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Oracle’s Superior Valuefor Toll Group

Friday, 7 December 2007


Program Agenda

• Market Trends• LSP Market Strategy• LSP Product Strategy• Oracle Transportation Management for LSP’s• Roadmap• Additional Reasons Why Oracle for Toll Group



Market Trends


Trends – Information TechnologyVictim of Industry Consolidation and short term planning

• Dated Legacy Systems• 20+ years, Web enabled• Country specific, No multi-currency and language

support• Mainframe – AS400 based• High cost of ownership

• Point Solutions• Back office, operational, front office• Multiple integration points makes upgrade and support

costly• Lose data integrity and visibility of business

• Early Mover Strategies• SOA based logistics platform for flexibility• IT enabled Compliance and Business Performance• Integrated back office, operational, and front office• Global support


Trends – Regulatory & Compliance• Financial and Security Driving Administration Costs higher

• Providing visibility to the business• Improving awareness of insufficient IT infrastructure to support business

• Sarbanes-Oxley • Standard Process, Procedures, Controls• Segregation of Duties• Quarterly Financial Validation• Timely recording of Inventory and Fixed assets Movements

• Global Trade Management• C-TPAT• Automated Export System• Customs/Denied Parties/Tariffs/Filings

• USDOT• Federal Motor Carrier Safety Administration

• Many Others….


Trends – Customer Service• Global, Multi-Division, Multi-Service Customers are driving new requirements

for Sales and Customer Service• Becoming Competitive Differentiator

• Domestic prices are historically low with cost pressures• Executives want Visibility to the Business

Source: Eyefortransport North American 3PL Market Report 2007

Key Reasons for Non-renewal of 3PL ContractsKey Reasons for Non-renewal of 3PL Contracts


CustomerCustomer

Trends - Logistics Business Models EvolveMore Value-added Services Persistent Relationships

Planning

Coordi-nation

ExecutionFreight Trans-

port

Ware-housing

Customer

Value added

services

Freight Trans-port

Ware-housing

SupplyChain

Coordination(Strategy)

Value added

services

Freight Trans-

port

Ware-housing

Strategy

Customer

Traditional 3PL Lead Logistics Supply Chain Services

3PL

Lead Logistics/ 4PL

(Decision Making)

BusinessStrategy

Contract Logistics

3PL 3PL

Timeline

Core competence

Man

agem

ent

Lo

gis

tics

Warehousing

Transportation

VAS

Sourcing

Mfgr/Assy

Engineering

Supply ChainManager

Planning


The Challenges We’re Hearing

“How can I quickly introduce new and innovative supply chain and logistics services to meet increasingly complex integrated and global customer requirements?”

“LSP’s must adopt a more holistic and integrated view of their IT requirements and strategy in order to streamline operations, achieve financial objectives and meet customer demands for expanded service offerings.”

ARC Advisory

Introduce New Services to Market

Quickly

Introduce New Services to Market

Quickly

Increase & Retain Profitable ClientsIncrease & Retain Profitable Clients

“How can I drive effective lead generation, sales campaigns, and contract renewal programs to increase customer acquisition and renewal success rates for profitable business?”

“Research consistently shows it is about five to seven percent more expensive to find a new customer than it is to retain an existing one; correspondingly, losing 5% fewer customers can increase profits by as much as 75%.”

AT Kearney


The Challenges We’re Hearing

“How can I satisfy continually changing corporate governance, regulatory compliance, and security requirements while meeting cost and customer service commitments?”

“LSP Challenges – Comply with a wide array of regulations from Sarbanes Oxley to RoHS, WEEE, and other environmental laws to over 600 laws and 500 trade agreements related to global trade management.”

Adrian Gonzales, Logistics Service Provider Industry Overview, Aug 2006

Adhere to Compliance & Security

Requirements

Adhere to Compliance & Security

Requirements

“Today more and more customers are price sensitive, but are also demanding a high quality. To be successful in the 3PL Logistics market you definitely can not focus on one or the other, you have to have both and above all create real value for the customer.”

Improve Operational Efficiencies

Improve Operational Efficiencies

“How can I become more competitive by streamlining processes and automate the flow of information across the organization and extended trading community?”

Third Party Logistics 2006 11th Annual Study



LSP Market Strategy


Why Focus on LSP?Market Opportunity

• Application and technology sales opportunity driven by business transformation in the industry• An industry in transition

• Current IT platforms don’t support business objectives• Dated legacy systems and point solutions• High cost of ownership• Constraint on revenue & profit growth

• Market opportunity• SCM applications• CRM applications• ERP applications (FIN, HCM)• Business Intelligence applications• Technology – middleware, database


Why Focus on LSP?Business Process Outsourcing Partners

• LSP’s will own greater portion of the supply chain• Trend from transaction oriented to process oriented• E.g., sourcing, supply mgmt, manufacturing, service

• Complements Oracle’s strategy for other industries• Manufacturing• Distribution• Retail

• Complements Oracle’s strategy for:• Small & medium size businesses• Emerging economies (e.g., China, India, Eastern Europe)


Why Focus on LSP?Oracle’s Leadership Position

• Unsaturated market• No dominate player in the market

• Strong existing product portfolio• Breadth of offering

• Quote to cash• Depth of offering

• Market leading products for Transportation, CRM, Financials, HR, Business Intelligence, Middleware, etc.

• Customer Base• Existing relationships with industry leaders• Drive product strategy• Provide market credibility


Oracle in the LSP Industry Did You Know?

5 of the top 10 global logistics companies run Oracle Applications

8 of the top 10 global logistics companies run Oracle Technology

Over 450 transportation & logistics companies across the globe run Oracle Applications

4 of the top 10 global trucking companies run Oracle Applications

7 of the top 10 global trucking companies run Oracle Technology


Customer DrivenCustomer Advisory Board

• Toll Group• BDP International• DHL-Exel Logistics• Eagle Global Logistics• Kuehne + Nagel• Ozburn-Hessey• Schneider National• Total Logistic Control• UTi• Volvo Logistics



LSP Product Strategy


Commoditization• What value-added services

can I offer to improve customer loyalty?

• How can I provide a single customer experience across all points of contact?

LSP Business Drivers

Consolidation• How can I utilize my IT systems

to help accelerate post merger integration to drive efficiencies to bottom line?

• How can I quickly analyze financial and operational data for entering new markets?

Globalization• How can I streamline the

movement of goods & services across my value chain?

• How can I respond more quickly to changing demands from an expanding customer base?

TradingPartners

Shippers &Suppliers

Customers

Slim Operating Margins• What is the best way to reduce

service and operational costs?

• What are my most profitable products and customer segments / channels?

Logistics Service

Providers


World-Class Transportation Management Systems Generate Significant Value

Source: Capgemini Consulting, 2006 and 2007

Logistics Management• 5 - 50% Productivity Improvements

• Reduced Order Processing Costs and Errors

Shipment Planning andOptimization

• 3 - 20% Transportation Cost Savings

• 5 - 25% Expedited Shipment Reductions

• 5 - 15% Capacity Increase

Shipment Execution:Booking/Tendering, StatusUpdates, En-Route Planning

• 5 - 50% Productivity Improvements

• Reduced Errors, Increased Loads per Hour

Freight Settlement• US$0.20 per Transaction vs. >US$0.75

• Improved Cash-to-Cash Cycle Times

Improved Global In-TransitInventory Visibility

Supply Chain Event Mgmt:Anticipate, Analyze, Resolve& Collaborate

Operational Reporting andDocument Generation

Business Intelligence & Analytics:Performance, Financial & Forecasting

• ½ - 5% Revenue Increase Improved Customer Service

Improved Customer Retention

Faster Time-to-Market

• 1 - 10 Day Inventory Reduction

• 5 - 25% Safety Stock Reduction

• 2 - 8% Carrier Contract Reduction

• Reduced IT Development, Integration and Support Costs

• Stronger Customer & Supplier Relationships, ImprovingMargins


Oracle Transporation & LSP Solution Footprint


360 degree customer view Customer data available

at all touch-points More focused customer

service

Electronically capture all customer interactions

Universal customer master and integration services provide a platform through which Transportation & LSP customer data and interactions can be captured, viewed and distributed to all major touch-points.

Proactive Marketing campaigns for new or expanded services/ pricing

11

22

Integrated Customer ServiceProvide Multi-dimensional View of All Customer Transactional Information

Customer Contract

Commitments

WebBooking

Call Center

Marketing/SalesCampaigns

WebWeb

ServicesServices

Data QualityData Quality

ServicesServices

Integration ServicesIntegration Services

Inbound call

UCMUCM Complaint Management

Service Level Commitments

Revenue/Profitability Management

Use data in operational environment to deliver value-added service

33

View of View of Customer or Customer or

Program Program based on based on

rolerole

44


Oracle LSP Solution - ExampleQuote to Cash

Customer Quote Quote / Booking Planning & Execution Settlement

Quote is created and rate is stored in the quote.

CSR saves quote and or completes booking.

CSR creates a Quote and selects Service and Rate

Booking is created in OTM. Shipment is

Planned and Executed to Carrier. Status

information is stored in OTM.

Settlement process performed with FI –

AP, AR and GL

CSR creates an Account and Opportunity

Siebel CRMSiebel CRM

OTMOTM

SOA Server makes service calls to OTM for status order/ booking

E-BusinessE-Business

FMWFMW

SOA Server starts an orchestration

process to send Vouchers from OTM

to Financials.

Siebel CRMSiebel CRM

SOA Server Synchronizes Account to all registered pillars

E-BusinessE-Business

OTMOTM

FMWFMW


process to send data to OTM Rating Engine

OTMOTM

FMWFMW


process to send data from OTM to Siebel


Oracle’s Enterprise Business PlatformConnectivity and Collaboration across the Ecosystem

Oracle ApplicationsAp

pli

cati

on

sF

ou

nd

atio

n

End-to-End Industry Processes

Unified UserExperience

EnterpriseAnalytics

OracleFusionMiddleware

Agile Process Orchestration

StandardsBased Integration

ConsistentData

ComprehensiveSecurity

Hosted

Custom

Legacy

ExternalPartners

Other…

CRM

TMS/WMS

ERP

Benefits• Greater Agility

- Compose new process flows using existing applications

• Enhanced Visibility- Unified user experience

- consistent, enterprise-wide, secure data

• Improved Efficiency- New levels of flexibility

and innovation at a lower TCO

Benefits• Greater Agility

- Compose new process flows using existing applications

• Enhanced Visibility- Unified user experience

- consistent, enterprise-wide, secure data

• Improved Efficiency- New levels of flexibility

and innovation at a lower TCO

Oracle is Pre-Building Process Integrations


Oracle is the Leader in the Logistics Industry

Customer Deployment• Logistics

• Managed transportation services• Supply chain visibility and event management

• Express• Supply chain visibility and event management

• Business platform• Quote-to-cash business process support across all LOB’s on global basis with Oracle applications• Oracle TMS as core operational business platform

• Technology platform• SOA platform, BPEL, BI, etc.

• Oracle TMS in support of business transformation• Consolidation / modernization of systems• Supply chain visibility and event management• Value-add services



Oracle Transportation Management for LSP's


Today’s Transportation RequirementsOTM’s unique value proposition

• Global scope• Complete supply chain – inbound materials,

finished goods, parts, etc.• Ship anywhere to anywhere• Truck, ocean, air, rail, etc.

• Optimization• Reduce / control transportation costs• Integrated planning & execution

• Multi-party collaboration• Suppliers, contract manufacturers• Carriers, 3PLs, forwarders, brokers• Process & system integration

• Manage by exception• Automate processes• Proactive resolution

• Flexibility• Adapt quickly to new supply chain requirements

and opportunities


Oracle Transportation ManagementBroad and Deep LSP Platform

Transportation Order Capture

Global Visibility

Supply Chain Event Management

Business Intelligence (Analytics & Reporting)

Freight Forwarding and Brokerage

Transportation Planning

Transportation Execution

Car

rier

an

d A

sset

Man

agem

ent

Co

op

erat

ive

Ro

ute

Pla

nn

ing

Tra

nsp

ort

atio

n S

ou

rcin

g

Freight Payment,

Billing and Claims


Current State: Multiple LSP Services, Multiple Systems

LogisticsLogistics

LinerLiner

Supply ChainSupply ChainVisibilityVisibility

FreightFreightForwardingForwarding


End State: Multiple LSP Services on One Platform

LogisticsLogistics

LinerLiner

Supply ChainSupply ChainVisibilityVisibility

FreightFreightForwardingForwarding

OTMOTM


Growth State: Serve Multiple Geographies and Markets

Freight Freight

ForwardingForwarding

Network Network ManagemenManagemen

tt

Freight Freight


FreightFreight


DedicatedDedicated

FleetFleet

OutsourcedOutsourced

TransportationTransportation

Supply ChainSupply Chain

VisibilityVisibility

OTMOTM

APACMexico

Automotive Retail


Quote-to-Cash Financial Control

1 Pre-Order•Network Planning•Transportation Sourcing•Rates & Contracts

2 Order Processing•Quoting •Freight Optimization•Profitability Checks

4Post-Shipment•Customer Billing•Service Provider Payment•Claims Management

5Operational Review•Account Profitability•Business Performance•Service Provider Value

3 Load Changes•Diversions, Expediting•Re-routing & Re-rating•Financial Impact Analyses

Accurate

Accessible

Information

DOMAINS

BUY / SELL

ALLOCATION RULES

INVOLVED PARTIES

VISIBILITY

KPI’s

WORKFLOW

REPORTS


Freight Freight


Network Network ManagemenManagemen

tt

Freight Freight


All LOB's and Services on One Platform

Freight Freight ForwardingForwarding

Asset-based Asset-based

ServicesServices

LogisticsLogistics Supply Chain Supply Chain VisibilityVisibility

OTMOTM

• Reach for market opportunity

• Improve operational efficiency

• Operate across LOB's

• Link operations with back office

• Increase asset utilization

• Enable both IT and Operations

• Retire more systems

• Improve financial control – proactive measurement and monitoring


Existing Systems Often Lack Functional and Architectural Depth

Operational Imperatives:• Multiple definitions of TMS• Deploy new customers efficiently• Operate across LOB's• Expand financial control at the

point of execution and throughout shipment lifecycle

• Introduce a shared services model

• Procurement• Customer management• FAP

• Proceed incrementally• Match operational depth• Improve operational efficiency

Information Mgmt Requirements:• Multi-domain architecture

• Multiple configurations

• Ability to create templates

• Cross-enterprise collaboration• Order to cash lifecycle• Leverage capacity / assets

• Optimized network(s)

• Integration in many forms


Global Transportation ManagementManage All Your Transportation Needs in One System

Execute Locally… • Using multiple languages and currencies- Multiple languages in single system- Support for all currencies- User interface configuration by region / country, user groups

• Accommodate region- and mode-specific business practices

Control Globally… • Plan, execute, track and settle for all orders / shipments on a global basis

• Support all modes: truck, ocean, air, and rail

• Visibility across the global network

Manage Centrally… • All operational information in one location- Centralized visibility- Centralized buy & sell rates- Centralized reporting

• Single set of integration points for customers, carriers, partners• Single IT infrastructure to support


Multi-Domain ArchitectureConfiguration and Security

• Access role-based info, including specific views for trading partners

• Prevent other users from accessing non-privileged info or takingnon-authorized actions via role-based security

• Provides the ability to expand without having to buy another system

Customer 2

Customern

Customer 1

Top Level UsersFull Visibility

DomainUsers

PartitionedVisibility

LSP

ConfigureSoftware

for SpecificLook & Feel

…

Provide SimpleAccess toContextualInformation


• Matched rate & service• “Perfect” invoice to

customers • Link to buy-side events• Rate and planning

adjustment basedon shipment actuals

Customer View

Shipper

(Guangzhou)

Cust

(Chicago)LSP

• Dynamic routing &consolidationthroughout Network

• One order can involve multiple shipments, parties, and modes

• Optimization can be performed for unlimitedlegs and modes

China – U.S. Order

(Guangzhou)

Supplier

(Chicago)

Cust

(Hong Kong)

Port

(Los Angeles)

Port

LSP View (Multi-Leg / Multi-Mode)

China – U.S. Order

Buy & Sell ShipmentsUnique capability for LSP's

Sell

buy


SOA Platform – Agent Actions

• Agent actions provide fine grain process control – over 600 actions

• Automate processes

• Customer specific processes

• Examples• Plan shipment• Change carrier• Tender• Update quantities• Update status


Multiple DashboardsMultiple Dashboards

Stop-lightsStop-lights

Query by time and geography

Query by time and geography

Fusion Transportation Intelligence


Customer ExamplesLogistics Service Providers

Customer Deployment

Deutsche Post World Net

• DHL Logistics• Managed transportation services• Supply chain visibility and event management

• DHL Express• Supply chain visibility and event management• DHL ProView Demo

Toll Group • Integrated Transportation Services• Single face to customer• Integrated to Toll’s asset based LOB's (TL, LTL, Express)

• Outsourced transportation services• Multiple industry offerings: CPG, Retail, Auto, Energy

BDP International • Lead logistics services and freight forwarding• Customer specific programs for strategic accounts• Generic services deployed across hundreds of customers


Schneider National

“We wanted to invest in a vendor with a proven track record, best-in-class functionality across multiple areas – from transportation management to demand planning to the middleware layer – and a company who was willing to partner in the development of new capabilities. Oracle was the clear leader in all of these areas. With Oracle we are embarking on a significant transformation that enables growth, operational excellence and improves the customer experience.”

Judy Lemke, EVP and CIO, Schneider National – July 30, 2007

December 2007


Ozburn-Hessey Logistics

December 2007Source: Ozburn-Hessey Logistics’ website: http://www.ohlogistics.com/Oracle_Transportation_Management.asp

VERBATIM QUOTE FROM OZBURN-HESSEY LOGISTICS’ WEBSITE – 7 DEC 2007:Oracle Transportation Management

The Oracle Transportation Management software application is customizable to meet client’s individual needs. Oracle

Transportation Management was chosen as OH Logistics’ paperless transportation management system based on its flexibility

and ability to reduce freight costs and increase on-time deliveries.

Benefits of Oracle Transportation Management• Saves money• Increases on-time deliveries• Provides visibility of shipments to you and your customers

• Real-time shipment status• Access levels controlled by you

• Identifies consolidation opportunities• Integrates with warehouse management systems

• SynapseTM

• Client host systems including PeopleSoft, SAP, Great Plains and any proprietary system• Completely web-based• Provides automated communication

• Exception reports and event management• Automated settlement (EDI 210 and web-based carrier settlement)• Claims resolution• Standard and configurable reports

• Supports radio frequency (RF) technology

Oracle Transportation Management determines the best and most cost-effective way to ship an order to meet a customer’s

requested delivery date and sends the order to the warehouse floor with routing information. This system provides our clients

complete visibility of inventory in-transit and [the ability] to better control inventory levels. Our clients better serve their customers

by allowing them access to shipment information via the web.


Benefits of OTM’s Single Platform• Flexibility of Deployment

• Deploy by line-of-business, service, customer, geography• Integrated Visibility

• Customer• Single point of interaction with Toll Group regardless of LOB• Rates, quotes, orders• Track and Trace• Reports, documents

• Internal• Visibility to all customer transactions across LOB's• Execution across LOB's

• Revenue Growth / Time to Market• Minimize time to add new services• Minimize time to add new customers

• Lower Total Cost of Ownership• Later phases leverage work from earlier phases (e.g., integrations,

reports, customer profiles)• Single system to maintain and administer


Additional Oracle Transportation Management (OTM) Benefits/Advantages

• Improved planning and coordination

• Reduced variation through standardization

• Decreased labor requirements

• Reductions in inventory

• Scenario planning capability

Process Improvements

• Decrease order cycle time

• Managing customer deliveries proactively

• Improving availability of shipment status information

• Improving relationships with carriers

• Increase fulfillment rate with merge-in-transit

Customer Service Enhancements

Transportation Expenditure Reductions• Moving freight more effectively and efficiently, enterprise-

wide, while still meeting service requirements

• Reduce transportation and logistics freight spend

• Reduce freight settlement processing costs

• Significantly improve transportation and logistics professionals’ productivity

• Improved service provider relationships increase sales


Oracle Transportation Management Value Drivers

* Sources: Accenture, AMR Research, Aberdeen Group, A.T. Kearney, Capgemini Consulting, CIBER, CSCMP Giants of Shipping Survey, Beth Enslow, Hitachi Consulting, Logistics Management, Logistics Today, Robert Martichenko/LeanCor, Supply Chain Digest, Tompkins, 16th Annual Masters of Logistics Study/Data/Article, Oracle Customer Experience and extensive Oracle Global Insight research and analysis.

1

OTM Application

Value Driver/ Benefit

Third-Party Benchmark*

Key OTM Technology Enabler/Impact Rationale

Oracle Transportation Management (OTM)

Central Load Control/Core Carrier Program

10% savings on total controllable freight spend

Carrier contracts are centralized; in-depth knowledge of carrier capabilities known, documented in planning; carrier performance scorecarding performed as often as desired to improve service and lower costs

Optimal Load Tendering/Booking


Online shipment tendering via web to carriers; online dynamic status of equipment availability submitted by the carriers; carrier auto-accepts and only responds with exceptions; can automatically re-tender based on declines/time-outs; provide capability for conditional tenders, where a “yes/no” response is not required for the tender

Optimal Shipment Event Management – One-Time Safety Stock Inventory Reduction

40% reduction in safety stock inventory

Shipment status updates received from carrier/freight forwarder can trigger exception management alerts to appropriate parties; online, integrated, web-based Track and Trace for all shipment types, with near-real-time visibility on order/in-transit status for customers and employees – down to the SKU or unique serial number if desired; support for RFID tags and monitoring




OTM Application




Oracle Transportation Management (OTM)

Optimal Shipment Event Management – Safety Stock Inventory Carrying Cost Reduction

Inventory carrying cost = 23%

Shipment status updates received from carrier/freight forwarder can trigger exception management alerts to appropriate parties; online, integrated, web-based Track and Trace for all shipment types, with near-real-time visibility on order/in-transit status for customers and employees – down to the SKU or unique serial number if desired; support for RFID tags and monitoring

Optimal Shipment Scheduling

Reduce expedited freight costs not passed onto customers by 30%

Schedule appointments in the system to optimize service-level/cost-level balancing; shipping schedules are monitored proactively and adjusted as necessary to meet customer needs short-term and long-term; centralized planning and routing is managed by one centralized transportation and logistics corporate group

T&L Systems Consolidation Reduced IT Costs

Reduce annual IT costs by >US$1 million per year

Major transportation and logistics (T&L) processes are automated on centralized T&L system with single data repository, single rate repository, multi-modal support, near-real-time analytics and reporting on all T&L data. This provides one version of the truth for all global, local and central T&L information

2




OTM Application




OTM Transportation Operation Planning

Optimal Mode/Service Selection


Automated mode/service selection provided by the system; have ability to dynamically change the mode/service selection based on customer requirements, cost factors, revenue factors and timeliness/efficiency factors

Optimal Carrier Selection


Automated carrier selection occurs with web-based system based upon actual service and cost measured; work collaboratively with carriers to track and act on opportunities to improve service and lower costs

Optimal Load and Route Planning


Active use of best-in-class transportation planning tools, including computer-aided simulation of different inbound/outbound scheduling scenarios and exception-based mgmt escalation to determine cost/profitability impact and opportunities; excellent data with enterprise-wide common business language, rate repository, address cleanup and maintenance process in place with validation and security

3




OTM Application




OTM Transportation Operation Planning

Optimal Asset Utilization


Leveraging equipment and carriers for maximum utilization and shipments across the enterprise is part of the planning process; system supports continuous moves, backhauls and cross-docking globally

Automate Manual Processes and Enhance T&L Staff Productivity

30% enhanced T&L staff productivity

Most major transportation planning processes, data collection/validation/ formatting and transportation planning analytics are automated and on a single, global transportation planning system

OTM Transportation Sourcing

Truckload (TL) Carrier Rate Reduction

10% savings on total controllable truckload freight spend

Carrier rates are documented globally, in centralized system, optimized for lowest cost globally, and rates are real-time visible to line managers and senior mgmt. Also, formal electronic carrier rate procurement program in place with frequent monitoring, cost reduction targets and annual reviews. Ability to conduct spot market bids on a dynamic basis

4




OTM Application




OTM Freight Payment, Billing and Claims

Reduction in Cash Outlay for Freight Settlement Services

Same Auto-pay – automated exception-driven freight bill processing; freight bills are accrued and paid without invoice based on agreed terms (e.g., door-to-door or cost-plus billing models); also have ability to accrue for freight charges and pass expected liabilities to the accounting system

Customer/Freight Billing – Automate Manual Processes and Enhance T&L Staff and Finance Staff Productivity

10% enhanced T&L staff and Finance staff productivity

Proof of Delivery (POD) notification received from carriers automatically generates customer bills; handling of additional charges (e.g., detention, accessorials, etc.) are allocated to order and shipments automatically with minimal manual processing

Freight Bill Auditing – Automate Manual Processes and Enhance T&L Staff and Finance Staff Productivity

15% enhanced T&L staff and Finance staff productivity

System allows auditing (pre- and/or post-) on all freight bills (which are captured and viewable online); carriers can submit adjustments that are reviewed/approved online by company’s transportation and logistics mgmt; at time of audit, costs can be allocated to proper GL codes

5




OTM Application




OTM Logistics Inventory Visibility

Reduce Expedited Inventory Transfers

Same Global view of all inventory within a single system, with the ability to monitor and report on key metrics, including min/max levels

OTM Fusion Transportation Intelligence

Improved Analytics – Improve Carrier Performance While Reducing Carrier Costs


Established carrier scorecards in place (service quality, timeliness, innovation, cost, etc.); company provides carrier with periodic exception reports based on agreed-upon KPI’s; transportation cost reporting is flexible to analyze variances to budgeted, target and standard transportation costs; deploy and manage all assets, internal and external, effectively and efficiently based on accurate and global real-time cost information

Improved Analytics – Automate Manual Processes and Enhanced T&L Staff, Finance Staff and Executive Staff Productivity

25% enhanced T&L, finance and executive staff productivity

All key transportation and logistics data is captured and stored in the centralized, global, secure and near-real-time web-enabled system; all reports are automated, including standard transportation and logistics reports, regulatory reports, shipping reports, KPI reports and near-real-time analytical dashboards and ad-hoc reports

6


Transportation and Logistics ManagementCHALLENGES CAPABILITIES VALUE

• Manage all transportation/ logistics processes, transactions and information in one global system

• Optimize shipments to maximize asset utilization and minimize transportation costs

• Carrier collaboration for shipment communications, appointment scheduling, capacity commitments, contract bids, “cooperative routes”, and continuous moves

• Automated processes for all steps in the order-shipment lifecycle: plan, execute, monitor, and pay

• Calculate estimated and track actual costs at multiple levels: item, order, customer, supplier, carrier, site and lane

• Exception management and business intelligence to drive operational and strategic decision making

• Enable best practices and drive continuous improvement in your transportation & logistics department

• Lower freight / logistics costs (both administrative & variable costs)

• Increase customer satisfaction and customer retention – typically leading to increased revenues

• Improve asset efficiency and utilization

• Increase process efficiency and throughput

• Improve carrier relations

• Provide the business with more flexible and cost-effective global fulfillment options

• Enable higher inventory turns and lower product obsolescence

• Reduce safety stock levels with enhanced visibility

• Controlling freight costs due to carrier rate increases and surcharges

• Maintaining reliable service levels in light of reduced carrier capacity

• Meeting customer demands for shorter cycle times, more frequent deliveries and “delivery excellence”

• Maximizing truck, trailer and container asset utilization

• Improving productivity to keep up with growing shipment volumes

• Adjusting to changes in transportation network – new shipping sites, international shipments

• Implementing and enforcing best practices across the transportation network

• Strategic decision making with inaccurate or outdated logistics information

OTM Differentiator

Steve – we HIGHLY recommend that you & your lead SC customize this slide for Toll Group


Transportation Operational PlanningCHALLENGES CAPABILITIES VALUE

• Integrated load configuration planning

• Multi-mode, multi-leg planning – international shipments

• Optimized mode, carrier, service-level selection – cost- and policy-based decision making

• Carrier commitments and capacity limit enforcement

• Optimized consolidation – pooling, cross-docking, multi-stop

• Dock appointment scheduling

• Cooperative routing

• Continuous moves

• What-if transportation scenario planning

• Automated, workflow planning processes

• Integrated planning and execution

• Integrated planning across inbound and outbound

• Lower transportation costs

• Increase customer satisfaction and customer retention – typically leading to increased revenues

• Improve asset efficiency and utilization

• Increase process efficiency and throughput

• Improve carrier relations

• Provide the business with more flexible and cost-effective global fulfillment options

• Improve the productivity of and thus the impact of your transportation planners

• Minimizing/controlling transportation costs

• Maximizing on-time shipment performance

• Maximizing truck, trailer and container asset utilization

• Adherence to transportation carrier contracts

• Enforcement of corporate shipping policies (core carrier program, routing guides, load consolidation best practices)

• Improving productivity to keep up with growing shipment volumes

• Need to optimize private fleet vs. common carrier utilization

• Adjusting to changes in your transportation network – new shipping sites, international shipments, new carriers, supply disruptions

OTM Differentiator



Global Freight ManagementCHALLENGES CAPABILITIES VALUE

• OTM provides a single platform to manage all transportation activity on a global basis across geographic regions, modes of transport and lines of business

• Planning and optimization of multi-modal international shipments (air, ocean, rail and truck)

• OTM pays carriers automatically, thus eliminating the matching process. Only freight payment exceptions are manual

• Enable best practices on a global scale while accounting for regional differences (e.g., rate structures, reporting, languages, currencies, units of measure)

• Execution and collaboration with all involved parties in the international supply chain via the web or electronic communications

• Superior transportation analytics offer access to historical data as well as a dashboard of daily activity

• Mode shift/load and route optimization can result in 5-30% freight spend reduction

• Optimized freight settlement processing can result in 2-6% freight spend reduction

• Enhanced core carrier program process and systems can result in 5-10% freight spend reduction

• Overall improved shipment execution can result in 1-5% freight spend reduction

• Streamlined and real-time/near-real-time performance improvement, monitoring and analytics can result in 1-3% freight spend reduction

• OTM will streamline enterprise-wide transportation and freight management operations and enable better profit-focused decision making. Typical annual transportation cost savings are 2-7%

• Limited visibility to orders, shipments, inventory and related information across geographic regions and lines of business at an operational and strategic level

• Manual, time-consuming processes for planning and executing international shipments

• Variability in processes and compliance across multiple regions and systems (e.g., cannot leverage or enforce global carrier contracts)

• Limited collaboration with parties in the international supply chain (e.g., suppliers, forwarders, brokers, carriers, customers)

• Minimizing international transportation costs while meeting required service levels in reliable manner (e.g., eliminate unnecessary expediting)

• Transportation performance measurement on a global basis – disparate systems and/or lack of data all together

OTM Differentiator




Roadmap


Key Investment Areas

• Fleet & Asset Management• Single platform supporting shipment- and asset-centric

transportation management

• Global Trade Management

• Logistics Service Provider Industry Solution• Single platform supporting multiple LSP services (e.g., contract

logistics, freight forwarding, supply chain visibility)

• Quote-to-cash process support – integrated customer-facing, network operations, and financial processes

• Business Intelligence• Using business intelligence to drive more effective operational

decision making and day-to-day productivity


Key Investment Areas

• Supply Chain Execution• Dock appointment scheduling

• Load sequencing

• Yard management

• Inventory visibility – at-rest & in-transit

• Supply Chain Planning• Risk management – supply chain visibility and event management

• Transportation capacity planning

• Supply chain network design

• Business Process Platform• SOA platform – granular web service definition

• Pre-built Oracle business processes



Additional Reasons Why Oracle forToll Group


Oracle Corporation

• World’s largest enterprise software vendor• US$17.996 Billion revenue, FY07• 300,000+ global customers• 37,000+ applications customers• 190,000 SMB/Mid-Market customers• 65,000+ employees; 7,500 support personnel

and 14,000 developers• R&D Investment: US$2.195 Billion, FY07 • 19,000 partners• 9,000 Independent Software Vendors (ISVs)• Operating in 145 Countries


Oracle’s Market Leadership

• in Customer Relationship Management (CRM) Applications Globally

• in Human Capital Management (HCM) Applications Globally

• in Business Intelligence & Analytics Applications Globally

• in Enterprise Performance Management (EPM) Globally

• in Supply Chain Management (SCM) Applications Globally

• in Configurator Globally• in Database• Database Share on Linux



“Companies that run Oracle applications are 40% more profitable and deliver 75%

greater return on invested capital”

Mainstay Partners and Oracle study of NYSE & NASDAQ listed companies


Oracle:

Single, Integrated, Global, Scalable, Real-Time Repository

CRM

Distribution

Financials

TransportationSRM

PlanningHR

Data Warehouse

Competition:

Cost, Complexity & Risk

Oracle’s Superior Information Architecture Designed for Business Insight and Actionable Results

New Product &Svc Data

Supplier & Purchasing Data

Manufacturing & Quality Data

Transportationand Logistics

Data

Financials Data & Consolidations

and

BusinessIntelligence &

Analytics

Planning &Scheduling Data

Warehouse & Inventory Data

Customer Data

Order & PricingData

HCM/HR Data

Assets Data

Projects Data


Latest Walker Report on Customer Loyalty

Source: The Walker Loyalty Report: Software and Hardware

* Based on 5,000+ U.S. and European Customers Surveyed

67%79%Overall Satisfaction

63%75%Innovative Company

29%48%Easy to Do Business With

43%69%Preferred Brand Name

65%79%Best Brands

39%53%Technical Support

27%44%Ease of Use

54%66%Likelihood to Recommend

31%43%Cost

55%72%QualitySAPOracle

Key Metric


Oracle’s TCO Advantage Validated By External Firms

Nucleus Research Current Analysis MetaGroup

Software

Oracle Acquisition costs less expensive by 48% compared to SAP’s

Oracle's license fees are as much as 34% lower than SAP's

Hardware

Oracle customers spend 55% less on hardware than SAP's

Implementation

Oracle implementations are 60% less expensive than SAP's

Oracle implementations take almost 38% less time than SAP's

7 times less expensive than SAP's

Ongoing Costs

50% lower average ongoing costs than SAP's

Oracle customers require 20% fewer administrators than SAP's

6 times less expensive TCO than SAP's


73%

56%

27%

44%

0%

20%

40%

60%

80%

Configured HeavilyCustomized

Degree of Customization

Oracle

SAP

Source: Harte Hanks

37%

65%

0%

20%

40%

60%

80%

Oracle SAP

% Requiring > 6 months of Customization

3%

25%

0%

5%

10%

15%

20%

25%

Oracle SAP

% Requiring > 10 developers to Customize

Oracle Requires Less Customization and Also Fewer Resources (Who Are Easier To Obtain)


Oracle Enables Lower Total Cost of Ownership (TCO)

Total Cost of Ownership (TCO) Components

SoftwareAcquisition

Costs

• Software License• External Implementation Partner• Maintenance (support fees)

LifeCycleCosts

• Additional Implementation (internal staff, contractors, etc.)• Hardware and Other Required Infrastructure (software, internal labor or

services, external labor or services, etc.)• Hosting (which Oracle offers and SAP does not)• Integrations to Other New and/or Legacy Systems and Databases• Changes and On-going Maintenance• External Labor: In-State & Java Skilled (local community) vs. Out-of-State &

ABAP Proprietary Skilled, due to Oracle being open and SAP being built on/with its own proprietary technology and language

• Upgrades

Compare Oracle to SAP on These Components – Oracle’s TCO Is Much Lower


Oracle On Demand Hosting SolutionsYour Oracle software and technology managed by Oracle experts

Infrastructure Management

IT Infrastructure Library (ITIL)-based Core Services

SoftwareManagement

Service Level Management

Security Management

ITGovernance

Optimized, Repeatable Processes and Automation

APPLICATIONS EBS, PSFT, JDE, Siebel …

INFRASTRUCTURE Database, Fusion Middleware

OPERATING SYSTEM Enterprise Linux, HP-UX, AIX …

HARDWARE Facilities, Hardware, Networks

• Lower Total Cost of Ownership (TCO) by 30-50% achieved over a five-year period

• Seamless access to product, support and software management expertise

• Over 600 customers, highest level of customer satisfaction

• Over 1,500 employees committed to delivering a superior ownership experience

• Support entire Oracle stack – Applications, Middleware, Database – over 360 solutions


Oracle’s Worldwide Support Service Has Won Numerous Awards Since 2002, . . .

"The SSPA STAR Award showcases companies who demonstrate outstanding achievement in the support services industry. The investment and high standards Oracle maintains for delivering superior technical support, evidenced by the success of its customers, made Oracle the clear leader in the Innovative Support category."

2002 & 2004 SSPA Awards

“Oracle has once again clearly demonstrated the importance of ongoing innovation and its commitment to providing customers with an outstanding customer service experience.”

Bill Rose, SSPA Founder and CEO, Nov 2006

Oracle Support Services again recently received two 2006 Software Technical Assistance Recognition (STAR) Awards for customer support service from the SSPA. The awards demonstrate Oracle’s commitment to providing customers with superior ownership experience, innovation, proactiveness and automation in its support team, capabilities and tools.

2006 SSPA Awards

• Innovative Support, Software Service Professionals Association (SSPA), October 2004 (2nd time)

• WebSTAR Service Award, Software Service Professionals Association (SSPA), October 2004 (2nd time)

• Customer Satisfaction Award, Database Software Services, IT Services Annual Conference, October 2004, Beijing, China (2nd consecutive year)

• Best Customer Service Organization, International Business Awards, March, 2004

• 2004 Best Support Organization• 2003 Stevie Winner Award for Best Support

Organization


Including:

J.D. Power and Associates Certification – 2006


Oracle’s Unique Application and Infrastructure Solutions Provide Distinct Strategic Advantage

• Fastest Time to Value

• Lowest Maintenance Cost

• Lowest Upgrade Cost

• Best Hosting Option

• Leading, Integrated, World-Class Enterprise Applications for Financials, BI & Analytics, EPM, HCM, Transportation Mgmt, Demand Planning, CRM, SCM, Content Mgmt and Other Solutions

• Application PlatformFusion Middleware

• Enterprise InfrastructureGrid Computing

• Business Insight• Adaptable Business

Processes• Superior Ownership

Experience• Single, Scalable,

Secure, Reliable & Global Infrastructure

Strategic Technology Partner

Needs to Provide Toll Group:

Lowest Cost of Ownership

Complete Suite of Applications & Infrastructure

Real Business Value

The Only Partner

Delivering on this Vision

copyright ©2007 oracle. all rights reserved. oracle and toll group confidential and proprietary

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