transportation management selling the otm value message july 2009

Transportation ManagementSelling the OTM Value Message

July 2009

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

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

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!

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%

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

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.

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

Agenda


• What is OTM?

• How to sell OTM

• Value Messaging


• OTM Demo


• Netting it out

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

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Sup

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SO

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ourcin

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bora

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OR

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MA

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tion

Pricin

g

OR

DER

MA

NA

GEM

EN

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Pricin

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MANUFACTURING

Mixed-mode

MANUFACTURING

Mixed-mode

LOGISTICS & DISTRIBUTION

Warehouse, Transportation

LOGISTICS & DISTRIBUTION

Warehouse, TransportationSERVICE

Planning & Execution

SERVICE


Business Intelligence: Visibility / Analytics

Colla

bora

tion

Colla

bora

tion

Colla

bora

tion

Colla

bora

tion

Oracle Value Chain ExecutionOptimize Operations, Maximize Results

Landed Cost Management

Warehouse Management

Transportation Management

Global Trade Management

Oracle Value Chain

Execution

• 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

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.

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.

SourcingSourcing

Co-Operative RoutingCo-Operative Routing Business IntelligenceBusiness Intelligence

Fleet MgmtFleet Mgmt

Oracle Transportation Management

8

2

3

4

56

1

7

Process Flow

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

• 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

Multi-mode Support

Warehousing& Storage

Carriers• Truck• Rail

• Air• Ship

Customers

Shippers

Consolidators

Cargo Handlers

OTM Supports Parcel, LTL, TL,

Air, Ocean, Rail…

References & Endorsements

What the Analysts say:

Source: Forrester Research Inc (Q1 2008)Source: Gartner (April 2009)

Gartner Magic Quadrant Forrester Wave

Retail

LogisticsService

Providers

Manufacturing

Recent wins

Sample APAC Customers


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)


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/

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

Agenda


• What is OTM?

• How to sell OTM

• Value Messaging


• OTM Demo


• Netting it out


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

Qualification Opportunities

CPG13%

LSP39%

Retail11%

Other5%

Chemicals3%

Heavy Industry6% Manufacturing

23%

Verticals

Status: June 2007

More than 300 Customers

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

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

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

Preparing Conversations

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


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


services

Capacity shortages of drivers, railcars, ocean slots and port capacity

Lean initiatives and increased volatility

increasing supply risks


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

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


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

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

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

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


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

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

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).

Sample OTM-EBS Customers

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

Sample SAP Customers

• 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

Agenda


• What is OTM?

• How to sell OTM

• Value Messaging


• OTM Demo


• Netting it out

Value Messaging


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

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

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

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


Source: Supply Chain Digest, “Where is the ROI in Transportation Management Systems?”, June 15, 2008.

Sources of TMS Savings

Freight Spend Savings 2 - 5%


Reduced Overhead 10 - 30%





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%.”

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


Competitive Landscape

Strategic/Platform Deals

Standalone TMS

Agenda


• What is OTM?

• How to sell OTM

• Value Messaging


• OTM Demo


• Netting it out

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


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

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

Operational PlanningOptimize Shipments Across All Modes and Regions

Route Optimization

Consolidation

Multi-Leg Multi-Mode

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

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

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

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)

Fleet ManagementBetter Manage Assets and People

Manage drivers

Manage assets

Dispatch shipments with drivers and assets

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

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

Transportation IntelligenceMeasure Performance, Take Action

Drill to Transaction

Level

Drill to Specific Metric

Drill to Additional

Detail

Measure Against

Targets and Benchmarks

Agenda


• What is OTM?

• How to sell OTM

• Value Messaging


• OTM Demo


• Netting it out

• 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

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

Agenda


• What is OTM?

• How to sell OTM

• Value Messaging


• OTM Demo


• Netting it out

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

transportation management selling the otm value message july 2009

Documents

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total cost

database average

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pharmpharmaceu average

davis benchmarking study

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