1. Oracle Transportation Management Roy Peterkofsky Product Director Transportation Planning ORACLE CONFIDENTIAL This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

2. Your Company Distribution Centers ExecutionPlanning Unreliable information – Constant re-planning Missed shipments – Expediting Underutilization - Expensive contracts x Multiple, non-integrated systems Manual processes Carriers Traditional Logistics Customers/ Suppliers

3. A Better Way

4. Global Customers CustomerSatisfaction Continuous Improvement Carrier Analysis On-TimePerformance Integrated Planning & Execution Plan Book / Tender Pick, Pack, Ship Track Replan Rate Settle Carriers / 3PLs Collaboration & SCEM Collaboration & SCEM Inbound Supply Source Outbound Demand Destination Oracle Logistics Solution

5. Oracle Transportation Strategy Provide comprehensive management tools that reduce cost while shrinking the planning and execution cycle for transportation managers in companies that control shipment of their products and materials: - Manufacturers - Distributors - Retailers “Mission Statement” This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

6. Oracle Transportation Management Product vision: complete solution  Truck *  Rail  Air  Ocean  Truck *  Rail  Air  Ocean Mode Place  Facility  Local area  Continental  Intercontinental  Facility  Local area  Continental  Intercontinental Time  Dynamic  Operational  Tactical  Strategic  Dynamic  Operational  Tactical  Strategic  Outbound  Inbound  Intra-company  Returns  Drop ships  Outbound  Inbound  Intra-company  Returns  Drop ships Flow * Truckload, Less than Truckload (LTL), and Parcel

7. Integrated Transportation Management Maximize value via interconnection and process automation CONSOLIDATE LOADS/MOVES SELECT MODES/ CARRIERS TENDER LOADS TRACK AND TRACE AUDIT/ SETTLE REAL-TIME REPLANNING PERFORMANCE-BASED PLANNING RESELECTION  Smooth plan implementation  Real-time feedback improves all processes This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

8. Benefits Oracle TMS enables you to:  Reduce freight costs  Reduce cycle time  Improve service quality  Increase process efficiency 28.9% 42.1% 13.2% 2.6% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% % of Companies Researched 1-5%6-10%11-20%21-30%x > 30% (Companies with Annual Transportation Spend > $10 Million) Potential TMS Savings Opportunity Source: The Logistics Institute at Georgia Tech This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

9. Oracle Transportation Management  Planning and optimization – Reduce freight cost through load consolidation and continuous moves – Reduce cycle time through fast optimization and streamlined workflows – Improve service quality by enforcing delivery deadlines  Booking and tendering – Reduce cycle time by direct collaboration with carriers – Increase process efficiency by automation of repetitive tasks  Visibility and exception management – Improve service quality by proactive notifications and replanning – Increase process efficiency by centralization of shipment tracking  Auditing and settlement – Reduce freight cost by detecting and resolving overcharges – Increase process efficiency by automation of routine payments  Performance measurement – Drive continuous improvement by monitoring logistics performance Capabilities

10. Planning and Optimization

11. Transportation Planning and Optimization  Load consolidation – Pooling – Multi-stop truckloads  Continuous moves  Optimal mode and carrier selection Use multiple optimization strategies to achieve cost savings of 5-25%! This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

12. Load Consolidation – Pooling  Reduce costs by – Combining multiple LTLs to TL – Breaking TLs into multiple LTLs for local delivery – Combinations  multi-tier  cross-dock Hubbing at consolidation / deconsolidation facilities LTL TL LTL TL LTL TL

13. Load Consolidation - Multi-stop Truckloads Multi pick-up and multi drop-off Local LTL deliveries TL Line Haul Pickup at plant Pickup at DC Pickup at supplier Delivery to plant Delivery to customer Drop-off at deconsolidation hub This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

14. Continuous Moves  Reduce costs by – Combining loads into extended movements – Creating volume purchases – Aiding carrier logistics – Gaining discounted pricing Combine shipments into loads, loads into continuous moves Empty move Empty move Load This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

15. Optimal Mode and Carrier Selection  Lane differences – One carrier’s head-haul = another’s back-haul  Parcel versus LTL versus TL – Parcel carrier cwt pricing – LTL carrier minimums – TL economies of scale  Same lane, different lowest-cost carriers – Higher per-mile rate, lower per-stop charge – Lower per-mile rate, higher per-stop charge Reduce costs by examining every situation individually This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

16. Fast Optimization  Run in minutes instead of hours  Allow multiple optimizations per day  Quickly react to major changes – New orders – Expedited orders For increased planner productivity This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

17. Advanced Interactive Graphical Interface Identify issues visually Point and click editing/repair

18. Quick Analysis and Improvement Tools Uncover hidden cost savings  Built-in intelligence seeks out plan improvements  Identify where relaxation of constraints can pay off most This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

19. Real World Constraints  Extensive rule set  Flexible modeling – Consider various cases – Hard and soft constraints  Reduce need for rework of optimization results – Get it right the first time!  Reduce feedback loops and re-planning  Avoid problems at execution time – Rejected load tenders – Unworkable carrier/equipment assignments Business rules for better, more executable plans

20. Real World Constraints  Vehicle capacity  Pickup and delivery time windows  Preferred carriers and volume commitments  Commodity, equipment, and facility compatibility  Carrier multi-stop and continuous move rules  Transit times and lead-times  Days and hours of operations  Equipment availability  Facility handling and dock capacity  Merge in transit Business rules for better, more executable plans

21. Oracle Solution Example: Flexible Equipment Capacity 4130 ft 3 Won’t fit ! Success ! 2850 ft 3 2851 ft 3

22. Booking and Tendering

23. Load Tendering Booking Request You Accept or Reject Collaborate with carriers from within your enterprise system  Centralize information  Maintain constant visibility  Stop waiting for your calls to be returned Carriers This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

24. Carrier Collaboration Portal Receive and respond to tenders This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

25. Visibility and Exception Management

26. Tracking and Tracing  Collaborate with carriers to provide single source of information – Eliminate multiple phone calls, e-mails, web site visits  Allow real-time visibility into delivery status  Improve customer service – Provide information immediately and conveniently – Relate shipment tracking information to orders – Record carrier performance Pick Up Proof of Delivery In-Transit Status Centralize visibility across all carriers

27. Workflow-Based Exception Management  Quickly identify issues and opportunities – Send proactive notifications – Monitor escalated issues  Reduce non-value-added activities – Spend time fixing problems, not finding them – Eliminate repetitive tasks  Automate resolution of problems Detect problems for immediate attention This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

28. Automated Problem Resolution Generate candidate solutions at the touch of a button  Problem: Underutilized truckloads  Solution: Shipments to fill them out with This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

29. The Need for Dynamic Planning Customers and Suppliers Customers and Suppliers You Carriers Disruptions occur between plan runs – not on your schedule! Last Scheduled Plan Run Next Scheduled Plan Run Outbound shipment delayed Material for cross- docking is late Material doesn’t show up Customer expedites order !!!!

30. Filter to eliminate, Custom and seeded exceptions Pegging Demand-supply allocation, Simulation, Workflow Business intelligence Identify DisruptionDynamically Update Plan InputsRe-Optimize Existing PlanEvaluate New Plan !!!! Dynamic Planning and Re-Optimization Last Scheduled Plan Run Next Scheduled Plan Run Disruption Re-Plan Disruption Re-Plan Disruption Re-Plan Disruption Re-Plan

31. Auditing and Settlement

32. Freight Payment and Audit  Automatically pay bills within tolerance – Self-invoicing – Electronic payment  Flag exceptions for review – Resolve inconsistencies – Prevent overcharges  Track carrier performance – Who bills inaccurately? – Who bills late? Automate handling of routine cases, catch problems This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

33. Claims Management  Record loss and damage of cargo  Monitor insurance or other repayment  Track carrier performance – Who damages or loses cargo? – Who settles claims quickly? When loss or damage occurs This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

34. PerformanceMeasurement

35. Integrated Performance Management  Track measures of activity – Quantity shipped – Order count, weight, cube  Calculate key ratios – Cost per unit weight shipped – Breakdown of movements by mode  Analyze carrier performance – On-time delivery – Claims – Billing Measure enterprise and carrier results This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

36. Fulfillment Intelligence Portal Dashboard for your distribution-related KPIs This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

37. Rollout

38. Features Available Now  Tendering/booking  Tracking/tracing  Routing guides  Manual load building and shipment planning  Constraints and rule checking  LTL/parcel rating and freight cost analysis  Parcel manifesting Key collaboration and execution functions This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

39. Features Available in 11.5.10 Introduction of Transportation Planning and Freight Audit This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.  Optimized load building (consolidation)  Continuous moves  Optimized carrier selection  Freight audit and payment  Truckload rating

40. Future Directions  Global, multi-modal transportation  Fleet management, routing and scheduling  Transportation procurement  Load configuration/sequencing  Bulk transportation Strategic initiatives This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

41. Summary

42. Your Company Distribution Centers ExecutionPlanning Unreliable information – Constant re-planning Missed shipments – Expediting Underutilization - Expensive contracts x Multiple, non-integrated systems Manual processes Carriers Traditional Logistics Customers/ Suppliers

43. Global Customers CustomerSatisfaction Continuous Improvement Carrier Analysis On-TimePerformance Integrated Planning & Execution Plan Book / Tender Pick, Pack, Ship Track Replan Rate Settle Carriers / 3PLs Collaboration & SCEM Collaboration & SCEM Inbound Supply Source Outbound Demand Destination Oracle Logistics Solution

44. Integrated planning, execution, and collaboration Integrated performance management For planners, not programmers Productivity enhancing UI and process automation Lowest total cost of ownership Why Oracle!

45. Benefits Reduce freight cost – Optimized load building and continuous moves – Built-in intelligence to find savings opportunities – Eliminate carrier overcharges Improve service quality – On-time delivery – In-transit visibility Reduce cycle time – Closed-loop planning, execution, and collaboration Increase process efficiency – Collaborative workflows Drive continuous improvement – Integrated performance management Oracle Transportation Management enables you to:

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