G-Log Transportation Management

1. G-Log Transportation Management Presenter’s Name Presenter’s Title

2. Safe Harbor Statement 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.

3. Oracle At-a-Glance • Globally… • #1 in Database • #1 in Supply Chain Mgmt • #1 in Customer Relationship Mgmt • #1 in Human Capital Mgmt • #1 in Industries • Retail • Communications • Public Sector • Professional Services • Financial Services Founded in 1977. Headquarters in Redwood Shores, CA with operations in 145 countries. • 275,000 total customers • 220,000 database customers • 30,000 applications customers • 19,000 SMB apps customers • 30,000 middleware customers • 17,700 partners • 60,000 employees • 14,000 developers • 7,000 support staff

4. Transportation Management At-a-Glance • Load consolidation and route planning • Mode & service provider selection Planning &Optimization Book / Tender Tracking • Real-time shipmentstatus checking • Exception managementand notifications • Full visibility to tender status • Direct link from system to carrier Billing &Settlement • Freight payment and audit • Cost allocation “76% of logistics managers at major companies couldn’t trace the products en route or get updates.”

5. Business Pressures Shipper Pressures… Carrier Pressures… • Capacity shortages of drivers, railcars, ocean slots, and ports • Increased regulation on hours of service rulesand security procedures • Escalating fuel costs • Shrinking margins dueto commoditization of basic services • Escalating end-customer expectations • Globalization driving complex global supply chains • Lean initiatives and increased volatility increasing supply risks • Shrinking margins dueto commoditization of basic services …Impact • Transportation costs (6% of GDP) growing at an increasing rate • Expansion, consolidation, and globalization of outsourcing suppliers Increased Demand for Comprehensive Transportation Mgmt Solutions

6. Operational Challenges Carriers Forwarders 3PLs Customs Brokers Transportation Providers • Lack of unified logistics process control and visibility • Long planning cycles with decisions based on outdated data • Paper and time intensive processes • Poor use of automation for exception recognition and resolution Planning Execution Shipper Fragmented Organizations Manual Processes TradingPartners Suppliers Contract Mfgrs Customers

7. A Need for ChangeLeading Business Trends • Advanced Technologies to Address GlobalNetwork and Capacity Complexities • Drive to Control & Minimize Transportation Costs • Adapt to Changing Regulations via Automation • Rapid Response to Plan & Security Fluctuations • Increased Visibility through Partner Portals

8. Transportation Management Opportunity 50% 42.1% Transportation Mgmt Solutions can Save Most Companies 5-25% 40% 28.9% 30% % of Companies Researched 20% 13.2% 13.2% 10% 2.6% 0% 1-5% 6-10% 11-20% 21-30% x > 30% Savings Opportunity Source: The Logistics Institute at Georgia Tech Companies with Annual Transportation Spend > $10 Million

9. “Following an extensive selection process, we chose Oracle G-Log Transportation Mgmt web-native technology platform as it aligns with our corporate IT strategy. Their global data model and single instance of software will enable Tesco to deploy the solution worldwide, whilst maintaining central control and administration.” -- Colin Cobain, IT Director “We've enabled our buying organization to reduce the number of days between placing an order & receiving the order by 30%…Although I wouldn't say it's reduced the number of exceptions in our supply chain, what it has done is made it easier to identify and manage exceptions.”-- Bill Parry, Vice President of Logistics “We’re able to take transportation information from Asia, move it all the way through to the US and track it on the same system.” -- Martin Neil, Chief Technology Officer What Customers are Saying… CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

10. A Few More Customers…

11. How Delivers

12. Oracle G-Log Transportation ManagementOpen and Scalable • 100% Web-Based • Highly Configurable • Global Business Support Oracle G-Log Transportation Mgmt Continuous Planning Consolidate Loads / Moves SelectModes & Carriers Book / Tender Track &Trace Audit / Settle Event Management • Tender Offer • Tender Response • Ship Status • Invoice • Planned Shipment • Order Status • ASN • Order / Release Information CarrierAnalysis On-Time Performance Customer Satisfaction • Orders • Product Location • Item Master • Planned Shipment • Confirmed Shipment • Payment Vouchers • Invoice Check and Match OrderMgmt Warehouse & Inv Mgmt Financials Service Providers Trading Partners Internal Systems

13. Oracle G-Log Transportation ManagementBest-In-Class Shipment Lifecycle Coverage Procurement Collaboration & Optimization Service Provider & Asset Management Logistics Order Management Shipment Planning & Optimization Forwarding & Brokerage Operations Shipment Execution Freight Payment, Billing, Claims Global Logistics Visibility Supply Chain Event Management Operational Reporting & Document Generation Performance & Financial Analysis CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

14. Oracle G-Log Transportation ManagementProvides… High Performance TransportationOptimization Global TransportationCollaboration and Execution Global, Local, and Central Logistics Management Logistics Automation with Exception Management Complete Logistics Network Visibility

15. Oracle G-Log Transportation ManagementProvides… High Performance TransportationOptimization Global TransportationCollaboration and Execution Global, Local, and Central Logistics Management Logistics Automation with Exception Management Complete Logistics Network Visibility

16. Shipment Planning and OptimizationMaximize Fulfillment Service, Minimize Transportation Costs • Consolidation • Service Provider OptimizedDecisions • Timing • Equipment • Route • Mode Engines& Rules Algorithms • Multi-Leg Multi-Mode Consolidation • Common Leg Consolidation • Multi Stop Consolidation • Multi-Tier Networks • LTL Consolidation • Continuous Moves • Service Time Calculation • 3-Dimensional Container Optimization • Itineraries & Profiles • Carrier Capacity • Throughput • Rating Support a Wide Range of Optimization Needs • Container and trailer optimization & configuration • Shipment assignment, stringing & continuous moves • Fleet sizing & assignment (execution, strategic) • International shipping • Facility resource balancing • Bid collaboration and optimization CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

17. Shipment Planning and Optimization Example: Multi-Tier Distribution • Dynamic Routing &Consolidationthroughout Network • Intermediate Facilitiesfor Consolidation • Consolidation poolsand cross-docks • Dynamic Optimization • When to use pool vs. by-pass • Consolidation from pool Supplier Multiple Orders Consolid Pool Supplier DC 1 DC 2 Consolidated Multi-Stop Shipment Supplier Example: Multi-Leg, Multi-Mode • One order can involve multiple shipments, parties, and modes • Optimization can be performed for unlimitedlegs and modes China – US Order Supplier Port DC Port (Guangzhou) (Hong Kong) (Los Angeles) (Chicago)

18. Highly Graphical Display of Results Relate Optimization Results to Actual Execution Multiple modes • Multiple modes Consolidation Leg-specific shipment & order information Multiple nodes

19. Carrier Bid Optimization*Secure Best Value from Service Providers Transportation Service Providers Your Company • Prepare bids using real history, forecasts, and actual orders • Electronically sendout bid packages • Optimize results and send out awards • Automatically loadthe winning contractinto the execution environment Oracle Global Logistics • Orders • Lane Forecasts Receive Demand BidInitiation Bid Packet Optimized AwardRecommendation Accept QuoteAnalysis Quotes Contract Load ExecutionEnvironment Award Notice Selected Carrier *For fixed and variable rating

20. Shipping Costs Rules and Regulations Tiered Commitments Cooperative RoutingAllocate Transportation Resources to Demand Fleet Planning • Establish execution rules that define continuous moves • Model and analyze resources, commitments, and constraints in the transportation network Fleet Resources and Capacity Results Aggregated Shipping Demand • Right-size fleet resources based on aggregate requirements • Locate and reposition fleet resources • Identify lanes better serviced via alternative method • In / outbound shipments • Transfers • Logical international legs Division 1 Division 2 Division “n”

21. COMPANY OVERVIEW • €37B international retailer based in Cheshunt Hertfordshire, U.K. • 2,365 total stores throughout Europe and Asia selling 50K product lines (food retailing comprises over 2,000 stores) • 367,000 employees throughout Europe and Asia • CHALLENGES / OPPORTUNITIES • Utilize factory gate pricing to reduce costs and gain complete controlof inventory from supplier to store shelf • Support the flexibility and scalability required by their expanding business (e.g., 12.4% Revenue and 24.5% Profit Growth in 2004 alone) • Non-invasively integrate logistics management and key support systems to minimise both internal and external IT resources • Utilize web-native technology to eliminate financial and technical adoption barriers for supply chain partners • Deploy a “phase 1” solution within six weeks • SOLUTIONS • Live on Oracle G-Log Transportation Management • Also utilizes Oracle E-Business Suite for Financials and Procurement, PeopleSoft Enterprise for HR, and Oracle Retail (Retek) for Merchandising

22. CUSTOMERPERSPECTIVE “Following an extensive selection process, we chose Oracle G-Log Transportation Mgmt web-native technology platform as it aligns with our corporate IT strategy. Their global data model and single instance of software will enable Tesco to deploy the solution worldwide, whilst maintaining central control and administration.” -- Colin Cobain, IT Dir. • RESULTS • Improved on-time deliveries by 14% • Supports 24 / 7 shipping operation with 9 planners • Reduced cost per case by 10-15% • Plans and executes factory gate pricing for 6,000 daily shipments including the tracking of costs and performance service levels, order booking, and support for financial settlement • Automated 95% of all inbound scheduling resulting in improved availability, reduced stockholding, and increased vehicle / trip utilization • Automatically optimizes loads & manages communication with carriers • Eliminated EDI by enabling carriers and suppliers direct entry of shipment details (e.g., appointment, pick-up, out-gate times) • Integrated demand (from order management system) and status (from warehouse management system) with transportation logistics

23. Oracle G-Log Transportation ManagementProvides… High Performance TransportationOptimization Global TransportationCollaboration and Execution Global, Local, and Central Logistics Management Logistics Automation with Exception Management Complete Logistics Network Visibility

24. Transportation ExecutionTightly Link Your Processes with Service Providers YourCompany ServiceProvider Review &Approve Shipment Accept Tender Tender Pick-up Transport Deliver EDI 204:Load Tender Internet: Picked-up Wireless: En route Internet: Delivered • Intermodal Support: Ocean, Air, LTL, TL, Rail • Electronic (EDI), Internet, and wireless communication • Share forecast, tender shipments, shipment status, delivery confirmation • Automated dock scheduling and partner collaboration

25. Automated Payments and SettlementsImprove Cash Flow and Accounting Accuracy • Allocate coststo orders & order lines for billing • Apply appropriateGL codes based on order characteristics • Calculate profit margin for each shipment • VAT & NFRC* Shippers /Customers Carriers Match, validate, and pay invoices; flag exceptions Match & Pay Invoices via webor integration Billsvia webor integration Pay based on actual shipment activity and contract rates Auto-Pay • Intra-company cost transparency • AR & AP Vouchers • Allocated costs Payments Payments Financial System Support Settlements & Payments Based on Plans Generated in TM or Other System *Value-Added Tax and Non-Freight Related Charges

26. Automated Payments and Settlements Example: Match-and-Pay Carrier Alert user if no match is found Find shipmentmatching the invoice Invoice Compare invoice amountwith OGL calculated amount Alert user if amounts are out of tolerance Payment for Approved Amount Voucher for Approved Amount AP System If amounts are within defined tolerances, approve invoice Example: Auto-Pay Carrier Create invoice Proof of Delivery Auto-match Payment for Rated Amount Voucher for Rated Amount AP System Auto-approve CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

27. Seamless Trading Partner CollaborationExtend Capabilities to Service Suppliers and Customers • Request pick-up • Raise supplementary PUS • View PUS status • Send pick confirmation • View PUS • Confirm ship quantity • Generate bar code labels Supplier Customer Materials Control Ship confirmation à ß Route & PUS data Pickconfirmshortage Shipconfirmshortage Alerts G-Log Transportation Management • Maintain fixed route data • Plan daily fixed routes • Enter supplementary PUS • Append supplementary to plan Customer Receiving LSP Planner • Allocate equipment • Review shipment status • Control execution • Shipment management • Linehaul manifesting • Status updates • Review shipment status • Cross-dock manifesting • Status updates LSP Regional DC LSP Cross-Dock = Flow of information PUS = Pick-Up Schedule = Flow of goods CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

28. Example 1: Request Pick-Up from 3PL Customer uses Shipper application to request services Specifies pick-up window… …and shipment details for multiple items CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

29. Example 2: Order Status ChangeCollaboration is Transactional and Extends Beyond Visibility Shipper confirms shortage (200 ordered, 100 available) Customersets Status to “URGENT”for next 4 deliveries Status is printed on shipment docs for action while in transit and upon receipt CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

30. COMPANY OVERVIEW • AUD$4 B provider of integrated transportation & logistics services, based in Melbourne (Australia) • Maintains a network of 450+ sites throughout the Australasian region and managed by 20,000 employees • Utilized Oracle Transportation Management as a key component of the core solution framework to develop an industry-focused Autologistics and Transport Operations Management (ATOM) solution • CHALLENGES / OPPORTUNITIES • Improve in-transit inventory accuracy, visibility, and control • Capture real-time accurate data and eliminate manual, paper-based processes • Support higher production levels and increased model mix for the automotive industry • Improve customer service while reducing inbound supply chain costs • SOLUTION • Live on Oracle G-Log Transportation Management

31. CUSTOMERPERSPECTIVE “Oracle continues to play a critical role in our growth strategy as it helps us deliver superior customer service and pass-through cost savings across the supply chain. Oracle G-Log Transportation Mgmt forms a key element in our core solution framework providing a scalable and flexible platform to address a wide range of customer value propositions. As a result, we have achieved a superior rate of return on our investment by winning new business with our customers.” -- Tom Thompson, Group General Manager • RESULTS • Increased freight managed in system by 400% in one year • Supports multiple industries with a single instance • Improved on-time delivery and customer satisfaction • Streamlined operational processes with improved collaboration • Enhanced supply chain efficiencies resulting in cost reductions • Improved in-transit shipment visibility for better decision-making • Supports industry-specific requirements for automotive, consumer packaged goods, and retail

32. Oracle G-Log Transportation ManagementProvides… High Performance TransportationOptimization Global TransportationCollaboration and Execution Global, Local, and Central Logistics Management Logistics Automation with Exception Management Complete Logistics Network Visibility

33. Foundation: Global Logistics IntegrationLeverage Fusion Middleware EBS OM / WMS / Inv Mgmt EBS Financials Web Services Web Services EBS Purchasing BPEL BPEL Oracle G-Log XML / XSL XML / XSL Orders Shipments Events Invoices Allocations Accruals Oracle Retail Other Financials Other ERP / SCM Standardized, Packaged Integrationsvia Web Services Orchestrated by BPEL XSL

34. Business Process AutomationEliminate Time-Consuming, Error-Prone Processing Manual,error-proneprocesses… Evaluate changes in business environmentand automatically take appropriate actions • Establish business rules…Arrive at port 24 hrs prior to scheduled departure • Monitor activities…Container arrives at port • Assess activities…arrived at port 5 hrs prior to departure • Take action…re-run model for feasibility of on-time delivery …Replacedby… Workflow-Driven …Configurable automation

35. Seamless Order ProcessingManipulate Orders to Best Meet Customer Demands TransportationOrder Release “A” Customer (Delivered) Demand Destination1 Fusion Middleware SplitOrder Orders Received BPEL XSL PurchaseOrders Notice! …Ready to Ship EDI Cross Dock CustomerOrders Batch Manual Production Orders TransportationOrder Release “B” Destination 2 DC (Delivered) • Integrate with OM and WMS to allow all supply chain partners to create new transportation orders • Provide visibility to purchase orders, release orders, and transportation orders with other systems and trading partners CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

36. Supply Chain Event ManagementKeep Goods Flowing Across Your Changing Network Anticipate Analyze Resolve Collaborate Monitor for Planned and Actual Events Execute Automatic Response Notify Affected Parties Evaluate Conditions • Configure monitors to track orders against shipment milestones • Confirm events or identify missed, abnormal, and out-of-sequence events • Customize logic to interrogate allincoming events • Trigger follow-upactions accordingto pre- defined conditions & thresholds • Automatically perform actions (e.g., re-planning) in responseto common problems • Initiate resolution workflow based on changing conditions • Notify / alert internal and external users or IT systems of an event or action • Prompt users for response and process iteratively until resolved

37. Example: Vehicle Distribution Mgmt OEM Plant Dealer 1 A Simple Order… Order: 1 VIN …Really Looks Like This Dealer 1 Port Port OEMPlant (Yokohama) (Los Angeles) Dealer 2 Alert! … Dealer msg “Partial Ship” Automated Action … 1) Order and routing change2) Expedite replenishment order Alert! … Delayed in customs Automated Action …Split shipment of vehicles • Receive Proactive Notifications and Rapidly Adjust to Unforeseen Delays • Utilize Event Management to Trigger Automated “Corrective Action” Flows

38. RESULTS • Estimates $800K in annual savings from vehicle lead time reduction • Improved in-transit visibility for vehicles shipped within Europe • Provides visibility and event management to third-party logistics providers (3PL) for inbound and outbound transportation • Provides a centralized view of vehicle availability via a single vehicle logistics database integrated with GM’s supply chain planning and intelligence systems • Generates consistent, accurate KPIs for all parties involved in supply chain logistics • Reduced costs by eliminating unnecessary movement of vehicles COMPANY OVERVIEW • Joint venture between CNF Inc. and General Motors Corporation • Provides supply chain management services for 1.95 million vehicles sold annually through 6,000 dealerships in 21 countries • CHALLENGES / OPPORTUNITIES • Multi-node, global inbound and outbound transportation environment • Ability to manage 11 points of origin, 130 intermediate shipping locations, and 100 logistics service providers • SOLUTION • Live on Oracle G-Log Transportation Management

39. Oracle G-Log Transportation ManagementProvides… High Performance TransportationOptimization Global TransportationCollaboration and Execution Global, Local, and Central Logistics Management Logistics Automation with Exception Management Complete Logistics Network Visibility

40. Complete Logistics Network Visibility Manufacturer Planning Level Shipper Execution Level Consolidator Dashboard Level Customer Across… …the entire supply chain: from raw materials to point-of-sale …all roles: suppliers, planners, service providers, customers, management …all phases: before (planning), during (execution), after (improvement)

41. Advanced Analytics and ReportingContinuously Monitor Logistics Network Performance Planning Level Execution Level Dashboard Level + Advanced Analytics Operational Reporting • View KPIs & other historic metrics; proactively identify problems • Drill-down to base data level • Link execution performance totargeted levels • Distribute logistic info & performanceto internal and external partners • Leverage standard,pre-configured reports • Create and apply complex forms / reports, as necessary • Support all reports, includingad hoc reporting and data exportto Excel, in secure environment Align Operational Performance with Business Strategy

42. Visibility Example @ Planning LevelGain Visibility into Scheduled Events / Activities View multiple modes from single screen See status in and between nodes Gauge weight and volume utilization Reuse popular queries

43. Carton ID Line ID Style Color Size Width Visibility Example @ Execution LevelCapture Actual Performance Information By shipment, vessel, voyage, carrier FREEDOM 12242420 By container PO, by carton # By container or carton contents CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

44. Visibility Example @ Dashboard LevelCompare Data to KPIs and Identify Improvements Multiple dashboards Weight shipped by mode of transport Query by time and geography Drill to transaction shipment details

45. Multi-Tenant Configuration and Security Provide SimpleAccess toContextualInformation Top Level UsersFull Visibility ParentCompany … Business 1 Business 2 Business n DomainUsers PartitionedVisibility • 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 ConfigureSoftwarefor SpecificLook & Feel

46. COMPANY OVERVIEW • $1.9B footwear retailer with nearly 1,300 stores in North America • Brand names include Famous Footwear, Naturalizer, Life Stride, Buster Brown, Dr. Scholls, Carlos, Barbie, Red Goose and various children's brands (e.g., Mary-KateandAshley, Spider Man) • 62% of revenue from retail outlets, 38% from wholesale distribution • RESULTS • Improved visibility to in-transit shipments by up to 2 weeks • Re-routes shipments to alternate ports to avoid delays • Improved visibility to inbound shipments from China, Brazil, and Italy • Provides self-service tools for buyers to expedite / divert in-transit inventory • Enables ocean contract compliance with on-line global visibility to distance to destination (DTD) ocean carriers’ transportation rates • CHALLENGES / OPPORTUNITIES • Fragmented, global supply base -- Imports 75 million pairs of shoes each year from Brazil, Italy, China, Hong Kong, Taiwan, Indonesia, and Mexico • SOLUTION • Live on Oracle G-Log Transportation Management

47. Oracle G-Log Transportation Management Multi-mode, multi-leg, multi-tier shipment planning and optimization; integrated fleet planning and carrier bid optimization for services sourcing High Performance Transportation Optimization Seamless customer-to-carrier transportation execution flows, automated payments & settlements, transaction-centric global collaboration Global TransportationCollaborationand Execution Configurable BPA and event mgmtfor order processing and exception handling, automated corrective actions, alerts via UI or mobile devices Logistics Automation with Exception Management Advanced analytics and reporting via multi-tenant configuration and security, graphically UIs with KPIs and access to drill-down details Complete Logistics Network Visibility CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

48. Oracle G-Log Transportation Mgmt Products Oracle G-Log Transportation Mgmt Continuous Planning Consolidate Loads / Moves SelectModes & Carriers Book / Tender Track &Trace Audit / Settle Event Management CarrierAnalysis On-Time Performance Customer Satisfaction • Transportation Management • Transportation Operational Planning • Transportation Sourcing • Forwarding & Brokerage Operations • Logistics Inventory Visibility • Freight Payment, Billing & Claims

49. All Supported by Leading Technology • J2EE Application Server • Development Tools • Process Orchestration • Business Intelligence • Collaboration Tools • Data Hubs • Security / Identity Mgmt • Enterprise Portal • Web Services Mgmt • Real Application Clusters • Partitioning • Advanced Security • Data Mining • Spatial Data • OLAP • Warehouse Builder • Enterprise Management • Secure Backup

50. Oracle’s Solution Supports… Global, Local, andCentral Management