oracle gtm usage in europe

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Oracle GTM Usage in Europe Asli Yimenicioglu Principal Product Strategy Manager April 2013

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Agenda

§  Oracle Global Trade Management –  Overview –  Current Features –  Roadmap

§  Some of Our Customers

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Oracle Global Trade Management (GTM)

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What is Global Trade Management?

§  Typically starts with Purchase Order or Sales Order §  Functional Groups: Purchasing, Sales, Compliance, Operations, Finance, and

Logistics §  External Parties: Vendors, Customers, Banks, Logistics Service Providers

(LSPs), Freight Forwarders, Customs Brokers, Government Agencies §  600+ Laws and Regulations §  25 entities and 35 documents in a TYPICAL transaction

Processes involved to move Goods, Information, and Money across Geographical & Fiscal borders and between Parties

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Typical Global Trade Transactions

1) Import to US from China • Product Classification •  Embargo Check •  DRPL Screening •  Import License Management •  Printing of Import Documents

2) Import to US from Mexico •  Product Classification •  Embargo Check •  DRPL Screening •  Import License Management •  NAFTA

5) Export from EU to Other Countries •  Product Classification •  Embargo Check •  DRPL Screening •  Export License Mgmt •  Printing of Export Docs •  Electronic Communication (NCTS, ATLAS, etc.) •  Trade Preference Processing •  Restitution Handling

4) Import to EU from US •  Product Classification •  Embargo Check •  DRPL Screening •  Import License Management •  Free Circulation •  Transit Procedures •  Duty & VAT Calculations •  Printing of Import Documents •  Electronic Communication (NCTS, ATLAS, etc.)

3) Export from US to EU •  Product Classification •  Embargo Check/ DRPL Screening •  Export License Management •  Printing of Export Documents •  Electronic Communication (AES)

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Global Sourcing •  Lower unit costs •  Increase profitability •  Compete effectively

Regulatory Compliance •  Increased variability and risk •  Quickly access new markets

Supply Chain Security •  Comply with existing and

future security programs •  Mitigate risk

Customer Demands •  Quickly access new markets •  Customer satisfaction •  Visibility

Trade Finance •  Control flow of funds •  Link in financial activities •  Reduce settlement times

Transport Procurement Financial Settlement Compliance

Global Trade: Business Drivers Why invest in a global trade management system

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§  “Forty percent of respondents utilized manual/spreadsheet-based processes to manage their import operations and compliance…” Import Operations and Compliance Benchmark Study (2011), American Shipper

In many key areas, most companies have no automated capability

Global Trade Remains Manual Process

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Global Compliance Risk

Lower Profit

Margin

Long & Inconsistent Customs Clearance Times

High Safety Stocks High Inventory Holding Costs

Unmet Demand Low Revenue

Expired Product at the Customs High Product Costs

Inaccurate Documentation & Information

Fines

Inaccurate Classification & Valuation

High Duty & VAT High Global Trade Costs

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Global Compliance Risk

Lower Profit

Margin

Long & Inconsistent Customs Clearance Times

High Safety Stocks High Inventory Holding Costs

Unmet Demand Low Revenue

Expired Product at the Customs High Product Costs

Inaccurate Documentation & Information

Fines

Inaccurate Classification & Valuation

High Duty & VAT High Global Trade Costs

“Complex, cross-border global transactions account for more than $10 trillion in 2007 and, according to a recent McKinsey report, are expected to grow to more than 70 trillion by 2025.”

Risky Business (2008), Risk & Insurance

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Oracle GTM Differentiators § Native Trade & Transportation Platform

–  Oracle GTM is built on the same platform as Oracle Transportation Management (OTM) providing customers with a holistic global logistics platform to manage their trade and transportation requirements.

§ Adapt Quickly –  No hard-coded regulations – Company-specific, configured trade rules –  Changes to regulations made by business user vs. custom coding –  Adapt quickly to new markets, products, mergers, regulations, etc.

§ Global Design –  Automate and manage the trade compliance and import/export challenges

encountered in global cross-border transactions. –  Single source of truth for global trade

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Oracle Global Trade Management Unique global trade management platform

Execute Locally… •  Accommodate line of business, geographic region, and supply chain flow-specific business practices

-  Workflows, business logic, reports, etc.

•  Using multiple languages and currencies -  User interface configuration by region / country, user groups

Control Globally… •  Classify, screen, monitor, & file for all orders / shipments -  All divisions -  All product flows (inbound, outbound, internal) -  All modes of transportation

•  Visibility across the global network

Manage Centrally… •  All operational information in one location -  Centralized visibility -  Centralized reporting

•  Single set of integration points for customers, brokers, & other partners •  Single information technology infrastructure to support

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Enterprise-Wide Global Trade Management Multi-domain architecture

•  Business Logic: User interface, workflow, reports, integrations •  Security: Segmented data and functional security •  “Customization” via configuration •  Expand without having to buy another system

Business 2

Business n

Business 1

Top Level Full Visibility

Domains Partitioned Visibility &

Functionality

Parent Company

Configure Software

for Specific Divisions / Lines of

Business

…

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ERP Integration

Global Trade Management

Transactions Received Master

Data

XML / Web Services

Manual

Transactional Data

•  ERP agnostic •  SAP, Oracle, etc

•  Multiple sources integrated to single GTM instance

•  Multiple order types •  Sales order

•  Purchase order

•  Service order

•  Shipments Engine Calls

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Oracle Global Trade Management 6.3 Product Features by Module

Oracle Global Trade Management

•  Global Trade Content •  Upload & Maintenance

•  Master Trade Data •  Items, Parties, & Registrations •  Item Templates

•  Product Classification •  Duty & Tax Visibility •  OGA, ADD, CVD Visibility

•  Restricted Party Screening

•  Sanction Screening

•  Document Management

•  System Infrastructure •  Transaction Processing, Workflow, Messaging, Business Monitor, Security, User Management, Advanced Layout, Work Queues…

Oracle Trade Compliance

• Trade Control Management •  License Determination •  License Exceptions •  OGA, ADD, CVD Screening •  Document/Template Determination •  Corporate Policy Enforcement •  Other Trade Controls

•  License Management •  License Repository •  License Assignment •  License Lifecycle

Oracle Customs Management

•  Customs Determination •  Electronic Filings & Documents •  Configurable Global Solution

•  Customs Preparation •  Virtual Shipment Consolidation •  Unit of Measure Conversion •  Currency Conversion •  Basic Valuation Calculations

•  Customs Connectivity •  Electronic Filings and Documents •  Freight Forwarder & Broker Collaboration Platform

•  AES Filing Support •  Direct Connection to AES

Red = New in GTM 6.3

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OTM & GTM 6.3 Release Notes Available

§ Under My Oracle Support: Direct link: https://support.oracle.com/epmos/main/downloadattachmentprocessor?

attachid=1533374.1:631&clickstream=no

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GTM 6.1 Initial Trade & Transportation Platform

•  Master Trade Data Management •  Trade Item Master •  Trade Party Master

•  Product Classification •  Global classification repository

•  Trade Compliance •  Restricted Party Screening •  Anti-boycott & Sanction Screening •  Control Determination: Licenses, Exceptions, & Other Controls

•  Document Management •  Document Determination •  Generation & Distribution

GTM 6.2 EBS Integration, Early Adopter Support

•  Integrations •  E-Business Suite 12.1.3 •  Sales Order Management •  Item Synchronization •  Party Synchronization

•  Product Classification •  Classification Determination & Assignment: Rollup Support

•  Enhanced Transaction Management •  Support for Assemble- and Configure-to-Order Items

•  Usability Enhancements •  Restricted Party Screening •  Sanction Screening

GTM 6.3 End-to-End Export, Basic Imports

•  License Management •  License Lifecycle •  License Eligibility Determination •  Assignment & Balances

•  Customs Management •  Tariff Visibility & Sourcing Support •  Customs Filing •  AES Support (US Exports)

•  Broker Collaboration •  Customs Documents

•  Document Management •  Document Lifecycle

•  Usability Enhancements •  Item Template for Classification •  Restricted Party Screening Workbench

Oracle Global Trade Management Existing Functionality through GTM 6.3

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Phase 4 Import Process Support & Usability Global Trade Analytics

•  Trade Content Expansion •  Import/Export Regulations

•  Import Process & Usability •  Product Classification Workbench •  Single-level Bill of Materials •  Enhanced Classification Research

•  Customs Management •  Partial PO Consolidation •  Expanded Filing Partnerships (US/EU) •  Import Entry Workbench

•  Document Management •  Canned Document templates •  Document consolidation/grouping

•  Global Trade Intelligence*

Phase 5 Special Duty Programs & Trade Finance

• Trade Preference Programs •  Bonded Warehouse •  Special Economic Zones •  Duty Drawback Management

•  Trade Finance* •  Letters of Credit/Open Accounts •  Wire Transfer process •  Invoice Matching/Reconcilation

•  Landed Cost Planning •  Sourcing workbench •  ALC vs. ELC reconciliation

•  Document Management •  Integration to UCM (Recordkeeping)

Future Product Direction Free Trade Agreements, Fusion

•  Free Trade Agreements* •  Supplier Solicitation •  FTA Qualification & Rules of Origin

•  Fusion Integrations •  Tax, LCM, Sourcing

•  Supply Chain Security •  AEO (EU) •  C-TPAT (US)

•  GTI: Carrier/Broker Scorecards

Oracle Global Trade Management Product Roadmap Overview

* Proposed New Price List Item

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Oracle GTM Customers

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A Few of Our Customers Aerospace & Defense High Technology Industrial Manufacturing Life Sciences

Retail Oil & Gas

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Oracle

•  Project Overview –  Worldwide

§  Product Classification §  Export License Determination (Automated & Manual) §  Export Screening (Automated & Manual)

§  Results •  Fast and accurate product classification, export screening and export license

determination •  Increased visibility •  Shorter order release times

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GLOBALFOUNDRIES §  Company Overview

•  GlobalFoundries Inc. is the world's third largest independent semiconductor foundry. •  Project Overview

–  USA, Germany, Singapore §  Restricted Party List Screening, Sanctioned Country Screening §  Classification (ECCN) §  License Determination & License Management with balance depreciation

§  Results •  Fully automated export compliance control replaced spreadsheet records of licenses and

end user statements •  Item classification is more efficient and accurate. Flexible classification code management

and look up •  Visibility and control of export licenses: usage, expiration, available quantity/value and

renewal are recorded in GTM

Global Trade @ Seagate February 2013

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Cloud

Seagate Products, Customers and Markets Internal Storage Branded Products

Computing

Consumer Electronics

Personal Storage

SMB Storage

Wireless Storage

Home Media Sharing

Services

Video Capture

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Seagate Global Presence

Oklahoma City, OK Teparuk & Korat, Thailand

Paris, France

Longmont, CO

Dublin, Ireland

Wuxi, China Maidenhead, UK

Munchen, Germany

Shanghai, China

Tokyo, Japan Beijing, China

Delhi, India Shrewsbury, MA

Suzhou, China

Taiwan

Amsterdam, Netherlands Shakopee, MN Bloomington, MN

Fremont, CA

Science Park, Singapore

Johor & Penang, Malaysia

Woodlands, Singapore

Sydney, Australia

Ang Mo Kio, Singapore

HQs, Admin and/or Sales Design

Customer Support Drive & Component Mfg

Springtown, N. Ireland

Scotts Valley, CA

Suwon, South Korea

Cupertino, CA

Seagate’s GTM Implementation

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•  Seagate joined Oracle Global Trade Management Strategy Council in 2007

•  Purchased GTM in 2010 •  Implemented GTM in 2011

–  Implementation partners Oracle Consulting and Wipro

•  Go-live January 2012

Background

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•  Maintain multi-country classifications –  ECCN, HTS, License Flag –  Allows for country-specific rule development

•  Assignment at item record – Preferred –  Assigned classifications are used for current and

future orders. –  Time saving from just assigning classifications

once for multiple transactions

Item Classification

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•  Assignment at transaction line –  Miscellaneous part numbers to handle unexpected

items •  “Parent” classification

–  Classifications are copied from related items to minimize time spend classifying same items

•  Bulk Loader –  Custom process to upload spreadsheet of classified

items. Allows for mass classifications for time saving.

Item Classification (continued)

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•  Screened when contact is created or updated, and when used on a transaction –  Sanction Country –  Red Flag List –  Restricted Party List – Contact Name –  Restricted Party List – Contact Address –  Seagate’s own Restricted List for black listed customers

•  Stand Alone Restricted Party Screening –  Provides adhoc screening outside of GTM

•  Bulk Loader –  Custom process to upload spreadsheet of blacklist names and

addresses

Contact Screening

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•  Automated assignment of license or license exception (NLR & ENC) –  Based on ECCN, Regions (based on “reasons for

control”), Other conditions •  Implemented for United States (used globally) •  Implemented for Singapore as Jan 2013 (SG

export only) •  Working on Malaysia, European Union, Korea,

Hong Kong, Thailand

Export Compliance Rule Screening

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•  Automated holds for import review –  Based on HTS, ECCN, Item Description, Remark

(“Used”) •  Implemented for China, Malaysia, Singapore,

Thailand, United States •  Allows Seagate to move from manual holds via

email to a process managed by GTM •  Reduction in process breakdown and cost from

fines/delay

Import Compliance Rule Screening

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Process Improvement •  Allows world wide team to work off of a single dashboard

with instant visibility to management –  Business Monitor

»  Contacts that require review »  Escalation review »  Transactions on hold »  Item updated »  Expired item classification

•  Reports –  13 custom reports for auditing, review, reference vs manual

SQL queries from previous system

Business Monitor and Reports

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Q&A

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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.

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