Safe Harbor Statements

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.

<Insert Picture Here>

Logistics Service Provider Product Strategy

Derek Gittoes
Vice President, Logistics Product Strategy
February 2008

Agenda
Logistics Service Provider Market
Product Strategy

<Insert Picture Here>

Logistics Service
Provider (LSP) Market

LSP Business Drivers

Commoditization
What value-added services

Slim Operating Margins

What is the best way to reduce
service and operational costs?

can I offer to improve

customer loyalty?

What are my most profitable

How can I provide a single

products and customer

segments / channels?

customer experience across

all points of contact?
Shippers &
Suppliers

Logistics
Service
Providers

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?

Trading
Partners

Customers

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?

Information Technology Impact

Supporting Business Transformation
Current information technology (IT) platforms dont

support LSPs business objectives

Customer expectations vs. capabilities gap
Older systems and point solutions with high cost of ownership
Constraint on revenue & profit growth

Next generation IT platform requirements

Single view of customer, operations and financial information
Integrated business processes quote-to-cash
Tailor industry and customer specific solutions
Global operations support

Schneider National
Schneider National Leverages Oracle Applications and

Infrastructure Software to Enhance Enterprise Growth, Efficiency

http://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 Logistics

Hellmann Worldwide Logistics Selects Oracle as its Global IT

Provider
http://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 Oracle

LSP The Customer
Emerging market opportunity for Oracles complete stack of
application and technology products
Industry trends in IT platform modernization and strategic
vendor selection
LSP The Channel
Greater levels and breadth of SCM outsourcing over time
LSPs are key enablers in evolution of enterprise- to networkbased supply chains
Success with LSP industry EQUALS success with
Manufacturing, Retail and Distribution industries

Oracles Strengths

Strong existing product portfolio breadth and depth

Complete applications and technology footprint
Market leading products for Transportation, Supply Chain, Customer
Relationship Management, Financials, Human Resources, Business
Intelligence, Middleware, etc.

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

Market Validation

Customers continued growth of LSP customer base

Analysts third party validation as industry leader
Gartner: Magic Quadrant for Transportation
Forrester: Wave for Transportation

Oracle in the LSP Industry

Did You Know?

Over 450 transportation & logistics companies across

the globe run Oracle Applications
5 of the top 10 global logistics companies run
Oracle Applications
4 of the top 10 global trucking companies run Oracle
Applications
8 of the top 10 global logistics companies run Oracle
Technology
7 of the top 10 global trucking companies run
Oracle Technology

<Insert Picture Here>

Product Strategy

LSP Product Strategy

Quote-to-Cash for LSPs
Manage front office, operations and back office
functions for global logistics service providers
Global Transportation Platform
Multi-service offering (managed transportation,
forwarding, supply chain visibility, etc.)
Multi-division/customer, -mode, -geography
Fleet & Asset Management
Manage transportation assets (drivers, trucks,
trailers, containers, totes, etc)
Global Trade Management
Global platform for transportation & trade
Manage all aspects of cross-border transactions
Supply Chain Execution
Integrated warehousing and transportation
Supply Chain Security
Visibility, regulatory compliance, chain of custody
Environmental Sustainability
Measurement and minimization of impacts

Customer Driven
Collaboration with Industry Leaders
Agility
BDP International
CEVA
DHL-Exel Logistics
Hansol CSN
Hellmann Worldwide
Italsemione
Kuehne + Nagel
Schneider National
Toll Group
Total Logistic Control
UTi
Volvo Logistics

LSP Quote-to-Cash
Asset & Non-Asset Based Services

Quote

Order

Plan

Execute

Monitor

Settle

CRM

Transportation

Transportation

Transportation

Asset Lifecycle

Financials

Human Resources

Human Resources

Fusion Middleware, Business Intelligence

CRM / Order Management for LSP

Siebel-OTM integration for order management and

fulfillment business processes

Requirements
Customer definition / management
Capture billable & non-billable activities (all modes & LOBs)
Capture order, customer / location specific services
Rating & quoting

Financial Settlement for LSP

E-Business Suite Financials-OTM integration for

financial settlement business processes

Requirements
Account definition / setup
Accounts Payable (supplier payment)
Accounts Receivable (customer billing)
Accruals

Fleet Management
Definition
The management of all fleet resources such as drivers, tractors and

trailers used to perform transportation services

Plan asset usage

Dispatching
Real-time monitoring and tracking
Settlement of fleet associated costs
Driver HR
Asset lifecycle management (procure, maintain, disposal)

Improved asset utilization & reduced costs

Better service
Benefits Increase driver retention
Improve safety
Reduce fuel costs and emissions (Green)

Fleet Management
Target Industries
Industries

Types of Fleets

Logistics Service Providers

Truck

Asset-based services
Carriers

Fixed network (e.g., LTL /

express linehaul)
Dynamic network (e.g., overthe-road trucking)
Shippers

Private fleets (e.g., store

delivery)
Dedicated fleets

Long-haul truckload
Short-haul P&D
Fixed network
Ocean

Container
Chassis
Rail

Cars
Intermodal

Fleet Management
Solution Components
Fleet Planning & Execution build upon OTM capabilities

Planning robust optimization framework

Execution shipment / route dispatch
Visibility and event management asset-based tracking
Settlement rating engine, buy-sell shipment mgmt

Complementary Fleet Management Functions

E-Business Suite
Enterprise Asset Management
Human Resources Management
Financials
Technology
Business Intelligence
Fusion Middleware

Global Trade Management At-a-Glance

Trade
Content

Trade
Finance

Party Screening Lists

Harmonized System Codes
Country Tariff & Duties
Trade Agreements

Trade
Denied Party Screening
Compliance Global Exports

Letters of Credit
Financial Integrations

Global Imports
Customs

Document Sharing

Landed
Cost

Charge Mgmt and Allocations

Estimated & Actual Calculations
Trade Documents
ERP Mappings for Trade Docs

Global Export Process

Party
Creation

Ship Goods

Sales
Order Creation

Export
Declaration
Typical GTM Services:

Global Export
Process Flow
Product Classification

Party
Screening

License Management
DPS Screening

Tender to
Carrier

Embargoed Country/AntiBoycott Screening

Export
Controls
Screening

Export Documents
Export Declaration

License
Determination

Pick/Pack

Create Export
Documents

Global Import Process

Classify
Products

Create
PO/FTA
Party
Screening

Calculate
ALC
Receive
Goods

Typical GTM Services:

Customs
Entry Filing
& Clearance

Product
Classification
Global Export
Process
Flow
License Management
DPS Screening

License
Determination

Landed Cost Management

Customs Management
Data & Document Collaboration

Calculate
ELC

Seller
Gets PO

Ship
Goods

Create Import
Documents

Buyer & Broker

Receive ASN

Global Trade Management

New Product Offering
Built 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 Candidates
Product Classification
Denied Party Screening
License Determination
Export Compliance
Global Trade Content

Business Intelligence
Multiple Dashboards

KPIs and
Reports

Flexible queries
& layout

Business Intelligence
Integrated with
day-to-day
operations

Drill to Transaction
Shipment Details

Business Intelligence
Additional dashboard content
Many new metrics
New dimensions & facts for customized metrics
Verticalized content (e.g., LSP)
Sustainability / Green Transportation
Environmental impact and costs
E.g., carbon and other emissions
Integration back to OTM: Actionable BI
OTM raises events based on status of metric
Replace splash image with dashboard
User Experience
Design for operational users

Business Intelligence

Environmental
Impact KPIs

SOA Platform
LSP-Shipper Collaboration
Network-based supply chain business processes
Integrating the LSP into the Shippers supply chain
Orchestrating the supply chain network
Example Processes
Order management fulfillment options (cost & lead times)
Inventory management postponement, diversions
Warehousing appointment scheduling
Production planning inbound visibility

SOA Platform Agent Actions

Agent actions provide

fine tune process

control

Build composite

processes using BPA

for Oracle and nonOracle applications

Examples

Plan shipment
Change carrier
Tender
Update quantities
Update status

Transportation Sourcing
User experience Improve carrier interaction

Simpler bid entry in Microsoft Excel

Validate data in bid entry
Streamline bid awards and related communication
User experience Standardize buyer interaction

Simplify set up of bid rounds and document preparation

Simplify creation of shipment volume forecasts
Optimization

Add constraints to solve: commitment as count per lane, capacity

across lanes, total spend by carrier, etc.
Support additional metrics for variable rates
Support rates with mileage bands
Optimize for total of base and accessorial costs
Support additional transport modes: LTL and ocean

Forwarding & Brokerage Operations

User Experience
Usability improvements (e.g., Job screen)
Pre-configured content FF oriented UIs, menu options,
workflow
Import Processing
Ensuring data model and workflow support import operations
Business Intelligence
Additional KPIs and reports to support LSP/FF operations

Forwarding & Brokerage Operations

Financials
Intra-company settlement
Oracle Financials integration (A/P, A/R, GL, and SLA)
Support for Subledger accounts
Profit Splitting
Location-level Job Costing
Transload Ports
Monitor ocean traffic that moves through multiple ports and
changes vessels
Automation of shipment monitoring to proactively track service
failures

Oracle Warehouse Management Roadmap

Key capabilities being added in each release
FY07
Warehouse Management

11i10

Advanced

Task
Framework
Packing
Workbench
RFID
Compliance
MHE
Integration
Graphical
User Interface
(GUI) for
Mobile

Usability
Planned
Available

12.0

WMS for

process
industries
Planned
crossdocking
Labor
Management
Locator
Check Digits
Flexible label
field
definition
Task
Management
Automation

Inventory
Convergence

Future
12.1

Forward Pick
Replenishment
Mobile
Personalization
Dock
Scheduling
Integration with
OTM
Load
Sequencing
Task
Extensibility

OTM
Integration

12.2

Beyond 12.2

Wave Planning

Slotting

Advanced
Cartonization

Multi Step
Picking

UCC-128
Compliance
Enhancements

Value Added
Services

Decentralized
WMS
WMS for LSPs
Yard
Management

Component
Architecture

Standard Pack
in Storage
Labor and
Resource
Planning

Value Added
Services

Dock Scheduling
OTM Dock Schedule tightly integrated with WMS
Select lines for wave creation based on dock appointment
Select staging lane based on dock appointment

Dock doors
information in
Synch with
WMS

Dock doors
appointment
information
drives WMS
Execution

Load Sequencing
Leverage shipment itinerary in OTM to sequence

loads in WMS

Manage order release

based on shipment itinerary

Direct outbound staging
based on loading sequence
Floor staging based on trip
stops
Direct trailer loading based
on trip stops
Validate loading sequence

during trailer loading

Decentralized WMS

Global ERP Instance (Financials,

Procurement, Order Management etc.)

Shipment & Receipt

Signals & Confirmations
Inventory Adjustments
etc.
Warehouse 1

Warehouse 2

Warehouse 3

WMS for LSPs

Client
Management

LSP Client

LSP Client

LSP Client

LSP
Multi Tenant
Warehouse
Activity
Based Billing

Rules and Storage Policies for clients

Stock on-hand Balance for each client
Invoice Rules for LSP Client
Invoicing and Billing for LSP Client

Yard Management
OTM

Yard Checking

Parking to
Dock Door

Dock Door to
Parking

Unload Trailer

Yard Checkout

Yard Stock Visibility

Yard Resources

Yard Layout Definition

Directed Yard Movement

Dock
Schedule

Inbound
Shipment

Outbound
Shipment

<Insert Picture Here>

Summary

Why is LSP Industry Important to Oracle

LSP The Customer
Emerging market opportunity for Oracles complete stack of
application and technology products
Industry trends in IT platform modernization and strategic
vendor selection
LSP The Channel
Greater levels and breadth of SCM outsourcing over time
LSPs are key enablers in evolution of enterprise- to networkbased supply chains
Success with LSP industry EQUALS success with
Manufacturing, Retail and Distribution industries

LSP Product Strategy

Quote-to-Cash for LSPs
Manage front office, operations and back office
functions for global logistics service providers
Global Transportation Platform
Multi-service offering (managed transportation,
forwarding, supply chain visibility, etc.)
Multi-division/customer, -mode, -geography
Fleet & Asset Management
Manage transportation assets (drivers, trucks,
trailers, containers, totes, etc)
Global Trade Management
Global platform for transportation & trade
Manage all aspects of cross-border transactions
Supply Chain Execution
Integrated warehousing and transportation
Supply Chain Security
Visibility, regulatory compliance, chain of custody
Environmental Sustainability
Measurement and minimization of impacts