Atlanta Oracle Application Atlanta Oracle Application User’s GroupUser’s Group

August 18, 2000August 18, 2000

AgendaAgenda

United Parcel Service OverviewUnited Parcel Service Overview Oracle Implementation ScopeOracle Implementation Scope Application / Hardware Specs.Application / Hardware Specs. Current StatisticsCurrent Statistics Project BenefitsProject Benefits Learning ExperiencesLearning Experiences

United Parcel ServiceUnited Parcel ServiceOverviewOverview

UPS is the world's largest express UPS is the world's largest express carrier and package delivery carrier and package delivery companycompany

Headquartered in Atlanta, GeorgiaHeadquartered in Atlanta, Georgia Service more than 200 countries Service more than 200 countries

and territories around the globeand territories around the globe Fleet of 261 jet aircraft in service or Fleet of 261 jet aircraft in service or

on orderon order

United Parcel ServiceUnited Parcel ServiceOverviewOverview

UPS is the ninth largest airline in North UPS is the ninth largest airline in North America.America.

UPS employs 327,000 people globallyUPS employs 327,000 people globally– 292,000 U.S.292,000 U.S.

– 35,000 International35,000 International UPS had annual revenues of $27.1 UPS had annual revenues of $27.1

billion in 1999 and delivered 3.28 billion billion in 1999 and delivered 3.28 billion parcels and documents last year. parcels and documents last year.

United Parcel ServiceUnited Parcel ServiceOverviewOverview

Over 1.7 million customersOver 1.7 million customers 1,713 operating facilities1,713 operating facilities 150,000 vehicles150,000 vehicles

Oracle Applications Oracle Applications ImplementedImplemented

Accounts PayableAccounts Payable– Domestic U.S. - 1998Domestic U.S. - 1998

PurchasingPurchasing– Domestic U.S. - 1998Domestic U.S. - 1998

General Ledger (Shell Only)General Ledger (Shell Only)– Domestic U.S. - 1998Domestic U.S. - 1998

WorkflowWorkflow– Domestic U.S. - 1998Domestic U.S. - 1998

Oracle Applications Oracle Applications ImplementedImplemented

Financial Analyzer (OFA)Financial Analyzer (OFA)– Domestic U.S. - 1999Domestic U.S. - 1999– International - 2000International - 2000

Application Desktop Integrator (ADI)Application Desktop Integrator (ADI)– Domestic U.S. - 1999Domestic U.S. - 1999

TutorTutor– Domestic U.S. - 2000Domestic U.S. - 2000

Oracle Applications to be Oracle Applications to be ImplementedImplemented

General LedgerGeneral Ledger– International - 2000International - 2000– Domestic U.S. - 2001Domestic U.S. - 2001

Project AccountingProject Accounting– Domestic U.S. - 2000Domestic U.S. - 2000

Accounts PayableAccounts Payable– Europe - 2001Europe - 2001

PurchasingPurchasing– Europe - 2001Europe - 2001

Applications TechnologyApplications Technology

Oracle Version 11.03 NCA AppsOracle Version 11.03 NCA Apps Self Service Purchasing 3.0Self Service Purchasing 3.0 Oracle 8.05 DatabaseOracle 8.05 Database Sun Solaris 2.6.1 O/SSun Solaris 2.6.1 O/S Windows NT workstationsWindows NT workstations

HardwareHardwareSpecificationsSpecifications

Primary Database ServerPrimary Database ServerSun E6500Sun E6500

18x400MHz CPU18x400MHz CPU

9GB Memory9GB Memory

72GB Internal Disk72GB Internal Disk

Forms Servers (2)Forms Servers (2) Sun E6500Sun E6500

16x336MHz CPU16x336MHz CPU

5GB Memory5GB Memory

88.2GB Internal Disk88.2GB Internal Disk

HardwareHardwareSpecificationsSpecifications

Forms Servers (Continued)Forms Servers (Continued) Sun E4500Sun E4500

8x400MHz CPU8x400MHz CPU

4GB Memory4GB Memory

72GB Internal Disk72GB Internal Disk

Web Servers (2)Web Servers (2)Sun E6000Sun E6000

8x167MHz CPU8x167MHz CPU

1.5GB Memory1.5GB Memory

88.2GB Internal Disk88.2GB Internal Disk

HardwareHardwareSpecificationsSpecifications

Web Servers (Continued)Web Servers (Continued)Sun E3000Sun E3000

2x167MHz CPU2x167MHz CPU

1.5GB Memory1.5GB Memory

10.5GB Internal Disk10.5GB Internal Disk

Standard WorkstationsStandard WorkstationsPentium 166mhz or > / 32 MB Ram or > Pentium 166mhz or > / 32 MB Ram or >

Business VolumesBusiness Volumes

Web system users Web system users 14,00014,000

Financial Service Center UsersFinancial Service Center Users 172 172

Requisitions per dayRequisitions per day 689 689

Purchase orders per dayPurchase orders per day 948 948

Invoices per dayInvoices per day 13,25413,254

System Features/GoalsSystem Features/Goals

Quality at the source Quality at the source Online purchasing via webOnline purchasing via web Online approval and receipts via workflowOnline approval and receipts via workflow Automated sourcingAutomated sourcing Automated matching of P.O.’S and invoicesAutomated matching of P.O.’S and invoices Extensive use of EDIExtensive use of EDI One A/P site (financial service center)One A/P site (financial service center) Cost benefits of a paperless systemCost benefits of a paperless system More effective supplier managementMore effective supplier management

Quantifiable BenefitsQuantifiable Benefits

Reduced processing cost by 50%Reduced processing cost by 50% Shorter cycle timesShorter cycle times Inventory reductionsInventory reductions Reduced A/P staff by 50%Reduced A/P staff by 50%

– Key entryKey entry– Exception processing - < 10%Exception processing - < 10%

Consistent purchasing processes and Consistent purchasing processes and approval limitsapproval limits

Intangible BenefitsIntangible Benefits

Improved data accuracy and speed Improved data accuracy and speed of retrievalof retrieval

Ability to handle volume increasesAbility to handle volume increases Facilitates consistent supply chain Facilitates consistent supply chain

managementmanagement Enables a focus on exceptions and Enables a focus on exceptions and

root causesroot causes

Lessons LearnedLessons Learned

Ensure that IT is closely involved during Ensure that IT is closely involved during design and takes part in requirement design and takes part in requirement definition. This will eliminate rework.definition. This will eliminate rework.

Devote whatever resources/time is Devote whatever resources/time is necessary to cleanse and normalize necessary to cleanse and normalize legacy data prior to converting into legacy data prior to converting into your new system.your new system.

Triple the amount of time anticipated Triple the amount of time anticipated for system testing. for system testing.

Lessons LearnedLessons Learned

In large installations, plan to replicate In large installations, plan to replicate data off the production box for querying data off the production box for querying and remove the queries from the and remove the queries from the application menus. They are not application menus. They are not optimized and will cause performance optimized and will cause performance issues.issues.

Establish system performance Establish system performance benchmarks prior to deployment and benchmarks prior to deployment and validate performance at each stage of validate performance at each stage of deployment. Use as Go/No Go criteriadeployment. Use as Go/No Go criteria

Lessons LearnedLessons Learned

Maintain a ratio of at least 3:1 inside Maintain a ratio of at least 3:1 inside employees vs. consultants during design, employees vs. consultants during design, build, and testing phases of the project.build, and testing phases of the project.

Change management is as critical as Change management is as critical as proper design to the success of the proper design to the success of the project. Ensure project backing from the project. Ensure project backing from the upper levels of all departments. This will upper levels of all departments. This will greatly improve your chances for greatly improve your chances for success.success.

Lessons LearnedLessons Learned

Maintain a ratio of at least 3:1 inside Maintain a ratio of at least 3:1 inside employees vs. consultants during design, employees vs. consultants during design, build, and testing phases of the project.build, and testing phases of the project.

Change management is as critical as Change management is as critical as proper design to the success of the proper design to the success of the project. Ensure project backing from the project. Ensure project backing from the upper levels of all departments. upper levels of all departments.

Utilize Tutor to develop procedures and Utilize Tutor to develop procedures and training curriculum.training curriculum.

Lessons LearnedLessons Learned

A solid ERP system combined with A solid ERP system combined with effective business processes will effective business processes will provide the information flows provide the information flows necessary to manage procurement necessary to manage procurement through a “Total Cost of through a “Total Cost of Ownership” concept.Ownership” concept.