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Value Chain Execution

Eddy WongSCM Solutions Account Manager

Agenda

• Value Chain Execution Overview

• Oracle Transportation Management

• Global Trade Mgmt / Landed Cost Mgmt

• Warehouse Management

• Q&A

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FY09 Key Wins

FY09 Key Wins

• VCE platform message

• Value Sell

• $2.4m

• Up-sell/Cross-sell

• OTM and WMS

• $575k

• Value driver in large NASA ELA

• $2m+

• OTM Up-sell

• New product: FTI

• $500k

• Key differentiator in SAP ERP compete

• $1m+

• JPATS: New industry penetration

• $500k

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Value Chain Execution Portfolio Overview

What is Value Chain Execution (VCE)?

Oracle Value Chain Execution

Transportation Management

Warehouse Management

Global Trade Management

Landed Cost Management

Have achieved 40% order consolidation rate

Reduced freight costs by 12% in first 9 months

Reducing freight cost at a run rate of 10%

Cut cycle times by 30%

OTM Delivers Value

Reduced miles driven by over 500,000

•Averaged 4week deployment cycles per location after pilots

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Oracle Transportation Management (OTM)

Oracle Transportation ManagementLeads in Market ShareGartner, Inc., “Market Trends: Transportation Management Systems, Worldwide, 2007-2012 ”, by Chad Eschinger and C. Dwight Klappich, October 8, 2008

OTM is Still the Leader:

Source: Forrester Research Inc (Q1 2008)Source: Gartner (January 2009)

Gartner Magic Quadrant Forrester Wave

Oracle Transportation Management Breadth & Depth to Support Best Practices

Order

Global VisibilityGlobal Visibility

Supply Chain Event ManagementSupply Chain Event Management

Business Intelligence (Analytics & Reporting)Business Intelligence (Analytics & Reporting)

Freight Forwarding and BrokerageFreight Forwarding and Brokerage

Plan Monitor

Fleet ManagementFleet Management

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Global Trade Management (GTM) and Landed Cost Management (LCM)

“The typical $1 billion company can free up $10 million to $40 million in cash by improving its basic trade processes.”

TradeFinance

• Letters of Credit

• Financial Integrations

• Document Sharing

Landed Cost

• Charge Mgmt• Estimated/Actual• Trade Documents• ERP Mappings

Trade Compliance

• Denied Party Screening• Global Exports• Global Imports• Customs

• Party Screening Lists

• Harmonized System Codes

• Country Tariff & Duties

• Trade Agreements

Trade Content

Oracle GTM At-a-Glance

Trade Compliance

Landed Cost ManagementSimple Example

Kansas City US PortVessel CarrierHK PortShipment to HK

Customer

$100 $2 $3 $20 $3 $2 $140

China Manufacturing Buyer

An additional 40% is added on to the purchase price

$5Duties

$5Broker Fees

Total Landed Cost

Issue PO

Benefits of GTM and LCMEstablish Best Practices & Drive Continuous Improvement

• Accelerate the supply chain

• Improve import/export regulation compliance

• Increase profit and decrease cost of goods

• Reduce inventory with better shipment visibility

• Improve sourcing and pricing strategies

Customers Reference

• Beckman Coulter• Dell• Galactic Ventures• Genband• On Semiconductor• Payless• Seagate

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Warehouse Management (WMS)

Oracle WMS Who are we and why are we here?

Cumulative Total Deal Count Since Initial Release…

Tot MSCA Customers: 1038

Tot WMS Customers: 1095

First Included in 2002.First Included in 2002.-Newest WMS on ChartNewest WMS on Chart-Fastest moving WMS on chartFastest moving WMS on chart

Ability to ExecuteAbility to Execute

Oracle trails only**:Oracle trails only**:-ManhattanManhattan-Red PrairieRed Prairie-SAPSAP**Amazing, for the newest product…**Amazing, for the newest product…

Completeness of VisionCompleteness of VisionOracle trails only:Oracle trails only:-Manhattan Manhattan -Sterling Commerce Sterling Commerce -A new, unproven release from SAPA new, unproven release from SAP

Oracle Warehouse Management The analysts have noticed…

Gartner Magic Quadrant 2009 - Oracle WMS Comes of Age

WMS License Growth: 06-07 : 31% 07-08: 25%

FY09 Key Wins

• American Power Conversion (Win over Red Prairie) $1.9 billion provider of network-critical physical infrastructure to the information technology industry (Win over Red Prairie)

• Gentex (Win over SAP) $575M provider of Proprietary Electro-optical Products. (Example: The new auto-dimming windows on Boeing 787 Dreamliner)

• Kelly Moore Paint (Win over SAP) $330M maker of specialty paint.

• Ikon Office Solutions (No real competition – ours to lose) world's largest ($4.2 billion ) independent channel for document management systems and services.

• Gavina (Win over SAP) largest privately held minority coffee roaster in the US

• Other Major wins:Wendy's; tootsie roll; velcro

Oracle WMSWhat’s new with the product?

•Oracle Process Manufacturing Support

•Labor Management & Reporting

•Planned Cross Docking

•Dual Unit of Measure control

•Enterprise Asset Management Integration

•Configurable shipping documents

New in R12…

New in R12 +…

• Advanced Wave Planning

• Distributed WMS

Advanced Wave PlanningCreate, plan and release work to the warehouse

Wave Wave RulesRules

AnalyticsAnalytics ShipPackPick

1. Create Wave

2. Plan and Analyze Wave

4. Task Planning

3. Release Wave

5. Monitor Wave Execution

Oracle WMS Point Solution Competitive Landscape

Account Profiling - WMS

• Existing EBS customer– JDE next best

• Pressure on Order to Ship lead time (<2 days)• Complex business rules and policies • Low operating margins• Metrics

– Medium to Large DCs (5,000+ locators, 50,000 Sq Ft+ Area)– High number of Labor Resources (20+) – Large number of items (1,000+ items) – Medium to High Order Lines Volume (2,500+/day) – Medium to High Inbound Order Volume (100+ inbound shipments/day)

• Target Industries– CPG– Industrial Distribution– High Tech– Wholesale / Distribution

Market Estimation in China

……ImpactImpact

Increased Demand for Comprehensive OTM and WMS solutions

•KPMG reports that China’s

logistics costs are 18% of GDP, compared with 8% in the US and 7% in EU

countries

Warehousing Pressures…Warehousing Pressures…Transportation Pressures…Transportation Pressures…

• Space Utilization

• Lack of scalability/flexibility

• Waste management and environment

• Security and safety

• Labor intensive

• Escalating end-customer expectations

• Globalization driving complex global supply chains

• Shrinking margins dueto commoditization of basic services

• Increased regulation on hours of service rulesand security procedures

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Q&A