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
• What is Global Trade Management?
• GTM Drivers
• Oracle GTM Solutions & Benefits
• Landed Cost Management Demonstration
• Summary & Questions
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
Global Sourcing Supply Chain Security
• Lower unit costs • Comply with existing and future
• Increase profitability security programs
• Compete effectively • Mitigate risk
Financial
Procurement Compliance Transport
Settlement
Regulatory Compliance Customer Demands
• Increased variability and risk • Quickly access new markets
• 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
• 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
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:
• 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
• Party Screening Lists
Trade • Harmonized System Codes
Content • Country Tariff & Duties
• Trade Agreements
Trade Trade • Denied Party Screening
• Letters of Credit
Finance Compliance • Global Exports
• Financial Integrations
• Global Imports
• Document Sharing • Customs
• Charge Mgmt and Allocations
Landed • Estimated & Actual Calculations
Cost • Trade Documents
• ERP Mappings for Trade Docs
Oracle Global Trade Management
Corp IT Engineering Compliance Tax/Legal Operations/
Logistics
FOUNDATION SERVICES
Trade Party Master Product Classification
Oracle Global
Trade Item Master Compliance Screening
Trade Management
Jurisdiction Management Control Determination
Trade Policy Management Landed Cost Management
Integration Layer
Trade Content Applications Trading Partners
Classification Restricted
Codes, Rulings & Party & Rules of Duty ERP &
Legacy CRM
SCM/
Explanatory Origin Rates Master Data TMS
SDL Management
Notes Lists Customs Freight Customers
Carriers Banks
Brokers Forwarders Suppliers
Global Export Process
Party
Creation Ship Goods
Sales
Order Creation Export
Declaration
Typical GTM Services:
Global Export Process Flow
Product Classification
Party Tender to
License Management
Screening Carrier
Compliance Screening
Export Documents
Export Create Export
Export Declaration
Controls Documents
Screening
License Pick/Pack
Determination
Global Import Process
Classify Calculate
Products ALC
Create
PO Receive
Typical GTM Services: Goods
Party
Product Classification
Screening Global Export Process Flow Customs
License Management Entry Filing
Compliance Screening & Clearance
Landed Cost Management
Control
Determination Customs Filing Create Import
Data & Document Collaboration Documents
Calculate Buyer & Broker
ELC Seller Ship Receive ASN
Gets PO Goods
Oracle GTM Development Roadmap
Version1 Version2
(CY09) (CY10) Future
E-BUSINESS SUITE
• GTM Foundation • Extend Foundation • Trade Finance
Framework
• Trade Compliance • Drawback/Re-Export
Management • Extend
• Bonded Warehouse
Foundation
• Landed Cost
• Free Trade Zones
Management (12.1) • Promotional
(Manufacturing) Schemes
• Global Trade Content
• Standalone LCM
• Strategic Sourcing
• Outbound Landed Cost (Landed Cost
Simulator)
Native Trade & Partnerships Extend Integrations
Theme Transportation Platform
Extend Foundation Trade Finance
Build GTM Foundation
Grow Customer Base Strategic Sourcing
Recruit Early Adopters
Verticals High Tech Retail & Distribution
Industrial Mfg Logistics Service Providers
GTM Strategy Council Roster
High Tech Logistics Service Providers
• Arrow Electronics • Agility Logistics
• Brocade • DHL/Exel
• Dell • Italsempione
• Schneider National
• Huawei
• Toll Group
• LG Electronics • UTi
• Sanmina
• Seagate Retail & Distribution
• Amway (Alticor)
Industrial Manufacturing • Lowes
• Beckman Coulter • Office Depot
• Cummins • Starbucks
• Eaton • Tesco
• Emerson
• NCR
Oracle Landed Cost
Management
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 HK Port Vessel Carrier US Port Kansas City Customer
$100 $2 $4 $20 $5 $2 $2
=$133
Oracle Landed Cost Management
Key Benefits within the Operational Lifecycle
Plan & Budget Market & Sell
• Optimized fulfillment • Better contract
networks negotiations
• Better pricing models Benefits of Oracle LCM: • Additional
• More accurate revenue
product profitability •Maximize Profits opportunities
reporting
•Increase Competitiveness
•Improve Financial Visibility into
Supply Chain
•Enhance Financial Reporting
Confidence and Compliance
Sourcing Payment
Acquisition
• More accurate • Linked invoices with
total cost supply chain event
comparisons • Authenticated cost
• Better contract declarations
negotiations
• More accurate record of
outstanding liabilities
• Regulation compliance
Oracle LCM Roadmap
Phase1 – R12.1 Phase2 Future
E-BUSINESS SUITE
• Charge Management • Extend Integration • Outbound
• Landed Cost Engine Shipments
•PO Estimation
• Adjustment • Strategic
•Cost Methods
Management Sourcing
• Integration with EBS •OPM Costing
• Analytics
Receiving, Costing, • Enhanced OTM
and Payables Integration
• Analytics
Theme LCM for EBS LCM standalone
• Inbound Calculation & • First Global Trade Management
Automation Application
• Based on Brazil
Planned
Localization
• Core Product - EBS
Receipts - Estimated Landed Cost
Supplier / Receiving
Buyer
Carrier Clerk
User Actions
Receive
Create PO Ship Goods
Goods
Load Estimated
charges
Automated Actions
LCM
Calculate Estimated
Landed Cost
Costing
Accrue Receipts
LC Adjustment
Transactions
Invoice - Actual Landed Cost
Supplier / Payables Clerk
Carrier
Carrier
User Actions
Initiate
Invoice Enter Make
Adjustment
Invoices Process Payment
$
Item
Invoice
Calculate Actual
Landed Cost
LCM
Automated Actions
Est. / Actual
Landed Cost
Costing
Variance Cost/
Accrual
Adjustment
Payables
Create Freight
and/or Item
Invoice
Product Map & Information Flow
EBusiness Suite
Purchasing PO Information Payables
Landed Cost Management
Invoices
Freight Charge Mgt.
OTM
Information
Product Cost
LC Calculator Actual Variances
Dashboard
EB Tax VAT Calculation
Duty Estimated
Landed ASN
Cost
Advanced Charges
Pricing Estimated
Receiving Costing
Landed Cost
Demo
Oracle Landed Cost
Management