2. Oracle Global Trade Management
Rosalie Cmelak & Erin Johansson
GTM Product Strategy

3. The following is intended to outline our general product direction
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 Oracle’s products remains at the sole discretion of Oracle.

4. <Insert Picture Here>
Program Agenda
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What is Global Trade Management?
GTM Drivers
Oracle GTM Solutions & Benefits
Landed Cost Management Demonstration
Summary & Questions

5. Speaker Introductions
Rosalie Cmelak—GTM Product Strategy, Oracle
Erin Johansson—LCM Product Strategy, Oracle
Chandra Yeleshwarapu—EBS Development, Oracle

6. What is Global Trade Management?
Processes involved to move Goods, Information, and Money across borders and parties
Starts with Purchase Order, Sales Order (or other)
Functional Groups: Purchasing, Sales, Compliance, Operations, Finance, and Logistics
External Parties: Vendors, Customers, Banks, Logistics Service Providers (LSPs), Freight Forwarders, Customs Brokers, Government Agencies
600+ Laws and Regulations
25 entities and 35 documents in a TYPICAL transaction

7. Key Trends Driving Global Trade
Trade Finance
Manage Letters of Credit
Open Accounts
Optimize flow of funds
Supply Chain Security
Comply with existing and future security programs
Mitigate risk
Global Sourcing
Lower unit costs
Increase profitability
Compete effectively
Transport
Procurement
Financial
Settlement
Compliance
Customer Demands
Quickly access new markets
Customer satisfaction
Visibility
Regulatory Compliance
Increased variability and risk
Quickly access new markets

8. Today’s Global Trade Requirements
Global Approach
Manage global compliance programs
Global product classification database
Multi-country support for controls, licenses, exceptions
Sourcing & Supply Chain Design
Assist in sourcing decisions (FTA, etc.)
Landed cost
Trade related item management
Multi-party collaboration
Centralized item information accessible by internal and external trading partners
Process & system integration
Integration with government systems
Compliance
Import/Export Auditing functions
Security programs
Flexibility
Quickly respond to new business models
Immediate integration with new acquisitions
Real-time update to regulatory changes
Contains global content
Languages - Double-byte (Japanese/Chinese characters) + Spanish, Portuguese, French, etc.
Global Tariff information by country
Licensing requirements/exceptions by country
Ability to create any and all import/export documents required for any given country
Functions as a strategic tool and not just a compliance tool
Content to assist in sourcing decisions
Trade information management in general (licenses, recordkeeping, processes, etc.)
Import/Export Auditing functions
Integration with government systems (ABI/ACE & AES & SNAP-R, etc.)
Allows for prompt revision/update/implementation for dynamic business needs
Allow business to respond to new business models
Allow immediate integration with new acquisitions
Provide real-time update to regulatory changes

9. Why Companies Deploy GTM Solutions Establish Best Practices & Drive Continuous Improvement
Accelerate the supply chain
Enhance customer satisfaction
Improve import/export regulation compliance
Increase profit and decrease cost of goods
Reduce inventory – better shipment visibility for company and supply chain partners
Respond quickly to change – innovation

10. <Insert Picture Here>
Oracle GTM Product Strategy

11. Oracle’s Investment in GTM
GTM Market opportunity
Customer demand
GTM is Supply Chain component of Governance, Risk and Compliance initiative for Oracle
Technology advantages
Oracle in unique position to deliver
differentiated business value to customers

12. GTM: Innovation in Oracle Applications
Part of Supply Chain applications division
Orchestration of all cross-border trade business processes across Oracle and non-Oracle applications
GTM focus is on key Oracle industries:
High Tech
Industrial Manufacturing
Logistics Service Providers
Retail

13. GTM v1 Product Strategy Compete & Differentiate
Integrated Landed Cost Management
Global Trade Content
Native integration with Transportation Management
Deliver comprehensive Trade Compliance solution
Solicit early customer support
GTM Strategy Council
Strategic Implementation Partners

14. Global Trade Management At-a-Glance
Party Screening Lists
Harmonized System Codes
Country Tariff & Duties
Trade Agreements
Trade Content
Trade Finance
Trade Compliance
Trade Compliance
Denied Party Screening
Global Exports
Global Imports
Customs
Letters of Credit
Financial Integrations
Document Sharing
Charge Mgmt and Allocations
Estimated & Actual Calculations
Trade Documents
ERP Mappings for Trade Docs
Landed Cost

15. Oracle Global Trade Management
Corp IT
Operations/ Logistics
Engineering
Compliance
Tax/Legal
FOUNDATION
SERVICES
Trade Party Master
Trade Item Master
Jurisdiction Management
Trade Policy Management
Oracle Global
Trade Management
Product Classification
Compliance Screening
Control Determination
Landed Cost Management
Integration Layer
Trade Content
Applications
Trading Partners
Carriers
Banks
Customs
Brokers
Freight Forwarders
Customers Suppliers
Classification Codes, Rulings & Explanatory
Notes
Restricted Party & SDL Lists
Rules of Origin
Duty Rates
ERP &
Master Data Management
SCM/ TMS
Legacy
CRM

16. License Determination
Global Export Process
Party
Creation
Ship Goods
Sales Order Creation
Export
Declaration
Typical GTM Services:
Product Classification
License Management
Compliance Screening
Export Documents
Export Declaration
Global Export Process Flow
Party Screening
Tender to Carrier
Export
Controls
Screening
Create Export
Documents
License Determination
Pick/Pack

17. Global Import Process Classify Products Calculate ALC Create PO
Receive Goods
Typical GTM Services:
Product Classification
License Management
Compliance Screening
Landed Cost Management
Customs Filing
Data & Document Collaboration
Party Screening
Customs Entry Filing & Clearance
Global Export Process Flow
Control Determination
Create Import
Documents
Calculate ELC
Buyer & Broker Receive ASN
Seller Gets PO
Ship Goods

18. Oracle GTM Development Roadmap
Version1 (CY09)
Version2 (CY10)
Future
E-BUSINESS SUITE
GTM Foundation
Trade Compliance Management
Landed Cost Management (12.1)
Global Trade Content
Extend Foundation
Drawback/Re-Export
Bonded Warehouse
Free Trade Zones (Manufacturing)
Standalone LCM
Outbound Landed Cost
Trade Finance Framework
Extend Foundation
Promotional Schemes
Strategic Sourcing (Landed Cost Simulator)
Native Trade & Transportation Platform
Build GTM Foundation
Recruit Early Adopters
Theme
Partnerships
Extend Foundation
Grow Customer Base
Extend Integrations
Trade Finance
Strategic Sourcing
Verticals
High Tech Industrial Mfg
Retail & Distribution Logistics Service Providers

19. GTM Strategy Council Roster
High Tech
Arrow Electronics
Brocade
Dell
Huawei
LG Electronics
Sanmina
Seagate
Industrial Manufacturing
Beckman Coulter
Cummins
Eaton
Emerson
NCR
Logistics Service Providers
Agility Logistics
DHL/Exel
Italsempione
Schneider National
Toll Group
UTi
Retail & Distribution
Amway (Alticor)
Lowes
Office Depot
Starbucks
Tesco
Emerson
Eaton
Alticor

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Oracle Landed Cost Management

21. <Insert Picture Here>
John Fontanella
AMR Research
“Landed costs, and how they affect the per unit price of goods, can often make or break the profitability of an entire shipment.”
-”The Quiet Revolution”, American Shipper—Oct. 2007
More than half of all firms surveyed said they do not perform landed cost calculations. Nearly half of these, the survey revealed, are likely to be either doing them manually in a rough back-of-the-envelope method, or simply not doing them.
“Companies have a difficult time making precise allocations for landed costs,” Fontanella explained. He added that without the visibility into the supply chain that GTM technologies offer, and the data provided by the same, it is virtually impossible for a firm to calculate accurate landed costs.
For this reason, looking at a firm’s ability to perform landed cost calculations and how well they utilize this information is a good bellwether of the firm’s integration of GTM technologies. Without the data provided by GTM, firms face little more than a cursory or very average calculation. Due to this, many firms do not even attempt to perform the rough calculations. Inversely, firms that show a high degree of GTM automation are typically the same firms that perform very accurate landed cost calculation.
“Companies that depend on efficiencies in transportation to be profitable, like chemical, consumer goods, retail, know their landed costs and have become very good at understanding them over the past five years,” Fontanella said. “They have also become very good at assigning the landed costs to the business units that incurred them, so they can measure how well a particular unit is at managing their international trade.”

22. What is Landed Cost Management? Business Context
International Trade Promises:
New revenue opportunities
Reduced production costs
International Trade Realities:
Profitability. Is my product truly profitable? Are my expenses attributed to the product that incurred them? Are my products priced appropriately? Have I budgeted correctly for a particular product group?
Financial Visibility. What is my outstanding exposure including all of the extended supply chain costs? Are my financial reports accurate?
Competitiveness. Is the company sourcing strategically? Do I understand all the costs associated with sourcing from a particular country? Can I negotiate better contracts with suppliers and/or customers?
Compliance. How am I meeting strict regulations pertaining to item cost in countries such as Brazil and India?
In an effort to meet revenue targets and profitability expectations, companies often look to international trade to maximize their customer reach, gain competitive advantage, and reduce costs. However, international trade introduces new coordination and management complexities as well as costs. Understanding and attributing how much money an enterprise is currently earning by product becomes very difficult. This is due in large part to the fact that financial processes do not often mirror complicated physical supply flows. Companies are looking for ways to bridge these two realities and accurately map product movement and costs to financial accounting. They need the confidence to know that cost and inventory valuations are correct. This is important not just for regulatory compliance but also for strategic decision making. Knowledge and visibility into these trade costs would help organizations better evaluate new product plans, price their products, and negotiate contracts with both suppliers and customers.
Additionally, some industries and regions require that product specific landed costs be tracked and included on documentation even for domestic trade. These are often driven by a federal wide mandate in the case of countries like Brazil and India. However, they can also be driven by industries like process manufacturing where it is difficult to track the individual acquisition components against the resulting products that get stored and sold further downstream.
Oracle’s Landed Cost Management helps organizations:
Maximize Profits. By illuminating “real” product costs, organizations have the opportunity to identify areas for potential cost reduction. It also helps managers more accurately monitor product performance against profitability targets and ensure estimated costs are in line with actual costs.
Increase Competitiveness. When all of the charges, fees, duties and taxes are known, companies can more strategically source products and components from lower cost foreign locations. This also allows them to better justify contracts with vendors or potential customers. Ultimately, they can price goods with the full understanding of the charges associated with bringing an item to market.
Increase Visibility. Itemizing and tracking all acquisition costs and material cost elements as they apply to a product enables organizations to better link their product supply flows with their financial processing and reporting. In addition, tracking estimated costs as soon as they are known gives decision makers more insight into their exposure for budgeting and reporting purposes before invoices are ever received.
Ensure Compliance. Companies can feel more confident in their financial reports and their cost declarations. This includes accurately calculated taxes and consideration of those taxes whose recovery should be excluded from total cost calculations. Additionally, organizations will adhere to country specific requirements for product specific profitability documentation and income tax calculations

23. What is Landed Cost Management? Inbound Shipment
China Factory
Shipment to HK
HK Port
Vessel Carrier
US Port
Kansas City
Customer
$100 $2 $4
$20 $5 $2 $2
=$133

24. Oracle Landed Cost Management Key Benefits within the Operational Lifecycle
Plan & Budget
Market & Sell
Payment
Acquisition
Sourcing
Benefits of Oracle LCM:
Maximize Profits
Increase Competitiveness
Improve Financial Visibility into Supply Chain
Enhance Financial Reporting Confidence and Compliance
Optimized fulfillment networks
Better pricing models
More accurate product profitability reporting
More accurate total cost comparisons
Better contract negotiations
More accurate record of outstanding liabilities
Regulation compliance
Linked invoices with supply chain event
Authenticated cost declarations
Additional revenue opportunities
Maximize Profits
Illuminating real costs provides potential for lowering costs – understand which costs influence the overall supply chain the most
Monitor product performance against profitability targets
Increase Competitiveness
Strategic sourcing
Better justify contracts
Better pricing
Increase Financial Visibility in the Supply Chain
Link product supply flows with financial processing
Better exposure to accrued liabilities
Ensure Compliance
Confidence in financial reporting and cost declaration
More accurately calculate taxes (recovery)
Adhere to country specific requirements (Brazil, India)

25. Oracle LCM Roadmap Inbound Calculation & Automation
Phase1 – R12.1
Phase2
Future
E-BUSINESS SUITE
Charge Management
Landed Cost Engine
Adjustment Management
Integration with EBS Receiving, Costing, and Payables
Extend Integration
PO Estimation
Cost Methods
OPM Costing
Enhanced OTM Integration
Analytics
Outbound Shipments
Strategic Sourcing
Analytics
Theme
LCM for EBS
LCM standalone
Inbound Calculation & Automation
Based on Brazil Localization
Core Product - EBS
First Global Trade Management Application
Planned

26. Receipts - Estimated Landed Cost
Supplier / Carrier
Receiving Clerk
Buyer
Ship Goods
Receive Goods
Create PO
User Actions
Load Estimated charges
Update Customer and Supplier picture
LCM
Calculate Estimated Landed Cost
Automated Actions
Accrue Receipts
Costing
LC Adjustment Transactions

27. Invoice - Actual Landed Cost
Supplier / Carrier
Payables Clerk
Carrier
Invoice
Initiate
Adjustment
Process
Make Payment
Enter
Invoices $
User Actions
Item
Invoice
Calculate Actual Landed Cost
LCM
Est. / Actual Landed Cost
Update Customer and Supplier picture
Automated Actions
Variance Cost/ Accrual Adjustment
Costing
Create Freight and/or Item Invoice
Payables

28. Product Map & Information Flow EBusiness Suite
Purchasing
OTM
Advanced Pricing
Receiving
Costing
Payables
EB Tax
PO Information
Freight
Information
VAT Calculation
Duty
Charges
Estimated
Landed Cost
Invoices
Landed
Cost
Landed Cost Management
Charge Mgt.
LC Calculator
Product Cost Dashboard
Actual Variances
ASN

29. <Insert Picture Here>
Demo Oracle Landed Cost Management

30. Q
& A