The much-anticipated, action-packed… ORACLE LEGAL DISCLAIMER

2. The much-anticipated, action-packed… ORACLELEGAL DISCLAIMER The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

3. THE INFORMATION COMPANY THE INFORMATION COMPANY “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

4. Oracle Advanced Planning An Overview for NorCal OAUG Training Day 2006 Tom GreeneSenior Solution Consultant West Commercial Apps Region

5. Higher degree of uncertainty Get visibility to all demand Manage to uncertainty by postponing inventory Increased global competition Focus on core competency – Increase outsourcing Mass customization Move point of product differentiation closer to customers Focus on customer service to ensure brand loyalty Provide reliable and accurate commitments to customers Limited money to invest in IT Lower cost of ownership of apps Today: Some ‘Tough Nuts to Crack’ Business trends are forcing you to consider new strategies TRENDS ADAPT YOUR BUSINESS MODEL “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

6. Traditional Approach Multi-step planning processes, high latency, limited collaboration CUSTOMERS SUPPLIERS Tier 2 Tier 1 • Response 1:Maintain Excess Inventory • Response 2:Reserve Production Capacity • Response 3:Expedite Everything! Fax Paper Paper Distribution plans Production plans Manufacturing plans Marketing ? Sales Manual reconciliation Mfg. Long planning cycles Supply Chains built on INVENTORY Demand Planning Supply Planning “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

7. Move to A More Competitive Model E-Business planning solution: zero latency, real-time collaboration • Enable closed loop collaborative planning processes across your value chain • Have complete supply chain visibility • Make better decisions • React immediately to disruptions in supply chain CUSTOMERS SUPPLIERS Tier 2 Tier 1 Portal Portal Automated Exceptions Marketing Manufacturing Sales Demand Hub & Multi-dimensional analysis Consensus forecast and production plan Single holistic plan Mfg. Supply Chains built on INFORMATION instead of Inventory S&OP Process Supply Planning Business Intelligence “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

8. Reduced inventories by 20%, increased market share from 50% to 80% “The most exciting feature of the system to a manufacturer is constraint-based planning. Oracle provides the ability to plan, including resource and material constraints, based on suppliers' inventories and capacities.” – Mr. V. A. Raghu, Managing Director, Tube Investments Ltd. Replaced i2 and cut planning cycles from weekly to daily “With Oracle E-Business Suite 11i, we have moved from weekly to daily planning, which has significantly improved our response time.” – Clair Walizer, Senior Developer and Analyst, Canon Virginia, Inc. Improved inventory turns by 37% “With help from Oracle's Advanced Supply Chain Planning (ASCP), we can now respond to customer change requests within 24 hours. The system also helps us check if our suppliers can supply us the components we need. Previously, we've had to collect this data manually using a lot of resources.” – Tan Lai Tong , Business Management GM, TEC Ltd. What Our Customers Say… “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

9. Oracle Advanced Planning Solution “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

10. Supply Chain Intelligence SCI Network Design Demand Planning DP SNO Inventory Optimization IO Supply Chain & Manufacturing Planning ASCP Global Order Promising GOP Maintain Finance Service Distribution Planning HR ASCP Fulfill Projects All Product,Customer, & SupplierInformation Production Scheduling Make PS Procure Plan Order SC Exception Management Develop CP Sell Market Collaborative Planning CP Oracle Advanced Planning Complete e-business planning solution Sales and Operations Planning From detail to summary From short-term to long-term “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

11. Key Capabilities in Order of a ‘typical’ High-Tech Adoption Lifecycle • Sales and operations planning • Holistic planning and optimization • Zero downtime global order promising • Multi-tier collaborative planning • Inventory postponement optimization • Strategic network design • Real-time production scheduling “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

12. Sales and Operations Planning “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

13. Sales and Operations Planning Definition • Balancing supply and demand • Synchronization of all operational plans • Key outputs • Consensus forecast • Bookings forecast – new orders expected to be received • Sales and allocations plan – expected shipments • Production plan • Bookings forecast +/- changes in backlog = shipping forecast • Shipping forecast +/- changes in inventory = production plan “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

14. Sales and Operations Planning Complete and integrated process INPUTS PLANNING PROCESS Financial plan Budget plan Sales opportunities Trade promotions Ship and book history Current order backlog Inventory history Production history Production backlog Customer forecasts Capture all demand in one place Inventory and service levels Demand Plan Determine consensus forecast - Determine new product plan • Balance supply, demand, and budgets: • - Determine inventory targets • Determine supply plan • Determine allocations Exception management Supply Plan Evaluate and adjust plans Sales Plan Production Plan Bookings Forecast Management Reports OUTPUTS “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

15. Sales and Operations Planning Key capabilities • Demand Hub • Capture all demand data in a central place • Collaborate internally and externally • Drive to a consensus forecast • Use analytics and intelligence to achieve a consensus demand • Balance demand, supply, and budgets • Make allocation decisions while trading off service levels and cost • Adapt and adjust to changing business conditions • Adjust demand or supply plan as conditions change • Drive continuous improvement • Integrated solution with built-in business intelligence “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

16. Sales S&OP – Demand Hub Capture all historic and future demand in a single data store CUSTOMERS SUPPLIERS • Central repository for all demand information • Customer and supplier forecasts • POS data • Sales and marketing forecasts • Financial forecasts and budgets • User-defined data (spreadsheets) • Configurable and extensible • Meta data driven • User-defined dimensions and hierarchies • Open • Spreadsheets, XML, EDI, portal • Audit exceptions • Integrated • Out-of-the-box loads for Oracle ERP Tier 2 Tier 1 Portal Portal Internet ERP Transaction Flat file loads EDI Transactions ERP Systems APIs Demand Hub Finance Marketing Manufacturing “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

17. Consensus forecast Finance Marketing Sales S&OP – Demand Planning Drive to accurate consensus forecast CUSTOMERS SUPPLIERS • Compare and consolidate disparate forecasts • Sales, marketing, manufacturing, customers, suppliers, Point of Sale (in units or $$) • Use multi-dimensional analysis to adjust, allocate, and rollup • Improve forecast accuracy • Better statistical forecasts • Forecast planning percentages for models and options • Get visibility to customer demand changes • Improve demand planning cycle time • Move from a regimented periodic to a continuous demand planning process • Get real-time visibility to demand adjustments via internal collaboration • Improve sales promotion planning • Forecasting integrated with promotion planning • Measure effectiveness Tier 2 Tier 1 Portal Portal Automated exceptions Internet Collaborative demand plan Demand Hub Demand Planning Process Manufacturing “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

18. S&OP – Demand Planning Drive to accurate consensus forecast Forecast Collaboration Process • Manage product life cycles more effectively, with your trading partners • Introduction of new products • Phase-out of obsolete products • Improve delivery performance • Include customers in forecasting process • Publish sales forecast to suppliers at any tier • Reduce non-value added costs and exception overload • User-defined exceptions • Proactive notifications • Automated exception handling via workflow CUSTOMERS SalesForecast Synchronize YOU Sales/OrderForecast Publish (optional) Synchronize SalesForecast SUPPLIERS “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

20. S&OP – Alcoa COMPANY PROFILE BEFORE ORACLE • $20.3 billion in revenues • 350 operating locations in 40 countries • 127,000 Alcoans worldwide • 4 Major Rolling Mills - Davenport, Iowa; Lancaster, Pennsylvania; Texarkana, Texas; San Antonio,Texas • Heat Treating and Blanking Center - Danville, Illinois • Customer service and distribution centers -Irvine, California;Hutchinson, Kansas • Extruded Tube for Heat Exchangers - St. Louis. Missouri; Monterey, Mexico • Spreadsheets, not integrated with legacy system, nor with execution systems • Manual forecast smoothing • No system supported sales and operations planning • Monthly planning cycle, insufficient accuracy in order promise dates AFTER ORACLE • Determines allocation to produce most profitable product mix within existing constraints • Performs all planning at the family level • Powerful Integration of supply/demand picture • Demand Planning & ASCP supply and inventory data • Drill Down and roll-up capability • Reporting tools and data analysis • Export to excel or HTML pages • Supports the S&OP Process • Demand planning analysis and pre-work • Operations planning analysis and pre-work • S&OP composite picture in real time during review sessions Source: Alcoa Presentation at Appsworld 2004 Benefits • Reduced plan cycle time – Eliminated waste on spreadsheets • Process integration with other modules resulted in technology pull for new systems • Integrated sales and operations planning process resulted in one consensus forecast number “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

21. Holistic Planning and Optimization “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

22. Unified solution for supply chain and manufacturing planning Segment the problem as needed Optimization for planners not programmers Scalable and reliable Holistic Planning and Optimization Faster and better supply chain plans Long-term planning Customers Discrete Suppliers Flow Plants Project Internet Warehouses Process DCs Semicon Short-term planning “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

23. Supply Chain Planning Product family and item level planning Alternate components, resources, processes, suppliers, facilities, and ship methods End-item substitution Critical items and resources Aggregate resources Bills of distribution and transfer rules Customer and supplier facilities Manufacturing Planning Simultaneous resources Batch resources Alternate resources Minimum transfer quantities Complex, network routings By-products and co-products Line rates and takt times Setup and run Holistic Planning and Optimization One solution for comprehensive supply chain and mfg planning One supply chain model, one planning engine, one setup “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

24. Holistic Planning and Optimization Highly adaptable; segment the problem as needed • Adapts to your current business model • Single plan or multiple plans • Evolve planning model at your own pace • Re-configure easily by modifying plan options instead of re-implementing or re-modeling • Multiple models can co-exist SCP for all Organizations DRP for all Orgs MRP Org 1 MRP Org 2 MRP Org 3 MPS for BU 1 MPS for BU 2 MRPOrg 1 MRPOrg 2 MRPOrg 3 MRPOrg 4 MRPOrg 5 MRPOrg 6 “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

25. Interceramic 91 Distribution centers, stores, and franchises 4 Plant warehouses 7 Manufacturing plants 3000 BOMs, 100,000 SKUs Run DRP, constrained MPS, and raw material MRP Knowles Electronics Global planning instance 2 Locations in the US 1 Location in Europe 5 Locations in Asia Mixed mode manufacturing Make to stock Make to order Configure to order Global order promising against 1 central plan Manufacturing plants Distribution chain Suppliers Customers Knowles Electronics has reduced inventory by $1M per month after implementing Advanced Planning Holistic Planning and Optimization Highly adaptable – Customer examples Constrained SC plan DRP plan Collaborative demand plan Constrained MPS plan for all facilities Inventory postponement plan “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

26. GE AE has moved from running separate plans in 36 facilities to running a single holistic plan across their DCs, end-assembly, contract manufacturing, and component shops, and as a result has reduced their planning organization significantly Holistic Planning and Optimization Optimization “For planners, not programmers” • Make better decisions faster • Level load • Choose alternatives • Make/buy decisions • Late demand diagnosis • Out-of-the-box optimization • Use costs or decision rules • Start quickly • Planners define the problem to solve • Flexible defaulting • Reduce planner workload “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

27. Holistic Planning and Optimization Scalable • Patented memory-based architecture • Multi-threaded snapshot • Optimized end-to-end run time • Database centric • All plan information resides in the database • Leverages high performance database capabilities • Flexible plan scope • Telescoping granularity • Apply constraints selectively • Subset planning High volume customers: Agilent Technologies, Sony SNC, GE AE, NCR, Panasonic, Alcoa… “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

28. Zero Downtime Global Order Promising “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

29. Promise orders based on: Material availability Manufacturing capacity Transportation capacity Supplier capacity Global statement of availability All facilities, material, resources, and suppliers Drive fulfillment decisions based on demand and supply plans Promise based on optimal supply decisions Allocate available supply and capacity By channel, customer, or product Priority and stealing rules Manage commitments to key customers Re-schedule and re-sequence your backlog Zero Downtime Global Order Promising “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

30. Zero downtime No order promising downtime when underlying supply chain plan is refreshed No sales order is lost, automatically re-promise sales orders against new plan Open, reliable, and scalable Engine runs inside the database No memory models to load! Multi-threaded Integrated with OM, iStore, and Call Center Easily integrate with legacy systems Zero Downtime Global Order Promising Guaranteed uptime and consistency via patent-pending architecture Typical Approach Promise Orders ? ? ? ? ? ? ? Promise Orders Current plan Downtime or Inaccurate orders New plan Run new plan Copy Run Copy Oracle Approach Promise Orders Promise Orders Current plan New plan Run new plan Copy Run Sync & Re- promise Swap “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

31. Agilent Technologies Performing multi-level capable-to-promise Greatly reduced expedite orders with accurate order promising dates Moved from batch to online order promising Increased customer satisfaction of key strategic customers by using allocated ATP 24x7 worldwide order operation with ‘zero downtime’ CTP Meet customer requirement by utilizing substitute components Cisco Every order for every router sold worldwide goes through GOP Complex order promising problem Product and channel allocation rules Extensive use of ship sets in an assembly to order environment High volumes Intersil Using material and resource constraints (CTP) across virtual supply chain Sales people promise orders online in seconds Zero Downtime Global Order Promising Customer examples “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

32. Multi-Tier Collaborative Planning “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

33. Optional Multi-tier Collaborative Planning Full visibility and synchronization across the extended supply chain • Plan your extended supply chain • Share forecasts and supply commits with customers and suppliers • Get visibility to supplier capacity • Reallocate key components • Make alternate sourcing decisions • Reduce inventory cost and improve fulfillment • Suppliers manage your inventory • Manage your customers’ inventory • React quickly to supply chain exceptions • Waterfall analysis • User-configurable exceptions • Automated exception handling via workflow CUSTOMER YOU CONTRACT MANUFACTURER SUPPLIER Consensus forecast Demand ‘systems’ Supply forecast Demand ‘boards’ Run plan Run plan Supply commit ‘boards’ Supply commit ‘memory’ Forecast ‘memory’ “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

34. VMI and Consigned Inventory Automate inventory replenishment with suppliers and customers CUSTOMER YOU SUPPLIER VMI Agreement VMI Agreement (with customer) VMI Agreement (with supplier) VMI Agreement Checkinventorystatus Send consumptionadvice Receive items Ship items Receive items Ship items Pay on receipt/use Pay on receipt/use “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

35. Customer Example: Alcatel eND • Enabled 100% virtual enterprise • Plan virtual supply chain • Planning cycle time reduced by 75% • Reduced inventory by more than 65% • Reduced material liability by 80% • Established global closed-loop process controls • Improved supply chain visibility • Projected annual savings of $15M “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

36. Inventory Postponement Optimization “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

37. Inventory levels and policies are synchronized across the entire supply chain Manage to uncertainty Demand, supply, and lead-time variability Pull model, driven by point of postponement Higher customer service at lower inventory cost Time-phased safety stock buffers at all levels Multiple target service levels Inventory Postponement Optimization Manage to uncertainty, reduce inventory, improve customer service Without Postponement With Postponement Customers Regional Distribution Centers Central DistributionCenters Final Assembly Contract Manufacturers Suppliers “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

38. Inventory Postponement Optimization Business benefits • Reduced inventory cost • Increased flexibility to handle supply and demand uncertainty • Rapidly handle product mix changes • Reduced average fulfillment lead times • Reduced material liability • Ability to absorb yield exposure “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

39. Reduce inventory without sacrificing customer service Postponement Risk pooling Manage supply chain variability Choose the best service level strategy based on cost and revenue Inventory budget constraints Invest in profitable channels, products, and customers Manage seasonality and product life cycle characteristics Recommend time-phased safety stock to supply planning Out-of-the-box optimization For planners, not programmers Inventory Postponement Optimization Key capabilities Without Oracle With Oracle Inventory Investment LowerInventoryCost Higher Service Level 10 30 50 75 80 85 90 95 100 Service Level “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

40. Reduce inventory without impacting customer service “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

41. Simulate multiple scenarios to find the optimal trade-off between cost and service level “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

42. Inventory Postponement Optimization Customer example – GE Transportation Aircraft Engines, US • Focusing on ‘class A’ parts for service business • Determining safety stock levels across finished goods and raw materials • Realizing significant benefits • Example: reduced inventory for one part by 10% “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

43. Strategic Network Design “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

44. Optimize your supply chain network Use demand scenarios as input Compare time-phased network configurations Model all supply chain elements Distribution centers, processing facilities, ship methods, stores, suppliers, and customers Costs: transportation, operating, sourcing, facility ramp-up and shut-down, labor, and storage Optimize sourcing Output best sourcing strategy for downstream supply chain and inventory planning Simulate changing business conditions New businesses and new markets Outsourcing decisions Demand scenarios Strategic Network Design Key capabilities “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

45. Strategic Network Design Proven deployment success and ROI: 300+ customers BASS BREWERS COCA COLA - FEMSA 75% Inventory reduction 50% Inventory reduction 5% Capacity improvement 25% Stock-out reduction KRAFT FOODS - EUROPE NABISCO FOODS 70% Inventory reduction 50% Inventory reduction 20% Capacity improvement Planning cycle reduced 86% OWENS ILLINOIS DOW CHEMICAL 20% Inventory reduction $ 350M Inventory reduction Carrier rationalization from 200 to 12 KIMBERLY-CLARK FORT JAMES 50% Inventory reduction 15% Inventory reduction Planning cycle reduced 20% “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

46. Real-Time Production Scheduling “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

47. Maximize production throughput Optimize your shop floor; detect floating bottlenecks Reduce WIP inventory by rapidly synchronizing multi-stage production schedules Account for complex setup and change-over scenarios, machine breakdown, supply and resource shortages , co- and by-products, alternate resources, routings, and operations Model all elements of your shop floor Work centers, resources and resource groups, shift capacity, operating costs Lead times: setup, change-over, and run Sequence dependent setups, contiguous operations, production campaigns, batching Implement most optimal schedule – seamless integration with Oracle EBS Output best schedule for process (OPM), discrete MFG), and semi-conductor (OSFM) manufacturing (available 2006) Real-Time Production Scheduling Key capabilities “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

48. GE Energy Improved schedule accuracy and confidence by reflecting real time shop floor constraints Finite machine, crew and tool resource constraints Floating resource bottlenecks due to demand mix variability Operation sequence dependent setup times Operation buffering to avoid intermittent glue gun usage Alternate resources with preferences Simulations of hot order impact on existing schedule Complex demand priorities Toyota Racing Division Reduced schedule creation from 3 weeks to < 2 hours Support re-planning based on constant design changes during production Respect for crew specialization Optimized use of un-manned operations during downtime Nampak Reduction in time lost due to sequence dependent press setups for container styles and sizes Real-Time Production Scheduling Customer examples “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

49. Integrated Performance Management and Process Automation “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

50. ASCP • Planned utilization • On-time delivery • Planned margin DP • Forecast accuracy • Margin analysis • Promotion effectiveness IO • Service level analysis • Plan versus profit • Postponement savings TP • Carrier contract utilization • Cost per unit weight • Cost per unit volume CP • Supply commit variability • Order forecast variability Integrated Performance Management Closed-loop plan-execute-measure-adapt process PLAN TO PERFORMANCE BUSINESS INTELLIGENCE PROCESS Identify key performance measures and set targets Execute transactions Define targets Calculate KPIs and compare to plan; notify decision makers of exceptions Analyze exceptions based on facts; take immediate corrective action Notify on “out of tolerance” Measure performance Perform trend analysis and adjust business plan and targets Management Reports Role-based portals OUTPUTS “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”