Oracle Global Trade Management

Rosalie Cmelak & Erin Johansson

GTM Product Strategy

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 Oracles
products remains at the sole discretion of Oracle.

Program Agenda

What is Global Trade Management?

GTM Drivers
Oracle GTM Solutions & Benefits
Landed Cost Management Demonstration
Summary & Questions

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Speaker Introductions
Rosalie CmelakGTM Product Strategy, Oracle
Erin JohanssonLCM Product Strategy, Oracle
Chandra YeleshwarapuEBS Development, Oracle

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

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
Procurement

Compliance

Regulatory Compliance
Increased variability and risk
Quickly access new markets

Transport

Financial
Settlement

Customer Demands
Quickly access new markets
Customer satisfaction
Visibility

Todays 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

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

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Oracle GTM Product Strategy

Oracles 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

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

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

Global Trade Management At-a-Glance

Trade
Content

Trade
Finance

Party Screening Lists

Harmonized System Codes
Country Tariff & Duties
Trade Agreements

Trade
Denied Party Screening
Compliance Global Exports

Letters of Credit
Financial Integrations

Global Imports
Customs

Document Sharing

Landed
Cost

Charge Mgmt and Allocations

Estimated & Actual Calculations
Trade Documents
ERP Mappings for Trade Docs

Oracle Global Trade Management

Corp IT

Engineering

Operations/
Logistics

Tax/Legal

Compliance

SERVICES

FOUNDATION
Trade Party Master
Trade Item Master
Jurisdiction Management

Product Classification

Oracle Global
Trade Management

Compliance Screening
Control Determination

Trade Policy Management

Landed Cost Management

Integration Layer
Trade Content
Classification Restricted
Codes, Rulings & Party &
Explanatory
SDL
Notes
Lists

Rules of
Origin

Trading Partners

Applications
Duty
Rates

ERP &
Master Data
Management

Legacy

CRM

SCM/
TMS
Carriers

Banks

Customs
Brokers

Customers
Freight
Forwarders Suppliers

Global Export Process

Party
Creation

Ship Goods

Sales
Order Creation

Export
Declaration
Typical GTM Services:

Party
Screening

Global Export Process Flow

Product Classification
License Management

Compliance Screening

Export
Controls
Screening

Tender to
Carrier

Export Documents
Export Declaration

License
Determination

Pick/Pack

Create Export
Documents

Global Import Process

Classify
Products

Create
PO
Party
Screening

Calculate
ALC

Typical GTM Services:

Product Classification
Global Export Process Flow
License Management

Customs
Entry Filing
& Clearance

Compliance Screening

Control
Determination

Landed Cost Management

Customs Filing
Data & Document Collaboration

Calculate
ELC

Receive
Goods

Seller
Gets PO

Ship
Goods

Create Import
Documents

Buyer & Broker

Receive ASN

Oracle GTM Development Roadmap

Version1
(CY09)

Version2
(CY10)

Future

E-BUSINESS SUITE

GTM Foundation

Extend Foundation

Trade Compliance
Management
Landed Cost
Management (12.1)
Global Trade Content

Drawback/Re-Export
Bonded Warehouse
Free Trade Zones

(Manufacturing)

Standalone LCM
Outbound Landed Cost

Theme

Native Trade &

Transportation Platform
Build GTM Foundation
Recruit Early Adopters

Verticals

High Tech
Industrial Mfg

Trade Finance

Framework

Extend

Foundation

Promotional

Schemes

Strategic Sourcing

(Landed Cost
Simulator)

Partnerships

Extend Integrations

Extend Foundation

Trade Finance

Grow Customer Base

Strategic Sourcing

Retail & Distribution

Logistics Service Providers

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

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Oracle Landed Cost

Management

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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 ShipperOct. 2007

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?

What is Landed Cost Management?

Inbound Shipment

China Factory Shipment to HK

$100

$2

HK Port

$4

Vessel Carrier US Port

$20

$5

Kansas City Customer

$2
=$133

$2

Oracle Landed Cost Management

Key Benefits within the Operational Lifecycle
Market & Sell

Plan & Budget

Better contract

Optimized fulfillment
networks
Better pricing models
More accurate
product profitability
reporting

Benefits of Oracle LCM:

Maximize Profits

negotiations
Additional
revenue
opportunities

Increase Competitiveness
Improve Financial Visibility into
Supply Chain
Enhance Financial Reporting
Confidence and Compliance

Sourcing
More accurate

Acquisition

total cost
comparisons
Better contract
negotiations

Payment
Linked invoices with
supply chain event
Authenticated cost
declarations

More accurate record of

outstanding liabilities

Regulation compliance

Oracle LCM Roadmap

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

Outbound

Shipments

Strategic

Sourcing

Analytics

Integration

Analytics

Theme

LCM for EBS

Inbound Calculation &

Automation
Planned

Based on Brazil
Localization
Core Product - EBS

LCM standalone

First Global Trade Management

Application

Receipts - Estimated Landed Cost

User Actions

Buyer

Create PO

Supplier /
Carrier

Ship Goods

Receiving
Clerk

Receive
Goods

LCM
Costing

Automated Actions

Load Estimated
charges

Calculate Estimated
Landed Cost

Accrue Receipts

LC Adjustment
Transactions

Invoice - Actual Landed Cost

Supplier /
Carrier

Enter
Invoices

Initiate
Adjustment
Process

Make
Payment

Item
Invoice

LCM

Calculate Actual
Landed Cost

Est. / Actual
Landed Cost

Costing
Payables

Automated Actions

User Actions

Carrier
Invoice

Payables Clerk

Variance Cost/
Accrual
Adjustment

Create Freight
and/or
Item
Invoice

Product Map & Information Flow

EBusiness Suite

Purchasing

PO Information

Payables

Landed Cost Management

OTM

Freight
Information

LC Calculator
EB Tax

Product Cost
Dashboard

Actual Variances

VAT Calculation
Duty

Advanced
Pricing

Invoices

Charge Mgt.

Estimated
Landed
Cost

ASN

Charges

Receiving

Estimated
Landed Cost

Costing

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Demo
Oracle Landed Cost
Management

Q&
A