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Oracle Transportation Management - OTM
Markus UrbanPrincipal Sales Consultant – OTM, EMEA
Introduction
© 2009 Oracle Corporation – Proprietary and Confidential
Introduction
Markus UrbanPrincipal Sales ConsultantOracle Transportation Management - EMEA
© 2009 Oracle Corporation – Proprietary and Confidential
Oracle Transportation Management - EMEA
Why is Supply Chain Important?
© 2009 Oracle Corporation – Proprietary and Confidential
OTM – Why Supply Chain is Important
• Logistics Cost Components
• Logistics Costs as a Percentage of Sales
• Logistics Cost By Industry
© 2009 Oracle Corporation – Proprietary and ConfidentialSource: IBM Institute for Business Value, 2005 Value Chain Study & Capgemini 2005 Third-Party Logistics Study
OTM – Why Transportation is Important
© 2009 Oracle Corporation – Proprietary and Confidential
Market Overview
© 2009 Oracle Corporation – Proprietary and Confidential
Escalating Costs• Fuel & energy prices• Commodities & raw
materials• Labor
External Risks• Political instability• Monetary – currency
fluctuations, credit crunch• Environmental issues
Trends Impacting TransportationWe live in interesting times…
© 2009 Oracle Corporation – Proprietary and Confidential
Globalization Impacts• Return to “home” markets
and “near shoring”• China, India, Russia & Brazil• Security & regulations
CarriersShippers CustomersLogistics Service
Providers
Changing Business Models • Outsourcing – logistics,
manufacturing, service• Inventory management –
more or less?
What’s the Answer?
• Option 1: Hope the problems go away and there’s a return to the good old days.
• Option 2: Wait for someone else to find the answer and then copy them.
© 2009 Oracle Corporation – Proprietary and Confidential
and then copy them.
• Option 3: Deploy a modern transportation platform and be prepared for whatever the future has in store.
A transportation platform is your best insurance policy against future uncertainty
Companies with Best-in-Class Transportation Platforms…
• Spend less on transportation
• Deliver higher levels of service
• Have better information to make decisions
• Know how they’re performing on daily/weekly basis
© 2009 Oracle Corporation – Proprietary and Confidential
• Know how they’re performing on daily/weekly basis
• Automate routine processes for efficiency
• Integrate transportation with internal processes and with trading partners
Transportation Platform RequirementsSupporting Best Practices for Today & Tomorrow
• Global scope• Complete supply chain – inbound materials, finished
goods, parts, etc.• Anywhere to anywhere via truck, ocean, air, rail, etc.
• Optimization• Reduce / control transportation costs• Integrated planning & execution
• Multi -party collaboration
© 2009 Oracle Corporation – Proprietary and Confidential
• Multi -party collaboration• Suppliers, contract manufacturers• Carriers, 3PLs, forwarders, brokers
• Business intelligence• Real-time visibility• Automation & proactive resolution• Measurement & process improvement
• Flexibility• Adapt quickly to new supply chain requirements and
opportunities
Oracle Transportation StrategyEnable customers to…
• Deploy a transportation platform• Deliver a complete suite of capabilities that support a broad
range of logistics business processes
• Meet any challenge & seize every opportunity• Cost vs. service• Insource vs. outsource
© 2009 Oracle Corporation – Proprietary and Confidential
• Insource vs. outsource• Off-shore vs. near-shore• Emerging markets vs. domestic markets• New supply chain models
• Deliver benefits now and into the future• Address today’s pains• Platform for future requirements
Oracle Transportation Management
© 2009 Oracle Corporation – Proprietary and Confidential
Gartner TMS Magic Quadrant 2007Gartner, Inc., “Magic Quadrant for Transportation Management Systems, 2007”, by Dwight Klappich, January 2, 2008
© 2009 Oracle Corporation – Proprietary and Confidential
Note: “This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from Oracle.”
The Magic Quadrant is copyrighted January 2, 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Forrester Research “Wave” for Transporation, 2008Forrester Research, Inc., “The Forrester Wave™: Transportation Management Solutions, Q1 2008”, by Patrick M. Connaughton, January 29, 2008
© 2009 Oracle Corporation – Proprietary and Confidential
The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
LogisticsService
Providers
© 2009 Oracle Corporation – Proprietary and Confidential
Manufacturing Distribution
Retail
Manufacturing Distribution
Retail
OTM Delivers
© 2009 Oracle Corporation – Proprietary and Confidential
� Single solution across multiple LOB’s, industries, geographies, etc
� Reduce time to deploy via standard “blueprint” indu stry templates
� Extend client relationship from Transport ����LSP ����LLP ����4PL ����JV
� Enable client self -service, reducing contract maintenance
Why Logistics Companies Deploy OTM
© 2009 Oracle Corporation – Proprietary and Confidential
� Enable client self -service, reducing contract maintenance
� Client-customised solutions from a single configura ble application
� Buy vs Sell enabling full client profitability anal ysis
� A single visibility Control Tower over other execut ion applications
� To Integrate Logistics Throughout the Enterprise
� To Ensure A Single Point of Information & Control f or all Transportation
� To Reduce Logistics Costs and deliver detailed Cost Accounting
Why Shippers Deploy OTM
© 2009 Oracle Corporation – Proprietary and Confidential
� To Increase Logistics Operations Efficiency thru Au tomation
To Provide Logistics Collaboration across all Trading Partners
� To Enable Flexibility & Independence in choice of S ervice Providers
� To Gain Competitive Advantage via Enhanced Business Practices
PlanningLogistic Order Management
Visibility
OTM High-Level Process
OrderManagement
AnalysisFreightProcurement
© 2009 Oracle Corporation – Proprietary and Confidential
Legacy
ExecutionSettlement & SCEMFinancialsCorporate Routing
Licensable Components
TransportationManagement
TransportationOperational Planning
Freight Payment,
TransportationCooperative Routing
Transportation Sourcing
Fusion Transportation
© 2009 Oracle Corporation – Proprietary and Confidential
Freight Payment,Billing & Claims
Forwarding & Brokerage Operations
Fleet Management
Fusion TransportationIntelligence
LogisticsInventory Visibility
OrderOrder
Fleet Management
PlanPlan MonitorMonitor
Coo
pera
tive
Rou
te P
lann
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Tran
spor
tatio
n S
ourc
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SettleSettleExecuteExecuteC
ontr
act M
anag
emen
t
Oracle Transportation ManagementBroad & Deep Transportation Platform
© 2009 Oracle Corporation – Proprietary and Confidential
Fleet Management
Supply Chain Event Management
Business Intelligence (Analytics & Reporting)
Freight Forwarding and Brokerage
Global Visibility
Coo
pera
tive
Rou
te P
lann
ing
Tran
spor
tatio
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ourc
ing
Con
trac
t Man
agem
ent
eBS Integration
© 2009 Oracle Corporation – Proprietary and Confidential
Best Practice ProcessesOptimize business performance leveraging Oracle’s extensive experience & best practices
Process Integration PacksPre-built, out of the box, integrated Oracle Applications for quick implementation, at dramatically lower cost & risk
Foundation Packs
Oracle Delivers Pre-Built Integrated ProcessesApplication Integration Architecture (AIA)
© 2009 Oracle Corporation – Proprietary and Confidential
Foundation PacksCreate custom integrated business processes across any of applications using predefined, application independent objectand service definitions
Powered byOracle Fusion MiddlewareIndustry leading, openstandards based platform
BBPPEE
XML / XSL
XML / XSL
BBPPEE
WebServices
Orders
WebServices
Invoices
OracleOracleTM*TM*
EBSOM / WMS / Inv Mgmt
EBSOM / WMS / Inv Mgmt
EBS Purchasing
EBS Purchasing
EBSFinancials
EBSFinancials
Foundation: Integrated TransportationLeverage Oracle Fusion Middleware
© 2009 Oracle Corporation – Proprietary and Confidential
Standardized, packaged integrations via Web Services, orchestrated by BPEL
EELL
XSL XSLEELL
OrdersShipments
Events
InvoicesAllocationsAccruals
*Oracle Transportation Management
OracleRetailOracleRetail
OtherERP / SCM
OtherERP / SCM
OtherFinancials
OtherFinancials
Summary
© 2009 Oracle Corporation – Proprietary and Confidential
The Value Transportation Management Delivers
Single global view of all logistics information; seamless ERP, SCM, and device integration
Robust multi-mode, stop, leg and tier transportation planning; advanced inventory management
Integrate Logistics Throughout the Enterprise
Integrate Logistics Throughout the Enterprise
Reduce Logistics Costs Reduce Logistics Costs
Increase Logistics Operations Efficiency
Increase Logistics Operations Efficiency
Management by exception, RFID enablement, synchronized
© 2009 Oracle Corporation – Proprietary and Confidential
Seamless execution flows, carrier sourcing, automated settlements, transaction-centric collaboration
Closed-loop business intelligence, advanced analytics and reporting, integrated event management
Operations EfficiencyOperations Efficiency
Collaborate and Transact with Global Trading Partners
Collaborate and Transact with Global Trading Partners
Drive Continuous Improvement and Best Practices
Drive Continuous Improvement and Best Practices
enablement, synchronized shipping and transportation
Why Oracle
• Product• Breadth and depth of capabilities• Proven – customer value
• People• Deep domain expertise across functions on global basis
© 2009 Oracle Corporation – Proprietary and Confidential
• Deep domain expertise across functions on global basis• Vibrant, growing customer & partner ecosystem
• Plan• Product strategy – functional & process innovation• Wherewithal to deliver & track record
© 2009 Oracle Corporation – Proprietary and Confidential