Logistics Oracle Proposed Solution

Know More. Do More. Spend Less.

OracleLogistics

Logistics Management At-a-Glance

StorageStorage

TrackingTracking

Planning & ExecutionPlanning & Execution DestinationDestination

“Forward-thinking manufacturers use logistics strategically to reduce safety stock levels and improve customer service –and hence profits – through better information. Bottom line, logistics is a new game, and the old rules simply do not apply.”

- Research Analyst, Logistics Resource Mgmt Executive White Paper

SourceSource

• Resource & Space Utilization• Pick, Pack & Ship

• Network Design, Carrier Contracts• Carrier Selection, Freight Rating

• In-transit Shipment Status• Event Management, Notifications

Business PressuresCustomer Expectations• How do I improve the speed

and visibility of shipments?• How can I improve global

order promise accuracy?

Customer Expectations• How do I improve the speed

and visibility of shipments?• How can I improve global

order promise accuracy?

Variable Demand• How do I account for higher

volume from Internet selling?• What adjustments do I

make in planning for mass customization?

Variable Demand• How do I account for higher

volume from Internet selling?• What adjustments do I

make in planning for mass customization?

Increased Complexity• How can I manage

product proliferation?• How do I balance global

supply and demand to ensure on-time delivery?

Increased Complexity• How can I manage

product proliferation?• How do I balance global

supply and demand to ensure on-time delivery?

Margin Pressure• Where can I reduce costs

to maintain competitive prices?

• How do I differentiate my logistics offerings?

Margin Pressure• Where can I reduce costs

to maintain competitive prices?

• How do I differentiate my logistics offerings?

StorageStorage

TrackingTracking

Planning & ExecutionPlanning & Execution DestinationDestinationSourceSource

Operational Challenges

Your Company Carriers Customer

ExecutionPlanning

x

Multiple,Non-Integrated

SystemsManual Processes

Expediting and missed shipments

Warehouses

Fragmented Communication & Visibility

A Need for ChangeLeading Business Trends

• Fulfillment Processes Integrated with Partners

• Streamlined Material Flow (e.g. Cross-Docking)

• Mobile Solutions for Increased Visibility/Passive Tracking

• Consolidation & Outsourcing of Shipping Activities

• Reverse & Service Parts Logistics Management

• Fulfillment Processes Integrated with Partners

• Streamlined Material Flow (e.g. Cross-Docking)

• Mobile Solutions for Increased Visibility/Passive Tracking

• Consolidation & Outsourcing of Shipping Activities

• Reverse & Service Parts Logistics Management

Logistics Management Opportunities

OnOn--Time DeliveriesTime Deliveries 1010--20%20%

Improved Capacity UtilizationImproved Capacity Utilization 55--10%10%

Lilly, Intermec, eSync, Tompkins, Meta Group, Lilly, Intermec, eSync, Tompkins, Meta Group, TeliaTelia NetworksNetworks

Warehouse Labor HoursWarehouse Labor Hours 1010--30%30%

Direct Transportation Spend Direct Transportation Spend 55--25%25%

Total Inventory Total Inventory 5%5%

Shipping ErrorsShipping Errors 8080--100%100%

How OracleHow OracleDeliversDelivers

Oracle: Complete E-Business Suite

Develop

Market

SellOrderPlan

ProcureProcure

MakeMake

FulfillFulfill

Service

Maintain Finance HRProjects

All Product,Customer,& SupplierInformation


Automate Key Internal Business Processes

Extend Automation to Your Trading Partners

Drive Continuous Improvement with Real-Time IntelligenceLogistics

ManagementLogistics

Management

Oracle Logistics Solution

PlanPlan Book /TenderBook /Tender

ManageWrhs

ManageWrhs

Pick &Label

Pick &Label

Pack &

Ship

Pack &

Ship RateRate Track Track

GlobalCustomersGlobalCustomers

Continuous Improvement


Integrated Planning & ExecutionIntegrated Planning & Execution

Carriers /3PLs

Carriers /3PLs

InboundSupplySource

InboundSupplySource

OutboundDemandDestination

OutboundDemandDestination

Collaboration &Event Management

Collaboration &Event Management

CarrierCarrierAnalysisAnalysis

OnOn--TimeTimePerformancePerformance

CustomerCustomerSatisfactionSatisfaction

Settle Settle

Oracle Logistics SolutionDimensional Considerations

OutboundInboundOutboundInbound

Intra-OrgReturnsIntra-OrgReturns

FlowFlow

DynamicOperationalDynamicOperational

TacticalStrategicTacticalStrategic

TimeTime

TruckRailTruckRail

AirOceanAirOcean

PlacePlace

LogisticsLogisticsManagementManagement

ModeMode

FacilityLocal AreaFacilityLocal Area

DomesticInternationalDomesticInternational

Oracle Logistics SolutionEnables You To…

Integrate Planning and Execution

Collaborate with All Trading Partners

Streamline Global Shipments

Drive Continuous Improvement





Integrate Planning and Execution Seamless Flow of Information

Minutes Hours/Days Weeks/Months Quarters Years

Strategic

Operational

e.g. Distribution Network

e.g. Planned Shipments e.g. Performance

e.g. Shipment Schedule

e.g. Actual Shipments

e.g. Load Plans

e.g. Shipment Exceptions

e.g. Delivery Confirmation

e.g. Load Confirmation

e.g. Dock Scheduling

* Coming in 11i.10

Warehouse ManagementWarehouse Management

Network DesignNetwork Design

Supply & DemandPlanning

Supply & DemandPlanning

Transportation Planning*Transportation Planning*

Transportation ExecutionTransportation Execution

Event ManagementEvent Management

Minimize Inventory… Provide Single, Consolidated View of All Inventory

• Provide inventory visibility– In-transit inventory– At trading partners– Between operations

• Enable postponement– Optimize inventory location

(manufacturing, distribution centers, central warehouses)

• Plan for demand and supply variability

Warehouse

In-Transit

WIP / PlannedProduction

ConsolidatedInventory

Status

…While Maximizing Service Levels Improve Customer Satisfaction

• More Accurate Promise Dates– Promise orders based on material

availability; supplier, manufacturing and transportation capacity

– Allocate supply & capacity by channel, customer or product

– Enable Capable to Deliver

• Increase Delivery Efficiency– Minimize expediting charges– Eliminate manual transfer processes– Improve warehouse pick and carrier

delivery accuracy

• Proactively Respond to Exceptions

Warehouse

In-Transit

WIP / PlannedProduction

ConsolidatedDeliveryStatus

Optimize Asset Usage Leverage All Assets to Reduce Operating Costs

People

Warehouse Space Vehicles

Capital

Deliver using full truck loads

Reduce capital investedReduce manual labor

Slot based on space utilization










Logistics CollaborationShare Information Real-Time with Trading Partners

Carriers / 3PLsYour

Company

Customers

InvoiceInvoice

BookBook

TrackTrackDispatchDispatch

RatingRatingCapacityCapacity

TrackTrack

OrderOrder

ASNASN

PaymentPayment

TrackTrack

ScheduleSchedule

DeliverDeliver

Logistics CollaborationReduce Uncertainty with Improved Visibility

• Increase delivery status visibility

• Improve customer service with better order promising

• Decrease in-transit and delivery issue response time

• Reduce planning cycle time and revisions

• Reduce tender rejections

• Increase delivery status visibility

• Improve customer service with better order promising

• Decrease in-transit and delivery issue response time

• Reduce planning cycle time and revisions

• Reduce tender rejections

Multiple Collaboration Methods Drive Lights-Out Connectivity

Web• Online portal access for all trading partners• Secure remote access from any location

XML• Support for OAGI XML standards• Secure, guaranteed, one-time only delivery• Trading partner specific data mapping

EDI• Support for industry standards (X12, EDIFACT, etc)• Partnerships with major EDI translators

Email• Interactive, easy access, no integration• Notification of activity on business documents

Supply Chain Event ManagementException Monitoring and Notification

• Reduce communication latency– Notify all tiers simultaneously – Get visibility to fulfillment, purchasing,

inventory, and manufacturing events

• Reduce expediting costs– Identify exceptions faster– Automate exception handling

• Reduce inventory– Provide real time inventory visibility

to suppliers– Enable Vendor Managed Inventory

• Improve fulfillment cycle time– Automate replenishment process

Customer

Shipper

CarrierDelay

Notifications andCorrective Action










Cost-Effective Global DeploymentThink Locally, Act Globally

• Deploy and manage on a single global instance

• Support with single worldwide organization

• Support for statutory and customary local requirements

• Multi-lingual, multi-currency, multi-org, multi-national capabilities

- 30 languages, all installable in same unicode instance

• Deploy and manage on a single global instance

• Support with single worldwide organization

• Support for statutory and customary local requirements

• Multi-lingual, multi-currency, multi-org, multi-national capabilities

- 30 languages, all installable in same unicode instance

Support International Trade ManagementContent via Standard Partnerships

Compliance

• Enable denied party screening

• Provide embargo license detection

• Identifies boycotts

• Enable denied party screening

• Provide embargo license detection

• Identifies boycotts

ExportScreening

Export, ImportDocuments

• Prepares standard paperwork for shipping regulations (e.g. customs clearance paperwork)

• Prepares standard paperwork for shipping regulations (e.g. customs clearance paperwork)

Benefits

• Ensure regulatory compliance

• Minimize government audits

• Ensure regulatory compliance

• Minimize government audits

• Eliminates costly delays

• Ensures on-time deliveries

• Eliminates costly delays

• Ensures on-time deliveries










Drive Continuous Improvement Improve Performance Through Integrated Intelligence

LogisticsPlan

EstablishEstablishTargetsTargets

PerformPerformTransactionsTransactions

MeasureMeasureResultsResults

Out ofOut ofTolerance?Tolerance?NotificationsNotificationsAdjust PlanAdjust Plan

ExceptionsExceptions

Daily Business IntelligenceReal-Time Access to Complete Business Information

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

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

Manage By…Manage By…

What percentage of outbound shipments are delivered on-time?

What is my variance in cost per shipment?

How are inventory turns and quantities changing?

How are my expediting costs changing?

Which carriers are providing the best cost and service?

LinksLinks

ReportsReports

RealReal--TimeTimeResultsResults

GraphsGraphs

Flexible Flexible Time PeriodsTime Periods

Flexible Flexible ComparisonsComparisons

PerformancePerformanceMeasuresMeasures

Warehouse and Transportation Intelligence*: Timely, Accurate, Relevant

• Daily updates on key performance indicators

• Actionable information on savings and incremental revenue opportunities

• At a glance:- On-time departure and

delivery, cycle time- Shipping cost / weight- Inventory quantity,

turns, and accuracy- Pick-to-ship cycle time- Warehouse labor costs

* Coming in 11i.10

• Define all characteristics of the distribution network• Specify details such as lanes, distribution centers, etc.• Define all characteristics of the distribution network• Specify details such as lanes, distribution centers, etc.

• Supply and demand planning across network• Transportation planning including load planning, mode / carrier

optimization, load configuration

• Supply and demand planning across network• Transportation planning including load planning, mode / carrier

optimization, load configuration

• Freight rating, automated mode/carrier selection• Load tendering, shipment pickup requests• Global track and trace, settlement

• Freight rating, automated mode/carrier selection• Load tendering, shipment pickup requests• Global track and trace, settlement

• Automated, tailorable warehouse functions (e.g. pick, pack)• RF barcoding support• Advanced inventory management capabilities

• Automated, tailorable warehouse functions (e.g. pick, pack)• RF barcoding support• Advanced inventory management capabilities

• Monitor shipments• Handle exceptions and notify all trading partners• Monitor shipments• Handle exceptions and notify all trading partners

NetworkDesign

Supply ChainPlanning

TransportationExecution

WarehouseManagement

EventManagement

Oracle Logistics SolutionKey Capability Summary


Integrated supply, demand, and transportation planning with transportation/warehouse execution

Integrated supply, demand, and transportation planning with transportation/warehouse execution

Real-time information sharing, event managementReal-time information sharing, event management

Integrated performance measurement and analysisIntegrated performance measurement and analysis

Integrate Planningand Execution

Integrate Planningand Execution





Single global instance, international trade managementSingle global instance, international trade management



Inventory ManagementWarehouse

ManagementMobile Supply Chain

ApplicationsTransportation

Logistics Intelligence

Inventory Inventory ManagementManagementWarehouse Warehouse

ManagementManagementMobile Supply Chain Mobile Supply Chain

ApplicationsApplicationsTransportation

Logistics IntelligenceLogistics Intelligence

Develop

MarketSellOrder

PlanProcureProcure

MakeMake

FulfillFulfill

Service

Maintain Finance HRProjects



Oracle Logistics Products

Evolution of Oracle Logistics Evolution of Oracle Logistics

…New with 11i.9……New with 11i.9…Current Differentiators…Current Differentiators…

• Built-in, not bolt-on - RF/mobile technology & transaction integration

• Flexible rules-based processes• Configurable material flows• Inbound logistics – receiving,

inspections, directed put-away, cross docking, ASN

• Outbound logistics – dock assignment, pick wave selection, picking methods, cartonization / packing, shipment execution, trip & delivery planning

• Advanced inventory mgmt –container & LPNs, lot/serial genealogy, status, Kanban

• Reverse logistics – RMA receiving, supplier returns, refurbishment & recycling

• Built-in, not bolt-on - RF/mobile technology & transaction integration

• Flexible rules-based processes• Configurable material flows• Inbound logistics – receiving,

inspections, directed put-away, cross docking, ASN

• Outbound logistics – dock assignment, pick wave selection, picking methods, cartonization / packing, shipment execution, trip & delivery planning

• Advanced inventory mgmt –container & LPNs, lot/serial genealogy, status, Kanban

• Reverse logistics – RMA receiving, supplier returns, refurbishment & recycling

…Coming in 11i.10…Coming in 11i.10

The following is intended to outline our general product direction and is intended for information purposes only. The development, release and timing of any features or functionality remains at the sole discretion of Oracle. This presentation is not a commitment to deliver any material, code or functionality.

• VMI & consigned inventory• Task & labor plng control board• Delivery consolidation by

locator and / or LPN• Cluster picking & WIP picking• eAM component picking• UPC & smart barcode support• Single mobile UI for all

receiving transactions• Additional material handling

equipment integration• Simplified rules engine def’n

and examples library• Load tendering• Online tracking of ship status• Carrier selection & freight rating• Automated shipping processes• Non-conformance mgmt

• VMI & consigned inventory• Task & labor plng control board• Delivery consolidation by

locator and / or LPN• Cluster picking & WIP picking• eAM component picking• UPC & smart barcode support• Single mobile UI for all

receiving transactions• Additional material handling

equipment integration• Simplified rules engine def’n

and examples library• Load tendering• Online tracking of ship status• Carrier selection & freight rating• Automated shipping processes• Non-conformance mgmt

• Configurable picking & streamlined shipping UI’s

• RFID-based transactions• UCC 128 / UCC 14 support• Work-plan based put-away• Catch weight support• Packing workbench• Over picking & bulk picking• Inbound transport logistics• Freight payment & audit• Delivery consolidation• Truckload rating• Transportation planning – load

consolidation, continuous moves, automated mode and carrier selection

• International drop shipments• Logistics-related analytics/KPIs

• Configurable picking & streamlined shipping UI’s

• RFID-based transactions• UCC 128 / UCC 14 support• Work-plan based put-away• Catch weight support• Packing workbench• Over picking & bulk picking• Inbound transport logistics• Freight payment & audit• Delivery consolidation• Truckload rating• Transportation planning – load

consolidation, continuous moves, automated mode and carrier selection

• International drop shipments• Logistics-related analytics/KPIs

SuperiorSuperiorArchitectureArchitecture

Foundation: Common Data ModelA Single Source of Truth

PlanningPlanning

FinanceFinance

PurchasingPurchasingLogisticsLogistics

ManufacturingManufacturing

InventoryInventory

CommonData

Model(9i Platform)

CommonData

Model(9i Platform)

ServiceServiceContractsContracts

Store all data in a single database

Consolidate data from multiple systems

Eliminate need for integration and redundant systems

Scale to meet growth demands

Modular ArchitectureImplement Based on Your Business Priorities

Tim

e

Implement by Business Flow– Start with one flow, demonstrate initial success– Add more flows to expand business coverage– Support changing business needs

Flows are Seamlessly Integrated– Replace disparate systems– Eliminate data synchronization– Decrease time and cost to implement

Tailorable ArchitectureWorkflow Driven Business Rules

• Flexible drag and drop interface

• Workflow driven processes with common engine

• Rules-based architecture requires no customization

• Open APIs for extensibility

Lower Total Cost of Ownership (TCO)Run on a Single Global Instance

Consolidate Data Centersand Databases

E-Business On Demand

Low Cost Linux Hardware

App Admin

DB/AS Admin

Sys Admin

HW Admin

App Admin

DB/AS Admin

Sys Admin

HW Admin

Production midtiers 100% LinuxProduction DB RAC Cluster (Unix)Demo environments 100% Linux Development 90% Linux Outsourced Customers 70% Linux

Production midtiers 100% LinuxProduction DB RAC Cluster (Unix)Demo environments 100% Linux Development 90% Linux Outsourced Customers 70% Linux

Oracle’s Experience with LinuxOracle’s Experience with Linux

3x faster, 5x cheaperEasy to Automate en MassHighly Reliable

NeedsNeeds::RolesRoles::OracleOracle

Manages:Manages:

50% Lower Cost50% Lower Cost

50% Better Svc50% Better Svc

Core CompetenceCore Competence

Predictable CostPredictable Cost

YouYouManage:Manage:

AvailabilityAvailability

SecuritySecurity

PerformancePerformance

ChangeChange

ProblemsProblems

Standardized Open Integration Platform

• Business events infrastructure• Industry standard protocols• Centralized integration repository

Simplify B2B Integration, Application Connectivity,

and Process Management

CustomerCustomerSuccessSuccess

A Few Logistics Customers

Integrated order/shipping info to reduce fulfillment cost/timeLeveraging global ATP to improve on-time delivery performanceReduced raw material inventory by 56%

Integrated order/shipping info to reduce fulfillment cost/timeLeveraging global ATP to improve on-time delivery performanceReduced raw material inventory by 56%

American PowerConversion Corp

• $1.4B world leader in IT equipment power protection– 16 manufacturing & 25 distribution sites worldwide, serving 120 countries

• Live on 11i -- single data center in Rhode Island– Order Mgmt / Shipping, Manufacturing, Purchasing, Planning,

Financials, HR– Adding Mobile Supply Chain Apps, WMS, Configurator– Upgraded from 10.7 to 11i – Consolidated 13 systems into a single global instance– 3200+ users (700 concurrently), 3600 order lines/day across 50+

organizations at 10 sites“Having an integrated set of application modules in a single instance…you get a global perspective in one place in real time.”

-- Lisa Sipe, CIO, APC

$345M leader in high-performance enterprise Storage Area Network systems

– 950 employees across the U.S., Europe and Asia– Manufactures and markets high-performance switching equipment

and heterogeneous network mgmt software– Replaced Siebel and SAP with Oracle

Live on 11i– Warehouse Management, Configurator, Order Mgmt, Discrete Mfg,

Purchasing, Financials, TeleService, Depot Repair, Service Contracts– Projects a five-year cumulative ROI of 352% on Oracle E-Business

Suite implementation– Support complex ‘configure to order’ fulfillment process

On-time shipments increased from 79% to more than 97%

Reduced total inventory 75%

On-time shipments increased from 79% to more than 97%

Reduced total inventory 75%

• Leader in wireless communications products and services– Over 6,000 employees at 40+ facilities in 18 countries

• Currently implementing 11i– Order Management, Warehouse Management

Expect significant workload reduction and flexibility

Predict rapid, low cost implementation without customizations

Expect significant workload reduction and flexibility

Predict rapid, low cost implementation without customizations

“Using Oracle WMS business based rules engine will ensure a rapid, low cost implementation since we do not have to customize it. The flexibility to match the way we work in a wireless environment, and the containerization of product represents a significant workload reduction.”

– Tom Fisher, VP Information Technology

“Using Oracle WMS business based rules engine will ensure a rapid, low cost implementation since we do not have to customize it. The flexibility to match the way we work in a wireless environment, and the containerization of product represents a significant workload reduction.”

– Tom Fisher, VP Information Technology

Guided by Our CustomersLogistics Customer Advisory Board

Israeli Air ForceKnouseMcGraw-HillMilliporePellaQualcommSeagateTektronixToshiba (TABS)WC Bradley (Charbroil)

Abbott LabsAgereAgilentAlcoaDanaDonaldsonEscoFEMSA/SolisticaHafeleIKON

SummarySummary

Integrated Planning and Execution

Trading Partner Collaboration

Streamlined Global Shipments



Know More. Do More. Spend Less.

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