One Version of the Truth: That s the Difference. Oracle Transportation Management

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1 One Version of the Truth: That s the Difference. Oracle Transportation Management

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3 One Version of the Truth: That s the Difference. One version of the truth for global, local, and central logistics operations. You ve got the data, but how do you get the information you really need? Whether you run a single-mode business or a multimode, multibusiness global network, you know transportation logistics can be a nightmare. Transportation management is different from other processes in the supply chain. Many of those processes happen only once, but transportation must be addressed again and again throughout the lifecycle of product development and delivery. And each and every time you must manage the process effectively while minimizing costs and meeting demanding customer service requirements. Possible? Absolutely. It all comes together with Oracle Transportation Management, a Web-architected transportation and logistics application that helps you manage all aspects of the transportation process. Using a multi-enterprise structure that is both configurable to local practices and standardized for global information, Oracle Transportation Management provides one version of the truth on inventory positions, shipment lead times, delivery dates, freight costs, lane volume forecasts, and more. From sourcing trading partners to monitoring shipments to eliminating inefficient and redundant procedures the truth is, you can have it all. One version of the truth. That s what makes Oracle Transportation Management different from the competition and right for your company.

4 During our TMS [transportation management system] selection process, McGraw-Hill reviewed the best-of-breed TMS solutions available in the market. G-Log was evaluated and ranked as the best solution based on overall functionality and capability. However, we chose Oracle Transportation because it was an integrated solution and it had the desired functionality required at that time. Now, with Oracle s acquisition of G-Log, McGraw-Hill has the opportunity to have an integrated TMS solution that also has the best functionality available in the market. It will be the best of both worlds. Brian Burris, Director of Transportation, McGraw-Hill Education Complete Coverage from a Single Source Global, Local, and Central The February 9, 2006 Aberdeen Market Alert credits Oracle with giving the G-Log solution (now called Oracle Transportation Management) the technical development and sales attention it requires to continue being a leading Tier 1 transportation management system. Aberdeen also cites, G-Log brought with it strong capabilities for handling basic and very complex domestic and international transportation environments. As organizations continue to pursue a competitive advantage through logistics management, the single-source data model offered by Oracle Transportation Management has become the answer to the question. Oracle Transportation Management is a central logistics hub, a local transportation management system (TMS), and a global operating system, all at once. Integrate Planning and Execution Oracle Transportation Management streamlines the entire logistics planning and execution process from item availability to final delivery and financial settlement and gives you a complete fulfillment solution. When you integrate Oracle Transportation Management with Oracle Order Management, Oracle Purchasing, and Oracle Warehouse Management, you can efficiently plan both inbound and outbound deliveries and departures with third-party carriers, your internal fleet, or with both simultaneously. Regardless of your underlying software, you may also plan to use Oracle Transportation Management with Oracle Application Server BPEL Process Manager to support flexible integration with other enterprise resource planning (ERP) or warehouse management (WMS) applications. Design Your Own Transportation Network Or Use Ours Create shipments and stops; consolidate, process, and rate your deliveries in accordance with carrier and industry requirements; automatically assign carriers to deliveries based on customer routing instructions; and receive inbound and outbound status messages from carriers so you have a complete picture of the current delivery status. In other words, with Oracle Transportation Management, you can design your own transportation network or use Oracle Transportation Management as an integrated offering from your logistics service providers (LSP).

5 As part of our long standing commitment to the Oracle E-Business Suite, Pella has worked closely with Oracle to help develop the company s transportation products and strategy. Incorporating G-Log significantly enhances the Oracle products, and Pella looks forward to continuing our relationship with Oracle using the expanded Oracle supply chain suite. Steve Printz, Vice President and CIO, Pella Corporation Fact: After just a few months using Oracle Transportation Management, Newell Rubbermaid had realized a 2-5 percent reduction in transportation costs as a result of order consolidation and better mode service provider selection. Reduce Transportation Costs Win-Win Carrier Selection Automated carrier selection reduces your costs and increases customer satisfaction. It also ensures compliance with customer-provided routing guides as well as with your own internal carrier policies. The flexible, rules-based engine in Oracle Transportation Management helps you make costeffective carrier selections, while respecting the customer s specific routing requirements and requested delivery times. Routing-guide-rule criteria can support geographic ship from/ship to delivery information, including user-defined zones, delivery weight and volume, and delivery transit times. Routing-guide rules can be used to model your own organization s inbound or outbound routing requirements, or requirements provided by your customers. Complete Collaboration on Inbound and Outbound Logistics Oracle Transportation Management provides a completely collaborative solution for logistics operations, suppliers, service providers, carriers, customers, purchasing, and even finance. Oracle Transportation Management plans, executes, and then monitors all of your inbound and outbound shipments on a single platform, so even if you outsource some or all of your shipments to external service providers, they can use your Oracle Transportation Management application to plan, execute, monitor, and adjust shipment information. This keeps your entire logistics network operating as one cohesive unit. Constraint-Based Carrier Selection Oracle Transportation Management supports constraint-based rules, such as compatibility constraints, carrier commitments, location capacity constraints, and vehicle availability. Compatibility constraints let you model shipping constraints for facilities, customers, and items. Carrier commitments help you manage carrier contracts and avoid penalties by using commitments in your transportation planning process. Location capacity constraints track your location throughput. Vehicle availability information is used during the transportation planning process.

6 Fact: Over 50 percent of Oracle Transportation Management customers are Logistics Service Providers (LSPs) people who know transportation. Automate Processes and Reduce Cycle Time Fully Automated Rating and Routing Oracle Transportation Management supports a fully automated rating and routing flow that requires no manual intervention. Automatic routing (assignment of carrier) uses routing-guide rules and happens once the order is created. The corresponding freight rate can also be automatically applied at that time. Automated rating and routing can happen at several points in the delivery process: shipping confirmation, delivery creation, or delivery consolidation. Automate Manual Procedures in Freight Payment Organizations can realize significant cost savings by automating many of the manual procedures associated with freight bill payment and audit. You can perform detailed audits on carrier freight invoices, validate invoices, and reduce costs by identifying invoice discrepancies. Oracle Transportation Management supports in-house auditing and integration with thirdparty auditing firms, so freight invoices can be received electronically from the carrier, entered manually, or entered directly via the Web. Freight invoices are automatically matched against bill-of-lading details and audited based on user-defined percentages and amount tolerances. Approved freight invoices go to Oracle Payables or any accounts payable system for payment and cost allocation. Discrepancy reporting lets you see freight invoices that failed audit and view the related discrepancy reason. Total Customer Billing From the simplest internal bill to the most complex markup models, Oracle Transportation Management provides understandable, secure billing, and includes Door-to-door and cost-plus billing models Secure buy side from sell side information for total margin spread privacy Contract rates separated from actual costs Match-and-pay and auto-pay processes

7 Oracle Transportation Management allows us to increase our service offerings to customers across varied industries including retail, consumer packaged goods, process industries, and automotive. On-time delivery, streamlined operational processes, multi-modal, and multi-geographies capabilities all on a single operational interface have successfully been deployed to our customers through our implementation of OTM. Jason Toomey, General Manager, Solution Strategy & Business Development Toll Solutions Fact: DuPont has retired two legacy systems in the US due to its implementation of Oracle Transportation Management. One was a rate/route system, and one was an LTL (less than truckload) optimization application. In addition, comprehensive, real-time reporting and advanced analytics support regulatory requirements and continuous improvement initiatives. Billing covers all aspects of transportation rate contracts, including discounts and accessory charges, and also covers all transportation modes (including air, road, ocean, and rail) and geographies (including language, unit of measure, and currency conversions). Simplify Claims Claim identification and management functions are already incorporated into Oracle Transportation Management. So, in addition to having full logistics planning and execution, you can Enter claims for goods damaged in-transit Submit the claim to the appropriate service provider Track the progress of the claim until disposition You can also use Web services to create a claim in Oracle Transportation Management from an external system and then continue to communicate changes in the claim condition to all involved parties subject to the business rules that identify when each should be notified. Oracle Transportation Management prepopulates all claims with the relevant details from existing orders and shipments, making sure that weights, volumes, counts, and financial values are accurate. In addition, Oracle Transportation Management can determine based on your business rules whether a disputed shipment can continue to its destination or should be quarantined until the claim is reconciled. Oracle Transportation Management incorporates full transportation financial capabilities from cost allocation to invoice matching and settlement. Any charges related to a claim are tracked and processed automatically. 5

8 Fact: Forrester TMS Wave report found Oracle Transportation Management to be a leader in functionality and among the top ranked in current offering and strategy. Oracle E-Business Suite Complete Solutions Oracle E-Business Suite helps companies manage customer processes, manufacture products, ship orders, collect payments, and more all from applications that are built on a unified information architecture that provides a single definition of your customers, suppliers, employees, products all aspects of your business. Whether you implement one module or the entire suite, Oracle E-Business Suite lets you share unified information across your enterprise so you can make smarter decisions with better information. A Comprehensive Rate System for a Complicated World Oracle Transportation Management contains the world s most sophisticated and robust rating engine, capable of understanding the pricing nuances and structures from Aberdeen, Texas, to Aberdeen, Scotland and around the world and that s just the beginning. The extremely flexible rating engine lets you incorporate multiple transportation modes (air, road, ocean, rail); multiple cost drivers (per kg, per piece count, per mile, per loading meter); and multiple logistics services (transportation and non-transportation). Throughout its many implementations around the world as a global logistics platform, Oracle Transportation Management has faced a seemingly infinite set of rating challenges ranging from the simple to the most complex, and yet it still continues to deliver optimized logistics planning without limits to business rules, rating logic, or tariff structures. Delivery Tracking Information Makes You the Expert Oracle Transportation Management supports inbound tracking messages from carriers, letting you view an up-to-date status including tracking history, carrier name, detailed pickup data, and delivery status information on any delivery. You can also get delivery tracking status from any carrier that provides tracking information on its Web site. Online tracking eliminates the need to log in and out of multiple carrier sites to get the information you need. It also gives shipping, transportation, and customer support personnel access to the current delivery status of a delivery. Proof of delivery support lets you evaluate carrier service performance and can improve your customer service. You can now give your customers detailed information about a delivery, including delivery location, delivery date and time, and the recipient s name. Collaborate with Carriers and Trading Partners When you communicate your pickup requests electronically, you reduce your costs and eliminate communication delays that are common to manual requests by phone or fax. Carriers can immediately accept or reject pickup requests using notification or the Web. Your carriers are more efficient, your customers get more details, and you save money. 6

9 Fact: Over US$6.7 billion in freight under management transported globally used Oracle Transportation Management. Integration Completes the Story Integrate Best of Breed Transportation with Oracle Order Management Better Service for Your Customer When your customers want to know available delivery options and freight estimates at order-entry time, integrate Oracle Transportation Management with Oracle Order Management. You can enhance the order entry process, reduce costs, and improve customer service, and you can also tell your customer exactly what they want to know: carrier name, freight estimates, mode of transport, service level, and estimated transit time. Better Information for You Making life easier for your customer pays off for you. Oracle Transportation Management lets you leverage itinerary routing-guide rules and freight rates so you can quote recommended shipping methods and freight estimates. Easy Integration with Partner Manifest Systems and Third-Party Warehouses Oracle Transportation Management supports easy integration with partner carrier manifesting systems and third-party warehouses with its open standards, XML-based framework. Through a comprehensive set of XML messages, the partner manifest application receives the delivery details required to print barcode shipping labels, assign carrier tracking numbers, and generate the end-of-day carrier manifest. Carrier manifest integration lets you easily process deliveries for those carriers having manifest requirements. Oracle Transportation Management Product Options Oracle Forwarding and Brokerage Operations Oracle Freight Payment, Billing, and Claims Oracle Logistics Inventory Visibility Oracle Transportation Operational Planning Oracle Transportation Sourcing Integrates with Oracle Order Management Oracle Purchasing Oracle Supply Chain applications Oracle Warehouse Management Oracle E-Business Suite Integration with third-party warehouses includes the messaging infrastructure to support the shipment request sent by the shipper and the shipment confirmation sent back from the third-party warehouse, giving you seamless integration between the two systems.

10 A Family of Transportation Management Products Key Benefits Lower transportation costs Improve supply chain reliability Higher asset utilization Increase process efficiencies Improve carrier relations Increase customer satisfaction Oracle Transportation Management delivers robust transportation planning and execution capabilities to shippers and logistics service providers. It integrates and streamlines transportation planning, execution, freight payment, and business process automation on a single application across all modes of transportation, from full truckload to complex, multileg, air, ocean, truck and rail shipments. Take a look at some of the additional options you have with Oracle Transportation Management. T r a n s p o r tat i o n M a n a g e m e n t Drive continuous improvement Flexible global fulfillment options Component Applications Option: Oracle Transportation Operational Planning Description Supports all transportation moves, including inbound and outbound, from simple point-to-point to complex multimodal, multileg, cross-docking operations and continuous moves. Includes built-in engines for rating, service time estimates, and location and carrier capacity reservations. Option: Oracle Forwarding and Brokerage Operations Option: Oracle Freight Payment, Billing, and Claims Option: Oracle Logistics Inventory Visibility Option: Oracle Transportation Sourcing Collaborative environment creating shipments from quotes for services across all modes. Tracks domestic and international freight movements, and streamlines job management, including complete visibility to revenue, expenses, and profitability. Automates the tedious processes of internal and external freight payment, customer billing, and managing freight claims. Supports match and pay and auto-pay processes as well as door-to-door and cost plus billing models. View inventory on-hand from multiple distribution centers, view inventory in-transit, and see multiple inventory views at multiple levels supporting Vendor Managed Inventory (VMI) processes down to the SKU level. RFQ (request for quote) management, rate maintenance, multiple-round combination bids, and awarded bids immediately available in the execution environment. CONTACT US For more information about Oracle Transportation Management, please visit oracle.com/applications/scm/transportation-management or call ORACLE1 to speak to an Oracle representative.

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12 Oracle Corporation Worldwide Headquarters 500 Oracle Parkway Redwood Shores, CA U.S.A. Worldwide Inquiries Phone ORACLE1 Fax oracle.com Copyright 2004, 2006, Oracle. All rights reserved. Published in the U.S.A. This document is provided for information purposes only, and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor is it subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document, and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. C Oracle, JD Edwards, and PeopleSoft are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners Barcode area

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