1. What can you sell out of SCM? Keith Ip SCM Product Solutions Director

2. © 2007 Oracle Corporation – Proprietary and Confidential “Most procurement experts believe 15-20% of purchased materials and services can be saved (billions of dollars in a large company) by centralizing procurement and leveraging a far- flung corporation's buying power.” Gene Richter Purchasing.com 6 Feb 2003

3. © 2007 Oracle Corporation – Proprietary and Confidential Buying Professional Unwillingness & inability to enforce policy Low visibility into spending Executive Mandates Grow Revenue & Margin Cut Working Capital Aggressive Targets Finance & BU Requirements Improve Cash Mgmt & Expenditure Planning Capture Early Payment Discounts Increase “Days Payable Outstanding” Strategic Requirements Bring New Products to Market Execute M&As Expand into new geographies Contract leakage T’s & C’s adherence Pricing Enforcement Contract Compliance Maintain Service level to internals customers Inefficient, Manual, error prone processes Drive savings in new categories Performance Improvement Operating Unit Autonomy Business Challenges

4. © 2007 Oracle Corporation – Proprietary and Confidential Goal: World Class Procurement Drive Improvements in Effectiveness & Efficiency Source: Hackett Group & Oracle Performance Indicator Typical Purchasing Organization World Class Purchasing Organization % of Long-Term Contracts37% 75% Number of Suppliers per $B in Spend32210 Cost of Procurement as a % of Spend.96%.24% Cost per Purchase Order$10.35$1.52 Purchase Orders in Electronic Form17%80% Cycle Time from Request to PO (hrs.)50.21.4 Cut Transaction Costs by Swapping Labor for Technology Shift Procurement Investment to Higher-Value Activities

5. © 2007 Oracle Corporation – Proprietary and Confidential Software that automates low-value tasks has a very high value, and makes the strategic activities possible Supply Optimization Answering Supplier Queries Helping Requesters ManagingContentCreating Manual Orders Spend Analysis StrategicSourcing Project-BasedProcurementInternalBenchmarkDelivery Contract Lifecycle Mgmt Strategic High Medium Low Value The Continuing Importance of Procurement

6. © 2007 Oracle Corporation – Proprietary and Confidential Supplier EnablementEmployee Self-Service Spend Analysis Procure-to-Pay Strategic SourcingContract Mgmt iSupplier Portal Supplier Network* Purchasing Accounts Payable iProcurement Services Procurement Purchasing Intelligence Sourcing Sourcing Optimization Procurement Contracts *Complimentary service component of Advanced Procurement Suite Oracle Advanced Procurement Delivered via a Modular Product Suite

7. © 2007 Oracle Corporation – Proprietary and Confidential PeopleSoft Enterprise SRM A Suite of Applications Supplier Enablement Employee Self Service Spend Analysis Procure-to-Pay Sourcing Contract Management eSupplier Connection eSettlements eSupplier Connection eSettlements Purchasing Accounts Payable Purchasing Accounts Payable eProcurement Services Procurement eProcurement Services Procurement Supplier Rating System Spend Mart Procurement Mart Supplier Rating System Spend Mart Procurement Mart Strategic Sourcing Supplier Contract Management Supplier Contract Management

8. © 2007 Oracle Corporation – Proprietary and Confidential A Few More EBS Procurement Customers… Thompson Travel Group

9. © 2007 Oracle Corporation – Proprietary and Confidential A Few More PeopleSoft SRM Customers…

10. © 2007 Oracle Corporation – Proprietary and Confidential More Customers Competitor Reference!

11. © 2007 Oracle Corporation – Proprietary and Confidential For More Information Oracle OpenWorld Asia Pacific http://www.oracle.com/global/ap/openworld/index.html Oracle Advanced Procurement http://www.oracle.com/applications/procurement/intro.html Oracle Customer Successes http://www.oracle.com/customers/cust_list_atoz.html

12. © 2007 Oracle Corporation – Proprietary and Confidential A Q & Q U E S T I O N S A N S W E R S