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Oracle Global Trade Management UpdateDecember 2008

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.

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Agenda

• What is Global Trade Management?• Oracle GTM Product Strategy • Review of Oracle GTM

• Trade Compliance Solution

What is Global Trade Management?

• Processes involved to move Goods, Information, and Money across geographical/fiscal borders and parties • Typically starts with Purchase Order, 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

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

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

TransportProcurement Financial Settlement

Supply Chain Security• Comply with existing

and future security programs

• Mitigate risk

Trends Impacting Global Trade

Compliance

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

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

Today’s Global Trade Requirements• Global approach

• Content management• Global classification database• Multi-country support for controls, licenses,

exceptions• Sourcing & Supply Chain Design

• Assist in sourcing decisions (FTA, etc.)• Landed cost• Trade related item management

• Multi-party collaboration• Centralized item information accessible by

internal and external trading partners• Process & system integration• Integration with government systems

• Compliance• Import/Export Auditing functions• Security programs

• Flexibility • Quickly respond to new business models• Immediate integration with new acquisitions• Real-time update to regulatory changes

Why Customers Deploy GTMEstablish Best Practices & Drive Continuous Improvement

• Accelerate the supply chain• Shorter delivery and cycle times

• Enhance customer satisfaction

• Improve import/export regulation compliance

• Increase profit and decrease cost of goods

• Reduce inventory – better shipment visibility for company and supply chain partners

• Respond quickly to change – innovation

“The typical $1 billion company can free up $10 million to $40 million in cash by improving its basic trade processes.”

TradeFinance

• Letters of Credit

• Financial Integrations

• Document Sharing

Landed Cost

• Charge Mgmt• Estimated/Actual• Trade Documents• ERP Mappings

Trade Compliance

• Denied Party Screening• Global Exports• Global Imports• Customs

• Party Screening Lists

• Harmonized System Codes

• Country Tariff & Duties

• Trade Agreements

Trade Content

Oracle GTM At-a-Glance

Trade Compliance

Oracle GTM Overview What does User get with GTM v1?

• User-Driven Setup and Maintenance• User-defined, configurable rules

• No hard-coded regulations• Company-specific, customized Trade Rules• Does not require Oracle programmers• Changes to regulations made by user, more immediate than

waiting for programming!

• Content Upload• Automatic uploads• No dependency on IT

• Protect In-House Knowledge (no external Dev training)

• Single, Global Instance (single source of truth)• All Oracle solution

Oracle GTM Overview v1 Release Candidates

• GTM v1-Trade Compliance consists of:• Foundation Components

• Jurisdiction Management• Trade Party Master• Trade Item Master• Trade Policy Management

• Services• Product Classification• Restricted Party List & Red Flag Screening• Embargoed Country Checking• Control Determination

• Enhanced Proliferation Control Initiative Screening• License and Exception Determination• Documents Determination

GTM Technology & Development

• Technology• Built on G-Log foundation, but separate products• GTM will operate as a callable service to external applications• Independent release cycle (not part of ERP)

• Deployment Options• Orchestrated with other Oracle applications• Standalone

• GTM v1 Development Kicked off in July 2007• GA Release Dates:

• GTM to be synchronized with OTM 6.0 CU1• Landed Cost Management v1 release with EBS R12.1 RUP

GTM v1 Product Strategy

• GTM v1 Target Vertical Markets• High Tech• Industrial Manufacturing • Retail & Distribution

• Compete & Differentiate • Global export model (support any country/group rules)• Integrated Landed Cost Management• Single platform for global trade and transportation

• Integration with other Oracle applications via AIA• Solicit early customer support

• GTM Strategy Council• Strategic Implementation Partners

Logistics Business Process PlatformLogistics Apps + Application Integration Architecture (AIA)

Oracle Apps (OTM, GTM,…)

3rd Party Applications

Custom Applications

ComponentFunctionality Layer

Oracle AIA: Process Integration Packs

Customer’s Business Processes

Pre-definedBusiness Process

Layer

User-Defined Business Process

Layer

Oracle AIA: Foundation Pack

Common Object and Service Layer

Oracle AIA: Enterprise Services

Oracle AIA: SOA FrameworkService

Orchestration Layer

Logistics Applications StrategySupport the Business Process Platform

• Support AIA Enterprise Objects and Services• Application Business Connector Services for Logistics applications – enables

customers and/or partners to compose & execute their business processes• Oracle AIA Process Integration Packs - Pre-defined, Oracle supported business

processes

• SOA applications – library of business services• Compliance screening for Order• Determine trade controls for Order• Compliance screening for Shipment

ABCS 2

Application Business Connectors

GTM Enterprise Business Service

ABCS 1

ABCS 3

EBS

Siebel

SAP

Application Business Connector Service

Enterprise Business Services LibraryBuilding a Common Process Language

Order Fulfillment

• SalesQuote

• SalesOrder

• PriceList

• Invoice

• AdvancedShipmentNotice

• PickList

• ShipmentRequest

• AccountBalanceAdjustment

• More to come…

Transportation

• SalesOrder

• Shipment

• Invoice

• Item

• CustomerParty

• More to come…

• Location

• WorkerParty

GTM

• Item

• Party

• Trade Policies

• Control Determination

• Determine Landed Cost

• More to come…

• Classify Products

• Jurisdiction

LSP Order Management – Siebel, OTM

Transportation Financial Management – EBS FIN, OTM

Fleet Driver Management – EBS HCM, EBS FIN, OTM

Fleet Asset Management – EBS EAM, OTM

Supply Chain Execution – EBS WMS, OTM

Global Trade Management – GTM, EBS

Logistics Process Integration PacksPrebuilt, Sustainable Integrations across Oracle Apps

Other Oracle or

Your apps…

Foundation Pack

Oracle Fusion Middleware

Foundation Pack

Oracle Fusion Middleware

Other Oracle or

Your apps…

Foundation Pack

Oracle Fusion Middleware

Other Oracle or

Your Apps…Supply Chain Exe.

GTM

OTM

GTM Strategy Council Roster & Candidates*

High Tech• Agilent*• Arrow Electronics• Brocade• Cisco*• Dell• Huawei • LG Electronics• Sanmina• Seagate• Sun Microsystems*

Industrial Manufacturing• Beckman Coulter• Cummins• Eaton• Emerson• NCR

Logistics Service Providers• Agility Logistics• DHL/Exel• Italsempione• Schneider National• Toll Group• UTi

Retail & Distribution• Amway (Alticor)• Lowes• Mundial• Office Depot• Starbucks• Tesco

Oracle GTM OverviewTrade Compliance

• The processes, including data, of a company to be compliant with:• Legal mandatory Trade Regulations

• Export Control Regimes• Embargoes/Sanctions Resolutions

• United Nations• Organization for Security and Co-operation in Europe

• Strong Business Practices• Internal Control Programs• Internal Compliance Programs

Oracle Global Trade Management

ClassificationCodes, Rulings &

Explanatory Notes

Trade Content

Restricted Party &

SDLLists

Rules of Origin

DutyRates

ERP & Master Data

Management

Applications

Legacy CRMSCM/TMS

Integration Layer

Carriers Banks CustomsBrokers

FreightForwarders

CustomersSuppliers

Corp IT Engineering Compliance Tax/Legal

Oracle Global Trade Management

Operations/Logistics

Trading Partners

Trade Party Master

Trade Item Master

Jurisdiction Management

Trade Policy Management

Product Classification

Compliance Screening

Control Determination

Landed Cost Management

FOUNDATION SERVICES

Oracle GTM Overview v1 Release Candidates

• GTM v1-Trade Compliance consists of:• Foundation Components

• Jurisdiction Management• Trade Party Management• Trade Item Management• Trade Policy Management

• Services• Product Classification• Restricted Party List & Red Flag Screening• Embargoed Country Checking• Control Determination

• Enhanced Proliferation Control Initiative Screening• License and Exception Determination• Documents Determination

Jurisdiction ManagementJurisdiction

• Jurisdiction• The Territory where an Authority enforces or exercises a

specific function over a specific Law or Regime.• Types of Jurisdictions

• Licensing• EAR, ITAR, OFAC, FCC

• Registrations• FDA, USDA, UK-ECL

• Certifications• Authorizations

Trade Party ManagementBusiness Flow

Trade Party ManagementParty and Party Site

• Party • Party Types

• Individual (natural persons) • Organizations (juristic persons)• Relationships among Parties (e.g.: subsidiary, employee)

• Party Sites• One or more Party Sites by Party• An Address associated to a Party Site

• Party Profiles• Party Site can have different profiles

• Ship-To, Deliver-To, Bill-To, etc.

Trade Item MasterBusiness Flow

Trade Policy ManagementTrade Policy

• Trade Policy• A group of rules that a company implements to comply with:

• Legal compliance regulations• Internal trade guidelines• Internal control programs• Internal compliance programs

• Trade Policies can be different depending on the business flow or event. E.g.:

• Export Compliance Policy• Restricted Party Screening including 40 lists

• Payables Compliance Policy• Restricted Party Screening including only financials (OFAC)

lists• Trade Policies are User configurable

Trade Policy Management Compliance Rule - Components

Ship-From: US

ECCN 3A018

Ship-To: Cuba Free Trade Zone? N

Publicly Available? N

Mass market? N

License Required

Facts on Transaction Additional Conditions

Results

Product/Destination

Rule

Rule Type

• Example: End-Use Rule under US-EAR

Restricted Party List ScreeningBusiness Flow

Restricted Party List ScreeningLists

• Multiple Lists (40+) • US Government Lists

• OFAC, Department of State, etc.• Proliferation Concerns

• UN, JP-METI, etc.

• Customized Lists• Internal Gray List• Excluded Party List

• Words List• Excluded Words List. E.g. International, Inc., PO Box, etc. • Red Flag Words List. E.g.: Nuclear, Military, Cuban, etc.

Restricted Party ScreeningRequest UI

Embargoed Country CheckingSetup

• Embargoed Countries can be setup by the User based on• Regulations• Internal Policy• Embargo data

• From Countries• To Countries

Product ClassificationBusiness Flow

Product ClassificationClassification Search UI - Grid

Product ClassificationDocument Support

Trade Policy Management Compliance Rule Set

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