2 Agenda Today’s Challenges Best In Class Performance Achieve Best-In-Class Capability with OTM Questions

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Agenda

• Today’s Challenges

• Best In Class Performance

• Achieve Best-In-Class Capability with OTM

• Questions

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Supply Chain Disruptions

• Global outsourcing, less predictable lead times, and vulnerability to supply chain shocks are the top challenges to manufacturers

• Other possible supply chain disruptions– Security threats to airports, ports and critical supply chain nodes– Natural Disasters– Port Disruptions– Aging and congested transportation infrastructure

• Accenture study found 73% of companies have experienced a disruption in the last 6 years

RSAG Research

How Do You Respond?• Increase agility needed for flexible execution • Utilize intelligent alerts that provide notification to adverse events• Perform what if analysis to evaluate alternate shipment methods, routes

and develop contingency plans for supply chain disruptions

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Limited Visibility & Manual Processes

Shippers Carriers Customers / Suppliers

ExecutionPlanning

Multiple,Non-Integrated

SystemsManual Processes

Warehouses / 3PLs

Fragmented Communication and Visibility

Fragmented Visibility to Shipments and Manual Labor Intensive Processes Results in reactive issue resolution that increases the need for expedited shipments

How Do You Respond?

• Automate manual tasks and proactively monitor shipments and manage by exception

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Increasing Customer Expectations

“Effective transportation management involves overcoming a host of real challenges and ever increasing customer expectations for smaller and more frequent delivery times.”

Aberdeen

Customers want increased global order promise accuracy

How Do You Respond?• Utilize a Transportation Management System to manage

more frequent deliveries with consolidated shipments• Increase visibility to shipments in order to improve lead

time reliability and reduce inventory levels• Allocate freight costs to orders to gain visibility to customer

profitability

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Volatile Fuel Costs

Primary component of freight cost has more than quadrupled in the last 6 years and nearly doubled in the last year

How Do You Respond?

•Consolidate and

optimize freight

•Mode shift and consider alternative routings

•Re-evaluate your supply chain network

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Green Initiatives Impact

How Do You Respond?Institute sustainable transport policies • Measure and Reduce your Emissions • Use more environmentally friendly logistics providers• Optimize your routing and consolidate freight to reduce miles driven• Automate tasks and communications to reduce paper consumption• Enact energy conservation strategies (Reduce, Re-use and Recycle)

Key Drivers of Green Initiatives (2008 eyefortransport Green Transportation Report)

• Desire to Improve Customer and Public Relations• Want to Decrease Fuel Costs• Part of their Corporate Responsibility Agenda• Financial Return on Investment (ROI)

“Both competitive pressure and marketplace perceptions will drive every major company to factor sustainability into their supply chain equations”

Inbound Logistics

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Impact of Challenges

• Supply chain disruptions • Limited visibility and

manual processes • Increasing customer

expectations• Volatile fuel costs• Green initiatives

• Supply chain disruptions • Limited visibility and

manual processes • Increasing customer

expectations• Volatile fuel costs• Green initiatives

SuppliersSuppliers

CustomersCustomers

Your Company

Your Company

Margin Pressure• Where can I

reduce costs?• How do I

differentiate my logistics offerings?

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Best in Class Performance

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What Are Industry Leaders Doing?

• Focus on maximizing profitability rather than just minimizing costs

• Make transportation decisions with overall supply chain performance in mind

• Access to timely and accurate data concerning their performance

• Utilize a Transportation Management System such as Oracle Transportation Management (OTM)

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Industry Leaders Performance

Definition of Best in Class• Top 20% of companies• Reduce freight spend relative to revenues year-

over-year• Greater than 97% on-time delivery performance• Achieve higher earnings (EBIT) averaging 14%

versus 6% for industry laggards• Possess a holistic view of their end-to-end

processes• Achieve better performance at lower costs

Aberdeen Group - Integrated Transportation Mgmt.

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Achieve Best-In-Class Shipment Lifecycle Capability with OTM

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Streamline Processes

Shipment Shipment Planning & Planning & OptimizationOptimization

Shipment Shipment ExecutionExecutionGlobal In-Transit Global In-Transit

Inventory Inventory VisibilityVisibility

Procurement Procurement Collaboration Collaboration & Optimization& Optimization

Reporting &Reporting &Document Document GenerationGeneration

Freight Payment, Freight Payment, Billing & ClaimsBilling & Claims

Order-Shipment LifecycleOrder-Shipment Lifecycle

Performance & Performance & Financial AnalysisFinancial Analysis

Supply Chain Supply Chain Event Event

MgmtMgmt


LogisticsLogistics Order Order

ManagementManagement

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MgmtMgmt




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Procurement Collaboration and Optimization

Oracle Global LogisticsOracle Global Logistics

Load ExecutionEnvironment

• Electronically sendout bid packages using real history, forecasts and actual orders

• Assess the financial impact of proposed rate changes before rates are awarded

• Evaluate multiple award scenarios based on cost, service and performance

• Automate transportation rate uploads into OTM

Your Company

Receive Demand

• Orders• Lane Forecasts Bid

Initiation

Quotes

Award Notice

Selected Carrier

Optimized AwardRecommendation

Bid Packet

QuoteAnalysis

Accept

Contract

Carriers

Solicit carrier bids, Optimize awards, Issue contracts

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Procurement Collaboration Bidding Results

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MgmtMgmt




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• Plan both Purchase Orders for pick up & Sales Orders for delivery

• Quote freight options during order capture process

• Accurately promise deliveries based on inventory & transit times

• Allow routing guides to select carrier based on rules

• Allocate costs of complex routings to order lines & determine customer freight charges based on the allocations

• React quickly to changes in order sizes, cancellations, or delivery dates with rapid, continuous re-planning capabilities

Order Entry

• Freight Choices• Transit Time • Routing Guides

Logistics Order Management

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MgmtMgmt




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Inputs optimized for lowest delivered cost while accommodating business rules and constraints

Shipment Planning & Optimization

• Consolidate loads by leveraging pooling, cross-docking, or multi-stop routes• Streamline carrier selection & route optimization from item availability to final delivery

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Shipment Planning Results

• Planning results capture statistics such as total cost, weight, volume and distance

• Graphical view of results broken down by carrier and mode.

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MgmtMgmt




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Shipment Execution

• Automatically tender shipments eliminating delays from manual processes• Receive shipment status and delivery confirmation • Communicate with carriers through the internet, wireless device or electronically

Review &Approve Shipment

Message: Picked-up

TenderAccept Tender

Pick-up Transport Deliver

Message: En route

Message: Delivered

YourCompany

ServiceProvider

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MgmtMgmt




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Global In-Transit Inventory

• On hand as well as in-transit inventory visibility and management down to the SKU level

• Facilitates Vendor Managed Inventory (VMI)• Inventory data by supplier, owner, warehouse,

quantity on hand, aging and description• Employee, supplier and customer notifications for

changes in quantity on-hand or re-order points• Increases inventory reliability and reduces the

days of inventory on hand

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MgmtMgmt




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Supply Chain Event Management

• Agents automate business processes and notify involved parties to events

• Reduce non-value-added manual activities • React to potential issues - before they occur• Automate decisions where appropriate• Send proactive notifications• Monitor escalated issues • Utilize role based alerting so the right people are

notified of exceptions

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MgmtMgmt




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OTM Reports and Documents

Reports• Activity • Carrier Delivery• Carrier Capacity• Carrier Commitment• Cost Savings• Event Reason• Freight Payment• In Transit Inventory• Inventory Visibility• LTL Trailer Building• Order Financial

• Planned versus Actual• Projected Late Orders• Purchase Order• Shipments by Carrier• Tenders Declined by Lane

Documents• Bill of Lading• Commercial Invoice• Packing List• Transmittal Letter

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MgmtMgmt




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Freight Payment & Billing

Carriers

Financial System

Shippers /Customers

• Allocate coststo orders & order lines for billing

• Calculate profit margin for each shipment

• AR & AP Vouchers• Allocated costs

Invoicesonly for

additionalcharges

Pay based on actual shipment activity and contract ratesA

uto

-Pay

Payments Payments

Billsvia web

or integration

• Intra-company cost transparency

Automate Freight Settlement

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Performance & Performance &

Financial AnalysisFinancial Analysis


MgmtMgmt



ManagementManagementOrder-Shipment LifecycleOrder-Shipment Lifecycle

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Performance & Financial Analysis

• Key Performance Indicators based reporting• Quick visual status of performance such as:

freight cost per mode, cost per mile, trailer utilization and on-time arrival rates

• Drill-down into graphs for trend and variability• Monitor carrier performance and EPA SmartWay

progress• Analyze lanes that have high costs and target them

for improvement• Drives Continuous Improvement

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Monitor Goals & Improve Performance

Multiple dashboardsMultiple dashboards

Drill to transaction Drill to transaction shipment detailsshipment details

Weight shipped by Weight shipped by mode of transportmode of transport

Drill Into Details to IdentifyTrends and Variability

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TMS Value Proposition

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Transportation Cost Savings Forrester Research reports TMS savings of 8%year over year from the following benefits:

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OTM Sole Leader

• “Oracle scored the highest relative to its competitors across ground transportation planning, freight payment, multimodal transportation, product strategy and vision."

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OTM Leader in Gartner Report

• “OTM balances deep functionality with ease of use, which appeals to a broad array of customers.”

• “OTM provides credible and powerful capabilities across the TMS functional spectrum, with notable depth of functionality in international logistics for which global visibility is important.”

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COMPANY OVERVIEW

• World leader in the agricultural and construction equipment businesses

• $13B in revenues with 30 manufacturing sites and over 25k employees

• Products sold in 160 countries through more than 11k dealers and distributors

• Brought transportation operations in-house to reduce costs and increase visibility

SOLUTION• Live on Oracle Transportation

Management, future integration to SAP

RESULTS

• Lowered transaction, headcount, and carrier selection costs

• Improved visibility to suppliers, shipment data, freight rates & payments, damage claims, and dealer destination charges

• Retired legacy system in Europe

• Live in United States and Europe less than 6 months after selection

Case New Holland

CUSTOMER PERSPECTIVE

“CNH embraced an aggressive plan to insource its N. American logistics operation and gain control of its global inbound transportation within a year. With the partnership of Oracle and the implementation of Oracle Transportation Mgmt, this plan was successfully executed.”

-- Kathy Acker, IT Director

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In Summary: Transforming Transportation In Your Organization

Optimize and automate transportation processes utilizing OTM

Collaborate with carriers, suppliers and customers to create more economical processes

Benchmark metrics, establish objectives for success and monitor with OTM’s Transportation Intelligence

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Complimentary Assessment

Contact Emerging Solutions for a complimentary Transportation Value Assessment

Utilizes proven analytical tools and our extensive industry expertise to identify quantifiable improvements in your transportation operations and to your bottom line.

www.emergenow.com/transportation-assessment

Questions and Answers

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Additional Questions?

Contact

Brian Hamrock

[email protected]

www.emergenow.com

mailto:[email protected]

http://www.emergenow.com/