E-Business Suite Outsourced Manufacturing for Discrete Industries

1. E-Business Suite Outsourced Manufacturing for Discrete Industries Gopal RatnamSr. Director – Product Management Muralidharreddy VenkataseshaDirector – Product Management

2. Program Agenda • Outsourced Manufacturing Business Practices • Solution Overview • Demo • Resources Available • Q&A

3. 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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

4. RMS RMS RMS B B B C C C MP MP MP OEM OEM OEM Outsourced Manufacturing Business Practices Partial Outsourcing (Step Level) Full (Non-Chargeable) Outsourcing Drop Ship Components OEM MP A Manufacture Assembly Ship Partial Product A Process Inhouse 10 C B B C Process Outside 20 20 Buy Components Receive Finished Product 30 Process Inhouse Ship Components B C Chargeable/Shikyu Outsourcing * Receive Assembly A Drop Ship Components A Buy/Sell Outsourcing B C Buy Components Virtual Sale of Components Drop Ship Components B C A Virtual Purchase of Assembly A B C Buy Components * Applicable only for Japan, Korea, Taiwan Sell Components (with Markup) B C Buy Assembly A

5. $ Pay to MP Receive SHIP Replenishment PO Item : B, QTY:20Ea Supplier : OEM Replenishment SO Item : B , QTY:20EaCustomer: MP Receive Misc Issue A SHIP Replenishment PO Item : C, QTY:10Ea Supplier : OEM Replenishment SO Item : C, QTY:10Ea Customer : MP Discrete Job Assembly : A QTY :10Ea Complete Interlock Auto receive Components Process Receiving Transactions Automated OrchestrationFor Material Tracking and Financial Reconciliation OEM Org Contract Manufacturer Org A AP/AR Netting 2 Ea 1 Ea B C AR Invoice AP Invoice ASCP Subcontracting Order Assembly : A , 10Ea Supplier : MP Receive

7. Visibility into Outsourced Manufacturing • Key Performance Indicators

8. EBS Outsourced ManufacturingFour categories of visibility into outsourcing business 1 2 Subcontract Order Status Inventory Balances EBS Outsourced Manufacturing Main Point 3 4 Financial Positions Quality

9. Subcontract Order Status • View status of subcontract orders (delayed, on-time) and component allocations across manufacturing partners 9

10. Inventory Balances • View quantity and value of components in-transit or at manufacturing partner locations 10

11. Quality • View reasons for poor quality of outsourced products and their value across manufacturing partners. 11

12. Financial Positions • View financial positions of subcontract and replenishment orders for a manufacturing partner 12

13. E-Business Suite Outsourced Manufacturing Business Benefits • Gain full visibility into the overall health of outsourced manufacturing • Quickly view and analyze financial transactions related to subcontract orders • Track quality issues related to supplied components and finished products • Monitor sales and procurement activities to meet on-time customer delivery • Collaborate effectively with approved suppliers and contract manufacturers • Analyze and negotiate service level agreements and pricing to optimize costs • Mitigate risks related to inventory bottlenecks across manufacturing partners

14. Demo

15. Resources

16. The preceding 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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

17. Q&A