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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
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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“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