Shipment Lifecycle Coverage Procurement Collaboration & Optimization Performance & Financial Analysis* Logistics Order Management Shipment Planning & Optimization Service Provider & Asset Management Shipment Execution Freight Payment, Billing, Claims Global Logistics Visibility Supply Chain Event Management Operational Reporting & Document Generation Forwarding & Brokerage Operations *Currently re-implementing analytic capabilities using Oracle technology

10 High Performance Transportation Optimization Global Transportation Collaboration and Execution Logistics Automation with Exception Management Complete Logistics Network Visibility* Global, Local, and Central Logistics Management Oracle Transportation Management Provides… *Currently re-implementing analytic capabilities using Oracle technology

11 Shipment Planning & Optimization Maximize Fulfillment Service, Minimize Transportation Costs -Container and trailer optimization & configuration -Shipment assignment, stringing & continuous moves -Fleet sizing & assignment (execution, strategic) -Container and trailer optimization & configuration -Shipment assignment, stringing & continuous moves -Fleet sizing & assignment (execution, strategic) -International shipping -Facility resource balancing -Bid collaboration and optimization -International shipping -Facility resource balancing -Bid collaboration and optimization Support a Wide Range of Optimization Needs Route Mode Route Mode Optimized Decisions Timing Equipment Timing Equipment Multi-Leg Multi-Mode Consolidation Common Leg Consolidation Multi Stop Consolidation Multi-Tier Networks LTL Consolidation Continuous Moves Multi-Leg Multi-Mode Consolidation Common Leg Consolidation Multi Stop Consolidation Multi-Tier Networks LTL Consolidation Continuous Moves Algorithms Consolidation Service Provider Consolidation Service Provider Engines & Rules Service Time Calculation Container Optimization Itineraries & Profiles Resource Capacity Throughput Rating Service Time Calculation Container Optimization Itineraries & Profiles Resource Capacity Throughput Rating

12 Carrier Bid Optimization Secure Best Value from Service Providers Oracle Global Logistics Load Execution Environment Prepare bids using real history, forecasts, and actual orders Electronically send out bid packages Optimize results and send out awards Automatically load the winning contract into the execution environment Your Company Receive Demand Orders Lane Forecasts Orders Lane Forecasts Bid Initiation Quotes Award Notice Selected Supplier Optimized Award Recommendation Bid Packet Quote Analysis AcceptAccept Contract Transportation Service Providers

13 Integrated Fleet Planning* Allocate Transportation Resources to Demand Division 1Division 2Division “n” Fleet Planning Rules and Regulations Fleet Resources and Capacity Tiered Commitments Shipping Costs In / outbound shipments Transfers Logical international legs In / outbound shipments Transfers Logical international legs Aggregated Shipping Demand Establish execution rules that define continuous moves Model and analyze resources, commitments, and constraints in the transportation network Establish execution rules that define continuous moves Model and analyze resources, commitments, and constraints in the transportation network Right-size fleet resources based on aggregate requirements Locate and reposition fleet resources Identify lanes better serviced via alternative method Right-size fleet resources based on aggregate requirements Locate and reposition fleet resources Identify lanes better serviced via alternative method Results *Planned candidate for future release

14 Automated Payments and Settlements Improve Cash Flow and Accounting Accuracy Service Providers Financial System Customers (Internal / External) Orders Allocate costs to orders and order lines for billing Apply appropriate GL codes based on order characteristics Calculate profit margin for each shipment Allocate costs to orders and order lines for billing Apply appropriate GL codes based on order characteristics Calculate profit margin for each shipment Vouchers Allocated costs Vouchers Allocated costs Bills Invoices via web or integration Pay based on actual shipment activity and contract rates Auto-Pay Payments Support settlements and payments based on plans generated in GTM or other system Match & Pay Match, validate, and pay invoices; flag exceptions

15 Seamless Trading Partner Collaboration Extend Capabilities to Service Suppliers & Customers Global Transportation Management Supplier CustomerReceiving LSP Cross-Dock LSP Regional DC LSP On-site Coordinator Pick confirm shortage Ship confirm shortage Ship confirmation   Route & PUS data Send pick confirmation View PUS Confirm ship quantity Generate bar code labels PUS = Pick-Up Schedule Review shipment status Cross-dock manifesting Status updates CustomerMaterialsControl Request pick-up Raise supplementary PUS View PUS status Allocate equipment Review shipment status Control execution Shipment management Linehaul manifesting Status updates Maintain fixed route data Plan daily fixed routes Enter supplementary PUS Append supplementary to plan LSP Planner = Flow of information = Flow of goods Example 1 Example 2 Alerts

16 Supply Chain Event Management Keep Goods Flowing Across Your Changing Network AnticipateAnalyzeResolveCollaborate Configure monitors to track orders against shipment milestones Confirm events or identify missed, abnormal, and out- of-sequence events Customize logic to interrogate all incoming events Trigger follow-up actions according to pre- defined conditions & thresholds Automatically perform actions (e.g., re- planning) in response to common problems Initiate resolution workflow based on changing conditions Notify / alert internal and external users or IT systems of an event or action Prompt users for response and process iteratively until resolved Monitor for Planned and Actual Events Evaluate Conditions Execute Automatic Response Notify Affected Parties

17 Complete Logistics Network Visibility Planning Level Planning Level Execution Level Execution Level Dashboard Level Across… …the entire supply chain: from raw materials to point-of-sale …all roles: suppliers, planners, service providers, customers, management …all phases: before (planning), during (execution), after (improvement) Manufacturer Customer Consolidator Shipper *Currently re-implementing analytic capabilities using Oracle technology

18 Multi-Tenant Configuration & Security Provide Simple Access to Contextual Information 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 Top Level Summary Business 2 Business n Business 1 Top Level Users Full Visibility Domain Users Secured Visibility Parent Company Configure Software for Specific Look &Feel …

19 Highly Scalable and Flexible Manage All Your Transportation Needs in One System Execute Locally… Using multiple languages and currencies -English, Spanish, German, French, Chinese (simplified) -Support for all currencies, including in-system conversions -Screen customization by region / country, user groups Accommodate region-specific rules and regulations Using multiple languages and currencies -English, Spanish, German, French, Chinese (simplified) -Support for all currencies, including in-system conversions -Screen customization by region / country, user groups Accommodate region-specific rules and regulations Control Globally… All inbound POs and outbound customer deliveries Transfers between facilities, in different countries -Distribution centers – mfg- Intermediary nodes Visibility into in-transit & at-rest inv. throughout network All inbound POs and outbound customer deliveries Transfers between facilities, in different countries -Distribution centers – mfg- Intermediary nodes Visibility into in-transit & at-rest inv. throughout network Manage Centrally… All operational information in one location -Increase leverage for procurement -Apply best practices across regions Cleanse data to achieve single source of truth IT infrastructure to reduce support and maintenance costs All operational information in one location -Increase leverage for procurement -Apply best practices across regions Cleanse data to achieve single source of truth IT infrastructure to reduce support and maintenance costs -Evaluate processes holistically -Perform network analysis

20 What Customers are Saying… “Following an extensive selection process, we chose Oracle Transportation Mgmt [G-Log GC3] web-native technology platform as it aligns with our corporate IT strategy. Their global data model and single instance of software will enable Tesco to deploy the solution worldwide, whilst maintaining central control and administration.” -- Colin Cobain, IT Director “We've enabled our buying organization to reduce the number of days between placing an order & receiving the order by 30%…Although I wouldn't say it's reduced the number of exceptions in our supply chain, what it has done is made it easier to identify and manage exceptions.” -- Bill Parry, Vice President of Logistics “We’re able to take transportation information from Asia, move it all the way through to the US and track it on the same system.” -- Martin Neil, Chief Technology Officer

21 A Few More Customers… Retail Logistics Service Providers Manufacturing

22 DRAFT “Following an extensive selection process, we chose Oracle Global Transportation Mgmt [G-Log GC3] web-native technology platform as it aligns with our corporate IT strategy. Their global data model and single instance of software will enable Tesco to deploy the solution worldwide, whilst maintaining central control & admin. -- Colin Cobain, IT Dir.  Live on Oracle Global Transportation Management (G-Log GC3) – Plans and executes factory gate pricing for 6,000 daily shipments (70% of inbound freight) including the tracking of costs and performance service levels, order booking, and support for financial settlement – Automated 95% of all inbound scheduling resulting in improved availability, reduced stockholding, and increased vehicle / trip utilization – Automatically optimizes loads & manages communication with carriers – Eliminated EDI by enabling carriers and suppliers direct entry of shipment details (e.g., appointment, pick-up, out-gate times) – Integrated demand (from order management system) and status (from warehouse management system) with transportation logistics Improved on-time deliveries by 14% Supports 24 / 7 shipping operation with 9 planners Reduced cost per case by 10-15% (£500M in distribution costs) Improved on-time deliveries by 14% Supports 24 / 7 shipping operation with 9 planners Reduced cost per case by 10-15% (£500M in distribution costs)

23 DRAFT  Global chemical manufacturer for agriculture, nutrition, electronics, communications, transportation, and other industries – Business units in 70 countries – Spends $1.5B annually on 1M multi-mode, multi-leg shipments – Contracts with 3 rd parties to schedule carriers and consolidate / fwd shipments  Live on Oracle Global Transportation Management (G-Log GC3) – Foundation for TransOval, a centralized, web-based logistics mgmt system – Provides internal and external users access to global logistics information – Uses TransOval for all road transportation logistics (50+ carriers) – Expects significant reduction in inventories Expects to save tens of millions of dollars annually in SC costs Retired all mainframe legacy transportation and logistics apps Expects to save tens of millions of dollars annually in SC costs Retired all mainframe legacy transportation and logistics apps “Because Oracle Global Transportation Management [G-Log GC3] provides us with visibility of all transportation movements (including the current status of each transportation order and the goods involved), the cost of the movements, and the history of each movement, we are gaining a competitive advantage with a global implementation. We can now more efficiently plan and manage our supply chain because we won’t have to build in safety stocks for uncertainties.” -- Jerry Reynolds, Global Logistics Technology & Process Manager

24 DRAFT  Live on Oracle Global Transportation Management (G-Log GC3) – Provides visibility and event management to third-party logistics providers (3PL) for inbound and outbound transportation – Provides a centralized view of vehicle availability via a single vehicle logistics database integrated with GM’s supply chain planning and intelligence systems – Generates consistent, accurate KPIs for all parties involved in supply chain logistics – Reduced costs by eliminating unnecessary movement of vehicles Estimates $800K in annual savings from vehicle lead time reduction Improved in-transit visibility for vehicles shipped within Europe Estimates $800K in annual savings from vehicle lead time reduction Improved in-transit visibility for vehicles shipped within Europe

25 DRAFT  World’s largest logistics service provider – Turnover of £6.3bn – 111,000 employees – 2,000 operating locations – Facilities in over 135 countries – Serving over 75% of the world's largest, non-financial companies  Supply Chain Integrator (SCI2) – powered by Oracle – 38 customers – 6,500 users – 5 million shipments per year Decreased time to on-board new customers Lowered Total Cost of Ownership – solution flexibility Decreased time to on-board new customers Lowered Total Cost of Ownership – solution flexibility

26 Oracle’s Single Global Platform for LSP’s  Customer Service – Deliver promises to customers consistently and reliably – Integrate shipper S.O.P.’s systematically throughout operation  Profitability – Link “Buy-Sell” logistics events and cost/revenue relationships – Link export-import-domestic logistics activities systematically – Achieve full visibility of critical data that span regional operations.  Growth – Expand company network to meet globalization challenges – Integrate multiple service providers on single platform  SAP’s Strategy – No LSP reference using Transportation Mgmt, SCEM / Visibility, Global Trade Services – Beware of hype and attempts to freeze market while they try to catch up

27 Go-ForwardPlans Additional Resources - divider

28 Current Activities  G-Log staff retained and deployed in specialist groups within Oracle  Integrations under development to Oracle E-Business Suite and Oracle Retail  Formation of Industry-specific Customer Advisory Boards underway  Building expertise and relationships to support anticipated market expansion

29 General Roadmap  Short term – G-Log 5.5 / R12 - 2006 – Fleet network planning; Load configuration / trailer building; Dock and appointment scheduling; Wireless support (e.g., shipment events); Freight forwarding; User interface configurability – Oracle EBS and Oracle Retail Integrations – Enhanced implementation methodology & templates – On-Demand expansion  Longer term – 2007/2008 – Additional cross-suite process flows  Tight WMS integration; Global trade management  Integration with Supply chain planning; Manufacturing; Procurement; HR; CRM; Real Estate – Industry-specific solutions  Logistics service provider; Retail; Manufacturing

30 Web Services BPELBPELBPELBPEL EBS Order Management EBS Order Management EBS Purchasing EBS Purchasing Oracle Retail Oracle Retail Oracle Financials Oracle Financials Packaged integration using Web Services, orchestrated by BPEL Integrations to Oracle E-Business Suite and Oracle Retail Integration to non-Oracle systems via G-Log’s APIs (web services) Leveraging Fusion Middleware Orders Shipments Events Web Services Invoices Allocations Accruals Any ERP Any ERP XML Any AP/AR Any AP/AR BPELBPELBPELBPEL G-Log Integration Architecture

31  Broaden existing ISV and developer partnerships and establish new partnerships to complete combined footprint – Oracle to deliver an end-to-end solution for logistics planning, optimization, execution and analysis – Solidified long-term technology and application strategy for logistics  Opportunity for SIs specializing in logistics and transportation to provide world-class solutions to customers across multiple industries – Expanded application footprint offers additional opportunities for partners – Strengthened go-to-market capabilities through Oracle’s global sales force Anticipated Mutual Partner Benefits

32 Complete Logistics Network Visibility Logistics Automation with Exception Management High Performance Transportation Optimization Global Transportation Collaboration and Execution Oracle Transportation Management

33 Additional Resources  Collateral/FAQ: – www.oracle.com/g-log www.oracle.com/g-log  General sales inquiries: – G-Log_us@oracle.com G-Log_us@oracle.com

34 A Q & Q U E S T I O N S A N S W E R S Q & A

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