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Transportation ManagementSelling the OTM Value Message
July 2009
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Agenda
• Sales Opportunities with OTM
• What is OTM?
• How to sell OTM
• Value Messaging
• OTM Key Solution Components
• OTM Demo
• Where are the resources you need?
• Netting it out
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10.8%
10.5%
9.5%
8.0%
4.4%
2.4%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
CPG
Industrial Equipment
Industrial Mfg
Retail
Electronics
Pharmaceuticals
Source: Values extrapolated from the Establish-Davis Benchmarking Study as presented at 2005 CSCMP Annual Conference
Total Logistics Cost as % of Revenue
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4.8%
4.7%
4.3%
3.6%
2.0%
1.1%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
CPG
Industrial Equipment
Industrial Mfg
Retail
Electronics
Pharmaceuticals
Source: Values extrapolated from the Establish-Davis Benchmarking Study as presented at 2005 CSCMP Annual Conference
Transportation Cost as % of Revenue
Transportation accounts for HALF of Total Logistics Costs and may get higher!
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Transportation Mgmt Opportunity
28.9%28.9%
42.1%42.1%
13.2%13.2% 13.2%13.2%
2.6%2.6%
0%0%
10%10%
20%20%
30%30%
40%40%
50%50%
% o
f C
om
pa
nie
s R
ese
arch
ed%
of
Co
mp
an
ies
Re
sear
ched
1-5%1-5% 6-10%6-10% 11-20%11-20% 21-30%21-30% x > 30%x > 30%
Companies with Annual Transportation Spend > $10 MillionCompanies with Annual Transportation Spend > $10 Million Source: The Logistics Institute at Georgia TechSource: The Logistics Institute at Georgia Tech
Savings OpportunitySavings Opportunity
Transportation Mgmt Solutions can Save
Most Companies 5-25%
Transportation Mgmt Solutions can Save
Most Companies 5-25%
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TMS Forecast – APAC
• APAC – 100 mil opportunity for Logistics Apps TMS for 2009 as per IDC. Logistics Examples include software that automates distribution resource planning, warehouse management and transportation planning.
Ref IDC report on the right and revenue in mil USD
*These nos should be revised considering that these were before the economic downturn
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Copyright 2008 – OracleConfidential
Why World-Class TMS Is So Valuable
“The July 2008 Aberdeen report clearly makes the case that best-in-class
companies that have TMS or similar capabilities and good processes report
that they are able to control shipping costs and often decrease inventory
carrying costs. These best-in-class companies enjoy:
• On-time performance of 95% or higher
• Savings on transportation spend management averaging 8.8%
• Expedited shipments of no more than 3%.”
Source: Thomas Foster, “It’s High Time to See That Your Business’ Success Is Closely Tied to Transportation,” Global Logistics & Supply Chain Strategies / www.SupplyChainBrain.com, October 2008.
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Private and confidential
Dan Gilmore, Supply Chain Digest
“If you can’t get a TMS justified now, good luck.”
Dan Gilmore, Supply Chain Digest, May 15, 2008
http://www.supplychaindigest.com/assets/FirstThoughts/08-05-15.php
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Agenda
• Sales Opportunities with OTM
• What is OTM?
• How to sell OTM
• Value Messaging
• OTM Key Solution Components
• OTM Demo
• Where are the resources you need?
• Netting it out
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CustomersCustomers DistributionDistribution ManufacturingManufacturing SuppliersSuppliers
Oracle Supply Chain ManagementInformation Driven Value Chain
Financials / HR Master Data Management
SUPPLY
MANAGEMENT
Purchasing
Settlement
Supplier Mgt
Contract Mgt
SUPPLY
MANAGEMENT
Purchasing
Settlement
Supplier Mgt
Contract Mgt
SUPPLY
PLANNING
Sales & Operations Planning
Planning & Scheduling
Order Promising
Network & Inventory Opt.
Service Parts Planning
SUPPLY
PLANNING
Sales & Operations Planning
Planning & Scheduling
Order Promising
Network & Inventory Opt.
Service Parts Planning
DEMAND
MANAGEMENT
Forecasting
Promotions Mgt
Demand Collaboration
VMI
DEMAND
MANAGEMENT
Forecasting
Promotions Mgt
Demand Collaboration
VMI
PRODUCT LIFECYCLE MANAGEMENT
New Product Introduction, Quality, Cost, Compliance, Design for Supply
PRODUCT LIFECYCLE MANAGEMENT
New Product Introduction, Quality, Cost, Compliance, Design for Supply
SO
UR
CIN
GStra
tegic S
ou
rcing
Sup
plie
r Colla
bora
tion
SO
UR
CIN
GS
trate
gic S
ourcin
gSup
plie
r Colla
bora
tion
OR
DER
MA
NA
GEM
EN
T C
onfig
ura
tion
Pricin
g
OR
DER
MA
NA
GEM
EN
T C
onfig
ura
tion
Pricin
g
MANUFACTURING
Mixed-mode
MANUFACTURING
Mixed-mode
LOGISTICS & DISTRIBUTION
Warehouse, Transportation
LOGISTICS & DISTRIBUTION
Warehouse, TransportationSERVICE
Planning & Execution
SERVICE
Planning & Execution
Business Intelligence: Visibility / Analytics
Colla
bora
tion
Colla
bora
tion
Colla
bora
tion
Colla
bora
tion
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Oracle Value Chain ExecutionOptimize Operations, Maximize Results
Landed Cost Management
Warehouse Management
Transportation Management
Global Trade Management
Oracle Value Chain
Execution
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• Over 45 customers using installations of the same product
for leading:• Logistics Service Providers
• Manufacturers• Retailers
• G-Log is a Provider of Logistics Software
• Single Transportation Product• 180 staff globally• Market Growth Leader
November 2005 Bought By
Oracle + G-Log = A Winning Combination
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Elevator Statement Oracle Transportation Management (OTM)
Oracle’s Transportation Management (OTM) solution is a single platform, web-architected, transportation and logistics system that supports local and global requirements from a central repository of information. OTM was designed and built to support all your transportation needs in one system. This allows our customers to ReduceReduce freight spend, LowerLower inventory levels, IncreaseIncrease customer satisfaction while DrivingDriving continuous improvement across the extended logistics network.
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Oracle Transportation ManagementProcess Flow
2
3
4
56
1
7
8Capture Orders – Import
orders, purchases, returns, stock transfers into OTM. Use workflow to populate dates, sku size, planning
preferences, etc.
Capture
Orders
Plan &
Optimize
Manage
In-transit
Re-plan
Shipments
Audit & Pay
Freight
Execute
Shipments
Report &
Analyze
Improve
Operations
Plan & Optimize – Select order dataset to plan into
shipments. Choose “Best” mode, route and carrier.
Decide fleet versus common carriage. Coordinate with
WMS and MFG.
Execute Shipments – Perform Global Trade
checks. Contact carriers (tender). Schedule
appointments. Order equipment. Interface with
parcel system for labels and manifests. Print shipping
docs (BOL, SED, CI, SLI).
Manage In-transit – Request and receive events from
supply chain partners including carriers. Track shipments, gain visibility, identify delays. Update
shipments with actual values (weight, pcs, equipment ID).
Re-plan Shipments – Rerate and route shipments based on updates. Send shipment and order changes to OM,
WMS, FINS. Generate customer freight charges
(bills) to associate with the order. Sent to A/R.
Audit & Pay Freight – Accrue freight. Allocate costs
to order lines. Establish Payment Rules and
Tolerances. Set invoice approval authority. Match,
approve and pay carrier invoices. Manage exceptions
/ accessorials.
Improve Operations – Leverage reports and analytics to improve
operations. Right size fleet. Procure better carrier rates (Sourcing). Feed network
optimization with transportation data to analyze
supply chain redesign.
Report & Analyze – Monitor dashboard to identify logistics
trends. Produce periodic reports for managing
operations. Build ad hoc reports. Automate
distribution of reports to key team members.
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SourcingSourcing
Co-Operative RoutingCo-Operative Routing Business IntelligenceBusiness Intelligence
Fleet MgmtFleet Mgmt
Oracle Transportation Management
8
2
3
4
56
1
7
Process Flow
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OrderOrder
Fleet Management
Supply Chain Event Management
Business Intelligence (Analytics & Reporting)
Freight Forwarding and Brokerage
PlanPlan MonitorMonitor
Global Visibility
Co
op
erat
ive
Ro
ute
Pla
nn
ing
Tra
nsp
ort
atio
n S
ou
rcin
g
SettleSettleExecuteExecute
Co
ntr
act
Man
agem
ent
Oracle Transportation ManagementBroad & Deep Transportation Platform
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• Access role-based info, including specific views for trading partners
• Prevent other users from accessing non-privileged info or takingnon-authorized actions via role-based security
• Provides the ability to expand without having to buy another system
Top LevelSummary
DEPT 2DEPT 2 EXT USEREXT
USERDEPT 1DEPT 1
Top Level UsersFull Visibility
DomainUsers
SecuredVisibility
ParentCompany
ParentCompany
ConfigureSoftware
for SpecificLook & Feel
……
Multi-Tenant Configuration & SecurityProvide Simple Access to Contextual Information
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Multi-mode Support
Warehousing& Storage
Carriers• Truck• Rail
• Air• Ship
Customers
Shippers
Consolidators
Cargo Handlers
OTM Supports Parcel, LTL, TL,
Air, Ocean, Rail…
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References & Endorsements
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What the Analysts say:
Source: Forrester Research Inc (Q1 2008)Source: Gartner (April 2009)
Gartner Magic Quadrant Forrester Wave
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Retail
LogisticsService
Providers
Manufacturing
Recent wins
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Sample APAC Customers
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Copyright 2008 – OracleConfidential
Customer MomentumReference success – proven value
Case studies at OpenWorld 2007
• Baillie Lumber (Natural Resources)
• Doskocil (Consumer Goods)
• Electrolux (Consumer Goods)
• GE Healthcare (Life Sciences)
• Greif (Industrial Mfg)
• Kuehne+Nagel (Logistics)
• Newell Rubbermaid (Consumer Goods)
• Pella (Industrial Mfg)
• Schneider National (Logistics)
Case Studies at SIG & OpenWorld 2008
• Sears (Retail)
• Toyota (Automotive)
• American Power Conversion (High-Tech)
• Kraft Foods (Consumer Goods)
• BlueScope Steel (Natural Resources)
• US Steel (Natural Resources)
• Circuit City (Retail)
• ACCO Brands (Consumer Goods)
• Total Logistic Control (Logistics)
• Family Dollar (Retail)
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Copyright 2008 – OracleConfidential
OTM Special Interest Group (SIG)
• Very active community of customers and partners
• Run by the extended OTM community (not Oracle)
• Annual conference dedicated to OTM
• Information sharing - Online Forums / OTM Blogs
http://otmsig.oaug.org/
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OTM—Pricing
• Based on Freight Under Management (FUM), which is the amount of freight dollars that a company has under their control (or pay for).
• OTM Pricing Calculator availableProduct Group
Product Family
Module Product Family Grouping (Basic vs Advanced)
SCM OTM Transportation Management OTM - Basic
SCM OTM Transportation Operational Planning OTM – Advanced
SCM OTM Logistics Inventory Visibility OTM – Advanced
SCM OTM Freight Payment, Billing & Claims OTM – Advanced
SCM OTM Forwarding & Brokerage Operations OTM – Advanced
SCM OTM Transportation Sourcing OTM – Advanced
SCM OTM Transportation Cooperative Routing OTM – Advanced
SCM OTM Fusion Transportation Intelligence OTM – Advanced
SCM OTM Fleet Management OTM – Advanced
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Agenda
• Sales Opportunities with OTM
• What is OTM?
• How to sell OTM
• Value Messaging
• OTM Key Solution Components
• OTM Demo
• Where are the resources you need?
• Netting it out
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Private and confidential
Sales Stats
• Average sales price for OTM deals ~$300k
• 200% growth since acquisition
• Companies of all sizes and most industries
• Standalone or integrated to EBS
• Many SAP integrations
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Qualification Opportunities
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CPG13%
LSP39%
Retail11%
Other5%
Chemicals3%
Heavy Industry6% Manufacturing
23%
Verticals
Status: June 2007
More than 300 Customers
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OTM Target Industries • Industrial Manufacturing• Automotive• High Tech• Life Sciences• Consumer Products• Chemicals• Retail• Wholesale Distribution• Logistics Service Providers
• Fit• 3rd party logistics
• 4th party logistics
• Lead logistics provider
• Freight forwarding
• Trucking company
• Difficult• Courier
• Railway
• Airline
• Shipping line
Corporate Shippers
Logistics Service Providers
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Process Checklist
Outbound Transportation
Control of Inbound Freight
Globalization, Global Transportation / Logistics
International Inbound, Imports from China
Shipment / Inventory Visibility
Supply Chain Events
Freight Settlement
Internal 3PL / 4PL
Optimize Transportation / Freight / Logistics
Transportation Sourcing & Procurement
Dock and Appointment Scheduling
Fleet and Asset Mgmt for Scheduling of Driver, Tractor, Trailer Resources
Process Checklist Asset Management for Maintenance and Repair Street Level Routing & Scheduling - SIDEWINDER Ticketing Sales & Reservation Field Service, Repair Dispatch
Process Checklist Completely Outsourced to a Single 3PL Imports / Exports & Global Trade Management Courier/Parcel Only
When to Walk vs When to Talk
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High Volume Box* shippers (CPG, Indus Mfg, Retail), Global Shippers, Logistics Service
Providers (3PLs), Best Fit
Good Fit
Partial Fit High Volume Parcel Shippers, Service Based Firms
Medium Volume Box Shippers, High Volume Bulk Shippers (Chem, Oil/Gas)
Prospect Target Profile: OTMWhere OTM leads, compliments or supports
*Box = truck, flatbed, container
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Preparing Conversations
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Industry Pressures Drive Need for Advanced Logistics Solutions
Shipper Pressures
Globalization driving complex global supply
chains
Escalating end-customer expectations
Carrier Pressures
Increased regulation on hours of service rules
and security procedures
Escalating fuel costs
Shrinking margins due to commoditization of basic
services
Capacity shortages of drivers, railcars, ocean slots and port capacity
Lean initiatives and increased volatility
increasing supply risks
Shrinking margins due to commoditization of basic
services
Industry Trends
Increased demand for comprehensive logistics
application solutions
Expansion, consolidation and globalization of
outsourcing suppliers
Transportation costs (6% of GDP) growing at an
increasing rate
Industry Pressures Drive Need for Advanced Logistics Solutions
Shipper Pressures
Globalization driving complex global supply
chains
Escalating end-customer expectations
Carrier Pressures
Increased regulation on hours of service rules
and security procedures
Escalating fuel costs
Shrinking margins due to commoditization of basic
services
Capacity shortages of drivers, railcars, ocean slots and port capacity
Lean initiatives and increased volatility
increasing supply risks
Shrinking margins due to commoditization of basic
services
Industry Trends
Increased demand for comprehensive logistics
application solutions
Expansion, consolidation and globalization of
outsourcing suppliers
Transportation costs (6% of GDP) growing at an
increasing rate
Industry pressures and drivers
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Typical Pressures for TransportationCorporate Shippers
• Outsourced logistics to multiple 3PL/Trucking players is increasing
• Multiple service providers/carriers etc demand extensive collaboration
• Desire to retain logistics control while outsourcing transportation assets and operation
• Need for single point of visibility and control of their logistics operations
• Aware of opportunity to leverage carrier spend to reduce costs and improve service
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Private and confidential
1. What is your annual transportation spend?• Outbound Spend (domestic and international)• Inbound Spend (domestic and international)• Spend by Mode (Truck, Rail, Air, Parcel, etc)• Best Fit: Over $25M spend on multiple modes
2. How are you managing transportation today?• Manually,In-house system,Point solution (i2, Manugistics/JDA, etc)• Outsourced or Inhouse• Best Fit: Manual or in-house
3. How is your transportation team organized?• Centralized planning and execution?• Decentralized management? (people at each plant/DC)• Best Fit: Centralized transportation group
OTM Qualifying Questions
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VP - Ops/Supply Chain Reduce cost of transportation Network Consolidation / Optimization Carrier Contracts
VP/Director/Manager Transportation
Reduce number of shipments (consolidations) Dock Scheduling Carrier Collaboration Reduce manual tasks, phone calls, etc.
VP Customer Service / Sales
Visibility -Where is my stuff? Proactive notification of issues Accurate information regarding shipment transit times Accurate transportation costs to shipping of goods
VP of IT
Elimination of multiple vendors/solutions SOA Ease of administration and maintenance Reports / documentation
Identifying Stakeholders & Pain Points
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Positioning OTM to shippers
• Shipment visibility across complex distribution network– Strong Track and Trace
• Carrier collaboration, control and monitoring• Customer billing and Freight payment
OTM Positioning
Collaboration, Control, Visibility, Settlement
Typical BOM for OTM:
1. Transportation Management (Base Product)
2. Freight Settlement and Billing
3. Fusion Transportation Intelligence
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Positioning OTM to LSP’s “Quote to Cash”
Quote Order Plan Execute Monitor Settle
OTM Positioning
End to End Quote to Planning, Execution and SettlementManaging all transportation requirements within Single integrated instance
Typical BOM for OTM:
1. Transportation Management (Base Product)
2. Transportation Operational Planning
3. Freight Settlement and Billing
4. Fusion Transportation Intelligence
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Private and confidential
Where can we sell OTM
• Stand alone, best-of-breed transportation opportunities• Companies looking for a transportation management solution• Penetrate as a stand alone application
• Upsell for Oracle install base• E-Business Suite, JD Edwards, Retek
• Differentiate against SAP
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OTM Sales Opportunities: Stand Alone
• Stand alone, best-of-breed transportation opportunities• Companies looking for a TMS Solution• Companies who outsourced their TMS but looking for better
visibility within their Supply Chain• Position Strong Fusion Middleware (SOA/BPEL) supported by
OTM (AIA Messaging)
• Value Proposition to the Prospect:• Position OTM as a Transportation Hub. Build a Transportation
Profit Center• Reduce Costs by Optimizing your Transportation supply chain• Improve Collaboration with Partners – Customers/Suppliers, Carriers,
etc.• Strong Technology & Integration Capabilities• Better visibility within the Supply Chain, allowing Proactive Actions
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OTM Sales Opportunities: Upsell
• Strong Business Potential within existing Install Base itself for a TMS Solution
• Global OTM Executive Upsell Campaign available• OTM is integrated to EBS out of the box• OTM supports open Integration standards (XML)
• Value Proposition to the Upsell Prospect:• Eliminate Traditional Logistics Operational Challenges through
Integration• Enable Lean Order Fulfillment via Seamless Application Integration• TMS Integration is essential for Procure to Pay and Order to Cash
Processes• Complements Warehouse Management System (WMS) to Implement
End-to-End Fulfillment Management• Standardized, Packaged Integrations via BPEL available between OTM
and EBS and now part of Application Integration Architecture (AIA).
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Sample OTM-EBS Customers
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OTM Sales Opportunities: SAP/i2 Install Base
SAP• Position OTM as a Best of Breed Solution to SAP customers
• Position proven experience with OTM References within SAP Install Base (Dupont, BlueScope, Coke, Toll, Halliburton, UPM, NOL APL, etc)
• Position OTM differentiators compared to SAP TMS
• Position Integrated Transportation Analytics
i2• Position i2 Replacement References
• Position i2 Weak Financial stability and lack of strong R&D work compared to Oracle
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Sample SAP Customers
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• Provide a common software solution and process template that will integrate with the global ERP solution
• Generate efficiencies and cost savings by developing strategically optimized networks
•Collaborate between CCE, CCNA, Juice & Water facilities to determine high value opportunities, primarily with dedicated fleets
•Implementation of consistent processes across facilities
• Shipment consolidation in 6 sites in U.S. and Europe reduced cost by over $1 M
• Consolidated freight payment in Europe
• Formalized planning system drove reduction of Maverick freight spend
•Instituted consistent processes across facilities
OTM - SAP Customers
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Agenda
• Sales Opportunities with OTM
• What is OTM?
• How to sell OTM
• Value Messaging
• OTM Key Solution Components
• OTM Demo
• Where are the resources you need?
• Netting it out
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Value Messaging
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Copyright 2008 – OracleConfidential
Why Oracle Transportation ManagementMaximum Benefit & Minimum Risk
• Proven, Market-Leading Solution• OTM is a proven, market leading product • Proof point: Analyst reports by Gartner and Forrester
• Customer References• Many companies use OTM every day to manage their transportation operations • Proof point: Many SAP customers rely on Oracle for transportation management (Kraft,
Case New Holland, Newell Rubbermaid, Coca-Cola).
• Ecosystem / Knowledge Base• OTM has a very large and growing ecosystem of customers and partners. Oracle has
many SI partners who have extensive, proven OTM practices. • Proof point: The OTM Special Interest Group 2008 conference had over 250 OTM
focused attendees from customers and partners around the world.
• Domain Expertise• Oracle has a large base of transportation domain experts in Development, Sales,
Consulting & Support on a global basis • Proof point: Oracle has dedicated transportation resources across its business functions
• Strategy & Innovation• Oracle has demonstrated a strong track record of transportation innovation. Oracle has
a strong road map and the wherewithal to deliver. • Proof point: OTM’s history goes back to 1999. Oracle has release 6 versions of OTM
since G-Log acquisition in November 2005
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OTM – Roadmap
Release 2.5
Release 1.0
Release 2.0
Release 2.1 Release 2.6
Release 3.0
Focused on the global data
model and Java code to provide the
Web-designed infrastructure.
Application integration to the web infrastructure
(industry standard XML).
Provided enhanced functionality related
to early adopter implementation requirements.
Settlement and content that close the loop on the full business cycle.
Reporting and status enhancements based
on operational feedback.
Planning and optimisation for multi-tier distribution networks.
Release 3.1
Reporting, Order Management, and
Visibility.
Release 3.5SCEM, Reporting, and
Order Management functionality, and
security.
Release 3.7
Enhancements to Inventory
Visibility, and Optimisation functionality.
Release 4.0Expand breadth and depth of the product footprint.
Enhanced usability
Release 4.5
Network-based PlanningInternational RIQPier Assignment
QuotingJobs/Consol’sVessel Management
Broadcast/Spot Tender
Founded
Release 5.0Procurement, Advanced
Analytics,, 3D Load Configuration, ITL APIs and
Workflow, Document Management, Claims Management, Appt
Scheduling
August2000
October2000
March2001
August2001
July2000
March2000
November2001
June2002
October2002
May1999
June2003
June2004
March2005
Release 5.5First release post
acquisition
May2006
Nov2005
Acquisition of G-Log
Sign
Sign
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Today
May 2006
Release 5.5Product Name Change &
Re-BrandingIntegration with eBS, Consolidated Tender,
Wireless Support, Enhanced UI,
Scalability & Performance Enhancements
Carrier Commitment Management.
FF Enhancements, RIQ with Show Routing,
Co-operative Routing Planning
August2006
Release 5.5 CU1Container/Equipment
VisibilityIntegration EnhancementsEnhanced Help including
“Show-me” & Custom HelpMerge-In-Transit ID
December2006
Release 5.5 CU2Enhanced Air ProcessingSimplified UI for mid-tier
Sensor-Edge Server supportUI Enhancements
Dock Scheduling EnhancementsCo-operative Routing Execution
Release 5.5 CU3Fusion Transportation IntelligenceDock Scheduling Enhancements
UI enhancementsContainer Optimisation
Enhancements, incl cost-based optnEquipment Reference UnitsShipment Cost Adjustment
Customer Management (FF)Co-operative Routing Execution
Enhancements
May2007
Release 6.0Fleet & Asset Management
Multi-Tier Network OptimisationTransport Capacity Planning
Enhanced FF/BrokerageJDE Integration
Oracle Retail IntegrationSiebel Integration
eBS Integration Phase II
August2009
OTM – Roadmap: Post Acquisition
Sign SignSign
Sign
Sign
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Value Proposition:ROI based Selling
• TMS projects have hard dollar, proven ROI business cases
• Business case drives high value for OTM license• OTM priced based on customer’s freight spend
• Example:• $1 billion annual revenue manufacturer• 3% of revenue avg. $30 million transportation spend• 10% cost savings $3 million bottom line improvements
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Copyright 2008 – OracleConfidential
Source: Supply Chain Digest, “Where is the ROI in Transportation Management Systems?”, June 15, 2008.
Sources of TMS Savings
Freight Spend Savings 2 - 5%
Freight Spend Savings 5 - 20%
Reduced Overhead 10 - 30%
Freight Spend Savings 3 - 10%
Freight Spend Savings 2 - 5%
Freight Spend Savings 1 - 2%
Freight Spend Savings 2 - 5%
Optimal Mode/Carrier Decisions
Optimized LTL to Multi-Stop Truckload Or Pool Carrier Consolidation
Improved Efficiency In Operations
Core Carrier Program/Using Data to Improve Negotiations
Continuous Moves
Basic Order Consolidation
Improved Freight Settlement/Audit
PERCENTAGE OF SAVINGSBENEFIT AREAS
“Netting it all out, we typically see companies reducing transportation overhead between 10-30%,
depending on factors related to centralization. We also see a reduction in freight spend of between 5 to 15%.”
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And the Results are Achieved Quickly…
“The good news is that TMS buyers…typically achieve an ROI within one to two
years of the initial investment.”
Source: 2008 Forrester Wave Report
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Private and confidential
Competitive Landscape
Strategic/Platform Deals
Standalone TMS
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Agenda
• Sales Opportunities with OTM
• What is OTM?
• How to sell OTM
• Value Messaging
• OTM Key Solution Components
• OTM Demo
• Where are the resources you need?
• Netting it out
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Contract ManagementManage All Service Provider Information
Division 1 Division 2 Division “n”
OTM – Contract and Rate Management
Rules and Regulations
Contract Commitments
Rates and Contracts
• Electronic Transfer via CSV• Available Manual Edit and
Entry Screens
External Data Sources
• Manage Detailed Rate Structures
• Track Important Commitments
• Accurate Service Time Estimates
• Integrated with OTM Sourcing
Accurate Freight Settlement
Better Carrier Retention
Improved Shipment Optimization
Increased Equipment Utilization
Results
Equipment Types
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Planning & Execution
Outbound Orders
Orders Received
Inbound Orders
PurchaseOrders
EDI
Batch
Manual
BPEL XSL
Transport Orders
SalesOrders
Interfacility Orders
Notice! …
Ready to Ship
Notice! …
Ready to Ship
• Integrate with any ERP, Order Management, Purchasing and other systems to manage transportation orders
• Oracle Integrations: E-Business Suite, JD Edwards EnterpriseOne, Siebel CRM
Transportation Order ManagementManage All Transportation Orders
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Support a Wide Range of Optimization Needs –
Simple Rules Based Planning to Complex Cost & Constraint Based Optimization
• Route
• Mode• Route
• ModeOptimizedDecisionsOptimizedDecisions
• Timing
• Equipment
• Timing
• Equipment
• Multi-Leg Multi-Mode Consolidation
• Common Leg Consolidation
• Multi Stop Consolidation
• Multi-Tier Networks
• LTL Consolidation
• Continuous Moves
Algorithms
• Consolidation
• Service Provider
• Consolidation
• Service Provider
Engines& Rules
• Service Time Calculation
• 3-Dimensional Container Optimization
• Itineraries & Profiles
• Carrier Capacity
• Throughput
• Rating
Operational PlanningMaximize Fulfillment Service, Minimize Transportation Costs
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Operational PlanningOptimize Shipments Across All Modes and Regions
Route Optimization
Consolidation
Multi-Leg Multi-Mode
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Your Company Service Providers
• Support for all modes: • Ocean, Air, LTL, TL, Rail
• Electronic (EDI), Internet, and wireless communication
• Automated dock scheduling and partner collaboration
EDI 204: Load Tender
Review &Approve Shipment
Tender Accept Tender Transport DeliverPick-upSched
Appt
Internet: Delivered
Wireless: Picked-up
EDI 214: Delayed
Transportation ExecutionCollaborate with Service Providers
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Visibility & Event ManagementProactive Issue Resolution
Alert!
Shipment is 12 hours behind schedule
Alert: Shipment arrived late at HK Port
Kansas City
DC 1
US PortVessel CarrierChina Factory HK PortShipment to HK
• Planned vs. actual milestone tracking
• Proactive monitoring and notifications
• Automated, event-driven processes
• Track & Trace history
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Support Settlements & Payments Based on Plans Generated in TM or Other System*Value-Added Tax and Non-Freight Related Charges
Freight Payment, Billing & ClaimsImprove Cash Flow and Accounting Accuracy
Carriers
Financial System
Shippers /Customers
• Allocate coststo orders & order lines for billing
• Apply appropriateGL codes based on order characteristics
• Calculate profit margin for each shipment
• VAT & NFRC*
• AR & AP Vouchers• Allocated costs
Invoices via web
or integration
Pay based on actual shipment activity and contract ratesA
uto
-Pay
Payments
Mat
ch &
Pay Match,
validate, and pay invoices; flag exceptions
Payments
Billsvia web
or integration
• Intra-company cost transparency
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Oracle Fleet ManagementSupport for Asset-Based Transportation Operations
Settlement • Driver / contractor pay
• 3rd party suppliers
• Customer billing
Visibility• Asset activity & status tracking• Asset inventory (pools)• Sensor based data capture
(GPS, RFID)
Execution • Dispatch• Mobile communications• Event management
• Driver & asset management
• Optimized decision support
• Maximize of asset utilization
• Minimize operating costs
Planning
Benefits
• Improved asset utilization & reduced costs
• Better service
• Increase driver retention
• Improve safety
• Reduce fuel costs and emissions (Sustainability)
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Fleet ManagementBetter Manage Assets and People
Manage drivers
Manage assets
Dispatch shipments with drivers and assets
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Invite Carriers to Bid
Transportation SourcingSecure Best Value from Service Providers
Receive bids by spreadsheet or on-line
Award and convert into operational contracts
Optimize Bids and Analyze Scenarios
Establish project with history or forecast1
2
3
4
5
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Transportation IntelligenceEmbedded, Actionable Information
• Embedded within OTM – not a separate data warehouse
• Business intelligence for managers & operational users – BI workflows
• Create user specific reports and dashboards
• Perform ad hoc analysis
• Proactive alerts
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Transportation IntelligenceMeasure Performance, Take Action
Drill to Transaction
Level
Drill to Specific Metric
Drill to Additional
Detail
Measure Against
Targets and Benchmarks
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Agenda
• Sales Opportunities with OTM
• What is OTM?
• How to sell OTM
• Value Messaging
• OTM Key Solution Components
• OTM Demo
• Where are the resources you need?
• Netting it out
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Agenda
• Sales Opportunities with OTM
• What is OTM?
• How to sell OTM
• Value Messaging
• OTM Key Solution Components
• OTM Demo
• Where are the resources you need?
• Netting it out
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• OTM Global Portal: http://logistics.us.oracle.com/otm_start/otm_start.html
• OTM APAC Portal:http://my.oracle.com/portal/page/myo/ROOTCORNER/PRACTICESORGANIZATIONS/ASIAPACIFICORGS/APAC_APPS_INDUSTRIES_SALES/APAC%20Product%20Management/SCM/Product%20Readiness%20Programs/OTM/Index.html
OTM Resources
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Contacts Name Organization Name Organization Email Email
Subhomoy Sengupta Senior Director, Edge Apps SalesSenior Director, Edge Apps Sales [email protected]@oracle.com.com
Michael Maslen OTM Sales-ANZOTM Sales-ANZ [email protected]@oracle.com
Sunil Kumar OTM Sales-IndiaOTM Sales-India [email protected]@oracle.com
Xie Xudong Edge Sales Manager-GCEdge Sales Manager-GC [email protected]@oracle.com
Sunil Wahi Director OTM/Demantra Sales Director OTM/Demantra Sales ConsultingConsulting
[email protected]@oracle.com
Andrew Shang OTM Sales Consulting-ASEANOTM Sales Consulting-ASEAN [email protected]@oracle.com
Lagnajit Patnaik OTM Sales Consulting-IndiaOTM Sales Consulting-India [email protected]@oracle.com
Venkateshwaran Krishnan
OTM Sales Consulting-IndiaOTM Sales Consulting-India [email protected]@oracle.comoracle.com
Experts to Help
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Agenda
• Sales Opportunities with OTM
• What is OTM?
• How to sell OTM
• Value Messaging
• OTM Key Solution Components
• OTM Demo
• Where are the resources you need?
• Netting it out
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In SummaryKey Points/Differentiators
OTM provides the industry-leading solution for shippers and logistics service providers, with key capabilities to enable global
transportation processes
• Global Solution• Market Leader• LSP and Shipper Capabilities• Best-in-Class Functionality
• Planning, Execution, Payment/Billing, Event Management, Analytics
• Multi-tenant• Single Platform
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AQ&
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