FujitsuTransportation and Logistics Practice

Path to Performance Based Valuefor

Customer IFFCO

Mike RieglerDirector, Transportation and LogisticsMay 2010

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Best-in class Logistics Value Chain…

Accounting

Customer Service

Finance

Mfg

Warehouse

Sales

To Differentiate IFFCO as a Great Company

Agenda OTM solution coverage to LSP industry

Business Process System Flows

Validate the OTM purchased by IFFCO.

OTM features on Transportation Planning, Execution, Controls and Performance

Oracle Solution Footprint forIFFCO

Quote Order Plan Execute Monitor Settle

Siebel Order Management

Oracle Transportation Management

Oracle Transportation Management

Oracle Transportation Management

EBS Financials

Fusion Middleware, Business Intelligence

Process Integration Pack Process Integration Pack

Oracle Human Capital Management

Process Integration Pack

LSP Order-Cash with Oracle1 2 3 4

Quote to Cash – Order & Quote

LSP

Destination

Origin

Order and Quote

Analysis

Quote Accepted &

Order Entered Cost Analysis Performed

Order and Quote

Analysis

Quote and Order

Confirmation

Quote to Cash – Planning & Execution

LSP

Destination

Origin

Tender/ Booking Notice Sent to

Carrier(s)

Carrier Confirmation Sent to Customer

Carrier Confirmation

Quote to Cash – Execution

LSP

Service Provider

Service Provider

Service Provider

Destination

Origin

Status Messages

Status Messages

Quote to Cash – Execution & Visibility

LSP

Destination

Origin

Carrier Messages

Status Messages Sent to Customer

Status Message / Delivery ETA Sent

Quote to Cash – Execution & Visibility

LSP

Destination

Origin

Status Messages Sent to Customer

Carrier Sends Status Message –POD Sent

Quote to Cash – Settlement

LSP

Origin

Bill Sent to Customer Via A/R

Carrier(s) Sends Bill(s) to LSP

Quote to Cash – Settlement

LSP

Origin

Payment Sent to LSP

LSP Pays Carrier(s)

Standard Quote to Cash Process Flow

OTM / Logistics Planners

SIEBELCSR

Carriers

Quote Entry & Quote Saved Order Created

Order ReleaseCreated

PlannedShipmentCreated

Tender/ Booking

Sent to Carrier

Tender/ BookingReceived

Tender/ Booking

Update

StatusesReceived

InvoiceReceived /

Auto-created

PaymentVoucherCreated

EBS AP Invoice Created

Check Issued

Reject

Rate Inquiry

Order Entry

Order Visibility

Event Driven:Tender Accept

Accept or

Reject

AutoPay Status Yes

Matching, Tolerating and

Approval

Carrier Invoice Sent

Payment Received

Shipment Status

Updates

Accept

EBSFinance

EBS AR Invoice Created

Bill Issued

Validation of IFFCO’sOracle BOM

Transportation Order Mgmt

Global Visibility

Supply Chain Event Management

Business Intelligence (Analytics & Reporting)

Fleet Management Buy

/Sel

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trac

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Coo

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Rou

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Tran

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Transportation Planning

Transportation Execution

Freight Payment,

Billing and Claims

Oracle Transportation Management (OTM)Global Transportation Platform

Freight Forwarding & Brokerage

OTM Modules and Integration Packs OTM Modules

Oracle Forwarding and Brokerage Oracle Fleet Management Oracle Freight Payment, Billing, and Claims Oracle Fusion Transportation Intelligence Oracle Transportation Cooperative Routing Oracle Transportation Operations Planning Oracle Transportation Sourcing

Siebel Order Management

OTM Integration Packs (Order-Cash for LSP) Driver Finance Order Management

OTM Features for IFFCO

CRM / Order Management for LSP Global CRM platform for LSP operations

Single order capture system for quoting & booking Single view of customer master data Single view of customer service data (call center)

Siebel-OTM integration for order management and fulfillment business processes Customer definition / management Capture billable & non-billable activities (all modes & LOBs) Capture order, customer / location specific services Rating & quoting Process Integration Pack (PIP)

Oracle Fleet Management

Settlement • Driver payroll• 3rd party suppliers• Customer billing

Visibility • Asset activity & status tracking• Asset inventory (pools)• Sensor based data capture

(GPS, RFID)

Execution • Dispatch• Mobile communications• Event management

• Driver & asset management• Optimized decision support• Maximize of asset utilization• Minimize operating costs

Planning

Benefits

• Improved asset utilization & reduced costs• Better service• Increase driver retention• Improve safety• Reduce fuel costs and emissions (Sustainability)

Fleet ManagementTarget IndustriesIndustries Logistics Service Providers

Asset-based services

For Hire Carriers Fixed network (e.g., LTL / express

linehaul) Dynamic network (e.g., over-the-

road trucking)

Shippers Private & dedicated fleets Retail, Wholesale Distribution,

CPG, Industrial Mfg.

Types of Fleets Truck

Long-haul truckload Short-haul P&D Fixed network

Ocean Container

Rail Cars Intermodal

Fleet Management

Oracle Fleet Management Transportation order management Asset management – attributes, tracking, event management Driver management – attributes, planning, dispatching, tracking Planning – driver & asset assignments Execution – dispatch, communications, tracking Settlement – driver activity /utilization, customer billing, supplier

payment

Broader Oracle Solution Order Capture and Customer Relationship Management Asset acquisition, lifecycle management and disposal Driver hire, education, scheduling, payroll etc Financials – payables, receivables Process flows & integrations (process integration packs)

Fleet Management – Key Differentiators Single-platform solution for asset & non-asset operations

Optimize fleet vs. common-carrier trade-offs Backhaul planning Multi-modal moves require control of both shipment and asset logistics

• Ex: Import may employ Fleet on delivery-drayage requiring coordination with external service provider on other legs and Fleet on POD-DC leg

End-to-end transactional control and visibility One environment to manage both buy-side and sell-side aspects

Breadth and Depth of the solution Asset lifecycle management (e.g., procurement, maintenance) Driver & contractor management (e.g., payroll) Order management incorporating fleet/asset capabilities Financial settlement – buy and sell side

Technology Built on enterprise-ready, web-native technology SOA-enabled architecture leverages Oracle Fusion Middleware

Fleet Management – Dispatch Board

User-specific configuration of each pane

Time-based view of driver activities

Drag&drop driver and equipment on shipment for manual assignment

Use decision-support actions to assign

Transportation Business Intelligence

Next generation BI provides more than just queries and reports

Enabler for fact-based decision making Actionable insight + fact-based decisions = more efficient

operations, decreased overall costs, improved service

New BI workflows Carrier Scorecard is available along with the ‘Change

Service Provider’ action Tender Performance is available along with the actions

‘Secure Resources’, ‘Tender Shipment’ & ‘Secure Resources By Planner’

Transit Time Variability is available along with the action ‘Change Shipment Details Change Schedule’

Transportation Business Intelligence

BI Content 330 new facts and dimensions available across OTM data

objects: Shipment, Invoice, Quote, Order, Carrier, Carrier Commitments, and Bulk Planning (optimization results)

4x what was available in OTM 5.5!

KPIs and Reports 54 new pre-built KPI’s and 4 new reports Flexibility to modify and create client-specific KPIs, reports

and dashboards

Change Service Provider

action offers access to

FTI…

Resulting in ability to preview

service on lane

Financial Settlement for LSP Global financial platform for LSP operations

Single financial management system Single view of expense and revenue data Single view of customer profitability

E-Business Suite Financials-OTM integration for financial settlement business processes Accounts Payable (supplier payment) Accounts Receivable (customer billing) Accruals (General Ledger and Subledger Accounting) Currency exchange rates Process Integration Pack (PIP)

OTM Financials

Accruals Accrue expected revenue (sell shipment cost lines)

• OTM currently supports accruals for expected expenses (buy shipment cost lines)

Event driven accruals (e.g., accrue revenue and expenses when shipment is delivered)

Reversals based on approved payments and billed amounts Manual adjustments

Functional Currency Simultaneously display amounts in Functional and Entered

currency• E.g., a USA-based user sees a payment for an Italian carrier in US

Dollars (functional) and Euros (entered) Rules-based determination of the exchange rate date for

calculation of functional currency

OTM Financials

Consolidated Invoices Process invoice batches – a batch is a collection of

consolidated invoices from multiple carriers Use case: 3rd party payment service provides the LSP a

monthly batch of consolidated invoices from multiple airlines

Job Based Billing Option to create and manage bills for each sell shipment in

a job (currently one bill per job is created) Job based bill consolidation (i.e., consolidate all bills for a

job into a single invoice)

OTM Financials

Customer Advances Workflow to hold the processing of an order depending on

customer’s credit status Integration with Accounts Receivable to determine if there

are pre-paid advances for the customer

Profit Splits Calculate profit splits between parties: origin agent,

destination agent, primary agent Rules-based profit split calculations (e.g., percentage, flat

rate, weight, volume) Event-based triggers – e.g., calculate profit split after POD

OTM Financials

Revenue recognition and expense accruals Event-driven workflow Automated reversals Expense-revenue matching

Functional currency Display functional currency, entered currency and the exchange rate. Configurable exchange rate date selection

Currency conversion/ exchange rates Support multiple exchange rates – per LOB, customer, shipment E-Business Suite integration

Financial systems integration Payables, Receivables and General Ledger Process Integration Pack for OTM and E-Business Suite

OTM Financials

LSP Quote-to-Cash Complete support for buy & sell side transportation-financial

processes Global support (currency support)

Process Efficiency Automated, workflow driven operational accounting E.g., tender event drives cost accrual, POD drives revenue

recognition

Financial Accuracy Fewer disputes with customers & suppliers Reduce Days Sales Outstanding (DSO)

Lower TCO OTM-E-Business Suite integration via Process Integration Pack SOA framework for integration with other financial systems

Transportation SourcingOverview

Greater depth and breadth Flexibility &

configurability when creating a bid project

Complex bids & analysis Better information

results in more productive negotiation

6.0 Focus Areas Attributes Accessorials Cost Model Optimization

Oracle Global Logistics

Load ExecutionEnvironment

Your Company

Receive Demand

• Orders• Lane Forecasts Bid

Initiation

Quotes

Award Notice

Selected Carrier

Optimized AwardRecommendation

Bid Packet

QuoteAnalysis

Accept

Contract

Transportation Service Providers

Fujitsu and LSP Industry

Sales

Mfg

Finance

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Fujitsu’s Business First Approach BenefitsDifferentiation proof points for LSP Industry Leaders: Reduced costs …… leveraging advanced TM capabilities

across your TM processes, for your customer solutions, & across all business units

Enhanced margin management …. process control and enterprise performance management (analytics and KPI’s)

Infinite agility …… collaborative network to grow business, expand solutions, respond to short term demands

Stronger strategic value propositions …..SOA platform delivering game changing business process impact to your customers.

Wide spread efficiencies …. process automation, standardization, and globalization across business and financial operations

Higher sales growth ….. reliable and consistent delivery of your customer promises

Increased return on human capital ….. empowering your workforce to do more for your customers and developing human IP

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Business First Approach…. to Performance Based Value

Immediate Focus on business success attributes and ROI targets

• Solution outcomes that meet your ROI objectives.• Lean principles for supply chain in our DNA• Ongoing Value Assurance for sustainable return and constant differentiation

A team led by transportation and logistics experience• Direct from the logistics industry

• Deep G-Log/OTM roots and experience• Partnerships that matter for XXXXXX

Oracle Transportation and Logistics Solutions• Out of the box is not enough.• Investment to take OTM beyond the “80/20” rules of commercial software• Freight and Parcel Platform solution

Transportation/Logistics specific Methodology – Your business anchor• OTM implementation program designed for rapid deployment• Program Management to drive business value• Organizational Change Management features

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SalesMfg

Finance

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