0 Why EBS for Wholesale Distribution Information Age Applications.

1

Why EBS for

Wholesale Distribution

Information Age Applications

2

Non-Disclosure Agreement

Any reference to customer information, metrics orsuccesses is strictly under NDA. This information maynot be used in any reports or used as a basis for customer contact.

3

Agenda

Industry Trends

Oracle’s Commitment to the Industry

Oracle’s Solutions for the Industry

Product Capabilities for Wholesale

Customer Success Stories

4

Agenda

Industry Trends





5

The Wholesale Distribution Industry is Strong and Its Prospects Are Favorable

• 75% products are sold through distributors

• Wholesale distribution accounts for one out of 20 jobs in the USA

• The industry is growing at a annualized rate of 5.6% -- significantly faster than the economy

Sources: Facing the Forces of Change; NAW, DREF

Distribution is a major untapped market

Revenue Growth – CAGR 5.6%

Annual Revenue ($ Trillion)

$0

$1

$2

$3

$4

2000 2001 2002 2003 2004

Strong Industry Forecast

• Profits up

• Industry growth

• IT spending up

6

The Industry’s Key Focus is on Profitable Growth

The implications of this strategy is a strong

focusing on growth enablement strategies

and operational excellence

Operational Efficiency•Supply Chain Excellence:

• Improved forecasting, shorter lead times

• Increased supply chain velocity; lower inventories

•Better order management and order execution

•Optimized distribution network; reduced costs

• Improved supply chain planning

• Increased back office productivity

Drivers

Improve Operating Margins•Effective pricing policies•Enhanced revenue growth

through better customer information and tracking

•Proactive customer management through business intelligence: ability to target and service customers based on profitability

• Improved procurement and sourcing effectiveness

Revenue Growth•Acquisition enablement:

•Rapid integration of acquired companies

•Growth without a corresponding increase in overheads

•Organic Growth•Superior customer service•Value added services

•New product lines•Additional product lines

7

However, The Industry Continues to Face Key Challenges In Meeting Its Goals

• SKU Proliferation

• Poor Forecasting

• High Inventories

• Low Back Office Productivity

• Poor Customer Information

• Ad-hoc Pricing Policies

• Inability to Evaluate Customer and Product Profitability

• Low procurement and sourcing effectiveness

• Increased Need to Provide Value-Added Services

• Non-standard Processes

• Pricing not Customized to Product and Customer

Revenue Growth Operating Margins Operational Efficiency

8

Agenda





9

Texas A&M Collaboration

Engagement with Dr. Barry Lawrence launched in March 2004:

Distribution process maps and business needs in the focused study areas

Process-Focused distribution KPI framework

System requirements to support focus area best practices

Prioritized recommendation for Oracle Distribution Solution functionality enhancements

10

Texas A&M Joint Research Topics Inventory Stratification

Demand Management

Distribution Purchasing

Warehouse Management

Transportation Management

Network Optimization

Rebates and Claimbacks Management

Pricing Management

Distribution Performance Management (KPI’s)

EBS Distribution Customers

VirginiaVirginiaThaiStainlessSteel

12

Agenda





Oracle Wholesale Distribution Industry Solutions

• Analyze profitability with accurate revenue & cost allocation

• Enable multi-level drilldowns into financial data to identify improvement opportunities

• Project future sales to assess lifetime customer value

• Drive consistent, accurate interactions across all touch points based on one global view of customer information

• Improve sales rep effectiveness with productivity tools

• Share real-time info online to speed partner interactions

• Minimize manual processing via RFID & handling devices, directed picking / put-aways, and cross-docking

• Optimize inbound and outbound logistics to reduce costs

• Meet ever-shifting demand using consensus forecastsand global visibility into product availability

• Negotiate for volume pricing and apply compliant, transaction automation to reduce total product cost

Maximize Product and Customer

Profitability

Maximize Product and Customer

Profitability

Attract and Retain Target

Customers

Attract and Retain Target

Customers

Optimize Storageand Streamline

Movement of Goods

Optimize Storageand Streamline

Movement of Goods

Plan and Procure for Best Value


14

Supply Chain Planning Collaborative Planning Inventory Optimization Demand Planning Advanced SC Planning

Global Order Promising Constraint Based Optimization

Sourcing & Procurement Sourcing Procurement Contracts iProcurement Services Procurement Purchasing iSupplier PortalAdvanced PricingSourcing Optimization

Order ManagementAdvanced PricingConfiguratoriStoreOrder ManagementSales Contracts

Customer Data Management Customer Data Hub Customer Data Librarian

Marketing & SalesMarketing, TeleSales, Field Sales, Sales ContractsTrade Management Quoting

ServiceService Contracts iSupport

TeleService Field Service

Depot Repair

Logistics & Inventory Mgmt Inventory Management Mobile SC Applications Warehouse Management Transportation Optimization Transportation Execution Transportation Planning

Product Information ManagementProduct Information Mgt. HubProduct Data Synchronization for GDSN and UCCnet

Maintenance ManagementEnterprise Asset Management

Corporate Performance ManagementBalance ScorecardE-Business IntelligenceEnterprise Planning and BudgetFinancials & Sales AnalyzersActivity Based Management

Product Lifecycle ManagementFinancial

Advanced CollectionsFinancial Consolidation Hub


Optimize Storage and Movement of Goods

Attract and Retain Target Customers

Maximize Product and Customer Profitability

Enterprise Infrastructure: Projects, Customer Data ManagementPerformance Management: E-Business Intelligence, Balanced Scorecard, Enterprise Planning & Budgeting

Corporate Governance: Internal Controls Manager, Financials, Tutor, iLearningIT Infrastructure: Database Server, Applications Server, Systems Management, Development Tools, Collaboration Suite

Services: Consulting, IT Outsourcing, Education, Support

Footprint: Wholesale/DistributionO

rac

le E

na

ble

rs

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?Base Differentiators…

• High volume order processing• Up-sell / cross-sell• Non-catalog item ordering• Cost / margin at order and line

• Delivery consolidation by locator and / or LPN

• Cluster picking and WIP picking

• UPC and smart barcode support

• Single mobile UI for all receiving transactions

• Additional material handling equipment integration

• Transportation execution

• Automated shipping processes

• Sales and operations planning

• VMI and consigned inventory

• One-click renegotiation of blanket agreements

• Multi-channel order capture

• Real-time order promising and visibility

• Back to back ordering

• Integrated spend and supplier intelligence

• Inbound logistics

• Outbound logistics

• Advanced inventory mgmt

• Built-in RF / mobile technology

• Distribution planning

• Collaborative demand and supply planning

• Integrated service channelswith multiple delivery options

• Auto-entitlement verifications

• Easy quote creation and conversion to order

• Formula-based pricing & tiered discounts (Advanced Pricing)

• Scarce inventory allocation

• Procurement contracts

• International drop shipments

• Configurable picking andstreamlined shipping UI’s

• RFID-based transactions

• UCC 128 and UCC 14 support

• Packing workbench

• Over picking and bulk picking

• Inbound transport logistics

• Freight payment and audit

• Transportation planning

• LPN and lot / serial receiving

Evolution of Oracle Applications in Wholesale / Distribution

New in 11i.9… New in 11i.10…

Wholesale/Distribution - A History of Commitment

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?Road Map for 12.0

Oracle’s Wholesale Distribution Capabilities EBS

• Multi-channel Order Capture & Fulfillment• Advanced Pricing Flexibility• Product Lifecycle Management• Strong Trade Management• Daily Business Intelligence• Customer Data Hub• Advanced Supply Chain Planning• Fully Integrated Logistics Planning &

Execution• Sales and Procurement Contracts• Configuration Integration• Depot Repair / Service• Workflow

Additional Strengths

• Order Management / Pricing• Price Book• Trade Management

• Promotion Rebates / Invoicing• Logistics / Supply Chain Execution• Inventory and WMS

• Standard Pack Execution Support• Planned X-Dock• Labor Management• Expanded RFID/MHE Support

• Transportation• Multi-Delivery Consolidation• High volume flows in shipping/pricing

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Agenda





18

IntelligenceIntelligence

TechnologyTechnology

Planning&

Procurement

Planning&

Procurement

Marketing,Sales,

Service

Marketing,Sales,

Service

Logistics &Inventory

Management


Management

Product &CustomerAnalysis


Oracle E-Business SuiteTailored for Wholesale / Distribution

• Common data model enables a single source of truth

• Comprehensive suite of applications designed to work together

• Robust set of integration services based on open standards

• Modular deployment by business flow

• Single global instance implementations

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Oracle Wholesale / Distribution Solutions

Enable you to:




Management


Management


Optimize Storage and Streamline Movement of Goods



Marketing,Sales,

Service

Marketing,Sales,

Service



Planning&

Procurement

Planning&

Procurement

20

Collaborative Sales & Operations Planning Rapidly Adapt to Changing Business Conditions

• Collaborate and plan with trading partners

• Synchronize operational plans across the value chain

• Create one planthat includesmultiple DCs

• Model complex constraints that respect operational capabilities

• Rapidly rerun or reprioritize plans

SalesMarketing Finance DC DCPlanning

Consensus Forecast

PlanningEngine

InventoryBudgets ShipmentsOrders ProductionPromotions

Suppliers

Your Company

OrdersSchedules

SpecificationsRequirements

etc.

Customers

Web-basedInterface

. . .

21

SNO Relevance to Wholesale Distribution

• Typically used by companies with more complex distribution networks

• Visualization, rapid simulation and detailed cost modeling of the entire network

• Network Design– Determine location, size and type of facilities – Examine cost trade-offs: storage vs. spoilage vs.

transportation inventory holding• Simulate expansion

– New customers, contracts, product lines or markets– Simulate competitor costs

22

Global Order PromisingProvide Accurate Availability & Supply Commitments

Global Order Promising

Material Availability

Distribution Capacity

Transportation Capacity

Supplier Capacity

Drive Optimal Fulfillment Decisions Based on Demand and Supply

• View global availability

- All facilities, material, resources, and suppliers

• Allocate supply and capacity

- By channel, customer, or product

- Priority and stealing rules

• Manage commitments to key customers

- Re-schedule and re-sequence your backlog

23

Advanced Supplier ManagementPromote Collaborative Supply Processes

Enabling CapabilitiesExamples

Enable suppliers to fulfill your customer orders by shipping directly to your customers. Synchronize PO with sales order and book transactions across multiple business entities.

Automatically create replenishment signals (e.g., POs) based on Min-Max levels and consumption. POs can be pre-approved and ready to be transacted.

Provide suppliers convenient visibility to distributor-owned inventory and automated replenishment.

Maintain supplier-owned inventory, transfer ownership upon consumption, and trigger supplier invoicing.

Enable suppliers to update profile, submit quotes / bids, view transaction details and inventory levels, respond to PO changes and notices, and provide ASNs

Drop ShipmentsDrop Shipments

Vendor Managed Inventory

Vendor Managed Inventory

Consignment Inventory

Consignment Inventory

Online Communications

Online Communications

Min-Max & Pull-Based Replenishment

Min-Max & Pull-Based Replenishment

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• US distributor of parts for power systems – 600,000 order lines per year– Global customer service centers taking orders 24/7– High volume of quotes

• Implemented full Oracle Applications suite across the enterprise– Live on Order Management, Advanced Pricing, Financials, Purchasing,

Planning, Electronic Messaging– Minimal customizations

"Oracle gives us a better tool to determine where we stand and to find the hot spots we really need to focus on to improve our margins in the future." -- Judy Warfield, Information Management Manager, GE Energy

Customer Successes

25


Enable you to:







Planning&

Procurement

Planning&

Procurement

Marketing,Sales,

Service

Marketing,Sales,

Service




Management


Management

26

OracleTransportationManagement

27

Service Providers Trading Partners

Internal Systems

Transportation Management

OrderMgmt

Warehouse & Inv Mgmt

Financials

• Tender Offer• Tender

Response• Ship Status• Invoice

• Planned Shipment• Order Status• ASN• Order / Release

Information

100% Web-Based Highly Configurable Global Business Support

• Orders• Product

Location• Item Master

• Planned Shipment

• Confirmed Shipment

• Payment Vouchers

• Invoice Check and Match

Continuous Planning

Event Management

CarrierAnalysis

On-TimePerformance

CustomerSatisfaction

*Currently re-implementing analytic capabilities using Oracle technology

Oracle Transportation Management

Consolidate Loads / Moves

Consolidate Loads / Moves

SelectModes & Carriers

SelectModes & Carriers

Book /Tende

r

Book /Tende

r

Track &Trace

Track &Trace

Audit / Settle

Audit / Settle

28

Procurement Collaboration & Optimization

Performance & Financial Analysis*

Logistics Order Management

Shipment Planning & Optimization

Service Provider & Asset Management

Shipment Execution

Freight Payment, Billing, Claims

Global Logistics Visibility

Supply Chain Event Management

Operational Reporting & Document Generation

Forwarding & Brokerage Operations

*Currently re-implementing analytic capabilities using Oracle technology

Oracle Transportation ManagementBest-In-Class Shipment Lifecycle Coverage

29

Execute Locally… • Using multiple languages and currencies- English, Spanish, German, French, Chinese (simplified)- Support for all currencies, including in-system conversions- Screen customization by region / country, user groups

• Accommodate region-specific rules and regulations

Control Globally… • All inbound POs and outbound customer deliveries

• Transfers between facilities, in different countries- Distribution centers – mfg - Intermediary nodes

• Visibility into in-transit & at-rest inv. throughout network

Manage Centrally… • All operational information in one location- Increase leverage for procurement- Apply best practices across regions

• Cleanse data to achieve single source of truth• IT infrastructure to reduce support and maintenance costs

- Evaluate processes holistically- Perform network analysis

Highly Scalable and FlexibleManage All Your Transportation Needs in One System

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• $1.9B footwear retailer with nearly 1,300 stores in North America- Brand names include Famous Footwear, Naturalizer, Life Stride, Buster

Brown, Dr. Scholls, Carlos, Barbie, Red Goose and various children'sbrands (e.g., Mary-KateandAshley, Spider Man)

- 62% of revenue from retail outlets, 38% from wholesale distribution

- Imports 75 million pairs of shoes each year from Brazil, Italy, China,Hong Kong, Taiwan, Indonesia, and Mexico

• Live on Oracle Transportation Management (G-Log GC3) - Improved visibility to inbound shipments from China, Brazil, and Italy

- Provides self-service tools for buyers to expedite / divert in-transit inventory

- Enables ocean contract compliance with on-line global visibility todistance to destination (DTD) ocean carriers’ transportation rates

Improved visibility to in-transit shipments by up to 2 weeks

Re-routes shipments to alternate ports to avoid delays

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OracleWarehouse Management

32

Transaction Velocity / VolumeSmall Large

Pro

duct

/ O

rder

Com

plex

ity

Low

Manual InventoryRecord transactions and

track balances

RF / Barcode OnlyImprove accuracy and reduce latency

of existing transactions

High

Warehouse ManagementImplement a true “execution system” using

system directed tasks and task management

Highly Automated FacilitiesAutomate physical inventory handling

Capabilities

Capabilities

Warehousing Functionality Spectrum

33

(1) Load of pallets and / or cartons with RFID tags on each

(2) Drive load through RFID Reader in Receiving Dock

(3) Interface to readers, clean and filter data, then pass IDs to application

(4) Access objects associated with theID's (e.g. LPN's on ASN)then raise correctBusiness Event

(6) Process the Business Event, (e.g. Receipt of pallet or carton)

(5) Access associated source document (e.g. the PO’s ASN)

(7) Confirm success or failure (e.g. trigger green light or sound buzzer)

(8) Putaway, rescan or divert material

RFID-Initiated Shipping & ReceivingProcess Transactions with No Manual Intervention

RFID Middleware(Oracle AS)

RFID Event Processor

Application APIs

Response& Exception

Handling

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Warehouse Business Intelligence: Timely, Accurate, Relevant

• Daily updates on key performance indicators

• Actionable information on savings and incremental revenue opportunities

• At a glance:- Inventory quantity and turns- Inventory accuracy-Pick-to-ship cycle time-Warehouse labor costs

LinksLinksReportsReports

Real-TimeReal-TimeResultsResults

GraphsGraphs

Flexible Flexible Time PeriodsTime Periods

Flexible Flexible ComparisonsComparisons

PerformancePerformanceMeasuresMeasures

35

• Leading distributor of prerecorded music to mass merchants in the US, UK, Canada, Brazil and Argentina- 2,300 employees including 1,000 field sales reps worldwide- 4,000 stores on 3 continents; 11% of all music sold in the US- 48 years of music distribution experience

• Live on 11i Warehouse Management- Chose Oracle WMS because of integration to existing 11i apps- Process 2 million picks per month with highly automated equipment- All customizations accomplished through standard Oracle APIs

Increased warehouse throughput (receive to ship) by 8%

Decreased billing time by 15%

Handleman Company

36


Enable you to:







Planning&

Procurement

Planning&

Procurement


Management


Management



Marketing,Sales,

Service

Marketing,Sales,

Service

37

Customer Order Management Is Embedded in CRM

Decrease Call Waiting Times

Decrease RequestSolution Time

Reduce Customer Service Costs

Decrease Service Response Times

Increase Customer Retention

Increase Customer Service Productivity

Accelerate Lead Maturation

Increase MarketingSourced Revenue

Decrease Lead Generation Cost

Improve Targeted Prospecting

Decrease Customer Acquisition Cost

Increase Campaign Response Rate

Marketing

Service

Sales

Increase Conversion Rate

Increase Revenue per Customer

Increase Average Order Size

Increase Close Rate

Increase Revenue per Sales Rep

Shorten Sales Cycle

38

Foundation: Common Customer Model Capture All Information in a Single Location

• Leverage analytics and predictive modeling to target customers more effectively

• Route customers to the right personnel for speedy interactions- Enable customers to seamlessly progress from sales to order to delivery

• Increase speed and efficiency of each interaction

Customers,

Suppliers,

Products, …

Customers,

Suppliers,

Products, …

• Contact Information

• Ship-To’s (e.g., Project Sites)

• Contract Terms

• Pending Quotes / Orders

• Shipment Status

• Sales Channel Usage

• Order & Issue History

• Interaction History

• Payment / Credit History

Multi-Channel Demand Management Enable Real-Time Order Validation

Order MgmtSystem

Demand

Web Store

Call Center

Sales / Quotes

Service

CustomerSystems

LegacySystems

Supply

Finished Goods Inventory

(in Warehouse)

Internal Move(at another DC)

Suppliers(Drop Ship or

Replenish Order)

• Embedded collaboration points throughout order management flow to enable demand and supply analysis

• Seamless communication with suppliers, customers, and carriers / partners

• Optimized flows to ensure order accuracy and on-time deliveries

• Eliminate “dropped call” effect; customer only has to provide information once

Order Management and FulfillmentImprove Customer Service and On-Time Delivery

Manage Out of Stock and Special Requests

Support Multiple Ordering Methods

Make Informed Pricing Decisions

Fulfill Based on Customer Needs & Order Priorities

• Peg POs to Sales Orders and automatically allocateon receipt

• Synchronize drop ship order with customer sales order

• Automatically apply contracted pricing, terms, and conditions

• Evaluate cost and margin by order / order line

• Allocate scarce inventory according to customer and order priorities

• Execute high volume order-to-ship flow

• Automatically import and process high-volume orders

• Easily guide customer through ordering process

Order MgmtSystem

Improve Customer InteractionsPresent a Single Face Across Multiple Touch Points

Consistent Information• Price• Service Level• Entitlements• Product Data• …

Call Center• Automatically route, queue, and distribute

calls for tailored help

• Enable “one and done” service capability

• Build and re-use customer knowledge base

Direct• Access accurate customer and account

information from desk top or remotely

• View alerts and notices

• Configure and price orders in real-time

Customer

24x7 Internet• Enable customers to view the latest

transactions & targeted content/brochures

• Ensure accuracy of customer information

• Research & log issues, request assistance

Multiple Service Delivery OptionsMeet Customer Needs and Expand Opportunities

Enable Customer to Resolve Issues Via Web

Manage Returns and Repairs

Dispatch Contract Service Technician to Resolve Issues

Dispatch In-House Field Technician to Resolve Issues

Resolve Customer Issues Via Phone

Self-Service

AgentAssisted

FieldService

DepotRepair

Outsource

43

• Atari is a leading publisher and distributor of video games for all consoles, as well as PC and Apple computers

- Over 1000 Catalog titles - Ships to over 22,000 retail outlets, including Target and Wal-Mart- Uses Oracle for consignment, drop shipments, real time sales reporting- Live on Financials, Order Management, Demand Planning, Sales Analyzer

- Key Benefits

» Improved visibility of sales cycle for better sales forecasting

» Enhanced inventory forecasting and management

» Processed 10% more sales volume upon launch

» Easily adapted to changing business demands

"Oracle plays a key role in Atari's success. These applications are our cornerstone, the repository for the information that drives the company and its performance." -- Glenn Magala, Vice President of Management Information Systems, Atari, Inc.

44


Enable you to:







Planning&

Procurement

Planning&

Procurement


Management


Management

Marketing,Sales,

Service

Marketing,Sales,

Service



• Model Future Profitability “What If” Scenarios

- Example: Cost Management Analysis

- Example: Revenue Management Analysis

• Allocate Costs and Revenues

• Segment and Analyze Profitability

Assess CurrentProfitability

IdentifyImprovement Opportunities

Plan andExecute

Maximize Product & Customer Profitability

• Collaborate with Customers and Suppliers

• Perform Sales and Operational Planning

• Assemble and Execute Logistical & Transportation Tasks

Accurate Cost and Revenue AllocationEnable Product and Service Profitability Analysis

• Calculate Profitability, Revenue, and Cost by- Product- Channel

- Service- Location

* ABC = Activity Based Costing

- Customer- Time Period

• Model Cost Structure for Use in Profitability Forecasts

Direct Costs

Indirect Costs

MapMap

MapMap

Revenuesfrom GL

AllocateAllocate

via ABC*via ABC*

Materials

Activities

Products

Services

Customers

Channels

Materials

Activities

Segment Products, Customers, Channels,

and Locations

Drill Down to MultipleLevels of Detail

• By profitability• By revenue• By cost

Region

Country

City Company

Account

LocationLocation

CustomerCustomer

Segmentation and Drill DownsIdentify and Analyze Improvement Opportunities

Future Profitability Model Evaluate “What-If” Scenarios

• Project Future Sales- Use standard techniques (e.g. Holt-Winters)

• Determine Resource Requirements & Costs with Activity Based Budgeting• Calculate Lifetime Value of Customers

- Manually input projections

Example: Cost Mgmt AnalysisDefine Actionable Goals to Drive Cost Strategy

Cost targets assigned to specific activities clarifyaccountability for driving improvements

• Cost control• Outsourcing• Logistics and transportation mgmt• Business process re-engineering

Improve EfficiencyImprove Efficiency Improve EffectivenessImprove Effectiveness

• Service level re-balancing• Error prevention vs. correction• Core vs. support activities• Channel entry / exit / re-design

Identify highcost activities

Find internalbest practices

Compare activity costs to int / ext benchmarks

Set target costs

Evaluate “what-if”scenarios

Set target allocations

Check activity alignment

with corporate strategy

Baseline current activity / cost allocation

Identify target activities

Example: Revenue Mgmt AnalysisDefine Actionable Goals to Drive Revenue Strategy

Evaluate “What-If” Scenarios

IdentifyUnprofitable Segments

Identify HighlyProfitable Segments

• Pricing• Product / service mix• Bundling• Customer migration & mgmt• Product entry / exit• Channel entry / exit / re-design• Merger integration

Decide Best Course of Action

Communicate Target Info

to Marketing

Set Targets& Goals

Determine how changes in product, pricing, and channel strategies can impact revenues

Operational Intelligence

Corporate Governance

Integrated Throughout

Entire Offering…

and

– Objective: Set institutional targets – Fact: Provide performance-based metrics– Exception: Continuously evaluate performance

Manage By…

How are supplier deliveries impacting my on-time delivery capability?

How can I best adjust to seasonal demand fluctuations?

Which SKUs have the highest or lowest inventory turn?

What was the average resolution time for agent-assisted issues?

Which carrier can accommodate last-minute shipment changes?

Deliver Daily Operational IntelligenceReal-Time Access to Complete Business Information

LinksLinksReportsReports

Real-TimeReal-TimeResultsResults

GraphsGraphs

Flexible Flexible Time PeriodsTime Periods

Flexible Flexible ComparisonsComparisons

PerformancePerformanceMeasuresMeasures

Operational Intelligence: Timely, Accurate, Relevant

• Daily updates onkey performance indicators

• Actionable infoon cost savingsand incremental revenue opportunities

• Role-based views:- Marketing- Sales- Order Mgmt- Planning- Procurement- Inventory Mgmt- Transportation Mgmt- Service

Corporate GovernanceA heightened business focus on accuracy in reporting to investors

brought on by recent fraudulent practices of several major corporations

Oracle Helps Drive Compliancethrough Visibility, Control, and Efficiency

• Senior mgmt personal liability for financial result accuracy

• Senior mgmt and outside auditor attestation to the effectiveness of internal controls

• Accelerated SEC filing deadlines

Sarbanes Oxley Act (SOX) EU Anti-Fraud Directive (Mar 2004)

• Collective Board liability for financial result accuracy

• Senior mgmt and outside auditor attestation to the effectiveness of internal controls

• Select Corporate Governance Code

For all U.S. companies and companies issuing securities in the U.S.

For all E.U. companies and companies issuing securities in Europe

Corporate Governance:Visibility, Control, Efficiency

Automate Processes and Extend to Customers & Suppliers

YourCompany

Customers& Suppliers

• Identify issues early

• Enable real-time information access & performance mgmt

• Consolidate global financials

• Unify corporate reporting

• Consolidate and reconcile information rapidly

• Automate business processes and broaden use of self-service

• Simplify IT infrastructure

• Leverage best practices from different groups / regions

Visibility

Efficiency

Provide Single Source of the Truth Centrally Manage Policies and Procedures

• Integrate and centralizebusiness operations

• Document processesand support compliance

• View, test and certifyinternal controls

• Manage corporatecommunications

Control

Orders

Invoices

Payments

Requisitions

56

Agenda





• $419M worldwide leader in high-performance open storage networking solutions

– 1020 employees across the U.S., Europe and Asia– Replaced Siebel and SAP with Oracle

• Live on 11i – single global data center– Sales, Incentive Comp, Order Mgmt, Configurator, Discrete Mfg,

Warehouse Mgmt, TeleService, iSupport, Depot Repair, Svc Contracts, Procurement Financials, Human Resources (inc self-svc), Payroll

On-time shipments increased from 79% to more than 97% Reduced total inventory 75% Reduced service operations cost structure by 50%

On-time shipments increased from 79% to more than 97% Reduced total inventory 75% Reduced service operations cost structure by 50%

“McDATA's challenge of growing international business operations can only be met with

a flexible open system like Oracle E-Business Suite. Buying disparate "best-of-breed" applications requires costly and time-consuming integration services. Oracle offers a seamless, fully integrated, modular business solution.” – Don Wenninger, CIO

58

• Global Distributor of insulated food and beverage containers, soft coolers, and lunch kits

• Live on 11i- Warehouse Management, Order Management, Financials,

E-Business Suite On Demand- Saved $665K in one-time and $180K in annually recurring IT costs- On track to save $6.2M through efficiency gains for 222% ROI- Shortened monthly close from 6 days to 2 days

Reduced inventory by $300K, expects to cut an additional $600K

Raised warehouse labor productivity by 15%, expects to reach 29%

“With more demanding on-time requirements, inventory accuracy is essential. With Oracle Warehouse Management we know exactly what product we have, and where, at any point in time and the accuracy level is so high that our auditors no longer require us to take a physical inventory." -- Mike Yeager, Director of Logistics

• Leader in test devices, semiconductors, and chemical analysis tools– $ 7.18B revenue in FY04; customers in 120+ countries; 29K employees

• Live on Oracle for global 24/7 operation– Quoting, Adv Pricing, Order Mgmt, iStore, Adv Supply Chain Planning, Purchasing,

iSupplier Portal, Mobile Supply Chain Applications, Financials, Warehouse

– Enterprise-wide implementation of Oracle Applications planned for:- 4 distribution Centers- 6 customer service centers- 37+ manufacturing sites- 3 financial centers

– 15K named users globally, 5K concurrent users, 100K concurrent requests daily

– Entire semiconductor business on Oracle ERP- Runs optimized ASCP for 75K+ items & 6M+ resource requirements- Runs worldwide order mgmt and manufacturing operations using real-time

synchronization to OSFM and constrained Global ATP- Manages over 1,000 shipments daily using Mobile SC Apps- First semiconductor company to use EDI-driven Oracle Release Mgmt for VMI

- Met over 4,500 business requirements without any customizations

http://we.home.agilent.com/cgi-bin/bvpub/agilent/intl_bus/home.jsp?COUNTRY_CODE=ZZ&LANGUAGE_CODE=eng

http://we.home.agilent.com/cgi-bin/bvpub/agilent/intl_bus/home.jsp?COUNTRY_CODE=ZZ&LANGUAGE_CODE=eng

Oracle Wholesale / Distribution Solution





61

? Question & Answer Session

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