Oracle

Logistics

Know More. Do More. Spend Less.

Logistics Management At-a-Glance
Source Planning & Execution Destination
• Network Design, Carrier Contracts
• Carrier Selection, Freight Rating

Storage
• Resource & Space Utilization
• Pick, Pack & Ship

Tracking
• In-transit Shipment Status
• Event Management, Notifications

“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
 Business Pressures
Customer Expectations Variable Demand
• How do I improve the speed • How do I account for higher
and visibility of shipments? volume from Internet selling?
• How can I improve global • What adjustments do I
order promise accuracy? make in planning for
mass customization?

Source
Source Planning
Planning &
& Execution
Execution Destination
Destination
Storage
Storage

Tracking
Tracking

Increased Complexity
• How can I manage Margin Pressure
product proliferation? • Where can I reduce costs
• How do I balance global to maintain competitive
supply and demand to prices?
ensure on-time delivery? • How do I differentiate my
logistics offerings?
Operational Challenges
Your Company Carriers Warehouses Customer
Planning Execution

Fragmented Communication & Visibility

Multiple,
Non-Integrated
Manual Systems
Processes

Expediting and
x missed shipments
A Need for Change
Leading 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

Logistics Management Opportunities

On-Time Deliveries 10-20%

Improved Capacity Utilization 5-10%

Warehouse Labor Hours 10-30%

Direct Transportation Spend 5-25%
Total Inventory 5%
Shipping Errors 80-100%

Lilly, Intermec, eSync, Tompkins, Meta Group, Telia Networks

How Oracle
Delivers
 Oracle: Complete E-Business Suite

Finance 9 Automate Key

Maintain HR Internal Business
Projects Processes
Service
9 Extend
All Product,
Customer,
Automation to
Fulfill & Supplier Your Trading
Information Partners
Make Develop
9 Drive Continuous
Procure Market Improvement
with Real-Time
Plan Sell Intelligence
Logistics Order
Management
 Oracle Logistics Solution

Carriers / Global
3PLs Customers

Collaboration &
Event Management

Pack
Book / Manage Pick &
Plan Rate & Track Settle
Inbound Tender Wrhs Label
Ship Outbound
Supply Demand
Source Integrated Planning & Execution Destination
Continuous On-
On-Time Customer Carrier
Improvement Performance Satisfaction Analysis
Oracle Logistics Solution
Dimensional Considerations

Time Place

y Dynamic y Tactical y Facility y Domestic

y Operational y Strategic y Local Area y International
Logistics
Management

Mode Flow

y Truck y Air y Outbound y Intra-Org

y Rail y Ocean y Inbound y Returns
Oracle Logistics Solution
Enables You To…

n Integrate Planning and Execution

o Collaborate with All Trading Partners

p Streamline Global Shipments

q Drive Continuous Improvement

 Integrate Planning and Execution
Seamless Flow of Information

Strategic e.g. Distribution Network Network Design

e.g. Planned Shipments Supply & Demand

e.g. Performance
Planning
e.g. Load Plans
Transportation Planning* e.g. Shipment Schedule

e.g. Dock
Transportation Execution e.g. Actual Shipments
Scheduling

e.g. Load Warehouse Management e.g. Shipment Exceptions

Confirmation

Event Management e.g. Delivery Confirmation

Operational
Minutes Hours/Days Weeks/Months Quarters Years

* Coming in 11i.10
Minimize Inventory…
Provide Single, Consolidated View of All Inventory

• Provide inventory visibility

In-Transit
– In-transit inventory
– At trading partners
– Between operations

• Enable postponement
Warehouse – Optimize inventory location
Consolidated
Inventory
(manufacturing, distribution
Status centers, central warehouses)

• Plan for demand and supply

WIP / Planned
variability
Production
…While Maximizing Service Levels
Improve Customer Satisfaction
• More Accurate Promise Dates
– Promise orders based on material
availability; supplier, manufacturing
In-Transit and transportation capacity
– Allocate supply & capacity by channel,
customer or product
– Enable Capable to Deliver

Warehouse • Increase Delivery Efficiency

Consolidated
Delivery – Minimize expediting charges
Status – Eliminate manual transfer processes
– Improve warehouse pick and carrier
delivery accuracy
WIP / Planned
Production • Proactively Respond to Exceptions
Optimize Asset Usage
Leverage All Assets to Reduce Operating Costs

Warehouse Space Vehicles

Slot based on space utilization Deliver using full truck loads

People Capital

Reduce manual labor Reduce capital invested

Oracle Logistics Solution
Enables You To…

n Integrate Planning and Execution

o Collaborate with All Trading Partners

p Streamline Global Shipments

q Drive Continuous Improvement

Logistics Collaboration
Share Information Real-Time with Trading Partners
Your
Company Carriers / 3PLs
Capacity
Rating
Book
Dispatch
Track
Invoice

Customers
Order
Schedule
ASN
Track
Track
Deliver
Payment
Logistics Collaboration
Reduce 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
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 Management
Exception Monitoring and Notification

• Reduce communication latency

Customer
Notifications and – Notify all tiers simultaneously
Corrective Action – Get visibility to fulfillment, purchasing,
inventory, and manufacturing events

• Reduce expediting costs

– Identify exceptions faster
– Automate exception handling
Carrier
Delay • Reduce inventory
Shipper – Provide real time inventory visibility
to suppliers
– Enable Vendor Managed Inventory

• Improve fulfillment cycle time

– Automate replenishment process
Oracle Logistics Solution
Enables You To…

n Integrate Planning and Execution

o Collaborate with All Trading Partners

p Streamline Global Shipments

q Drive Continuous Improvement

Cost-Effective Global Deployment
Think 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
Support International Trade Management
Content via Standard Partnerships
Compliance Benefits
• Enable denied party • Ensure regulatory
screening compliance
Export
• Provide embargo
Screening • Minimize
license detection government
• Identifies boycotts audits

• Prepares standard • Eliminates costly

Export, Import paperwork for shipping delays
regulations (e.g.
Documents • Ensures on-time
customs clearance
paperwork) deliveries
Oracle Logistics Solution
Enables You To…

n Integrate Planning and Execution

o Collaborate with All Trading Partners

p Streamline Global Shipments

q Drive Continuous Improvement

 Drive Continuous Improvement
Improve Performance Through Integrated Intelligence

Establish Perform Measure

Targets Transactions Results

Logistics
Plan Exceptions

Out of
Adjust Plan Notifications Tolerance?
Daily Business Intelligence
Real-Time Access to Complete Business Information

What percentage of outbound shipments are delivered on-time?

What is my variance in cost per shipment?
How are my expediting costs changing?
Which carriers are providing the best cost and service?

How are inventory turns and quantities changing?

– Objective: Set institutional targets

Manage By… – Fact: Provide performance-based metrics
– Exception: Continuously evaluate performance
Warehouse and Transportation Intelligence*:
Timely, Accurate, Relevant
Flexible Flexible
Time Periods Comparisons • Daily updates on key
performance
Real-
Real-Time indicators
Results
• Actionable
Performance information on
Measures
savings and
Reports incremental revenue
opportunities
Links
• At a glance:
- On-time departure and
Graphs delivery, cycle time
- Shipping cost / weight
- Inventory quantity,
turns, and accuracy
- Pick-to-ship cycle time
- Warehouse labor costs
* Coming in 11i.10
 Oracle Logistics Solution
Key Capability Summary
Network • Define all characteristics of the distribution network
Design • Specify details such as lanes, distribution centers, etc.

• Supply and demand planning across network

Supply Chain
• Transportation planning including load planning, mode / carrier
Planning
optimization, load configuration

• Freight rating, automated mode/carrier selection

Transportation
• Load tendering, shipment pickup requests
Execution
• Global track and trace, settlement

• Automated, tailorable warehouse functions (e.g. pick, pack)

Warehouse
• RF barcoding support
Management
• Advanced inventory management capabilities

Event • Monitor shipments

Management • Handle exceptions and notify all trading partners
Oracle Logistics Solution
Integrated supply, demand, and Integrate Planning
transportation planning with
and Execution
transportation/warehouse execution

Real-time information sharing, Collaborate with All

event management Trading Partners

Single global instance, Streamline Global

international trade management Shipments

Integrated performance Drive Continuous

measurement and analysis Improvement
Oracle Logistics Products
Maintain Finance HR
Projects
Service
All
All Product,
Product,
Fulfill Customer,
Customer,
&
& Supplier
Supplier
Inventory Information
Information
Develop
Management
Make
Warehouse Procure Market
Management Plan
Order Sell
Mobile Supply Chain
Applications
Transportation
Logistics Intelligence
 Evolution of Oracle Logistics

Current Differentiators… …New with 11i.9… …Coming in 11i.10

• Built-in, not bolt-on - RF/mobile • VMI & consigned inventory
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
• Configurable picking &
• Task & labor plng control board streamlined shipping UI’s
• RFID-based transactions
• Delivery consolidation by
locator and / or LPN • UCC 128 / UCC 14 support
• Cluster picking & WIP picking • Work-plan based put-away
• eAM component picking • Catch weight support
• UPC & smart barcode support • Packing workbench
• Single mobile UI for all • Over picking & bulk picking
receiving transactions
receiving transactions • Inbound transport logistics
• Additional material handling • Freight payment & audit
equipment integration
• Delivery consolidation
• Simplified rules engine def’n
and examples library • Truckload rating
• Load tendering • Transportation planning – load
consolidation, continuous
• Online tracking of ship status moves, automated mode and
• Carrier selection & freight rating carrier selection
• Automated shipping processes • International drop shipments
• Non-conformance mgmt • Logistics-related analytics/KPIs

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.
 Superior
Architecture
Foundation: Common Data Model
A Single Source of Truth

Logistics Purchasing
y Store all data in a
single database

Finance Manufacturing
y Consolidate data
Common from multiple systems
Data
y Eliminate need for
Model
(9i Platform)
integration and
Planning Inventory redundant systems
y Scale to meet growth
demands
Contracts Service
 Modular Architecture
Implement Based on Your Business Priorities

y Implement by Business Flow

– Start with one flow, demonstrate initial success
– Add more flows to expand business coverage
– Support changing business needs
Time

y Flows are Seamlessly Integrated

– Replace disparate systems
– Eliminate data synchronization
– Decrease time and cost to implement
Tailorable Architecture
Workflow 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 E-Business On Demand
You Oracle
Roles:
Roles: Needs:
Needs: Manage: Manages:

Availability
App Admin 50% Lower Cost
Security
DB/AS Admin 50% Better Svc
Performance
Sys Admin Core Competence
Consolidate Data Centers Change
HW Admin Predictable Cost
and Databases Problems

Low Cost Linux Hardware Standardized Open Integration Platform

y 3x faster, 5x cheaper
y Easy to Automate en Mass • Business events infrastructure
y Highly Reliable • Industry standard protocols
• Centralized integration repository
Oracle’s Experience with Linux
Production midtiers 100% Linux
Production DB RAC Cluster (Unix) Simplify B2B Integration,
Demo environments 100% Linux Application Connectivity,
Development 90% Linux and Process Management
Outsourced Customers 70% Linux
Customer
Success
A Few Logistics Customers
 American Power
Conversion 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

9 Integrated order/shipping info to reduce fulfillment cost/time

9 Leveraging global ATP to improve on-time delivery performance
9 Reduced raw material inventory by 56%
y $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
y 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

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

9 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

“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

9 Expect significant workload reduction and flexibility

9 Predict rapid, low cost implementation without customizations
Guided by Our Customers
Logistics Customer Advisory Board

y Abbott Labs y Israeli Air Force

y Agere y Knouse
y Agilent y McGraw-Hill
y Alcoa y Millipore
y Dana y Pella
y Donaldson y Qualcomm
y Esco y Seagate
y FEMSA/Solistica y Tektronix
y Hafele y Toshiba (TABS)
y IKON y WC Bradley (Charbroil)
Summary
Oracle Logistics Solution

Integrated Planning and Execution

Trading Partner Collaboration

Streamlined Global Shipments

Continuous Improvement
Know More. Do More. Spend Less.