Oracle Logistics Know More. Do More. Spend Less.

Logistics Management At-a-Glance Source Planning & Execution Network Design, Carrier Contracts Carrier Selection, Freight Rating Destination Storage Resource & Space Utilization Pick, Pack & Ship Tracking In-transit Shipment Status Event Management, Notifications Forward-thinking manufacturers use logistics strategically to reduce safety stock levels and improve customer service and hence profits through better informatio n. Bottom line, logistics is a new game, and the old rules simply do not apply. Research Analyst, Logistics Resource Mgmt Executive White Paper

Business Pressures Customer Expectations How do I improve the speed and visibility of shipments? How can I improve global order promise accuracy? Variable Demand How do I account for higher volume from Internet selling? What adjustments do I make in planning for mass customization? Planning & Execution Planning & Execution Storage Storage Tracking Tracking Dest ination Destination Source Source Increased Complexity How can I manage product proliferation? How do I balance global supply and deman d to ensure on-time delivery? Margin Pressure Where can I reduce costs to maintain competitive prices? How do I differentiate my logistics offerings?

Operational Challenges Your Company Planning Execution Carriers Warehouses Customer Fragmented Communication & Visibility Manual Processes Multiple, Non-Integrated Systems x Expediting and missed shipments

A Need for Change Leading Business Trends Fulfillment Processes Integrated with Partners Streamlined Material Flow (e.g. C ross-Docking) Mobile Solutions for Increased Visibility/Passive Tracking Consoli dation & Outsourcing of Shipping Activities Reverse & Service Parts Logistics Ma nagement

Logistics Management Opportunities On-Time Deliveries Improved Capacity Utilization Warehouse Labor Hours Direct Tr ansportation Spend Total Inventory Shipping Errors 10-20% 5-10% 10-30% 5-25% 5% 80-100% Lilly, Intermec, eSync, Tompkins, Meta Group, Telia Networks

How Oracle Delivers

Oracle: Complete E-Business Suite Maintain Service Fulfill Make Procure Logistics Management All Product, Customer, & Supplier Information Finance HR Projects Automate Key Internal Business Processes Extend Automation to Your Trading Partn ers Drive Continuous Improvement with Real-Time Intelligence Develop Market Plan Order Sell

Oracle Logistics Solution Global Customers Carriers / 3PLs Collaboration & Event Management Inbound Supply Source Plan Rate Book / Manage Pick & Tender Wrhs Label Pack & Ship Track Settle Integrated Planning & Execution Continuous Improvement On-Time OnPerformance Customer Satisfaction Carrier Analysis Outbound Demand Destination

Oracle Logistics Solution Dimensional Considerations Time Dynamic Operational Tactical Strategic Facility Local Area Place Domestic International Logistics Management Mode Truck Rail Air Ocean Outbound Inbound Flow Intra-Org Returns

Oracle Logistics Solution Enables You To Integrate Planning and Execution Collaborate with All Trading Partners Streamlin e Global Shipments Drive Continuous Improvement

Integrate Planning and Execution Seamless Flow of Information Strategic e.g. Distribution Network Network Design e.g. Performance e.g. Planned Shipments e.g. Load Plans Supply & Demand Planning Transportation Planning* e.g. Shipment Schedule e.g. Dock Scheduling e.g. Load Confirmation Transportation Execution Warehouse Management e.g. Actual Shipments e.g. Shipment Exceptions Event Management Operational Minutes Hours/Days e.g. Delivery Confirmation Weeks/Months Quarters Years * Coming in 11i.10

Minimize Inventory Provide Single, Consolidated View of All Inventory Provide inventory visibility In-Transit In-transit inventory At trading partners Between operations Enable postponement Warehouse Consolidated Inventory Status Optimize inventory location (manufacturing, distribution centers, central wareho uses) Plan for demand and supply WIP / Planned Production variability

While Maximizing Service Levels Improve Customer Satisfaction More Accurate Promise Dates In-Transit Warehouse Promise orders based on material availability; supplier, manufacturing and trans portation capacity Allocate supply & capacity by channel, customer or product En able Capable to Deliver Consolidated Delivery Status Increase Delivery Efficiency Minimize expediting charges Eliminate manual transfer processes Improve warehous e pick and carrier delivery accuracy WIP / Planned Production Proactively Respond to Exceptions

Optimize Asset Usage Leverage All Assets to Reduce Operating Costs Warehouse Space Vehicles Slot based on space utilization People Deliver using full truck loads Capital Reduce manual labor Reduce capital invested

Oracle Logistics Solution Enables You To Integrate Planning and Execution Collaborate with All Trading Partners Streamlin e Global Shipments Drive Continuous Improvement

Logistics Collaboration Share Information Real-Time with Trading Partners Your Company Capacity Rating Book Dispatch Track Invoice Carriers / 3PLs Customers Order ASN Track Payment Deliver Schedule Track

Logistics Collaboration Reduce Uncertainty with Improved Visibility Increase delivery status visibility Improve customer service with better order promising Decrease in-transit and delivery issue response time Reduce planning cycle time and revisions Reduce tender rejections

Multiple Collaboration Methods Drive Lights-Out Connectivity Web Online portal access for all trading partners Secure remote access from any location XML Support for OAGI XML standards Secure, guaranteed, one-time only de livery Trading partner specific data mapping EDI Support for industry standards (X12, EDIFACT, etc) Partnerships with major EDI translators Email Interactive, e asy access, no integration Notification of activity on business documents

Supply Chain Event Management Exception Monitoring and Notification Customer Reduce communication latency Notifications and Corrective Action Notify all tiers simultaneously Get visibility to fulfillment, purchasing, inven tory, and manufacturing events Identify exceptions faster Automate exception han dling Reduce expediting costs Carrier Delay Shipper Reduce inventory Provide real time inventory visibility to suppliers Enable Vendor Managed Invent ory Automate replenishment process Improve fulfillment cycle time

Oracle Logistics Solution Enables You To Integrate Planning and Execution Collaborate with All Trading Partners Streamlin e Global Shipments Drive Continuous Improvement

Cost-Effective Global Deployment Think Locally, Act Globally Deploy and manage on a single global instance Support with single worldwide orga nization Support for statutory and customary local requirements Multi-lingual, m ulti-currency, multi-org, multi-national capabilities - 30 languages, all installable in same unicode instance

Support International Trade Management Content via Standard Partnerships Compliance Enable denied party screening Provide embargo license detection Identifies boyco tts Benefits Ensure regulatory compliance Minimize government audits Export Screening Export, Import Documents Prepares standard paperwork for shipping regulations (e.g. customs clearance pap erwork) Eliminates costly delays Ensures on-time deliveries

Oracle Logistics Solution Enables You To Integrate Planning and Execution Collaborate with All Trading Partners Streamlin e Global Shipments Drive Continuous Improvement

Drive Continuous Improvement Improve Performance Through Integrated Intelligence Establish Targets Perform Transactions Measure Results Logistics Plan Exceptions Adjust Plan Notifications Out of Tolerance?

Daily Business Intelligence Real-Time Access to Complete Business Information What percentage of outbound shipments are delivered What is my variance in cost How are my expediting on-time? per shipment? costs changing? Which carriers are providing the best cost and service? How are inventory turns and quantities changing? Manage By Objective: Set institutional targets Fact: Provide performance-based metrics Exc eption: Continuously evaluate performance

Warehouse and Transportation Intelligence*: Timely, Accurate, Relevant Flexible Time Periods Flexible Comparisons Real-Time RealResults Daily updates on key performance indicators Actionable information on savings an d incremental revenue opportunities Links Performance Measures Reports At a glance: Graphs On-time departure and delivery, cycle time Shipping cost / weight Inventory quan tity, turns, and accuracy Pick-to-ship cycle time Warehouse labor costs * Coming in 11i.10

Oracle Logistics Solution Key Capability Summary Network Design Define all characteristics of the distribution network Specify de tails such as lanes, distribution centers, etc. Supply and demand planning acros s network Transportation planning including load planning, mode / carrier optimi zation, load configuration Freight rating, automated mode/carrier selection Load tendering, shipment pickup requests Global track and trace, settlement Automate d, tailorable warehouse functions (e.g. pick, pack) RF barcoding support Advance d inventory management capabilities Supply Chain Planning Transportation Execution Warehouse Management Event Management Monitor shipments Handle exceptions and notify all trading partners

Oracle Logistics Solution Integrated supply, demand, and transportation planning with transportation/wareh ouse execution Real-time information sharing, event management Integrate Plannin g and Execution Collaborate with All Trading Partners Single global instance, international trade management Streamline Global Shipments Integrated performance measurement and analysis Drive Continuous Improvement

Oracle Logistics Products Maintain Finance HR Service Fulfill Inventory Management Warehouse Management Mobile Supply Chain Applications Trans portation Logistics Intelligence All Product, All Product, Customer, Customer, & Supplier & Supplier Information Information Projects Make Procure Develop Market Plan Order Sell

Evolution of Oracle Logistics Current Differentiators New with 11i.9 Coming in 11i.10 Built-in, not bolt-on - RF/mobile VMI & consigned inventory technology & transac tion Task & labor plng control board integration Delivery consolidation by Flexi ble rules-based processes locator and / or LPN Configurable material flows Clust er picking & WIP picking Inbound logistics receiving, eAM component picking insp ections, directed put-away, UPC & smart barcode support cross docking, ASN Singl e mobile UI for all Outbound logistics dock receiving transactions assignment, pick wave selection, picking methods, cartonization / packing, shipm ent execution, trip & delivery planning Advanced inventory mgmt container & LPNs , lot/serial genealogy, status, Kanban Reverse logistics RMA receiving, supplier returns, refurbishment & recycling Configurable picking & streamlined shipping UIs RFID-based transactions UCC 128 / UCC 14 support Work-pl an based put-away Catch weight support Packing workbench Over picking & bulk pic king receiving transactions Inbound transport logistics Additional material hand ling Freight payment & audit equipment integration Delivery consolidation Simpli fied rules engine defn Truckload rating and examples library Transportation plann ing load Load tendering consolidation, continuous Online tracking of ship status moves, automated mode and Carrier selection & freight rating carrier selection Automated shipping processes International drop shipments Non-conformance mgmt L ogistics-related analytics/KPIs The following is intended to outline our general product direction and is intend ed for information purposes only. The development, release and timing of any fea tures or functionality remains at the sole discretion of Oracle. This presentati on is not a commitment to deliver any material, code or functionality.

Superior Architecture

Foundation: Common Data Model A Single Source of Truth Logistics Purchasing Store all data in a single database Finance Common Data Model (9i Platform) Manufacturing Consolidate data from multiple systems Eliminate need for integration and redund ant systems Scale to meet growth demands Planning Inventory Contracts Service

Modular Architecture Implement Based on Your Business Priorities Implement by Business Flow Start with one flow, demonstrate initial success Add more flows to expand busine ss coverage Support changing business needs Time Flows are Seamlessly Integrated Replace disparate systems Eliminate data synchronization Decrease time and cost to implement

Tailorable Architecture Workflow Driven Business Rules Flexible drag and drop interface Workflow driven processes with common engine Ru les-based architecture requires no customization Open APIs for extensibility

Lower Total Cost of Ownership (TCO) Run on a Single Global Instance Roles: Roles: App Admin DB/AS Admin Sys Admin E-Business On Demand Needs: Needs: Availability Security Performance Change Problems You Manage: Orac le Manages: 50% Lower Cost 50% Better Svc Core Competence Predictable Cost Consolidate Data Centers and Databases HW Admin Low Cost Linux Hardware 3x faster, 5x cheaper Easy to Automate en Mass Highly Reliable Standardized Open Integration Platform Business events infrastructure Industry standard protocols Centralized integrati on repository Oracles Experience with Linux Production midtiers Production DB Demo environments Development Outsourced Custo mers 100% Linux RAC Cluster (Unix) 100% Linux 90% Linux 70% Linux Simplify B2B Integration, Application Connectivity, and Process Management

Customer Success

A Few Logistics Customers

American Power Conversion Corp $1.4B world leader in IT equipment power protection 16 manufacturing & 25 distribution sites worldwide, serving 120 countries Order Mgmt / Shipping, Manufacturing, Purchasing, Planning, Financials, HR Adding Mobi le Supply Chain Apps, WMS, Configurator Upgraded from 10.7 to 11i Consolidated 1 3 systems into a single global instance 3200+ users (700 concurrently), 3600 ord er lines/day across 50+ organizations at 10 sites Having an integrated set of application modules in a single instanceyou get a glob al perspective in one place in real time. -- Lisa Sipe, CIO, APC Live on 11i -- single data center in Rhode Island Integrated order/shipping info to reduce fulfillment cost/time Leveraging global ATP to improve on-time delivery performance Reduced raw material inventory by 5 6%

$345M leader in high-performance enterprise Storage Area Network systems 950 employees across the U.S., Europe and Asia Manufactures and markets high-per formance switching equipment and heterogeneous network mgmt software Replaced Si ebel and SAP with Oracle Warehouse Management, Configurator, Order Mgmt, Discret e Mfg, Purchasing, Financials, TeleService, Depot Repair, Service Contracts Proj ects a five-year cumulative ROI of 352% on Oracle E-Business Suite implementatio n Support complex configure to order fulfillment process Live on 11i On-time shipments increased from 79% to more than 97% Reduced total inventory 75 %

 Leader in wireless communications products and services Over 6,000 employees at 40+ facilities in 18 countries Order Management, Warehou se Management Currently implementing 11i Using Oracle WMS business based rules engine will ensure a rapid, low cost implem entation since we do not have to customize it. The flexibility to match the way we work in a wireless environment, and the containerization of product represent s a significant workload reduction. Tom Fisher, VP Information Technology Expect significant workload reduction and flexibility Predict rapid, low cost im plementation without customizations

Guided by Our Customers Logistics Customer Advisory Board Abbott Labs Agere Agilent Alcoa Dana Donaldson Esco FEMSA/Solistica Hafele IKON Israeli Air Force Knouse McGraw-Hill Millipore Pella Qualcomm Seagate Tektronix Toshiba (TABS) WC Bradley (Charbroil)

Summary

Oracle Logistics Solution Integrated Planning and Execution Trading Partner Collaboration Streamlined Glob al Shipments Continuous Improvement

Know More. Do More. Spend Less.