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Industrial Manufacturing Heavy Equipment & MachineryOrder Capture and Fulfillment SolutionsPresenter’s NamePresenter’s Title
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The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Safe Harbor Statement
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• Leadership in Heavy Equipment & Machinery
• Innovation in Industry Specific Solutions
• Results Achieved by Oracle Customers
Agenda
4
Oracle’s in Heavy Equipment
& MachineryDid You Know?
8 of the top 10 Oil & Gas equipment companies run Oracle Applications
9 of the top 10 Fortune’s industrial & farm equipment Manufacturers run Oracle Applications
8 of the top 10 Industry Week’s leading machinery manufacturers run Oracle Applications
7 of the top 10 construction equipment manufacturers run Oracle Applications
5
Challenges We’re Hearing….
Revenue Growth “With the much of the cost-cutting already done, how can I grow top-line revenue to increase profits?”
“80% of the world's top corporate CEOs declared that their primary objective has shifted from cost-cutting to revenue growth.”
IBM BCS, The Global CEO Study
“Pure and simple, lean is reducing the time from customer order to manufacturing and delivering products by eliminating non-value added waste in the production stream. The ideal of a lean system is a one-piece flow. A lean manufacturer is continuously improving in the direction of that ideal.”
“How can we implement Lean more effectively to improve margins in a complex product environment?”Eroding Margins
James Womack, “Lean Thinking”
6
Challenges We’re Hearing….
Rapidly ChangingCustomer Demands
“How can we build a more responsive supply chain in a rapidly changing market?”
“Market leaders all have supply chains that are more responsive to customer demand.”
Yossi Sheffi, MIT, in the Economist, June 17, 2006
“Many discrete industrial organizations are finding great value in aftermarket services, including installation, after sale services, spare parts, warranty, and repair. Yet many other organizations fail to recognize the potential benefit this business can bring in revenue growth, profits, customer intimacy, and operational excellence.”
“How can we expand high margin aftermarket support opportunities?”
AftermarketGrowth
Jane Barrett, Eric Karofsky AMR – Jan. 2007
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• Leadership in Heavy Equipment & Machinery
• Innovation in Industry Specific Solutions
• Results Achieved by Oracle Customers
Agenda
8
Simplify Order Capture and Fulfillment
Requirement Oracle Capability The Oracle Difference
Optimize delivery of complex products with high transportation cost
TransportationManagement
World-class transportationplanning & execution
Improve channel performance through enhanced collaboration
Partner Relationship Management with Configurator/Guided Selling
Integrated best-of-breed configurator with a single set of rules for all user interfaces across all channels
Manage complex configured products throughout the order cycle
Configure to CashMost complete suite of capabilities to optimize configure to cash flow
9
Simplify Order Capture and Fulfillment
Requirement Oracle Capability The Oracle Difference
Optimize delivery of complex products with high transportation cost
TransportationManagement
World-class transportationplanning & execution
Improve channel performance through enhanced collaboration
Partner Relationship Management with Configurator/Guided Selling
Integrated best-of-breed configurator with a single set of rules for all user interfaces across all channels
Manage complex configured products throughout the order cycle
Configure to CashMost complete suite of capabilities to optimize configure to cash flow
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UnifiedChannelsUnified
Channels
Distribution
Telesales
Direct Channel
Web Channel
ProductivityProductivity FlexibilityFlexibility Analytics
InternalDepartments
InternalDepartments
Channel Manager Dashboard
Performance Management
Channel Process
Design Wins
Channel Tools
Templates & Multi-Channel
Complete and Accurate Information (360)
Sales/Contracts
Marketing/Pricing
Supply Chain
Finance
Receivables/Payables
OrderManagement
CustomerData
Partner Relationship ManagementImprove Channel Performance Through Enhanced Collaboration
RecruitRecruit SellSellManageManage MarketMarket MeasureMeasureSettle/Settle/CompComp
Segment & Personalize
11
Sal
es C
hann
els
Sal
es C
hann
els
Tele Sales
Partners
Field Sales
Web Sales
Your Organization• Collaborative team selling• Customer and contact intimacy• Revenue maximization• Effective channel conflict mgmt
Your Customers• Consistent, higher-quality
experience across all channels• Self-service access and visibility to
new products
Your Partners• Up-to-date information access• Consistently support best practices
at all points of contact
Collaboration G
oalsC
ollaboration Goals
Coordinate Information Across ChannelsSeamlessly Share Information with Key Participants
• Customer• Products• Campaigns• Prices• Configuration• Approvals• Quotes• Orders
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Create & Configure
Order
CreateCampaign
Create Lead / Opportunity
Configure & Create Quote
GenerateForecast
Check Availability
Schedule
Invoice
Plan, Ship and Track
CR
M –
Cam
paig
n to
Ord
er F
low
SCM
–O
rder
to C
ash
Flow
Web Customers:• Customers• Partners
Partners:• Mfg Reps• Contractors
Sales:• Cust Svc Reps• Inside Sales
Guided Selling
Guided Buying
Configurator with Single Set of RulesSupport for Multiple Sales Channels
CommonCommon
ConfigurationConfiguration
ModelModel
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Channel Manager DashboardProvide Insight into Partner Channel Activity
• Key sales metrics and performance indicators
• Comparisons to prior year / quarter
• Links to workflow activities
• Instant visibility to partner performance
- YTD / QTD pipeline- Close rate- Access to
transaction detail- Trade funds
management
14
COMPANY OVERVIEW$9B global diversified manufacturer, based in Hamilton, BermudaMajor brands include Bobcat, Club Car, Hussmann, Dresser-Rand, Thermo King, Schlage, and Kryptonite
CHALLENGES / OPPORTUNITIESManage sales and service through both direct and reseller channels via one integrated solutionShare customer information across its 30 operating units and 2,600 reps
SOLUTIONOracle’s Siebel:Call CenterOrder ConfiguratorPricingPartner Relationship Management
CUSTOMER PERSPECTIVE“Sales reps can now configure a product while on-site with a customer. Our customer order managers can then quickly check the order and push it directly to our manufacturing system. This process saves a great deal of time and has resulted in improved order accuracy.”Robert Martens, Director of CRM, Ingersoll Rand
RESULTS• Increased revenues by $6.2 million in
one year from cross-selling• Improved sales process by
automatically pricing configured orders and generating proposals
• Improved sales productivity and speed of service
Ingersoll Rand Increases Cross Sell Revenues by $6.2 Million
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Simplify Order Capture and Fulfillment
Requirement Oracle Capability The Oracle Difference
Optimize delivery of complex products with high transportation cost
TransportationManagement
World-class transportationplanning & execution
Improve channel performance through enhanced collaboration
Partner Relationship Management with Configurator/Guided Selling
Integrated best-of-breed configurator with a single set of rules for all user interfaces across all channels
Manage complex configured products throughout the order cycle
Configure to CashMost complete suite of capabilities to optimize configure to cash flow
Configure to CashManage Complex Configured Products Throughout Order Cycle
Forecast & Plan
Design
Configuration(Product and Pricing)
Opportunity Definition
Available to Promise
Schematics and Drawing Generation
Configured Quote
AutomaticOrder Creation
Match
Automatic Config Item,Bill & Routing Creation
Automatic SupplyOrder Creation
Manufacture & Reserve
Pick and Ship
Needs Assessment
Populate InstalledBase
Update Sales and Service Contracts
Customer Initiates Service Request
AssignField Tech
InitiateRMA
Define Service Rqmt And Dispatch Work
Repair &Debrief
Receive& Repair
FlowSchedule PO Work
OrderInternal
Req.
= OM & Logistics = Mfg= Maint. & Service
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Configure Complete, Complex SolutionsDynamically Configure Products Plus Services
Solution-Based Modeling• Enable the dynamic
configuration of systems at run-time
- Build complex model structures- Add, delete, and individually
configure sub-components- Connect sub-components (rules
are applied only when connection is made)
• Simplify maintenance of configuration models
- System models built on re-usable model components
- Component-level plus system-level rules ensures that solution will work
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract17
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BOM Model
Pre-Configured New Item “A”
Available for Order
Pre-Configured New Item “B”
Available for Order
Config “A”
Config “B”
CommonConfiguration
Model
UpdatedSales Catalog
• Derive new product from existing designs
• Add commonly requested configurations to standard catalog
• Forecast and stock common configurations
• Enter orders for stock configuration, or match based on models and options chosen
Auto-create Items, BOMs and RoutingsPre-Define Items for Frequently Used Configurations
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• Streamline Pick Process with Automated Task Management
- Match skills and equipment to tasks- Dispatch tasks to wireless device- Perform task sequencing to speed
pick process
• Perform Complex InventoryTransactions via LPN Support
• Accelerate Warehouse Material Flow Through Cross-Docking and Direct Ship Processes
• Support Compliance Labeling of Shipments with Numerous, Flexible Formats
Integrated Warehouse OperationsEnhance Pick Pack and Ship
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Hitachi Reduces Product Time to Market
COMPANY OVERVIEWSales, Manufacturing & Service for construction machinery & transportationLargest manufacturer of hydraulic excavators in the worldFounded 1949, HQ: Tokyo, Japan50 models offered; half-ton to 500+ ton ultra-large lines13,000+ employees; 84 companies
CHALLENGES/OPPORTUNITIESMarket trends towards globalization and meeting demands of customers on a worldwide basisRapidly growing markets with various product needs in emerging areasRequirement for standardization with consistency on sales ordersDirections to offer a Total Solution for complete coverage with lower TCO.
SOLUTIONSOracle ConfiguratorOracle iSupplier PortalOracle Order Management
CUSTOMER PERSPECTIVE“Using “Best Solution Partner’ as our brand concept (with Oracle EBS), we will undertake an intensive effort to make each employee around the world as much a part of the brand as our products…The business environment within which our group operates is undertaking dramatic change. We see this change as an opportunity and are committed to increasing corporate values by investing actively in our future growth with improving results.”2006 Annual Report, Hitachi ConstructionRESULTS• Improved information availability in the
sales process for configurations Reduced product time-to-market
• Out-of-the-box integration of back and front office provides superior efficiency, reliability and integrity from customer Order into the business process
• Single model deployed in Order process
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Simplify Order Capture and Fulfillment
Requirement Oracle Capability The Oracle Difference
Optimize delivery of complex products with high transportation cost
TransportationManagement
World-class transportationplanning & execution
Improve channel performance through enhanced collaboration
Partner Relationship Management with Configurator/Guided Selling
Integrated best-of-breed configurator with a single set of rules for all user interfaces across all channels
Manage complex configured products throughout the order cycle
Configure to CashMost complete suite of capabilities to optimize configure to cash flow
22
Comprehensive Transportation MgmtImprove On-time Delivery While Reducing Transportation Costs
Carriers /3PLs
Continuous Improvement
Integrated Planning & Execution
InboundSupplySource
OutboundDemandDestination
GlobalCustomers
Collaboration &Event Management
CarrierAnalysis
On-TimePerformance
CustomerSatisfaction
PlanPlan Book /TenderBook /Tender
ManageWrhs
ManageWrhs
Pick &Label
Pick &Label
Pack &
Ship
Pack &
Ship RateRate Track Track Settle Settle
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PlanningLevel
ExecutionLevel
Dashboard Level
Across……the entire supply chain: from raw materials to point-of-sale…all roles: suppliers, planners, service providers, customers, management…all phases: before (planning), during (execution), after (improvement)
Manufacturer
Customer
Consolidator
Shipper
Complete Logistics Network VisibilityBetter Logistics Decisions with Information
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Transportation Planning & OptimizationMaximize Fulfillment Service, Minimize Transportation Costs
• Plan for all in- / out-bound shipments using multiple modes (truck, rail, air, ocean)• Combine loads (consolidation) or split loads (deconsolidation) for local deliveries• Optimize container loading and fleet utilization via continuous moves
Algorithms
• Route• Mode• Timing
Optimized Decisions
View via graphical UI…
Engines & Rules
• Consolidation for: Multi-Mode, Multi-Leg, Common Leg, Multi Stop, LTL
• Multi-Tier Networks• Continuous Moves
• Service Time Calculation• Container Optimization• Itineraries & Profiles• Resource Capacity• Throughput, Rating
+
…to relate carrier selection & route optimization results
to actual execution
• Equipment• Consolidation• Service Provider
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Order / ShipmentDefinition
SelectionResults
• LTL / TL• Parcel• Ocean• Rail
Modes Criteria• Weight• Volume• Geographic
Regions
Selection Rules
Rates / ModesDatabase
• Easily compare shipment rates and capture accessorial charges• Establish carrier selection rules at customer site, customer, shipper
organization, and shipper enterprise levels• Analyze your freight cost versus charge and provide margin analysis
• Carrier• Mode• Service Level
(e.g. Next Day)• Freight Terms
Automated Rating and RoutingDetermine Optimal Carrier and Route
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• Graphical display of routing/status
• Leg specific shipment and order information
• Track costs/carrier performance
• View actual versus forecast
Real-time Visibility and AnalyticsBetter Decisions with Realtime Information
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Automated Payments and SettlementsImprove Cash Flow and Accounting Accuracy
Support Settlements & Payments Based on Plans Generated in TM or Other System
*Value-Added Tax and Non-Freight Related Charges
Carriers
Financial System
Shippers /Customers
• Allocate coststo orders & order lines for billing
• Apply appropriateGL codes based on order characteristics
• Calculate profit margin for each shipment
• VAT & NFRC*
• AR & AP Vouchers• Allocated costs
Invoices via web
or integration
Pay based on actual shipment activity and contract ratesA
uto-
Pay
Payments
Mat
ch &
Pay Match,
validate, and pay invoices; flag exceptions
Payments
Billsvia web
or integration
• Intra-company cost transparency
28
Case New Holland Reduces Transportation Expenses
COMPANY OVERVIEWWorld Leader in agricultural & construction eqpt.Supports 11,000 dealers in 160 countriesIndustry: Agriculture and Construction ManufacturerNYSE listed CNH, majority owned subsidiary of Fiat S.p.A.Employees: 25,335Revenues: US $13 Billion
CHALLENGES/OPPORTUNITIESLack of shipment control (inbound and outbound)Legacy transportation systems in EuropeCost reduction opportunitiesNeed for more shipment visibility on global basis
SOLUTIONSOracle’s Transportation Mgmt
CUSTOMER PERSPECTIVE“CNH embraced an aggressive plan to insource its’ North American logistics operation and gain control of its’ global inbound transportation within a year. With the partnership of Oracle and the implementation of their OTM tool, this plan was successfully executed.”Kathy Acker, IT Director, Strategic Planning/Logistics and Supply Chain, Hitachi
RESULTS• Reduced Freight Costs, Inbound and
outbound transaction costs • Lower supporting headcount• Payment based on actual shipped weight• Supplier communications cross-flows
Shipment data (weight, supplier, carrier selection)
• Dealer destination charges• Increased Control of Carrier KPIs:
Service level, cost, quality
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Simplify Order Capture and Fulfillment Summary
• Best in-class Configurator for Complex Configured Product with single set of rules
• Provide complete integration with Operations, Service and Finance
• Coordinate multi-mode logistics across to reduce costs and improve on-time delivery
• Provide complete Logistics Network Visibility of in-bound and out-bound requirements
• Simplify Collaboration with Partners • Gain visibility of Lead/Quote activity across all
Channels• Guided Selling to simplify configuration of
Complex products
Improve ChannelPerformance
Manage Complex Configured Products
Optimize Delivery of Complex Products
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The Only Complete Heavy Equipment & MachinerySolution
PlatformPlatform
PeoplePeopleProcessesProcesses
PartnersPartners
ProvenCustomerResults
ProvenCustomerResults
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Most ComprehensiveHighest RatedOnly vendor in Gartner and Forrester leader quadrants for all Middleware components.
Best-Selling••32,000+ Customers Deployed 32,000+ Customers Deployed
••70% of World70% of World’’s 50 Largest Firmss 50 Largest Firms
••$1B+ Business $1B+ Business
SOA Vendor of Choice
Source: Forrester Research ranking of Application Platform Servers, April 2005
Market-Leading Middleware Platform
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950 customers participating in Customer Advisory Boards
500 Industry & Product strategy council members
35 Fusion strategy council members
1300 participants in early customer adoption programs
425 user groups
30,000 applications customers
220,000 database customers
5000 middleware ISVs
1700 application ISVs
9000 database ISVs
30,000 middleware customers
29,000 developers, support engineers and consultants
Oracle’s People Advantage
275,000 customers
benefiting from shared innovation
34
• Leadership in Heavy Equipment & Machinery
• Innovation in Industry Specific Solutions
• Results Achieved by Oracle Customers
Agenda
35
purchase order release efficiency improved over 700% and 800,000 items were loaded in a unified corporate catalog with Oracle E-Business Suite Procurement
Heavy Equipment & Machinery Customer Results
realized total productivity and growth benefits of $3.4Mil and reduced order processing time by 83% with Oracle E-Business Suite Order Management
gained $6.2M in incremental sales 1st year, improved sales productivity through automated pricing and proposal generation with Siebel CRM
increased service productivity; drove 50% of service requests to WebConsolidated more than 40 after-hours call centers into 1 with Siebel Service
increased Production of Plant by 33%, reduced pull sequences by 20% and reduced inventory by 23% with Oracle Flow Manufacturing
reduced inventory cost by $26M, reduced costs and increased order accuracy with Oracle Ebusiness Suite
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What Customers Are Saying….
“In our business, projects are large and extremely complicated, so high quality project management is essential to earn our customers' trust. We focused on finding a solution that provides the best business management capabilities and performance. . . that was the main reason we chose Oracle Projects.”
-- Mal-Ho Song, VP, Process Innovation Division
“As a result of Oracle E-Business Suite implementation, many processes have been streamlined. There is increased visibility, in real-time, into important business parameters. This, in turn, is contributing significantly in cost reduction” S.S.Godbole, General Manager, Projects
“We have totally eliminated the complexity of integration from the process of expanding our IT infrastructure – thanks to the built-in integration of Oracle’s E-Business Suite.”-- Chen Jun, IT Director
37
The Oracle Difference
Only Oracle ….• Allows you to optimize channel performance with complete
Partner collaboration and execution capabilities
• Offers the most complete Configure-to-Order capabilities to meet the complex requirements of Heavy Equipment
• Configurator uses a single set of rules to manage the complex configurable product across all channels
• Provides integrated world-class Transportation Management and execution functionality to reduce transportation costs