2. & Oracle Sensor-Based Services July, 2004 David Wertheimer Product Manager WMS & MSCA Applications

3. Why talk eBusiness Suite?  Technology alone does not deliver the value – ROI from RFID only available from improved or new business flows  Fully integrated solution – Core value proposition is completely integrated technology – “Built-in, not bolt-on” resonates with customers  Oracle has the vertical expertise – Engage customers with both apps and technology sales teams – RFID is often just a door-opener – Educate yourself on the business flows to build credibility  Bring customer experience back to applications – Share new use cases that help elevate our products

4. Your CompanyCustomers/Suppliers Distribution Centers ExecutionPlanning Reliable information - Fast planning cycles Strongly reduced expediting Optimal contract utilization - Reduced cost V Single, integrated system Carriers Oracle’s Logistics Vision Internet Workflow-based Exceptions Productivity enhancing UI Integrated: load consolidation, tendering, tracking/tracing, wave planning, pick, pack Portal

5. Comprehensive Logistics Solution Enables Cross-Functional Process Optimization Oracle TP* & SCEM (Plan & Monitor) Oracle WMS (Store & Manage) Oracle Shipping & Transportation (Move & Track) Stage & Cross Dock Dynamic Rerouting & Drop Ship Inventory Optimization Supply / Demand Matching This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

6. RTVs Orders Transfers RMAs Purchases Transfers PlanManufactureFulfillProcure Seamless Integration Tailorable Rules & Workflow Process Global Visibility RF Support Directed Putaway Directed Putaway Inspect InspectReceive Ship Pack Pack Directed Pick Directed Pick Cost Assemble WIP Issues Transfer Count Move Replenish Label Oracle Warehouse Management A Built-in, Highly Efficient and Flexible WMS LPN’s Move

7.  Integrated mobile support – RFID can be used alongside RF – Gain benefit of RFID tags in business flows if present  Multi-level license plating – Each case & pallet can have a unique “serial number” or LPN – Cases can be of mixed goods or single item  Integrated label printing – Automatic RFID support Oracle Warehouse Management Built on solid technology & robust functionality This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. A23595P || || | ||| ||| || LPN 123 LPN 456 LPN 789 } WMS XML WMS Core

8. Printers & Response Devices Label / RFID label / report printers Light Stacks, Buzzers, & Message Boards Warehouse Device Integration Highly Efficient Processes Depend on Automated Equipment This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. Storage Automated Storage / Retrieval Systems Carousels Pick-to-Light Data Transfer Scales & dimensioning devices RFID & Barcode Capture Material Movement Conveyors / Diverters & Monorails Automatic Guided Vehicles Sortation Devices

9. RFID-Initiated Shipping & Receiving Built-in integration to Oracle Application Server (1)Load of pallets and / or cartons with RFID tags on each (2)Drive load through RFID Reader in Receiving Dock (3)Interface to readers, clean and filter data, then pass IDs to application (4)Access objects associated with the ID's (e.g. LPN's on ASN) then raise correct Business Event Oracle AS Edge Server RFID Event Processor (6) Process the Business Event, e.g. Receipt of pallet or carton (5)Access associated source document, e.g. the PO’s ASN Application APIs (7)Confirm success or failure, e.g. trigger green light or sound buzzer (8)Putaway, rescan or divert material Response & Exception Handling This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. 11.5.10 WMS

10. Flow Without RFID Three Mobile User Interactions Required Mfg Completion & Label Printing Direct Ship Standard Receipt W1 W2

11. Flow With RFID One Mobile User Interaction Required Mfg Completion & Label Printing Direct Ship Standard Receipt W1 W2 Automated by virtue of moving RFID- enabled pallet through RFID reader portals

12. FutureOpportunities

13. Need to increase differentiation and competitive advantage. Example: Manufacturers need to quickly incorporate RFID to respond to retail mandates. Need to increase productivity. Example: RFID allows for the elimination of manual barcode scanning for inventory tracking. Need to increase supply chain visibility. Example: A retailer can reduce out of stock situations by RFID enabling their store shelves. Need to Minimize costs. Example: RFID can pinpoint exactly where a manufacturing process broke down and can minimize the amount of product pulled back for a recall. Need to maximize return on assets. Example: In the healthcare environment, a hospital can track expensive assets (medical equipment, wheelchair, etc) at any point in time, anywhere in a hospital. Need to prevent theft, fraud and counterfeiting. Example: The pharmaceutical industry is said to lose approximately 2-7% of their profits per year from counterfeited drugs. RFID can eliminate counterfeit products with ID for each bottle. Need to reduce risk and liability. Example: The cattle industry can minimize their risk associated to health outbreaks related to meat by using RFID to track their livestock. Potential Business Benefits

14. SCE Potential Business Benefits  Real benefits from frequently performed operations – Remove opportunity for human mistakes – Remove non-value added work (i.e.: system interaction) – Improve asset tracking

15. Integrated RFID Compliance Built-in compliance to mandates Future: WMS  WMS 11i10 does not meet compliance mandate – Requires Compliance Assistance Package  WMS and other apps have all data required for EPC – Pallet manifest, GTIN, SSCC, … – Natural extension to automatically generate EPCs during flow This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. Apply at Manufacturing Apply at Picking

16. Packing Verification Catch Potential Errors Immediately Distribution Center Future: WMS  Hundreds of items look similar – Size 9 vs. Size 10; Semi-conductors; …  Mistakes easy to make & costly to correct  Extension of 11i10 shipping flow PickPack & Auto-VerifyShip This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

17. Immediate Identification of Returned Goods Improve Asset Tracking & Speed Returns Processing This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. Distribution Center  Difficult or impossible to rely on barcode – Barcode / label damaged in-transit – Goods repacked differently & labor intensive to find serials  Customer cannot be credited until material identified Return InitiatedIdentify Returned Material Drivers of returns  Shipping error  Customer error  Returnable asset – Pallet / packaging – Rental equipment Future: WMS

18. Non-Repudiation of Receipt Reduce Outstanding Accounts Receivables This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. Apply Tags at Palletizer Standard Receipt Manufacturer Distribution Center  RFID tags read at external organization shared with supplier – Customer cannot deny time & date of receipt  Extensions of 11i10 shipping & receiving flows  Tags on every item & reader at dock door Future: WMS

19. Automated Internal Movements Reduces Manual Data Entry & Automatic Validation Distribution Center  Operator directed by mobile computer or text-to-voice – Need not confirm movements in system – Automatic error verification  Readers at shelf & tags on each pallet, case, or item Bulk Storage Case Storage Drivers of internal movements  Replenishment  Feed manufacturing line  Re-slotting This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. Future: WMS

20.  System always aware of actual on-hand – Operators not sent to find material that is not there  Immediate notification of discrepancies over threshold – Reconciliation becomes easier  Tags on every item & reader at dock door Continuous Inventory Update Eliminate Need for Cycle & Physical Counting This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. Manual Process CountResearch Automatic Process Operator errorImmediate Update Future: WMS

21. Automated Pick / Issue to Production Includes Recording of Lot, Serial, Attributes This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. Future: Mfg Automatic Process  Tracking each component issue cumbersome – Cumbersome to record item / lot / serial  Can be automated with RFID  Tags on every component and reader at each operation Component Supply Mfg. Line Component Supply Mfg. Line Issue Manually RecordedIssue Automatically Recorded Manual Process

22. Automated Operation Move Tracking Enables Automation as Assemblies Progress through the Factory This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. Manual Process Op 10Op 20 Move Transaction Recorded on Mobile Device Automatic Process Op 10Op 20 Move Transaction Automatically Recorded  Tracking each operation completion or “move” cumbersome – Sometimes not done at all – If critical, done on mobile device or desktop user interface  Can be automated with RFID  Tags on every traveler or assembly & reader at each operation Future: Mfg

23. This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. Automated Work Instruction Display Based on Assembly Arrival at Work Station  With lines set up for flow mfg, consecutive assemblies may differ – Detailed assembly instructions need to be displayed to operators  Operators currently scan / enter each assembly to display instr.  Can be automated with RFID  Tags on every traveler or assembly and reader at each operation Work Instructions Displayed Automatically Future: Mfg

24. This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. Automated Assembly Completion Includes Recording of Lot, Serial, Attributes, etc. Completion Transaction is Recorded Last Operation Multiple “Critical” Components in Assb’ly Delivery to FGI Automated  Assembly “genealogy” often tracked – Component often have serials that must be linked to assembly – Manual capture of these cumbersome & error-prone – Automate genealogy capture by RFID  Delivery of end-assembly to Finished Goods Inventory automated  Tags on components & assembly and reader last operation Future: Mfg

25. Components and assemblies on the factory floor have RFID tags on each This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice. Perpetual Record of Material in WIP  System always aware of actual on-hand – Full visibility to downstream operations for better assembly coordination  Tags on every item & reader at strategic points in the factory Future: Mfg

26.  Enterprise Asset Management – Tracking assets in environment with poor controls (i.e.: hospital) – Storing service records in mini-database on product  Oracle Process Manufacturing  Oracle Time & Labor  RFID use cases still being defined – Bring customer requests to product team – Log enhancement requests to raise visibility  Sensor Based Services can RFID-enable any flow – Integration to reader, filter, device management provided – Business logic linking data to application flow all that remains Other Applications Future This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

27.  wmsnet_us & wmssup_us mailing lists – Issues specific to WMS use of RFID – WMS functional & technical / support mailing lists  rfid_help_us mailing list – Issues specific to Edge Server / Application Server RFID  logistics.us.oracle.com – WMS TOI including release notes, demos & positioning presentations  rfid.us.oracle.com – RFID TOI including extract of RFID-specific material from WMS Resources This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

28. A Q & Q U E S T I O N S A N S W E R S