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Oracle GTM Usage in Europe

Asli Yimenicioglu
Principal Product Strategy Manager

April 2013
 Agenda

§  Oracle Global Trade Management

–  Overview
–  Current Features
–  Roadmap

§  Some of Our Customers

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 Oracle Global Trade
Management (GTM)

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 What is Global Trade Management?

Processes involved to move Goods, Information, and Money

across Geographical & Fiscal borders and between Parties

§  Typically starts with Purchase Order or Sales Order

§  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

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 Typical Global Trade Transactions
3) Export from US to EU
1) Import to US from China •  Product Classification
• Product Classification •  Embargo Check/ DRPL Screening
•  Embargo Check •  Export License Management
•  DRPL Screening •  Printing of Export Documents
•  Import License Management •  Electronic Communication (AES)
•  Printing of Import Documents

4 5) Export from EU to Other Countries

1 3 5 •  Product Classification
•  Embargo Check
•  DRPL Screening
•  Export License Mgmt
2 4) Import to EU from US
•  Printing of Export Docs
•  Product Classification
•  Electronic Communication
•  Embargo Check (NCTS, ATLAS, etc.)
2) Import to US from Mexico •  DRPL Screening
•  Trade Preference Processing
•  Product Classification •  Import License Management •  Restitution Handling
•  Embargo Check •  Free Circulation
•  DRPL Screening •  Transit Procedures
•  Import License Management •  Duty & VAT Calculations
•  NAFTA •  Printing of Import Documents
•  Electronic Communication
(NCTS, ATLAS, etc.)

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 Global Trade: Business Drivers
Why invest in a global trade management system
Supply Chain Security Trade Finance
Global Sourcing •  Comply with existing and •  Control flow of funds
future security programs
•  Lower unit costs •  Link in financial activities
•  Increase profitability •  Mitigate risk •  Reduce settlement times
•  Compete effectively

Financial
Procurement Compliance Transport
Settlement

Customer Demands
•  Quickly access new markets
•  Customer satisfaction Regulatory Compliance
•  Visibility •  Increased variability and risk
•  Quickly access new markets

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 Global Trade Remains Manual Process

In many key areas, most companies

have no automated capability

§  “Forty percent of respondents

utilized manual/spreadsheet-based
processes to manage their import
operations and compliance…”

Import Operations and Compliance Benchmark

Study (2011), American Shipper

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 Global Compliance Risk
High Inventory
Long & High Safety Stocks
Holding Costs
Inconsistent
Customs Unmet Demand Low Revenue
Clearance
Times Expired Product at
the Customs High Product Costs
Lower
Profit
Inaccurate Margin
Documentation Fines
& Information

Inaccurate
Classification & High Global Trade
High Duty & VAT
Valuation Costs

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 Global Compliance Risk
High Inventory
Long & High Safety Stocks
Holding Costs
Inconsistent
Customs Unmet Demand Low Revenue
Clearance
“Complex, cross-border globalattransactions account for more than $10
Expired Product
Times
trillion in 2007 and, according to a recentHigh
the Customs Product Costs
McKinsey report, are expected
Lower
to grow to more than 70 trillion by 2025.” Profit
Inaccurate Margin
Documentation Fines
Risky Business (2008), Risk & Insurance
& Information

Inaccurate
Classification & High Global Trade
High Duty & VAT
Valuation Costs

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 Oracle GTM Differentiators
§  Native Trade & Transportation Platform
–  Oracle GTM is built on the same platform as Oracle Transportation
Management (OTM) providing customers with a holistic global logistics
platform to manage their trade and transportation requirements.

§  Adapt Quickly

–  No hard-coded regulations – Company-specific, configured trade rules
–  Changes to regulations made by business user vs. custom coding
–  Adapt quickly to new markets, products, mergers, regulations, etc.

§  Global Design

–  Automate and manage the trade compliance and import/export challenges
encountered in global cross-border transactions.
–  Single source of truth for global trade

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 Oracle Global Trade Management
Unique global trade management platform
Control Globally… •  Classify, screen, monitor, & file for all orders / shipments
-  All divisions
-  All product flows (inbound, outbound, internal)
-  All modes of transportation

•  Visibility across the global network

•  Accommodate line of business, geographic region, and supply chain
Execute Locally… flow-specific business practices
-  Workflows, business logic, reports, etc.
•  Using multiple languages and currencies
-  User interface configuration by region / country, user groups

Manage Centrally… •  All operational information in one location

-  Centralized visibility
-  Centralized reporting
•  Single set of integration points for customers, brokers, & other partners
•  Single information technology infrastructure to support

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 Enterprise-Wide Global Trade Management
Multi-domain architecture
Top Level Parent
Full Visibility Company

Business
1
Business
2
… Business
n
Domains
Partitioned
Visibility &
Functionality

Configure •  Business Logic: User interface, workflow, reports, integrations

Software •  Security: Segmented data and functional security
for Specific •  “Customization” via configuration
Divisions / Lines of •  Expand without having to buy another system
13
Business
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 ERP Integration
•  ERP agnostic
•  SAP, Oracle, etc

Transactions
•  Multiple sources Master Received
integrated to single Data
GTM instance
XML / Web
Global Trade
Services
•  Multiple order Management
types Transactional
Data
•  Sales order
Manual
•  Purchase order
•  Service order
Engine Calls
•  Shipments

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 Oracle Global Trade Management 6.3
Product Features by Module

Oracle Global Trade Management Oracle Trade Compliance Oracle Customs Management

•  Global Trade Content • Trade Control Management •  Customs Determination

•  Upload & Maintenance •  License Determination •  Electronic Filings & Documents
•  License Exceptions •  Configurable Global Solution
•  Master Trade Data •  OGA, ADD, CVD Screening
•  Items, Parties, & Registrations •  Document/Template Determination •  Customs Preparation
•  Item Templates •  Corporate Policy Enforcement •  Virtual Shipment Consolidation
•  Other Trade Controls •  Unit of Measure Conversion
•  Product Classification •  Currency Conversion
•  Duty & Tax Visibility •  License Management •  Basic Valuation Calculations
•  OGA, ADD, CVD Visibility •  License Repository
•  Restricted Party Screening •  License Assignment •  Customs Connectivity
•  License Lifecycle •  Electronic Filings and Documents
•  Sanction Screening •  Freight Forwarder & Broker Collaboration
Platform
•  Document Management
•  AES Filing Support
•  System Infrastructure •  Direct Connection to AES
•  Transaction Processing, Workflow,
Messaging, Business Monitor, Security, User
Management, Advanced Layout, Work
Queues…

15 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Red = New in GTM 6.3
 OTM & GTM 6.3 Release Notes Available

§  Under My Oracle Support:

Direct link:
https://support.oracle.com/epmos/main/downloadattachmentprocessor?
attachid=1533374.1:631&clickstream=no

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 Oracle Global Trade Management
Existing Functionality through GTM 6.3
GTM 6.1 GTM 6.2 GTM 6.3
Initial Trade & Transportation Platform EBS Integration, Early Adopter Support End-to-End Export, Basic Imports

•  Master Trade Data Management •  Integrations •  License Management

•  Trade Item Master •  E-Business Suite 12.1.3
•  Trade Party Master •  Sales Order Management
•  Item Synchronization
•  Product Classification •  Party Synchronization
•  Global classification repository
•  Product Classification
•  Trade Compliance •  Classification Determination &
•  Restricted Party Screening Assignment: Rollup Support
•  Anti-boycott & Sanction Screening
•  Control Determination: Licenses, •  Enhanced Transaction Management
Exceptions, & Other Controls •  Support for Assemble- and Configure-to-
Order Items
•  Document Management
•  Document Determination •  Usability Enhancements
•  Generation & Distribution •  Restricted Party Screening
•  Sanction Screening
•  License Lifecycle
•  License Eligibility Determination
•  Assignment & Balances
•  Customs Management
•  Tariff Visibility & Sourcing Support
•  Customs Filing
•  AES Support (US Exports)
•  Broker Collaboration
•  Customs Documents
•  Document Management
•  Document Lifecycle
•  Usability Enhancements
•  Item Template for Classification
•  Restricted Party Screening Workbench

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 Oracle Global Trade Management
Product Roadmap Overview

Phase 4 Phase 5 Future Product Direction

Import Process Support & Usability Special Duty Programs & Trade Finance Free Trade Agreements, Fusion
Global Trade Analytics

* • Proposed
Trade Content Expansion
New Price List Item • Trade Preference Programs •  Free Trade Agreements*
•  Import/Export Regulations •  Bonded Warehouse •  Supplier Solicitation
•  Special Economic Zones •  FTA Qualification & Rules of Origin
• 18Import Process
Copyright &and/or
© 2013, Oracle Usability
its affiliates. All rights reserved. •  Duty Drawback Management
•  Product Classification Workbench •  Fusion Integrations
•  Single-level Bill of Materials •  Trade Finance* •  Tax, LCM, Sourcing
•  Enhanced Classification Research •  Letters of Credit/Open Accounts
•  Wire Transfer process •  Supply Chain Security
•  Customs Management •  Invoice Matching/Reconcilation •  AEO (EU)
•  Partial PO Consolidation •  C-TPAT (US)
•  Expanded Filing Partnerships (US/EU) •  Landed Cost Planning
•  Import Entry Workbench •  Sourcing workbench •  GTI: Carrier/Broker Scorecards
 Oracle GTM Customers

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 A Few of Our Customers
High Technology Industrial Manufacturing Aerospace & Defense Life Sciences

Retail Oil & Gas

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 Oracle

•  Project Overview
–  Worldwide
§  Product Classification
§  Export License Determination (Automated & Manual)
§  Export Screening (Automated & Manual)

§  Results
•  Fast and accurate product classification, export screening and export license
determination
•  Increased visibility
•  Shorter order release times

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 GLOBALFOUNDRIES
§  Company Overview
•  GlobalFoundries Inc. is the world's third largest independent semiconductor foundry.
•  Project Overview
–  USA, Germany, Singapore
§  Restricted Party List Screening, Sanctioned Country Screening
§  Classification (ECCN)
§  License Determination & License Management with balance depreciation
§  Results
•  Fully automated export compliance control replaced spreadsheet records of licenses and
end user statements
•  Item classification is more efficient and accurate. Flexible classification code management
and look up
•  Visibility and control of export licenses: usage, expiration, available quantity/value and
renewal are recorded in GTM

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February 2013

Global Trade @ Seagate

Seagate Products, Customers and Markets
Internal Storage Branded Products Services

Computing Personal Storage

Wireless Storage

Cloud Home
Consumer Media Sharing
Electronics

Video Capture
SMB Storage

24
Seagate Global Presence
Springtown, N. Ireland
Dublin, Ireland
Amsterdam, Netherlands
Shakopee, MN
Bloomington, MN Munchen, Germany
Paris, France Beijing, China Suwon, South Korea
Maidenhead, UK
Shrewsbury, MA Tokyo, Japan
Wuxi, China
Fremont, CA Suzhou, China
Cupertino, CA Delhi, India
Scotts Valley, CA Oklahoma City, OK Shanghai, China
Teparuk & Korat, Thailand Taiwan
Longmont, CO Johor & Penang, Malaysia

Ang Mo Kio, Singapore

Science Park, Singapore
Woodlands, Singapore
Sydney, Australia

HQs, Admin and/or Sales Customer Support

Design Drive & Component Mfg

25
Seagate’s GTM Implementation
Background

•  Seagate joined Oracle Global Trade

Management Strategy Council in 2007
•  Purchased GTM in 2010
•  Implemented GTM in 2011
–  Implementation partners Oracle Consulting and
Wipro
•  Go-live January 2012

27
Item Classification

•  Maintain multi-country classifications

–  ECCN, HTS, License Flag
–  Allows for country-specific rule development
•  Assignment at item record – Preferred
–  Assigned classifications are used for current and
future orders.
–  Time saving from just assigning classifications
once for multiple transactions

28
Item Classification (continued)

•  Assignment at transaction line

–  Miscellaneous part numbers to handle unexpected
items
•  “Parent” classification
–  Classifications are copied from related items to
minimize time spend classifying same items
•  Bulk Loader
–  Custom process to upload spreadsheet of classified
items. Allows for mass classifications for time saving.

29
Contact Screening
•  Screened when contact is created or updated, and when used
on a transaction
–  Sanction Country
–  Red Flag List
–  Restricted Party List – Contact Name
–  Restricted Party List – Contact Address
–  Seagate’s own Restricted List for black listed customers
•  Stand Alone Restricted Party Screening
–  Provides adhoc screening outside of GTM
•  Bulk Loader
–  Custom process to upload spreadsheet of blacklist names and
addresses

30
Export Compliance Rule Screening

•  Automated assignment of license or license

exception (NLR & ENC)
–  Based on ECCN, Regions (based on “reasons for
control”), Other conditions
•  Implemented for United States (used globally)
•  Implemented for Singapore as Jan 2013 (SG
export only)
•  Working on Malaysia, European Union, Korea,
Hong Kong, Thailand

31
Import Compliance Rule Screening

•  Automated holds for import review

–  Based on HTS, ECCN, Item Description, Remark
(“Used”)
•  Implemented for China, Malaysia, Singapore,
Thailand, United States
•  Allows Seagate to move from manual holds via
email to a process managed by GTM
•  Reduction in process breakdown and cost from
fines/delay

32
Business Monitor and Reports
Process Improvement
•  Allows world wide team to work off of a single dashboard
with instant visibility to management
–  Business Monitor
»  Contacts that require review
»  Escalation review
»  Transactions on hold
»  Item updated
»  Expired item classification
•  Reports
–  13 custom reports for auditing, review, reference vs manual
SQL queries from previous system

33
 Q&A

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The preceding 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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