The following 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 Oracles products remains at the sole discretion of Oracle.Safe Harbor Statements

Logistics Service Provider Product StrategyDerek GittoesVice President, Logistics Product StrategyFebruary 2008

AgendaLogistics Service Provider Market

Product Strategy

Logistics Service Provider (LSP) Market

LSP Business DriversCommoditizationWhat value-added services can I offer to improve customer loyalty?How can I provide a single customer experience across all points of contact?ConsolidationHow 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?GlobalizationHow 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?TradingPartnersShippers &SuppliersCustomersSlim Operating MarginsWhat is the best way to reduce service and operational costs?What are my most profitable products and customer segments / channels?Logistics ServiceProviders

Information Technology ImpactSupporting Business Transformation

Current information technology (IT) platforms dont support LSPs business objectivesCustomer expectations vs. capabilities gapOlder systems and point solutions with high cost of ownershipConstraint on revenue & profit growth

Next generation IT platform requirementsSingle view of customer, operations and financial informationIntegrated business processes quote-to-cashTailor industry and customer specific solutionsGlobal operations support

Schneider NationalSchneider National Leverages Oracle Applications and Infrastructure Software to Enhance Enterprise Growth, Efficiencyhttp://www.oracle.com/corporate/press/2007_jul/schneider.html

"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," said Schneider National Executive Vice President and CIO Judy Lemke. "With Oracle, we are embarking on a significant transformation that enables growth, operational excellence, and improves the customer experience."

Hellmann Worldwide LogisticsHellmann Worldwide Logistics Selects Oracle as its Global IT Providerhttp://www.oracle.com/corporate/press/2008_jan/hellmann.html

Jrgen Burger, CIO, Hellmann Worldwide Logistics said, From the start Oracle was sharp, responsive and showed a clear commitment to understanding and serving our business. Its focus on the customer was very much like our own, which made them a good fit for our business. Not only that, Oracle's applications in comparison to the solutions we reviewed allow greater configuration and show excellent flexibility. They also provide integration of the transportation value chain through their use of open standards.

Why is LSP Industry Important to OracleLSP The CustomerEmerging market opportunity for Oracles complete stack of application and technology productsIndustry trends in IT platform modernization and strategic vendor selection

LSP The ChannelGreater levels and breadth of SCM outsourcing over timeLSPs are key enablers in evolution of enterprise- to network-based supply chains Success with LSP industry EQUALS success with Manufacturing, Retail and Distribution industries

Oracles Strengths

Strong existing product portfolio breadth and depthComplete applications and technology footprintMarket leading products for Transportation, Supply Chain, Customer Relationship Management, Financials, Human Resources, Business Intelligence, Middleware, etc.

Customer DrivenExisting relationships with industry leadersDrive product strategyProvide market credibility

Market ValidationCustomers continued growth of LSP customer baseAnalysts third party validation as industry leaderGartner: Magic Quadrant for TransportationForrester: Wave for Transportation

Oracle in the LSP IndustryDid You Know?

Product Strategy

LSP Product StrategyQuote-to-Cash for LSPsManage front office, operations and back office functions for global logistics service providers

Global Transportation PlatformMulti-service offering (managed transportation, forwarding, supply chain visibility, etc.)Multi-division/customer, -mode, -geography

Fleet & Asset ManagementManage transportation assets (drivers, trucks, trailers, containers, totes, etc)

Global Trade ManagementGlobal platform for transportation & tradeManage all aspects of cross-border transactions

Supply Chain ExecutionIntegrated warehousing and transportation

Supply Chain SecurityVisibility, regulatory compliance, chain of custody

Environmental SustainabilityMeasurement and minimization of impacts

Customer DrivenCollaboration with Industry LeadersAgilityBDP InternationalCEVA DHL-Exel LogisticsHansol CSNHellmann WorldwideItalsemioneKuehne + NagelSchneider NationalToll GroupTotal Logistic ControlUTiVolvo Logistics

LSP Quote-to-CashAsset & Non-Asset Based ServicesCRMTransportationTransportationAsset LifecycleHuman ResourcesTransportationFinancialsHuman ResourcesFusion Middleware, Business Intelligence

CRM / Order Management for LSPSiebel-OTM integration for order management and fulfillment business processes

RequirementsCustomer definition / managementCapture billable & non-billable activities (all modes & LOBs)Capture order, customer / location specific servicesRating & quoting

Financial Settlement for LSPE-Business Suite Financials-OTM integration for financial settlement business processes

RequirementsAccount definition / setupAccounts Payable (supplier payment)Accounts Receivable (customer billing)Accruals

Fleet ManagementDefinitionThe management of all fleet resources such as drivers, tractors and trailers used to perform transportation servicesPlan asset usageDispatchingReal-time monitoring and trackingSettlement of fleet associated costsDriver HRAsset lifecycle management (procure, maintain, disposal) Benefits Improved asset utilization & reduced costs Better service Increase driver retention Improve safety Reduce fuel costs and emissions (Green)

Fleet ManagementTarget IndustriesIndustriesLogistics Service ProvidersAsset-based services

CarriersFixed network (e.g., LTL / express linehaul)Dynamic network (e.g., over-the-road trucking)

ShippersPrivate fleets (e.g., store delivery)Dedicated fleetsTypes of FleetsTruckLong-haul truckload Short-haul P&DFixed network

OceanContainerChassis

RailCarsIntermodal

Fleet ManagementSolution ComponentsFleet Planning & Execution build upon OTM capabilitiesPlanning robust optimization frameworkExecution shipment / route dispatchVisibility and event management asset-based trackingSettlement rating engine, buy-sell shipment mgmt

Complementary Fleet Management FunctionsE-Business SuiteEnterprise Asset ManagementHuman Resources ManagementFinancialsTechnologyBusiness IntelligenceFusion Middleware

Global Trade Management At-a-GlanceTrade FinanceLetters of CreditFinancial IntegrationsDocument Sharing

Landed CostCharge Mgmt and AllocationsEstimated & Actual CalculationsTrade DocumentsERP Mappings for Trade Docs

Trade ComplianceDenied Party ScreeningGlobal ExportsGlobal ImportsCustoms Party Screening ListsHarmonized System CodesCountry Tariff & DutiesTrade AgreementsTrade ContentTrade Compliance

Global Export ProcessSales Order CreationParty ScreeningExport Controls ScreeningLicense DeterminationPick/Pack Tender to CarrierExport DeclarationShip GoodsCreate Export DocumentsParty CreationGlobal Export Process FlowTypical GTM Services:Product ClassificationLicense ManagementDPS ScreeningEmbargoed Country/AntiBoycott ScreeningExport DocumentsExport Declaration

Global Import ProcessCreate PO/FTALicense DeterminationSeller Gets POBuyer & Broker Receive ASNCustoms Entry Filing & ClearanceShip GoodsCreate Import DocumentsClassify ProductsGlobal Export Process FlowTypical GTM Services:Product ClassificationLicense ManagementDPS ScreeningLanded Cost ManagementCustoms ManagementData & Document CollaborationCalculate ALCReceive GoodsCalculate ELCParty Screening

Global Trade ManagementNew Product OfferingBuilt on top of OTM, leveraging OTMs architecture and infrastructure (e.g., data model, security, workflow, UIs)Deployable independent of OTM or integrated with OTM

Phase 1 CandidatesProduct Classification Denied Party ScreeningLicense DeterminationExport ComplianceGlobal Trade Content

Business IntelligenceMultiple DashboardsKPIs and ReportsFlexible queries & layout

Business IntelligenceIntegrated with day-to-day operationsDrill to Transaction Shipment Details

Business IntelligenceAdditional dashboard contentMany new metricsNew dimensions & facts for customized metricsVerticalized content (e.g., LSP)

Sustainability / Green TransportationEnvironmental impact and costsE.g., carbon and other emissions

Integration back to OTM: Actionable BIOTM raises events based on status of metricReplace splash image with dashboard

User ExperienceDesign for operational users

Business IntelligenceEnvironmental Impact KPIs

SOA PlatformLSP-Shipper CollaborationNetwork-based supply chain business processesIntegrating the LSP into the Shippers supply chainOrchestrating the supply chain network

Example ProcessesOrder management fulfillment options (cost & lead times)Inventory management postponement, diversionsWarehousing appointment schedulingProduction planning inbound visibility

SOA Platform Agent ActionsAgent actions provide fine tune process control

Build composite processes using BPA for Oracle and non-Oracle applications

ExamplesPlan shipmentChange carrierTenderUpdate quantitiesUpdate status

Transportation SourcingUser experience Improve carrier interactionSimpler bid entry in Microsoft ExcelValidate data in bid entryStreamline bid awards and related communication

User experience Standardize buyer interactionSimplify set up of bid rounds and document preparationSimplify creation of shipment volume forecasts

OptimizationAdd constraints to solve: commitment as count per lane, capacity across lanes, total spend by carrier, etc.Support additional metrics for variable ratesSupport rates with mileage bandsOptimize for total of base and accessorial costsSupport additional transport modes: LTL and ocean

Forwarding & Brokerage Operations

User ExperienceUsability improvements (e.g., Job screen)Pre-configured content FF oriented UIs, menu options, workflow

Import ProcessingEnsuring data model and workflow support import operations

Business IntelligenceAdditional KPIs and reports to support LSP/FF operations

Forwarding & Brokerage Operations

FinancialsIntra-company settlementOracle Financials integration (A/P, A/R, GL, and SLA)Support for Subledger accountsProfit SplittingLocation-level Job Costing

Transload PortsMonitor ocean traffic that moves through multiple ports and changes vesselsAutomation of shipment monitoring to proactively track service failures

Oracle Warehouse Management Roadmap 12.011i10PlannedAvailableWarehouse ManagementAdvanced Task FrameworkPacking WorkbenchRFID ComplianceMHE IntegrationGraphical User Interface (GUI) for Mobile

Forward Pick ReplenishmentMobile PersonalizationDock Scheduling Integration with OTMLoad SequencingTask Extensibility

Wave PlanningAdvanced Cartonization UCC-128 Compliance EnhancementsDecentralized WMSWMS for LSPsYard ManagementSlottingMulti Step PickingValue Added ServicesStandard Pack in StorageLabor and Resource Planning 12.1 12.2 Beyond 12.2WMS for process industriesPlanned crossdockingLabor ManagementLocator Check DigitsFlexible label field definitionTask Management Automation

FY07FutureUsabilityInventory ConvergenceOTM IntegrationComponent ArchitectureKey capabilities being added in each releaseValue Added Services

Dock Scheduling Dock doors information in Synch with WMS Dock doors appointment information drives WMS ExecutionOTM Dock Schedule tightly integrated with WMS Select lines for wave creation based on dock appointmentSelect staging lane based on dock appointment

Load SequencingLeverage shipment itinerary in OTM to sequence loads in WMS123Manage order release based on shipment itineraryDirect outbound staging based on loading sequenceFloor staging based on trip stopsDirect trailer loading based on trip stopsValidate loading sequence during trailer loading

Decentralized WMSGlobal ERP Instance (Financials, Procurement, Order Management etc.)Warehouse 1Warehouse 2Warehouse 3Shipment & Receipt Signals & ConfirmationsInventory Adjustments etc.

WMS for LSPsLSP Client ManagementMulti Tenant WarehouseActivity Based BillingRules and Storage Policies for clientsStock on-hand Balance for each clientInvoice Rules for LSP ClientInvoicing and Billing for LSP Client

Yard ManagementYard Layout DefinitionYard ResourcesYard CheckingYard CheckoutYard Stock VisibilityUnload TrailerDirected Yard Movement

Parking to Dock DoorDock Door to ParkingOTM

Dock ScheduleInboundShipmentOutboundShipment

Summary

Why is LSP Industry Important to OracleLSP The CustomerEmerging market opportunity for Oracles complete stack of application and technology productsIndustry trends in IT platform modernization and strategic vendor selection

LSP The ChannelGreater levels and breadth of SCM outsourcing over timeLSPs are key enablers in evolution of enterprise- to network-based supply chains Success with LSP industry EQUALS success with Manufacturing, Retail and Distribution industries

LSP Product StrategyQuote-to-Cash for LSPsManage front office, operations and back office functions for global logistics service providers

Global Transportation PlatformMulti-service offering (managed transportation, forwarding, supply chain visibility, etc.)Multi-division/customer, -mode, -geography

Fleet & Asset ManagementManage transportation assets (drivers, trucks, trailers, containers, totes, etc)

Global Trade ManagementGlobal platform for transportation & tradeManage all aspects of cross-border transactions

Supply Chain ExecutionIntegrated warehousing and transportation

Supply Chain SecurityVisibility, regulatory compliance, chain of custody

Environmental SustainabilityMeasurement and minimization of impacts

Industry participants are experiencing significant pressures that affect the way they look at their business. These pressures can be summarized in 4 drivers (in red arrows). The white text next to the red arrows summarizes the impact of the driver on an Industrial Mfg company.

Global Competition: As global communication costs continues to decrease, customers are finding more options for suppliers. Labor costs in other countries are also impacting national sales and making foreign purchases more cost efficient. Decreasing prices are a result of this globalization and increased competition.

Customer Expectations: Customers are becoming more demanding in expecting basic products personalized to fit their needs and are expecting faster deliveries of these products and all others as well.

Cost Pressures: As a result of cost focus, Industrial Mfg companies are under pressure to streamline operations and outsource portions of the company that are not a key capability. In addition, cost reduction initiatives such as Vendor Managed Inventory (VMI) or Just in Time (JIT) manufacturing efforts are required to remain cost competitive across the value chain. All of this must be achieved while maintaining high customer satisfaction, or it was done in vain.

Internet Technology: The growth of the Internet as a selling channel and information medium is leading to more and more customers demanding real-time information on products, prices, shipping status, etc. In addition, self-service access to this information is decreasing time and costs for sales and marketing in all companies.

8 of 10 Global Logistics - Technology:Exel, DHL, Eagle Global Logistics, UPS, Agility Logistics

7 of 10 trucking companies Technology:Yellow Roadway Corporation

5 of 10 global logistics Applications:DHL Logistics OTM & CRM, Exel Financials & OTM, UPS - CRM, EGL Financials & OTM

4 of 10 global trucking ApplicationsSchneider CRM,

450 + Transportation & logistics companies across the globe run Oracle Applications Source Internal Oracle GRST database

Top 10 ports. Source: http://www.iaphworldports.org/world_port_info/WorldPortTrafficLeague2004(CIY).pdfHong Kong (Apps, Tech)Singapore (Apps, Tech)Shanghai (Tech)Shenzhen Busan (Apps, Tech)KaohsiungRotterdam (Apps, Tech)Los AngelesHamburgDubai (Apps, Tech)

Note: Asked MB for a replacement quote (else this one is fine).

Need to replace update this slide to show the expanded functionality depicted in the next slide. MJ

First off, what do we mean by transportation? It seems that every person or company means something different by this word but we use it to refer to everything to do with moving products from the original source to the final destination.

Key components of Transportation definition:Meet delivery promises by moving goods via multiple modes (e.g. railway, truck, planes, boat)Pick up and deliver goods at factories, warehouses, or customer locationsTrack and monitor goods in transportProcess paperwork for regulatory approval or freight payment

Enhance dock utilization and improve on-time shipment performanceFacilitate efficient loading and unloading of material from trailersWMS Installation on an instance separate from core ERPFeatures for driving excellence in an outsourced logistics environmentExtend Oracles yard support for trailer moves, docking & parking