ORACLE DATA SHEET

ORACLE TRANSPORTATION MANAGEMENT

KEY CAPABILITIES • Collaborate with trading

partners • Plan and execute domestic

and international transportation movements

• Source transportation services with bid collaboration and optimization

• Provide item-level global supply chain visibility to inventory in motion and at rest

• Centralize supply chain performance measurement and monitoring information

• Establish and manage appointments into and out of network facilities

• Rate, match, auto-pay, and bill freight charges and services

• Create and manage claims • Manage international shipping

operations as a forwarder or broker

• Configure orders and shipments in the most efficient manner to maximize asset utilization

Oracle Transportation Management allows you to gain control of your transportation and logistics operations while minimizing costs and eliminating inefficient and redundant procedures. A single, Web-architected application for all your transportation needs, Oracle Transportation Management combines broad logistics capabilities with deep transportation-management functionality. Whether your needs are for a single-mode business or geography or for a complex multi-mode, multi-business global network, Oracle Transportation Management is the solution you have been searching for.

Global, Local, Central

One version of the truth. That’s what makes Oracle Transportation Management different from competing products.

Transportation management is a unique process in the supply chain because it occurs and reoccurs throughout the lifecycle of product development and delivery. This unique characteristic creates a special opportunity and increasingly necessary function in the operational efficiency of a global supply chain. Using a multi-enterprise structure that is both configurable to local nuances and practices and standardized for global information normalization, Oracle Transportation Management can be a central logistics hub, a local TMS (transportation management system), and a global operating system, all at once. This unique design provides one version of the truth on freight costs, lead times, carrier performance, complete in-transit and at rest inventory visibility, transportation profitability—all the elements necessary to manage your transportation logistics needs.

Integrate Planning and Execution Oracle Transportation Management streamlines the entire logistics planning and execution process—from item availability to final delivery and financial settlement. When coupled with Oracle Order Management, Oracle Purchasing, and Oracle Warehouse Management, Oracle Transportation Management provides a complete, integrated fulfillment execution solution. You can efficiently plan both inbound and outbound deliveries and departures with carriers or internal fleet. The ability to create shipments and stops enables you to design a transportation network. You can also consolidate, process, and rate deliveries in accordance with carrier and industry requirements. Additionally, you have the ability to automatically assign carriers to deliveries based on customer routing instructions. Oracle Transportation Management also provides the ability to receive inbound tracking messages from carriers, allowing complete visibility of the current delivery status.

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Integrate Transportation with Order Management In many cases, customers want to know available delivery options and freight estimates at order-entry time. With Oracle Order Management, you can enhance the order entry process, reduce costs, and improve customer service by providing freight options at order entry—including carrier name, freight estimates, mode of transport, service level, and estimated transit time.

Additionally, itinerary routing guide rules and freight rates can be leveraged to quote recommended ship method and freight estimates. Freight charges, which would appear on the invoice, can be automatically marked up based on freight costs and calculated using a sophisticated rules-based engine. Rules for markup can include conditions such as order type, customer class, and so on.

Reduce Transportation Costs Optimize Carrier Selection Oracle Transportation Management incorporates a flexible, rules-based engine to facilitate cost-effective carrier selection, while respecting customer-specific routing requirements and requested delivery times. Automated carrier selection enables you to reduce costs and improve customer service by ensuring compliance with customer-provided routing guides as well as your own internal carrier policies.

In order to effectively model a variety of routing requirements, routing guide rule criteria can support delivery geographic ship from/ship to information, including user-defined zones, delivery weight and volume, and delivery transit times. Routing guide rules can be used to model your own organization’s inbound or outbound routing requirements or those requirements provided by your customers.

Cost-Effective Management of Inbound Logistics Oracle Transportation Management provides a completely collaborative solution for logistics operations, suppliers, service providers, carriers, purchasing, and even finance. Oracle Transportation Management optimally plans, executes, and then monitors all of your inbound shipments on a single platform. Even if you use logistics service providers to manage your inbound shipments, they can use your Oracle Transportation Management application to plan, execute, monitor, and adjust. This allows you to keep your inbound network operating as one cohesive unit, even if you outsource some or all of it to external service providers.

Constraint-Based Carrier Selection Oracle Transportation Management supports constraint-based rules such as compatibility constraints, carrier capacity, location capacity constraints, and vehicle availability. Compatibility constraints allow you to model shipping constraints related to facilities, customers, and items. Location capacity constraints enable you to effectively model your location throughput, and vehicle availability is used during the transportation planning process.

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Automate Processes and Reduce Cycle Time Automate Rating and Routing Oracle Transportation Management supports a fully automated rating and routing flow that requires no manual user intervention. If your objective is to determine the most cost-effective carrier, automated rating and routing can be configured to automatically select the least-cost carrier. Automatic routing (assignment of carrier) for a delivery can occur once the final delivery is created using routing guide rules. The corresponding freight rate can also be automatically applied at that time.

Freight Payment, Customer Billing, and Claims Organizations can realize significant cost savings by implementing procedures to automate many of the manual procedures associated with freight bill payment and audit. You can perform detailed audits on carrier freight bills, validate bills, and reduce costs by identifying billing discrepancies.

Oracle Transportation Management supports in-house auditing and integration with third-party auditing firms. Freight bills can be received electronically from the carrier, entered manually, or entered via the Web directly into the application. Freight bills are automatically matched against bill-of-lading details and audited based on user-defined percentage and/or amount tolerances. Freight bills within tolerance are approved and automatically interfaced to Oracle Payables for payment and cost allocation. You can send shipment information to third-party audit firms. Discrepancy reporting is also available, allowing you to view freight bills that failed audit and the related discrepancy reason.

Oracle Transportation Management also supports customer billing. From the simplest internal bill to the most complex markup models, Oracle Transportation Management provides the most understandable and secure billing available, and includes these capabilities:

• Supports door-to-door and cost-plus billing models

• Secures “buy side” from “sell side” information for total margin spread privacy

• Separates contracted rates from actual costs

• Supports match-and-pay and auto-pay processes

• Offers comprehensive real-time reporting and advanced analytics to support regulatory requirements as well as continuous improvement initiatives

• Covers all aspects of transportation rate contracts, including discounts and accessorial charges

• Covers all modes and all geographies (including language, unit of measure, and currency conversions)

Oracle Transportation Management incorporates claim identification and management functionality into the industry-leading logistics execution software platform. This means that, in addition to full logistics planning and execution, Oracle Transportation Management’s Web-based platform can be used to

• Enter claims for goods damaged in-transit

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• Submit the claim to the appropriate service provider

• Track the progress of the claim to disposition

• Use Web services to create a claim in Oracle Transportation Management from an external system and to communicate changes in the claim condition

• Identify and communicate with all involved parties, subject to the business rules identifying the conditions under which they should be notified

Oracle Transportation Management pre-populates any claim with the relevant details from existing orders and shipments, ensuring weights, volumes, counts and financial values are correctly identified.

Oracle Transportation Management can determine, in accordance with your business rules, whether the shipment can continue through to its destination or should instead be held in quarantine while reconciliation actions are taken. Because Oracle Transportation Management incorporates full transportation financial capabilities, from cost allocation to invoice matching and settlement, any charges related to claims can be tracked and processed accordingly.

Comprehensive Support for Carrier Freight Rating Oracle Transportation Management has developed the world’s most sophisticated and robust rating engine, capable of understanding the pricing nuances and structures of multiple geographies (from Aberdeen, Texas to Aberdeen, Scotland); multiple transportation modes (air, road, ocean, rail); multiple cost drivers (per kg, per piece count, per mile, per loading meter); and multiple logistics services (transportation and non-transportation). To make these plans highly executable, Oracle Transportation Management’s rating solution is used by both the planning and execution engines so there is minimal deviation between what is planned and what actually occurs.

Throughout its many implementations across the globe as a global logistics platform, Oracle Transportation Management has faced a seemingly infinite set of rating challenges, ranging from the simple to most complex, as organizations constantly pursue ways to gain a competitive advantage through logistics. Oracle Transportation Management’s single source data model uniquely understands the multiple components that influence a global logistics environment. This extreme flexibility within the Oracle Transportation Management rating engine delivers optimized logistics planning without limits to business rules, rating logic, or tariff structures.

And while the range of potential opportunities for rating and consolidation can be extremely complex, loading rates into Oracle Transportation Management’s engine is not.

Complete Visibility into Delivery Tracking Information Oracle Transportation Management supports inbound tracking messages from carriers, allowing you to view up-to-date status on any delivery—including tracking history, carrier name, and detailed pickup and delivery status information. Online tracking in Oracle Transportation Management eliminates the need to log in and out of multiple carrier sites in order to obtain tracking information, and addresses the

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needs of shipping, transportation, and customer support personnel to access the current status of a delivery.

Proof of delivery support allows you to view carrier service performance and improve customer service by communicating detailed delivery information to your customers. Proof of delivery information includes delivery location, delivery date and time, and recipient name.

Collaborate with Carriers and Trading Partners Communicate Delivery Pickup Details to Carriers The ability to electronically tender pickup requests to carriers facilitates timely communication of delivery pickup information between you and your carriers. Electronic communication of delivery pickup requests reduces costs and eliminates communication delays commonly associated with manual processes, such as phoning or faxing delivery pickup requests. Carriers can immediately respond to your tender requests by directly accepting or rejecting the request via e-mail notification sent by the shipper or by responding to the tender request via the Web.

Integrate with Carrier Partner Manifest Systems and Third-Party Warehouses Oracle Transportation Management supports an open standards, XML-based and EDI frameworks for easy integration to partner carrier manifesting systems and third-party warehouses. Through a robust set of XML messages, the partner manifest application receives delivery details required to print barcode shipping labels, assign carrier tracking numbers, and generate the end-of-day carrier manifest. Carrier manifest integration enables you to easily process deliveries for those carriers having manifest requirements. Integration with third-party warehouses includes the messaging infrastructure to support the shipment request sent by the shipper and the shipment confirmation sent back from the third-party warehouse, for seamless integration between the two systems.

Improve Carrier Communications The carrier Web portal enables you to improve communications between you and your carriers by providing a tool for carriers to respond to shipment pickup requests, record proof of delivery information, and enter freight bill details. The carrier portal is particularly useful for those carriers that currently handle these processes manually. The carrier portal is an extremely useful tool that will reduce costs and improve communication for both you and your carriers.

Oracle E-Business Suite—The Complete Solution Oracle E-Business Suite enables companies to efficiently manage customer processes, manufacture products, ship orders, collect payments, and more—all from applications that are built on a unified information architecture. This information architecture provides a single definition of your customers, suppliers, employees, products—all aspects of your business. Whether you implement one module or the entire suite, Oracle E-Business Suite enables you to share unified information across the enterprise so you can make smarter decisions with better information.

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Key Features in Oracle Transportation Management Transportation Order Request Management

• Key product information, such as SKU, HAZMAT, and serial numbers

• Integrated order visibility and event management

• Advance ship notices, blanket purchase orders, matches them to production orders, and generates transportation orders

• Distributed order management via multiple sources/destinations, involved parties, and special instructions

Oracle Transportation Operational Planning and Execution Operational planning includes these features:

• Support for all transportation modes

• Ability to handle both inbound and outbound, as well as inter-facility shipments

• Ability to set various planning parameters and choose a variety of planning algorithms to tune performance and quality of the solution within the Web based user interface

• Support for a range of operations, from simple point-to-point to complex multimodal, multi-leg, and cross-docking operations

• Shipment optimization based on cost, service level, and asset utilization

• Built-in engines for rating, service time and capacity commitments, and reservations

• Consolidation of containers, multi-stops, and carriers

Execution includes these features:

• Automated booking/tendering

• Automatic rerouting of declined or expired tenders

• Support for Web-based, EDI, and e-mail interfaces

• Visibility and event management

• Tracking of orders and shipments to the SKU level

• Ability to find or track inventory anywhere in your logistics network.

• User-friendly, Web-based interfaces to set tolerance limits on actions or inventories to create alerts

• Automated workflows to correct or adjust for potential supply chain issues

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Contract and Rate Management • Flexible rating engine

• Ability to handle multiple-mode, currency, and tariff complexities.

• Attribute-driven architecture with the ability to model service provider, mode, and geographic nuances

• Hybrid costing capabilities to evaluate freight based on weight, pallet, or mileage bands over all modes and geographies

Oracle Freight Payment, Billing, and Claims

• Actual shipment data captured throughout the logistics process, including accessorial and actual rates versus planned rates

• Match and pay, as well as auto-pay, functionality

• Support of customer billing and freight invoicing with the industry’s most advanced cost allocation engine

Logistics Forwarding and Brokerage Operations

• Collaborative environment for brokerage and forwarding agencies to

• Operational buy and customer billing shipments for profit analysis at time of booking

• Create shipments from quotes for services

• Track domestic and international freight movements

• Enjoy the benefits of a single solution

Oracle Warehouse Flow Synchronization

• Ability to balance the efficiencies of the warehouse picking activities with transportation constraints

• Allowance for cost trade-offs between warehouse operations and transportation activities

• Web based collaborative appointment scheduling screen for carriers and internal users

Logistics Inventory Visibility

• Ability to view inventory at rest from multiple distribution centers

• Viewing of goods in-transit down to the SKU level

• Multiple inventory views at multiple levels of aggregation to support VMI and other fulfillment initiatives

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Oracle Transportation Sourcing • RFQ management and rate maintenance

• Multiple-round combinatorial bid optimization for contracted rates and capacity constraints

• Automatic data retrieval from the active logistics database to build the bid package

• Seamless loading of the awarded bids back into the execution environment

Oracle Transportation Business Process Automation

• Highly configurable workflow and automation tools

• Canned reports

• Automation of regular tasks such as load building and freight tendering

• Identification of changes in operational assumptions, including shipment arrival times, inventory availability, late orders, and other information, that could cause delivery or service-level problems

• Ability to dynamically re-plan alternatives to drive effective resolution

• Support for trading partner and service provider collaboration when desired Copyright 2006 Oracle. All Rights Reserved. This document is provided for information purposes only, and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor is it subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document, and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. Oracle, JD Edwards, and PeopleSoft are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

• Reduce transportation costs

• Increase asset utilization • Increase supply chain

reliability • Improvement in carrier

relations • Increase in customer

service levels • Flexible global fulfillment

options • Lower Total Cost of

Ownership • Improve process

efficiency • Drive continuous

improvement

RELATED PRODUCTS

AND SERVICES:

• Oracle E-Business Suite • Oracle Supply Chain

applications • Oracle Purchasing • Oracle Order

Management • Oracle Warehouse

Management

KEY BENEFITS

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