2. Oracle Global Trade Management Update
December 2008

3. The following is intended to outline our general product direction
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

4. <Insert Picture Here>
Agenda
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What is Global Trade Management?
Oracle GTM Product Strategy
Review of Oracle GTM
Trade Compliance Solution

5. What is Global Trade Management?
Processes involved to move Goods, Information, and Money across geographical/fiscal borders and parties
Typically starts with Purchase Order, Sales Order
Functional Groups: Purchasing, Sales, Compliance, Operations, Finance, and Logistics
External Parties: Vendors, Customers, Banks, Logistics Service Providers (LSPs), Freight Forwarders, Customs Brokers, Government Agencies
600+ Laws and Regulations
25 entities and 35 documents in a TYPICAL transaction

6. Trends Impacting Global Trade
Global Sourcing
Lower unit costs
Increase profitability
Compete effectively
Supply Chain Security
Comply with existing and future security programs
Mitigate risk
Trade Finance
Control flow of funds
Link in financial activities
Reduce settlement times
Procurement
Compliance
Transport
Financial
Settlement
Regulatory Compliance
Increased variability and risk
Quickly access new markets
Customer Demands
Quickly access new markets
Customer satisfaction
Visibility

7. Today’s Global Trade Requirements
Global approach
Content management
Global classification database
Multi-country support for controls, licenses, exceptions
Sourcing & Supply Chain Design
Assist in sourcing decisions (FTA, etc.)
Landed cost
Trade related item management
Multi-party collaboration
Centralized item information accessible by internal and external trading partners
Process & system integration
Integration with government systems
Compliance
Import/Export Auditing functions
Security programs
Flexibility
Quickly respond to new business models
Immediate integration with new acquisitions
Real-time update to regulatory changes
Contains global content
Languages - Double-byte (Japanese/Chinese characters) + Spanish, Portuguese, French, etc.
Global Tariff information by country
Licensing requirements/exceptions by country
Ability to create any and all import/export documents required for any given country
Functions as a strategic tool and not just a compliance tool
Content to assist in sourcing decisions
Trade information management in general (licenses, recordkeeping, processes, etc.)
Import/Export Auditing functions
Integration with government systems (ABI/ACE & AES & SNAP-R, etc.)
Allows for prompt revision/update/implementation for dynamic business needs
Allow business to respond to new business models
Allow immediate integration with new acquisitions
Provide real-time update to regulatory changes

8. Why Customers Deploy GTM Establish Best Practices & Drive Continuous Improvement
Accelerate the supply chain
Shorter delivery and cycle times
Enhance customer satisfaction
Improve import/export regulation compliance
Increase profit and decrease cost of goods
Reduce inventory – better shipment visibility for company and supply chain partners
Respond quickly to change – innovation

9. Oracle GTM At-a-Glance
Party Screening Lists
Harmonized System Codes
Country Tariff & Duties
Trade Agreements
Trade Content
Trade Finance
Trade Compliance
Trade Compliance
Denied Party Screening
Global Exports
Global Imports
Customs
Letters of Credit
Financial Integrations
Document Sharing
Charge Mgmt
Estimated/Actual
Trade Documents
ERP Mappings
Landed Cost
“The typical $1 billion company can free up $10 million to $40 million in cash by improving its basic trade processes.”

10. Oracle GTM Overview What does User get with GTM v1?
User-Driven Setup and Maintenance
User-defined, configurable rules
No hard-coded regulations
Company-specific, customized Trade Rules
Does not require Oracle programmers
Changes to regulations made by user, more immediate than waiting for programming!
Content Upload
Automatic uploads
No dependency on IT
Protect In-House Knowledge (no external Dev training)
Single, Global Instance (single source of truth)
All Oracle solution

11. Oracle GTM Overview v1 Release Candidates
GTM v1-Trade Compliance consists of:
Foundation Components
Jurisdiction Management
Trade Party Master
Trade Item Master
Trade Policy Management
Services
Product Classification
Restricted Party List & Red Flag Screening
Embargoed Country Checking
Control Determination
Enhanced Proliferation Control Initiative Screening
License and Exception Determination
Documents Determination

12. GTM Technology & Development
Built on G-Log foundation, but separate products
GTM will operate as a callable service to external applications
Independent release cycle (not part of ERP)
Deployment Options
Orchestrated with other Oracle applications
Standalone
GTM v1 Development Kicked off in July 2007
GA Release Dates:
GTM to be synchronized with OTM 6.0 CU1
Landed Cost Management v1 release with EBS R12.1 RUP
GTM will operate as a callable service, the data model for GTM will focus on storing compliance related data (denied parties, HTS, tariff data, etc) - other Oracle applications and data hubs will store/manage required static and transactional compliance data - like HTS on product master in PIM, declared value of goods for export on export orders in Order Management, transportation cost in OTM etc, No mixed ownership of data.

13. GTM v1 Product Strategy GTM v1 Target Vertical Markets
High Tech
Industrial Manufacturing
Retail & Distribution
Compete & Differentiate
Global export model (support any country/group rules)
Integrated Landed Cost Management
Single platform for global trade and transportation
Integration with other Oracle applications via AIA
Solicit early customer support
GTM Strategy Council
Strategic Implementation Partners

14. Logistics Business Process Platform Logistics Apps + Application Integration Architecture (AIA)
Oracle AIA: Process Integration Packs
Customer’s Business Processes
Pre-defined
Business Process Layer
User-Defined Business Process
Layer
Oracle AIA: Foundation Pack
Common Object and Service Layer
Oracle AIA: Enterprise Services
Oracle AIA: SOA Framework
Service
Orchestration Layer
Oracle Apps (OTM, GTM,…)
3rd Party Applications
Custom Applications
Component
Functionality Layer

15. Logistics Applications Strategy Support the Business Process Platform
Support AIA Enterprise Objects and Services
Application Business Connector Services for Logistics applications – enables customers and/or partners to compose & execute their business processes
Oracle AIA Process Integration Packs - Pre-defined, Oracle supported business processes
SOA applications – library of business services
Compliance screening for Order
Determine trade controls for Order
Compliance screening for Shipment
ABCS 1
EBS
ABCS 2
GTM
Application Business Connector Service
Enterprise Business Service
Siebel
ABCS 3
SAP
Application Business Connectors

16. Enterprise Business Services Library Building a Common Process Language
Order Fulfillment
SalesQuote
SalesOrder
PriceList
Invoice
AdvancedShipmentNotice
PickList
ShipmentRequest
AccountBalanceAdjustment
More to come…
Transportation
SalesOrder
Shipment
Invoice
Item
CustomerParty
More to come…
Location
WorkerParty
GTM
Item
Party
Jurisdiction
Trade Policies
Control Determination
Classify Products
Determine Landed Cost
More to come…

17. Oracle Fusion Middleware
Logistics Process Integration Packs Prebuilt, Sustainable Integrations across Oracle Apps
Other Oracle or
Your apps…
Foundation Pack
Oracle Fusion Middleware
Your Apps…
Supply Chain Exe.
GTM
OTM
LSP Order Management – Siebel, OTM
Transportation Financial Management – EBS FIN, OTM
Fleet Driver Management – EBS HCM, EBS FIN, OTM
Fleet Asset Management – EBS EAM, OTM
Supply Chain Execution – EBS WMS, OTM
Global Trade Management – GTM, EBS

18. GTM Strategy Council Roster & Candidates*
High Tech
Agilent*
Arrow Electronics
Brocade
Cisco*
Dell
Huawei
LG Electronics
Sanmina
Seagate
Sun Microsystems*
Industrial Manufacturing
Beckman Coulter
Cummins
Eaton
Emerson
NCR
Logistics Service Providers
Agility Logistics
DHL/Exel
Italsempione
Schneider National
Toll Group
UTi
Retail & Distribution
Amway (Alticor)
Lowes
Mundial
Office Depot
Starbucks
Tesco
Emerson
Eaton
Alticor

19. Oracle GTM Overview Trade Compliance
The processes, including data, of a company to be compliant with:
Legal mandatory Trade Regulations
Export Control Regimes
Embargoes/Sanctions Resolutions
United Nations
Organization for Security and Co-operation in Europe
Strong Business Practices
Internal Control Programs
Internal Compliance Programs

20. Oracle Global Trade Management
Corp IT
Operations/ Logistics
Engineering
Compliance
Tax/Legal
FOUNDATION
SERVICES
Trade Party Master
Trade Item Master
Jurisdiction Management
Trade Policy Management
Oracle Global
Trade Management
Product Classification
Compliance Screening
Control Determination
Landed Cost Management
Integration Layer
Trade Content
Applications
Trading Partners
Carriers
Banks
Customs
Brokers
Freight Forwarders
Customers Suppliers
Classification Codes, Rulings & Explanatory
Notes
Restricted Party & SDL Lists
Rules of Origin
Duty Rates
ERP &
Master Data Management
SCM/ TMS
Legacy
CRM

21. Oracle GTM Overview v1 Release Candidates
GTM v1-Trade Compliance consists of:
Foundation Components
Jurisdiction Management
Trade Party Management
Trade Item Management
Trade Policy Management
Services
Product Classification
Restricted Party List & Red Flag Screening
Embargoed Country Checking
Control Determination
Enhanced Proliferation Control Initiative Screening
License and Exception Determination
Documents Determination

22. Jurisdiction Management Jurisdiction
The Territory where an Authority enforces or exercises a specific function over a specific Law or Regime.
Types of Jurisdictions
Licensing
EAR, ITAR, OFAC, FCC
Registrations
FDA, USDA, UK-ECL
Certifications
Authorizations

23. Trade Party Management Business Flow

24. Trade Party Management Party and Party Site
Party Types
Individual (natural persons)
Organizations (juristic persons)
Relationships among Parties (e.g.: subsidiary, employee)
Party Sites
One or more Party Sites by Party
An Address associated to a Party Site
Party Profiles
Party Site can have different profiles
Ship-To, Deliver-To, Bill-To, etc.

25. Trade Item Master Business Flow
----: not in V1

26. Trade Policy Management Trade Policy
A group of rules that a company implements to comply with:
Legal compliance regulations
Internal trade guidelines
Internal control programs
Internal compliance programs
Trade Policies can be different depending on the business flow or event. E.g.:
Export Compliance Policy
Restricted Party Screening including 40 lists
Payables Compliance Policy
Restricted Party Screening including only financials (OFAC) lists
Trade Policies are User configurable

27. Trade Policy Management Compliance Rule - Components
Example: End-Use Rule under US-EAR

28. Restricted Party List Screening Business Flow
----: not in V1

29. Restricted Party List Screening Lists
Multiple Lists (40+)
US Government Lists
OFAC, Department of State, etc.
Proliferation Concerns
UN, JP-METI, etc.
Customized Lists
Internal Gray List
Excluded Party List
Words List
Excluded Words List. E.g. International, Inc., PO Box, etc.
Red Flag Words List. E.g.: Nuclear, Military, Cuban, etc.
If a word is listed as an excluded search word it is eliminated from the search criteria.

30. Restricted Party Screening Request UI

31. Embargoed Country Checking Setup
Embargoed Countries can be setup by the User based on
Regulations
Internal Policy
Embargo data
From Countries
To Countries

32. Product Classification Business Flow
UI and Integration based screening:
Allows users to select a specific classification code or specify a product description.
The clients can additionally specify a language, country, product classification type or classification category to trim the search.
If both the specific classification code and description are specified on the screen, the description is ignored and the classification code is used to perform the search.
Screening Data and Logic:
An entry in the GTM_PROD_CLASS_CODE table represents a complete classification code.
This is the code that is associated with the item or product for documentation purposes.
Each code can have descriptions in multiple languages stored in the GTM_PROD_CLASS_CODE_DESC table.
A pre-processing step associated with the data loader parses the descriptions for key words and stores the keyword to classification code association in the GTM_PROD_CLASS_CODE_KEYWORD table.
When a product description based screen is performed, the search algorithm breaks the search criteria in to keywords and retrieves the matching classification codes.
The results are then sorted based on the number of “search” keywords they contain
Global Classification: Tree Building Logic:
The classification codes are broken in to parts and stored as a hierarchy in the GTM_PROD_CLASS_CODE_PART table.
This is the classification code that is used for display purposes and allows users to manually browse through the different classification codes in a hierarchical fashion.
Each code can have descriptions in multiple languages stored in the GTM_PROD_CLASS_CODE_PART_DESC table.
Each lowest level part code is associated back to a full classification code in the GTM_PROD_CLASS_CODE table.
The hierarchical relationship between the part codes are stored as a tree in a memory cache.
The root part code along with all its children, associated to each classification code result, is displayed as the result of the classification search.

33. Product Classification Classification Search UI - Grid
LINA TO INCLUDE THE RIGHT SCREEN SHOT. THE RIGHT ONE INCLUDES THE PRODUCT CLASSIFICATION TYPE.

34. Product Classification Document Support

35. Trade Policy Management Compliance Rule Set

36. Q
& A