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Oracle Transportation Management - OTM

Markus UrbanPrincipal Sales Consultant – OTM, EMEA

Introduction

© 2009 Oracle Corporation – Proprietary and Confidential

Introduction

Markus UrbanPrincipal Sales ConsultantOracle Transportation Management - EMEA


Oracle Transportation Management - EMEA

[email protected]

Why is Supply Chain Important?


OTM – Why Supply Chain is Important

• Logistics Cost Components

• Logistics Costs as a Percentage of Sales

• Logistics Cost By Industry

© 2009 Oracle Corporation – Proprietary and ConfidentialSource: IBM Institute for Business Value, 2005 Value Chain Study & Capgemini 2005 Third-Party Logistics Study

OTM – Why Transportation is Important


Market Overview


Escalating Costs• Fuel & energy prices• Commodities & raw

materials• Labor

External Risks• Political instability• Monetary – currency

fluctuations, credit crunch• Environmental issues

Trends Impacting TransportationWe live in interesting times…


Globalization Impacts• Return to “home” markets

and “near shoring”• China, India, Russia & Brazil• Security & regulations

CarriersShippers CustomersLogistics Service

Providers

Changing Business Models • Outsourcing – logistics,

manufacturing, service• Inventory management –

more or less?

What’s the Answer?

• Option 1: Hope the problems go away and there’s a return to the good old days.

• Option 2: Wait for someone else to find the answer and then copy them.


and then copy them.

• Option 3: Deploy a modern transportation platform and be prepared for whatever the future has in store.

A transportation platform is your best insurance policy against future uncertainty

Companies with Best-in-Class Transportation Platforms…

• Spend less on transportation

• Deliver higher levels of service

• Have better information to make decisions

• Know how they’re performing on daily/weekly basis


• Know how they’re performing on daily/weekly basis

• Automate routine processes for efficiency

• Integrate transportation with internal processes and with trading partners

Transportation Platform RequirementsSupporting Best Practices for Today & Tomorrow

• Global scope• Complete supply chain – inbound materials, finished

goods, parts, etc.• Anywhere to anywhere via truck, ocean, air, rail, etc.

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

• Multi -party collaboration


• Multi -party collaboration• Suppliers, contract manufacturers• Carriers, 3PLs, forwarders, brokers

• Business intelligence• Real-time visibility• Automation & proactive resolution• Measurement & process improvement

• Flexibility• Adapt quickly to new supply chain requirements and

opportunities

Oracle Transportation StrategyEnable customers to…

• Deploy a transportation platform• Deliver a complete suite of capabilities that support a broad

range of logistics business processes

• Meet any challenge & seize every opportunity• Cost vs. service• Insource vs. outsource


• Insource vs. outsource• Off-shore vs. near-shore• Emerging markets vs. domestic markets• New supply chain models

• Deliver benefits now and into the future• Address today’s pains• Platform for future requirements

Oracle Transportation Management


Gartner TMS Magic Quadrant 2007Gartner, Inc., “Magic Quadrant for Transportation Management Systems, 2007”, by Dwight Klappich, January 2, 2008


Note: “This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from Oracle.”

The Magic Quadrant is copyrighted January 2, 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Forrester Research “Wave” for Transporation, 2008Forrester Research, Inc., “The Forrester Wave™: Transportation Management Solutions, Q1 2008”, by Patrick M. Connaughton, January 29, 2008


The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

LogisticsService

Providers


Manufacturing Distribution

Retail

Manufacturing Distribution

Retail

OTM Delivers


� Single solution across multiple LOB’s, industries, geographies, etc

� Reduce time to deploy via standard “blueprint” indu stry templates

� Extend client relationship from Transport ��LSP ��LLP ��4PL ��JV

� Enable client self -service, reducing contract maintenance

Why Logistics Companies Deploy OTM


� Enable client self -service, reducing contract maintenance

� Client-customised solutions from a single configura ble application

� Buy vs Sell enabling full client profitability anal ysis

� A single visibility Control Tower over other execut ion applications

� To Integrate Logistics Throughout the Enterprise

� To Ensure A Single Point of Information & Control f or all Transportation

� To Reduce Logistics Costs and deliver detailed Cost Accounting

Why Shippers Deploy OTM


� To Increase Logistics Operations Efficiency thru Au tomation

To Provide Logistics Collaboration across all Trading Partners

� To Enable Flexibility & Independence in choice of S ervice Providers

� To Gain Competitive Advantage via Enhanced Business Practices

PlanningLogistic Order Management

Visibility

OTM High-Level Process

OrderManagement

AnalysisFreightProcurement


Legacy

ExecutionSettlement & SCEMFinancialsCorporate Routing

Licensable Components

TransportationManagement

TransportationOperational Planning

Freight Payment,

TransportationCooperative Routing

Transportation Sourcing

Fusion Transportation


Freight Payment,Billing & Claims

Forwarding & Brokerage Operations

Fleet Management

Fusion TransportationIntelligence

LogisticsInventory Visibility

OrderOrder

Fleet Management

PlanPlan MonitorMonitor

Coo

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Rou

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Tran

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SettleSettleExecuteExecuteC

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Oracle Transportation ManagementBroad & Deep Transportation Platform


Fleet Management

Supply Chain Event Management

Business Intelligence (Analytics & Reporting)

Freight Forwarding and Brokerage

Global Visibility

Coo

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Rou

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Tran

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Con

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eBS Integration


Best Practice ProcessesOptimize business performance leveraging Oracle’s extensive experience & best practices

Process Integration PacksPre-built, out of the box, integrated Oracle Applications for quick implementation, at dramatically lower cost & risk

Foundation Packs

Oracle Delivers Pre-Built Integrated ProcessesApplication Integration Architecture (AIA)


Foundation PacksCreate custom integrated business processes across any of applications using predefined, application independent objectand service definitions

Powered byOracle Fusion MiddlewareIndustry leading, openstandards based platform

BBPPEE

XML / XSL

XML / XSL

BBPPEE

WebServices

Orders

WebServices

Invoices

OracleOracleTM*TM*

EBSOM / WMS / Inv Mgmt

EBSOM / WMS / Inv Mgmt

EBS Purchasing

EBS Purchasing

EBSFinancials

EBSFinancials

Foundation: Integrated TransportationLeverage Oracle Fusion Middleware


Standardized, packaged integrations via Web Services, orchestrated by BPEL

EELL

XSL XSLEELL

OrdersShipments

Events

InvoicesAllocationsAccruals

*Oracle Transportation Management

OracleRetailOracleRetail

OtherERP / SCM

OtherERP / SCM

OtherFinancials

OtherFinancials

Summary


The Value Transportation Management Delivers

Single global view of all logistics information; seamless ERP, SCM, and device integration

Robust multi-mode, stop, leg and tier transportation planning; advanced inventory management

Integrate Logistics Throughout the Enterprise

Integrate Logistics Throughout the Enterprise

Reduce Logistics Costs Reduce Logistics Costs

Increase Logistics Operations Efficiency

Increase Logistics Operations Efficiency

Management by exception, RFID enablement, synchronized


Seamless execution flows, carrier sourcing, automated settlements, transaction-centric collaboration

Closed-loop business intelligence, advanced analytics and reporting, integrated event management

Operations EfficiencyOperations Efficiency

Collaborate and Transact with Global Trading Partners

Collaborate and Transact with Global Trading Partners

Drive Continuous Improvement and Best Practices

Drive Continuous Improvement and Best Practices

enablement, synchronized shipping and transportation

Why Oracle

• Product• Breadth and depth of capabilities• Proven – customer value

• People• Deep domain expertise across functions on global basis


• Deep domain expertise across functions on global basis• Vibrant, growing customer & partner ecosystem

• Plan• Product strategy – functional & process innovation• Wherewithal to deliver & track record

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