Transportation System

Joao Pizani May, 08 2008

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Oracle Transportation Management

Best-in-class platform
Oracle Transportation Management
Continuous Planning Consolidate Loads / Moves Select Modes & Carriers Book / Tender Track & Trace Audit / Settle

100% Web-Based Highly Configurable Global Business Support

Event Management On-Time Performance Customer Satisfaction Carrier Analysis

Tender Offer Tender Response Ship Status Invoice

Planned Shipment Order Status ASN Order / Release Information

Orders Product Location Item Master

Planned Shipment Confirmed Shipment

Payment Vouchers Invoice Check and Match

Order Mgmt

Warehouse & Inv Mgmt

Financials

Internal Systems

Service Providers

Trading Partners

Oracle Transportation Management

Unique Global Transportation Platform
Control Globally Plan, execute, track and settle for all orders / shipments
- All divisions - All product flows (inbound, outbound, internal) - All modes: truck, ocean, air and rail

Visibility across the global network

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 division-, region- and mode-specific business

practices

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

OTM Functional Areas

Transportation Order Management Operational Planning Cooperative Routing (Tactical Planning) Transportation Execution Visibility & Event Management Freight Payment & Audit Sourcing Business Intelligence

Transportation Order Processing

Manage All Transportation Orders
Demand
Fusion Middleware Transportation Order Release A Destination1 Customer (Delivered)

BPEL XSL Purchase Orders EDI Customer Orders

Orders Received
Notice!

Split Order

Ready to Ship

Cross Dock

Batch

Manual Production Orders

Transportation Order Release B Destination 2 DC (Delivered)

Integrate with OM and WMS to allow all supply chain partners to create new transportation orders Provide visibility to purchase orders, release orders, and transportation orders with other systems and trading partners
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Trading Partner Collaboration

Extend Capabilities to Service Suppliers and Customers
Send pick confirmation View PUS Confirm ship quantity Generate bar code labels

Supplier

Request pick-up Raise supplementary PUS View PUS status

Ship confirmation Route & PUS data

Customer Materials Control

LSP Planner

Maintain fixed route data Plan daily fixed routes Enter supplementary PUS Append supplementary to plan

Transportation Management

Alerts

Pick confirm shortage Ship confirm shortage

Customer Receiving

Allocate equipment Review shipment status Control execution Shipment management Linehaul manifesting Status updates

Review shipment status Cross-dock manifesting Status updates

LSP Regional DC
PUS = Pick-Up Schedule

LSP Cross-Dock
= Flow of information = Flow of goods

Operational Planning
Routing & Consolidation
Example: Multi-Tier Distribution
Dynamic Routing &
Supplier

Consolidation throughout Network

Multiple Orders

Intermediate Facilities
for Consolidation
Consolid Pool Consolidated Multi-Stop Shipment - Consolidation pools and cross-docks DC 1 DC 2

Supplier

Dynamic Optimization
- When to use pool vs. by-pass - Consolidation from pool

Supplier

Example: Multi-Leg, Multi-Mode

China US Order

One order can involve

multiple shipments, parties, and modes

Optimization can be
Supplier Port Port DC

(Guangzhou)

(Hong Kong)

(Los Angeles)

(Chicago)

performed for unlimited legs and modes

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Operational Planning
Load Configuration

Unique simultaneous consolidation & configuration Increase effective cube utilization Improve load consolidation quality (reduce failures)
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Operational Planning
Dock Appointment Scheduling

Schedule appointments for shipments and book associated resources Only available slots are visible to the user Click-and-drop functionality!

Transportation Cooperative Routing

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Transportation Cooperative Routing

Fleet & Common Carrier Route Planning
TCR Network Design

Identify compatible lanes that could be linked to form high-utilization routes based on forecast or historical shipments Optimize for reliability routes with sufficient, repeatable volume to optimize the utilization of fleet assets Multiple fleet types: private, common carrier Supports fleet sizing and fleet vs. common carrier decisions Optimize across freight networks
Inbound and outbound Across customers for LSPs

TCR Network Execution

Assign shipments to routes Identify exceptions (deadhead legs) Resolve exception alternative shipments in other lanes Route performance measurement

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Transportation Execution
Tightly Link Your Processes with Service Providers
Your Company
Review & Approve Shipment Accept Tender

Service Provider

Tender

Pick-up

Transport

Deliver

EDI 204: Load Tender

Internet: Picked-up
Wireless: En route Internet: Delivered

Intermodal Support: Ocean, Air, LTL, TL, Rail Electronic (EDI), Internet, and wireless communication Share forecast, tender shipments, shipment status, delivery confirmation Automated dock scheduling and partner collaboration
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Visibility & Event Management

Proactive Issue Resolution
Alert: Shipment arrived late at HK Port Kansas City DC 1

China Factory

Shipment to HK

HK Port

Vessel Carrier Alert! Shipment is 12 hours behind schedule

US Port
Kansas City DC3

OTM

Planned vs. actual milestone tracking Proactive monitoring and notifications Automated, event-driven processes
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Manage By Exception

Visibility
Order & shipment status Event capture (e.g., POD)

Event management
Automated workflows Notifications & alerts

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Workflow Agents Automate Processes

Model business processes Proactive resolution Configurable by line of business, by customer Example actions
Notify parties Re-plan shipment Update status

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Freight Payment & Audit

Improve Cash Flow and Accounting Accuracy
Carriers

Match & Pay

Invoices via web or integration

Match, validate, and pay invoices; flag exceptions

Allocate costs to orders & order lines for billing Apply appropriate GL codes based on order characteristics Calculate profit margin for each shipment VAT & NFRC*
AR & AP Vouchers Allocated costs Bills via web or integration

Shippers / Customers

Payments

Auto-Pay

Pay based on actual shipment activity and contract rates

Intra-company cost transparency

Financial System

Payments

Support Settlements & Payments Based on Plans Generated in TM or Other System

*Value-Added Tax and Non-Freight Related Charges

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Transportation Sourcing
Secure Best Value from Service Providers
Your Company Oracle Global Logistics
Orders Receive Lane Forecasts Demand Optimized Award Recommendation Accept Quote Analysis

Transportation Service Providers

Prepare bids using real

history, forecasts, and actual orders
Bid Packet

Bid Initiation

Electronically send
out bid packages

Optimize results and

send out awards
Quotes

Automatically load
Contract Load Execution Environment Award Notice

the winning contract into the execution environment

Selected Carrier

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Business Intelligence Multiple Dashboards

KPIs and Reports

Flexible queries & layout

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Business Intelligence

Integrated with day-to-day operations

Drill to Transaction Shipment Details

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Transportation Management Benefits

Customer Service Enhancements

Decrease order cycle time Manage customer deliveries proactively Improve availability of shipment status information

Improve relationships with carriers

Increase fulfillment rate with merge-in-transit Improve planning and coordination Reduce variation through standardization Decrease labor requirements Reduce inventories Improve scenario planning capability Move freight more effectively and efficiently, enterprisewide, while still meeting service requirements Reduce transportation and logistics freight spend Reduce freight settlement processing costs Significantly improve transportation and logistics as well as many other professionals productivity Improved service provider relationships increase sales

Process Improvements

Transportation Expenditure Reductions

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Summary
Product
Strongest product on the market unsurpassed breadth & depth Proven capabilities with our customers Proven short- and long-term value

People
Strongest team in the industry Development, sales, consulting, support

Plan
Completeness of vision & ability to execute Proven track record of innovation

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Q&A
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