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Copyright © 2010, Oracle and/or its affiliates. All rights reserved.

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Oracle Transportation ManagementTorrey KewleyValue Chain Execution Team10/19/2010



Agenda

•Transportation Market•Oracle Transportation Management

•Summary•Q & A


Transportation Market


Cost Reduction•Shipment optimization•Carrier sourcing•Performance measurement

Operational Efficiency•Process standardization•Process automation•Centralized platform

CarriersShippers Customers

Service Improvement•Service / lead time optimization•Supply chain visibility•Event management

Logistics Service

Providers

Impact of TransportationWhy Invest in a Transportation Management System

Business Growth•Global operations platform•Process enablement & flexibility•Scalability


Oracle Transportation Management Overview


Oracle Value Chain Execution Platform

Oracle Transportation Management

Global Trade Management

Landed Cost Management

Distributed Warehouse

Management

▪ Labor and Space Utilization

▪ Inventory Control▪ Customer Service

▪ Cost Control▪ Process Automation▪ Visibility

▪ Regulation Compliance▪ Shorten Cycle Time▪ Visibility

▪ Accounting Accuracy▪ Financial Visibility▪ Sourcing

Value Chain Execution Platform

7


Order

Global Visibility

Supply Chain Event Management

Business Intelligence (Analytics & Reporting)

Freight Forwarding and Brokerage

Plan Monitor

Fleet Management

Coo

pera

tive

Rou

te P

lann

ing

Tran

spor

tatio

n So

urci

ng

Settle

Oracle Transportation ManagementBroad and Deep Global Transportation Platform

Execute

Con

trac

t Man

agem

ent


Planning & Execution

Outbound Orders

Orders Received

Inbound Orders

PurchaseOrders

EDI

Batch

Manual

BPEL XSL

Transport Orders

SalesOrders

Interfacility 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

Transportation Order ManagementManage All Transportation Orders


Support a Wide Range of Optimization Needs – Simple Rules Based Planning to Complex Cost & Constraint Based Optimization

• Route• Mode

OptimizedDecisions

• Timing• Equipmen

t

•Multi-Leg Multi-Mode Consolidation

•Common Leg Consolidation

•Multi Stop Consolidation

•Multi-Tier Networks•LTL Consolidation•Continuous Moves

Algorithms

• Consolidation• Service

Provider

Engines& Rules

•Service Time Calculation

•3-Dimensional Container Optimization

• Itineraries & Profiles•Carrier Capacity•Throughput•Rating

Operational PlanningMaximize Fulfillment Service, Minimize Transportation Costs


Your Company Service Providers

• Support for all modes: • Ocean, Air, LTL, TL, Rail

• Electronic (EDI), Internet, and wireless communication

• Automated dock scheduling and partner collaboration

EDI 204: Load Tender

Review &Approve Shipment

Tender Accept Tender Transport DeliverPick-upSched

Appt

Internet: Delivered

Wireless: Picked-up

EDI 214: Delayed

Transportation ExecutionCollaborate with Service Providers


Visibility & Event ManagementProactive Issue Resolution

Alert!Shipment is 12 hours behind schedule

Alert: Shipment arrived late at HK Port

Kansas City DC 1

US PortVessel CarrierChina Factory HK PortShipment to HK

• Planned vs. actual milestone tracking• Proactive monitoring and notifications• Automated, event-driven processes• Track & Trace history


Support Settlements & Payments Based on Plans Generated in TM or Other System*Value-Added Tax and Non-Freight Related

Charges

Freight Payment, Billing & ClaimsImprove Cash Flow and Accounting Accuracy

Carriers

Financial System

Shippers /Customer

s

• Allocate coststo orders & order lines for billing

• Apply appropriateGL codes based on order characteristics

• Calculate profit margin for each shipment

• VAT & NFRC*

• AR & AP Vouchers• Allocated costs

Invoices via web

or integration

Pay based on actual shipment activity and contract ratesA

uto-

Pay

Payments

Mat

ch &

Pay Match,

validate, and pay invoices; flag exceptions

Payments

Billsvia web

or integration

• Intra-company cost transparency


Multi-Domain ArchitectureSupport Multiple Divisions / Customers

• Business Logic: User interface, workflow, reports, integrations• Security: Segmented data and functional security• “Customization” via configuration• Expand without having to buy another system

Business 2

Business n

Business 1

Top LevelFull Visibility

DomainsPartitionedVisibility &

Functionality

ParentCompany

ConfigureSoftware

for SpecificDivisions / Customers

…


Invite Carriers to Bid

Transportation SourcingSecure Best Value from Service Providers

Receive bids by spreadsheet or on-line

Award and convert into operational contracts

Optimize Bids and Analyze Scenarios

Establish project with history or forecast1

2

3

4

5


Transportation IntelligenceEmbedded, 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



Customers

OTM Representative Clients

18

19

Cut cycle times by 30%

Have achieved 40% order consolidation rate

Reduced freight costs by 12% in first 9 months

Reduced miles driven by over 500,000

Spot bidding results in 27% lower rates on selected lanes

Averaged 4week deployment cycles per location after pilots

Reducing freight cost at a run rate of 22%

Reducing per pound costs by 7%

OTM Adds Value

Improved planner productivity by 65%

Maintained level freight spend as fuel increased 50%