Oracle Global Trade Management
Rosalie Cmelak & Erin Johansson
GTM Product Strategy
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.
Program Agenda
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What is Global Trade Management?
GTM Drivers
Oracle GTM Solutions & Benefits
Landed Cost Management Demonstration
Summary & Questions
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Speaker Introductions
• Rosalie Cmelak—GTM Product Strategy, Oracle
• Erin Johansson—LCM Product Strategy, Oracle
• Chandra Yeleshwarapu—EBS Development, Oracle
What is Global Trade Management?
• Processes involved to move Goods, Information, and
Money across borders and parties
• Starts with Purchase Order, Sales Order (or other)
• 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
Key Trends Driving Global Trade
Trade Finance
• Manage Letters of Credit
• Open Accounts
• Optimize flow of funds
Supply Chain Security
• Comply with existing and future
security programs
• Mitigate risk
Global Sourcing
• Lower unit costs
• Increase profitability
• Compete effectively
Procurement
Compliance
Regulatory Compliance
• Increased variability and risk
• Quickly access new markets
Transport
Financial
Settlement
Customer Demands
• Quickly access new markets
• Customer satisfaction
• Visibility
Today’s Global Trade Requirements
• Global Approach
• Manage global compliance programs
• Global product 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 Companies Deploy GTM Solutions
Establish Best Practices & Drive Continuous Improvement
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Accelerate the supply chain
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
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Oracle GTM Product Strategy
Oracle’s Investment in GTM
• GTM Market opportunity
• Customer demand
• GTM is Supply Chain component of Governance, Risk
and Compliance initiative for Oracle
• Technology advantages
Oracle in unique position to deliver
differentiated business value to customers
GTM: Innovation in Oracle Applications
• Part of Supply Chain applications division
• Orchestration of all cross-border trade business
processes across Oracle and non-Oracle applications
• GTM focus is on key Oracle industries:
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High Tech
Industrial Manufacturing
Logistics Service Providers
Retail
GTM v1 Product Strategy
• Compete & Differentiate
• Integrated Landed Cost Management
• Global Trade Content
• Native integration with Transportation Management
• Deliver comprehensive Trade Compliance solution
• Solicit early customer support
• GTM Strategy Council
• Strategic Implementation Partners
Global Trade Management At-a-Glance
Trade
Content
Trade
Finance
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Trade
• Denied Party Screening
Compliance • Global Exports
• Letters of Credit
• Financial Integrations
• Document Sharing
Landed
Cost
Party Screening Lists
Harmonized System Codes
Country Tariff & Duties
Trade Agreements
• Global Imports
• Customs
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Charge Mgmt and Allocations
Estimated & Actual Calculations
Trade Documents
ERP Mappings for Trade Docs
Oracle Global Trade Management
Corp IT
Engineering
Operations/
Logistics
Tax/Legal
Compliance
SERVICES
FOUNDATION
Trade Party Master
Trade Item Master
Jurisdiction Management
Product Classification
Oracle Global
Trade Management
Compliance Screening
Control Determination
Trade Policy Management
Landed Cost Management
Integration Layer
Trade Content
Classification
Restricted
Codes, Rulings & Party & Rules of
Origin
Explanatory
SDL
Notes
Lists
Trading Partners
Applications
Duty
Rates
ERP &
Master Data
Management
Legacy
CRM
SCM/
TMS
Carriers
Banks
Customs
Brokers
Customers
Freight
Forwarders Suppliers
Global Export Process
Party
Creation
Ship Goods
Sales
Order Creation
Export
Declaration
Typical GTM Services:
Party
Screening
Global Export Process Flow
Product Classification
License Management
Compliance Screening
Tender to
Carrier
Export Documents
Export
Controls
Screening
Export Declaration
License
Determination
Pick/Pack
Create Export
Documents
Global Import Process
Classify
Products
Calculate
ALC
Create
PO
Typical GTM Services:
Party
Screening
Product Classification
Global Export Process Flow
License Management
Customs
Entry Filing
& Clearance
Compliance Screening
Control
Determination
Landed Cost Management
Customs Filing
Data & Document Collaboration
Calculate
ELC
Receive
Goods
Seller
Gets PO
Ship
Goods
Create Import
Documents
Buyer & Broker
Receive ASN
Oracle GTM Development Roadmap
Version1
(CY09)
Version2
(CY10)
Future
E-BUSINESS SUITE
• GTM Foundation
• Extend Foundation
• Trade Compliance
Management
• Drawback/Re-Export
• Landed Cost
Management (12.1)
• Global Trade Content
• Bonded Warehouse
• Free Trade Zones
(Manufacturing)
• Standalone LCM
• Outbound Landed Cost
Theme
Native Trade &
Transportation Platform
Build GTM Foundation
Recruit Early Adopters
Verticals
High Tech
Industrial Mfg
• Trade Finance
Framework
• Extend
Foundation
• Promotional
Schemes
• Strategic Sourcing
(Landed Cost
Simulator)
Partnerships
Extend Integrations
Extend Foundation
Trade Finance
Grow Customer Base
Strategic Sourcing
Retail & Distribution
Logistics Service Providers
GTM Strategy Council Roster
High Tech
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Arrow Electronics
Brocade
Dell
Huawei
LG Electronics
Sanmina
Seagate
Industrial Manufacturing
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Beckman Coulter
Cummins
Eaton
Emerson
NCR
Logistics Service Providers
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Agility Logistics
DHL/Exel
Italsempione
Schneider National
Toll Group
UTi
Retail & Distribution
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Amway (Alticor)
Lowes
Office Depot
Starbucks
Tesco
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Oracle Landed Cost
Management
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John Fontanella
AMR Research
“Landed costs, and how they affect
the per unit price of goods,
can often make or break the
profitability of an entire shipment.”
-”The Quiet Revolution”, American Shipper—Oct. 2007
What is Landed Cost Management?
Business Context
• International Trade Promises:
• New revenue opportunities
• Reduced production costs
• International Trade Realities:
• Profitability. Is my product truly profitable? Are my expenses attributed to the
product that incurred them? Are my products priced appropriately? Have I
budgeted correctly for a particular product group?
• Financial Visibility. What is my outstanding exposure including all of the
extended supply chain costs? Are my financial reports accurate?
• Competitiveness. Is the company sourcing strategically? Do I understand all the
costs associated with sourcing from a particular country? Can I negotiate better
contracts with suppliers and/or customers?
• Compliance. How am I meeting strict regulations pertaining to item cost in
countries such as Brazil and India?
What is Landed Cost Management?
Inbound Shipment
China Factory Shipment to HK
$100
$2
HK Port
$4
Vessel Carrier US Port
$20
$5
Kansas City Customer
$2
=$133
$2
Oracle Landed Cost Management
Key Benefits within the Operational Lifecycle
Market & Sell
Plan & Budget
• Optimized fulfillment
• Better contract
networks
• Better pricing models
• More accurate
product profitability
reporting
negotiations
• Additional
revenue
opportunities
Benefits of Oracle LCM:
•Maximize Profits
•Increase Competitiveness
•Improve Financial Visibility into
Supply Chain
•Enhance Financial Reporting
Confidence and Compliance
Sourcing
• More accurate
Acquisition
total cost
comparisons
• Better contract
negotiations
Payment
• Linked invoices with
supply chain event
• Authenticated cost
declarations
• More accurate record of
outstanding liabilities
• Regulation compliance
Oracle LCM Roadmap
Phase1 – R12.1
Phase2
Future
E-BUSINESS SUITE
• Charge Management
• Landed Cost Engine
• Adjustment
Management
• Integration with EBS
Receiving, Costing,
and Payables
• Extend Integration
•PO Estimation
•Cost Methods
•OPM Costing
• Outbound
Shipments
• Strategic
Sourcing
• Analytics
• Enhanced OTM
Integration
• Analytics
Theme
LCM for EBS
• Inbound Calculation &
Automation
Planned
• Based on Brazil
Localization
• Core Product - EBS
LCM standalone
• First Global Trade Management
Application
Receipts - Estimated Landed Cost
User Actions
Buyer
Create PO
Supplier /
Carrier
Ship Goods
Receiving
Clerk
Receive
Goods
LCM
Costing
Automated Actions
Load Estimated
charges
Calculate Estimated
Landed Cost
Accrue Receipts
LC Adjustment
Transactions
Invoice - Actual Landed Cost
Supplier /
Carrier
Enter
Invoices
Initiate
Adjustment
Process
$
Make
Payment
Item
Invoice
LCM
Calculate Actual
Landed Cost
Est. / Actual
Landed Cost
Costing
Payables
Automated Actions
User Actions
Carrier
Invoice
Payables Clerk
Variance Cost/
Accrual
Adjustment
Create Freight
and/or Item
Invoice
Product Map & Information Flow
EBusiness Suite
Purchasing
PO Information
Payables
Landed Cost Management
Invoices
OTM
Freight
Charge Mgt.
Information
LC Calculator
EB Tax
Actual Variances
VAT Calculation
Duty
Advanced
Pricing
Product Cost
Dashboard
Estimated
Landed
Cost
ASN
Charges
Receiving
Estimated
Landed Cost
Costing
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Demo
Oracle Landed Cost
Management
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GTM @ Oracle OpenWorld 2008