Value Chain Execution Eddy Wong SCM Solutions Account Manager

Agenda Value Chain Execution Overview Oracle Transportation Management Global Trade Mgmt / Landed Cost Mgmt Warehouse Management Q&A

FY09 Key Wins

VCE platform message Value Sell $2.4m Up-sell/Cross-sell OTM and WMS $575k Value driver in large NASA ELA $2m+ OTM Up-sell New product: FTI $500k Key differentiator in SAP ERP compete $1m+ JPATS: New industry penetration $500k

Value Chain Execution Portfolio Overview

What is Value Chain Execution (VCE)? Oracle Value Chain Execution Transportation Management Warehouse Management Global Trade Management Landed Cost Management

Have achieved 40% order consolidation rate Reduced freight costs by 12% in first 9 months Reducing freight cost at a run rate of 10% Cut cycle times by 30% OTM Delivers Value Reduced miles driven by over 500,000 Averaged 4week deployment cycles per location after pilots

Oracle Transportation Management (OTM)

Oracle Transportation Management Leads in Market Share Gartner, Inc., “ Market Trends: Transportation Management Systems, Worldwide, ”, by Chad Eschinger and C. Dwight Klappich, October 8, 2008

OTM is Still the Leader: Source: Forrester Research Inc (Q1 2008) Source: Gartner (January 2009) Gartner Magic QuadrantForrester Wave

Oracle Transportation Management Breadth & Depth to Support Best Practices Order Global Visibility Supply Chain Event Management Business Intelligence (Analytics & Reporting) Freight Forwarding and Brokerage PlanMonitor Fleet Management Cooperative Route Planning Transportation Sourcing Settle Execute Contract Management

Global Trade Management (GTM) and Landed Cost Management (LCM)

“The typical $1 billion company can free up $10 million to $40 million in cash by improving its basic trade processes.” Trade Finance Letters of Credit Financial Integrations Document Sharing Landed Cost Charge Mgmt Estimated/Actual Trade Documents ERP Mappings Trade Compliance Denied Party Screening Global Exports Global Imports Customs Party Screening Lists Harmonized System Codes Country Tariff & Duties Trade Agreements Trade Content Oracle GTM At-a-Glance Trade Compliance

Landed Cost Management Simple Example Kansas City US Port Vessel Carrier HK Port Shipment to HK Customer $100 $2$3$20 $3$2 $140 China Manufacturing Buyer An additional 40% is added on to the purchase price $5 Duties $5 Broker Fees Total Landed Cost Issue PO

Benefits of GTM and LCM Establish Best Practices & Drive Continuous Improvement Accelerate the supply chain Improve import/export regulation compliance Increase profit and decrease cost of goods Reduce inventory with better shipment visibility Improve sourcing and pricing strategies

Customers Reference Beckman Coulter Dell Galactic Ventures Genband On Semiconductor Payless Seagate

Warehouse Management (WMS)

Oracle WMS Who are we and why are we here? Cumulative Total Deal Count Since Initial Release… Tot MSCA Customers: 1038 Tot WMS Customers: 1095

First Included in Newest WMS on Chart -Fastest moving WMS on chart Ability to Execute Oracle trails only**: -Manhattan -Red Prairie -SAP **Amazing, for the newest product… Completeness of Vision Oracle trails only: -Manhattan -Sterling Commerce -A new, unproven release from SAP Oracle Warehouse Management The analysts have noticed… Gartner Magic Quadrant Oracle WMS Comes of Age WMS License Growth: : 31% : 25%

FY09 Key Wins American Power Conversion (Win over Red Prairie) $1.9 billion provider of network-critical physical infrastructure to the information technology industry (Win over Red Prairie) Gentex (Win over SAP) $575M provider of Proprietary Electro-optical Products. (Example: The new auto-dimming windows on Boeing 787 Dreamliner) Kelly Moore Paint (Win over SAP) $330M maker of specialty paint. Ikon Office Solutions (No real competition – ours to lose) world's largest ($4.2 billion ) independent channel for document management systems and services. Gavina (Win over SAP) largest privately held minority coffee roaster in the US Other Major wins: Wendy's; tootsie roll; velcro

Oracle WMS What’s new with the product? Oracle Process Manufacturing Support Labor Management & Reporting Planned Cross Docking Dual Unit of Measure control Enterprise Asset Management Integration Configurable shipping documents New in R12… New in R12 +… Advanced Wave Planning Distributed WMS

Advanced Wave Planning Create, plan and release work to the warehouse Wave Rules Analytics Ship PackPick 1. Create Wave 2. Plan and Analyze Wave 4. Task Planning 3. Release Wave 5. Monitor Wave Execution

Oracle WMS Point Solution Competitive Landscape

Account Profiling - WMS Existing EBS customer – JDE next best Pressure on Order to Ship lead time (<2 days) Complex business rules and policies Low operating margins Metrics – Medium to Large DCs (5,000+ locators, 50,000 Sq Ft+ Area) – High number of Labor Resources (20+) – Large number of items (1,000+ items) – Medium to High Order Lines Volume (2,500+/day) – Medium to High Inbound Order Volume (100+ inbound shipments/day) Target Industries – CPG – Industrial Distribution – High Tech – Wholesale / Distribution

Market Estimation in China …Impact Increased Demand for Comprehensive OTM and WMS solutions KPMG reports that China’s logistics costs are 18% of GDP, compared with 8% in the US and 7% in EU countriesKPMG reports that China’s logistics costs are 18% of GDP Warehousing Pressures… Transportation Pressures… Space Utilization Lack of scalability/flexibility Waste management and environment Security and safety Labor intensive Escalating end-customer expectations Globalization driving complex global supply chains Shrinking margins due to commoditization of basic services Increased regulation on hours of service rules and security procedures

Q&A