Oracle Global Trade ManagementRosalie Cmelak & Erin JohanssonGTM Product Strategy

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 decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

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Program Agenda

• What is Global Trade Management?• GTM Drivers• Oracle GTM Solutions & Benefits• Landed Cost Management Demonstration• Summary & Questions

Speaker Introductions

• Rosalie Cmelak—GTM Product Strategy, Oracle• Erin Johansson—LCM Product Strategy, Oracle• Chandra Yeleshwarapu—EBS Development, Oracle

What is Global Trade Management?

• Processes involved to move Goods, Information, and Money across borders and parties • Starts with Purchase Order, Sales Order (or other)• Functional Groups: Purchasing, Sales, Compliance, Operations,

Finance, and Logistics• External Parties: Vendors, Customers, Banks, Logistics Service

Providers (LSPs), Freight Forwarders, Customs Brokers, Government Agencies

• 600+ Laws and Regulations• 25 entities and 35 documents in a TYPICAL transaction

Global Sourcing• Lower unit costs • Increase profitability• Compete effectively

Regulatory Compliance• Increased variability and risk• Quickly access new markets

Supply Chain Security• Comply with existing and future

security programs• Mitigate risk

Key Trends Driving Global Trade

TransportProcurement Financial Settlement

Compliance

Customer Demands• Quickly access new markets • Customer satisfaction• Visibility

Trade Finance• Manage Letters of Credit• Open Accounts• Optimize flow of funds

Today’s Global Trade Requirements• Global Approach

• Manage global compliance programs• Global product classification database• Multi-country support for controls, licenses,

exceptions• Sourcing & Supply Chain Design

• Assist in sourcing decisions (FTA, etc.)• Landed cost• Trade related item management

• Multi-party collaboration• Centralized item information accessible by

internal and external trading partners• Process & system integration• Integration with government systems

• Compliance• Import/Export Auditing functions• Security programs

• Flexibility • Quickly respond to new business models• Immediate integration with new acquisitions• Real-time update to regulatory changes

Why Companies Deploy GTM SolutionsEstablish Best Practices & Drive Continuous Improvement

• Accelerate the supply chain• Enhance customer satisfaction• Improve import/export regulation compliance• Increase profit and decrease cost of goods• Reduce inventory – better shipment visibility for

company and supply chain partners• Respond quickly to change – innovation

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Oracle GTM Product Strategy

Oracle’s Investment in GTM

• GTM Market opportunity• Customer demand• GTM is Supply Chain component of Governance, Risk

and Compliance initiative for Oracle • Technology advantages

Oracle in unique position to deliver

differentiated business value to customers

GTM: Innovation in Oracle Applications

• Part of Supply Chain applications division• Orchestration of all cross-border trade business

processes across Oracle and non-Oracle applications • GTM focus is on key Oracle industries:

• High Tech• Industrial Manufacturing• Logistics Service Providers• Retail

GTM v1 Product Strategy

• Compete & Differentiate • Integrated Landed Cost Management• Global Trade Content • Native integration with Transportation Management

• Deliver comprehensive Trade Compliance solution• Solicit early customer support

• GTM Strategy Council• Strategic Implementation Partners

TradeFinance

• Letters of Credit

• Financial Integrations

• Document Sharing

Landed Cost

• Charge Mgmt and Allocations• Estimated & Actual Calculations• Trade Documents• ERP Mappings for Trade Docs

Trade Compliance

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

• Party Screening Lists

• Harmonized System Codes

• Country Tariff & Duties

• Trade Agreements

Trade Content

Global Trade Management At-a-Glance

Trade Compliance

Oracle Global Trade Management

ClassificationCodes, Rulings &

Explanatory Notes

Trade Content

Restricted Party &

SDLLists

Rules of Origin

DutyRates

ERP & Master Data

Management

Applications

Legacy CRMSCM/TMS

Integration Layer

Carriers Banks CustomsBrokers

FreightForwarders

CustomersSuppliers

Corp IT Engineering Compliance Tax/Legal

Oracle Global Trade Management

Operations/Logistics

Trading Partners

Trade Party Master

Trade Item Master

Jurisdiction Management

Trade Policy Management

Product Classification

Compliance Screening

Control Determination

Landed Cost Management

FOUNDATION SERVICES

Global Export Process

Sales Order Creation

Party Screening

Export Controls Screening

LicenseDetermination

Pick/Pack

Tender to Carrier

Export Declaration

Ship Goods

Create Export Documents

Party Creation

Global Export Process FlowTypical GTM Services:

Product Classification

License Management

Compliance Screening

Export Documents

Export Declaration

Global Import Process

CreatePO

Control Determination

SellerGets PO

Buyer & BrokerReceive ASN

CustomsEntry Filing& Clearance

Ship Goods

Create Import Documents

ClassifyProducts

Global Export Process Flow

Typical GTM Services:

Product Classification

License Management

Compliance Screening

Landed Cost Management

Customs Filing

Data & Document Collaboration

Calculate ALC

ReceiveGoods

Calculate ELC

Party Screening

Oracle GTM Development Roadmap

E-BUSINESS SUITE

• Extend Foundation

• Drawback/Re-Export

• Bonded Warehouse

• Free Trade Zones (Manufacturing)

• Standalone LCM

• Outbound Landed Cost

• GTM Foundation

• Trade Compliance Management

• Landed Cost Management (12.1)

• Global Trade Content

Version1 (CY09) Future

Native Trade & Transportation Platform

Build GTM Foundation

Recruit Early Adopters

Partnerships

Extend Foundation

Grow Customer Base

• Trade Finance Framework

• Extend Foundation

• Promotional Schemes

• Strategic Sourcing (Landed Cost Simulator)

Theme Extend Integrations

Trade Finance

Strategic Sourcing

Verticals High TechIndustrial Mfg

Retail & DistributionLogistics Service Providers

Version2 (CY10)

GTM Strategy Council Roster

High Tech• Arrow Electronics• Brocade• Dell• Huawei • LG Electronics• Sanmina• Seagate

Industrial Manufacturing• Beckman Coulter• Cummins• Eaton• Emerson• NCR

Logistics Service Providers• Agility Logistics• DHL/Exel• Italsempione• Schneider National• Toll Group• UTi

Retail & Distribution• Amway (Alticor)• Lowes• Office Depot• Starbucks• Tesco

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Oracle Landed Cost Management

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“Landed costs, and how they affect the per unit price of goods,

can often make or break the profitability of an entire shipment.”

-”The Quiet Revolution”, American Shipper—Oct. 2007

John FontanellaAMR Research

What is Landed Cost Management?Business Context

• International Trade Realities:• Profitability. Is my product truly profitable? Are my expenses attributed to the

product that incurred them? Are my products priced appropriately? Have I budgeted correctly for a particular product group?

• Financial Visibility. What is my outstanding exposure including all of the extended supply chain costs? Are my financial reports accurate?

• Competitiveness. Is the company sourcing strategically? Do I understand all the costs associated with sourcing from a particular country? Can I negotiate better contracts with suppliers and/or customers?

• Compliance. How am I meeting strict regulations pertaining to item cost in countries such as Brazil and India?

• International Trade Promises:• New revenue opportunities

• Reduced production costs

What is Landed Cost Management?Inbound Shipment

Kansas City US PortVessel CarrierChina Factory HK PortShipment to HK Customer

$100 $2 $4 $20 $5 $2 $2

=$133

Oracle Landed Cost ManagementKey Benefits within the Operational Lifecycle

Plan & Budget Market & Sell

PaymentAcquisition

Sourcing

Benefits of Oracle LCM:

•Maximize Profits

•Increase Competitiveness

•Improve Financial Visibility into Supply Chain

•Enhance Financial Reporting Confidence and Compliance

• Optimized fulfillment networks

• Better pricing models• More accurate

product profitability reporting

• More accurate total cost comparisons

• Better contract negotiations

• More accurate record of outstanding liabilities

• Regulation compliance

• Linked invoices with supply chain event

• Authenticated cost declarations

• Better contract negotiations

• Additional revenue opportunities

Oracle LCM Roadmap

Planned

E-BUSINESS SUITE

• Extend Integration

•PO Estimation

•Cost Methods

•OPM Costing

• Enhanced OTM Integration

• Analytics

• Charge Management• Landed Cost Engine• Adjustment

Management• Integration with EBS

Receiving, Costing, and Payables

Phase1 – R12.1 Future

LCM for EBS LCM standalone

• Outbound Shipments

• Strategic Sourcing

• Analytics

Theme

Phase2

• First Global Trade Management Application

• Inbound Calculation & Automation

• Based on Brazil Localization

• Core Product - EBS

Receipts - Estimated Landed Cost

Buyer ReceivingClerk

Us

er

Ac

tio

ns

Supplier /Carrier

Create PO

LC

MC

os

tin

g

Au

tom

ate

d A

cti

on

s

Ship Goods Receive Goods

Calculate Estimated Landed Cost

Load Estimated charges

Accrue Receipts

LC Adjustment Transactions

Invoice - Actual Landed Cost

Us

er

Ac

tio

ns

Supplier /Carrier

LC

MC

os

tin

g

Au

tom

ate

d A

cti

on

sPayables Clerk

Pa

ya

ble

sCarrier Invoice

Item Invoice

Enter Invoices

Initiate Adjustment

Process $Make

Payment

Variance Cost/ Accrual

Adjustment

Calculate Actual Landed Cost

Est. / Actual Landed Cost

Create Freight and/or

Item Invoice

Product Map & Information FlowEBusiness Suite

Purchasing

OTM

Advanced Pricing

Receiving Costing

Payables

EB Tax

PO Information

Freight

Information

VAT Calculation

Duty

Charges

Estimated

Landed Cost

Invoices

EstimatedLanded

Cost

Landed Cost Management

Charge Mgt.

LC CalculatorProduct Cost Dashboard Actual Variances

ASN

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DemoOracle Landed Cost Management

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