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Oracle GTM Usage in Europe. Asli Yimenicioglu Principal Product Strategy Manager April 2013. Agenda. Oracle Global Trade Management Overview Current Features Roadmap Some of Our Customer s. Oracle Global Trade Management (GTM). What is Global Trade Management?.
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Oracle GTM Usage in Europe Asli Yimenicioglu Principal Product Strategy Manager April 2013
Agenda • Oracle Global Trade Management • Overview • Current Features • Roadmap • Some of Our Customers
What is Global Trade Management? Processes involved to move Goods, Information, and Money across Geographical & Fiscal borders and between Parties Typically starts with Purchase Order or 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
Typical Global Trade Transactions • 3) Export from US to EU • Product Classification • Embargo Check/ DRPL Screening • Export License Management • Printing of Export Documents • Electronic Communication (AES) • 1) Import to US from China • Product Classification • Embargo Check • DRPL Screening • Import License Management • Printing of Import Documents 4 • 5) Export from EU to Other Countries • Product Classification • Embargo Check • DRPL Screening • Export License Mgmt • Printing of Export Docs • Electronic Communication (NCTS, ATLAS, etc.) • Trade Preference Processing • Restitution Handling 5 1 3 2 • 4) Import to EU from US • Product Classification • Embargo Check • DRPL Screening • Import License Management • Free Circulation • Transit Procedures • Duty & VAT Calculations • Printing of Import Documents • Electronic Communication (NCTS, ATLAS, etc.) • 2) Import to US from Mexico • Product Classification • Embargo Check • DRPL Screening • Import License Management • NAFTA
Global Trade: Business Drivers Why invest in a global trade management system • Supply Chain Security • Comply with existing and future security programs • Mitigate risk • Trade Finance • Control flow of funds • Link in financial activities • Reduce settlement times • Global Sourcing • Lower unit costs • Increase profitability • Compete effectively Procurement Compliance Transport Financial Settlement • Customer Demands • Quickly access new markets • Customer satisfaction • Visibility • Regulatory Compliance • Increased variability and risk • Quickly access new markets
Global Trade Remains Manual Process • In many key areas, most companies have no automated capability • “Forty percent of respondents utilized manual/spreadsheet-based processes to manage their import operations and compliance…”Import Operations and Compliance Benchmark Study (2011), American Shipper
Global Compliance Risk Lower Profit Margin • Long & Inconsistent Customs Clearance Times • High Safety Stocks • High Inventory Holding Costs • Low Revenue • Unmet Demand • Expired Product at the Customs • High Product Costs • Inaccurate Documentation & Information • Fines • Inaccurate Classification & Valuation • High Duty & VAT • High Global Trade Costs
“Complex, cross-border global transactions account for more than $10 trillion in 2007 and, according to a recent McKinsey report, are expected to grow to more than 70 trillion by 2025.” Risky Business (2008), Risk & Insurance Global Compliance Risk Lower Profit Margin • Long & Inconsistent Customs Clearance Times • High Safety Stocks • High Inventory Holding Costs • Low Revenue • Unmet Demand • Expired Product at the Customs • High Product Costs • Inaccurate Documentation & Information • Fines • Inaccurate Classification & Valuation • High Duty & VAT • High Global Trade Costs
Oracle GTM Differentiators • Native Trade & Transportation Platform • Oracle GTM is built on the same platform as Oracle Transportation Management (OTM) providing customers with a holistic global logistics platform to manage their trade and transportation requirements. • Adapt Quickly • No hard-coded regulations – Company-specific, configured trade rules • Changes to regulations made by business user vs. custom coding • Adapt quickly to new markets, products, mergers, regulations, etc. • Global Design • Automate and manage the trade compliance and import/export challenges encountered in global cross-border transactions. • Single source of truth for global trade
Oracle Global Trade Management Unique global trade management platform • Classify, screen, monitor, & filefor all orders / shipments • All divisions • All product flows (inbound, outbound, internal) • All modes of transportation • Visibility across the global network Control Globally… • Accommodate line of business, geographic region, and supply chain flow-specific business practices • Workflows, business logic, reports, etc. • Using multiple languages and currencies • User interface configuration by region / country, user groups Execute Locally… • All operational information in one location • Centralized visibility • Centralized reporting • Single set of integration points for customers, brokers, & other partners • Single information technology infrastructure to support Manage Centrally…
Enterprise-Wide Global Trade Management Multi-domain architecture Top LevelFull Visibility ParentCompany … Business 1 Business 2 Business n Domains PartitionedVisibility & Functionality • Business Logic: User interface, workflow, reports, integrations • Security: Segmented data and functional security • “Customization” via configuration • Expand without having to buy another system ConfigureSoftwarefor SpecificDivisions / Lines of Business
ERP Integration • ERP agnostic • SAP, Oracle, etc • Multiple sources integrated to single GTM instance • Multiple order types • Sales order • Purchase order • Service order • Shipments Global Trade Management Transactions Received Master Data XML / Web Services Transactional Data Manual Engine Calls
Oracle Global Trade Management 6.3 Product Features by Module Red = New in GTM 6.3
OTM & GTM 6.3 Release Notes Available • Under My Oracle Support: Direct link: https://support.oracle.com/epmos/main/downloadattachmentprocessor?attachid=1533374.1:631&clickstream=no
Oracle Global Trade ManagementExisting Functionality through GTM 6.3
Oracle Global Trade ManagementProduct Roadmap Overview * Proposed New Price List Item
A Few of Our Customers High Technology Industrial Manufacturing Aerospace & Defense Life Sciences Retail Oil & Gas
Oracle • Project Overview • Worldwide • Product Classification • Export License Determination (Automated & Manual) • Export Screening (Automated & Manual) • Results • Fast and accurate product classification, export screening and export license determination • Increased visibility • Shorter order release times
GLOBALFOUNDRIES • Company Overview • GlobalFoundries Inc. is the world's third largest independent semiconductor foundry. • Project Overview • USA, Germany, Singapore • Restricted Party List Screening, Sanctioned Country Screening • Classification (ECCN) • License Determination & License Management with balance depreciation • Results • Fully automated export compliance control replaced spreadsheet records of licenses and end user statements • Item classification is more efficient and accurate. Flexible classification code management and look up • Visibility and control of export licenses: usage, expiration, available quantity/value and renewal are recorded in GTM
February 2013 Global Trade @ Seagate
Seagate Products, Customers and Markets Internal Storage Branded Products Services Personal Storage Computing Wireless Storage Cloud Home Media Sharing Consumer Electronics Video Capture SMB Storage
Seagate Global Presence Springtown, N. Ireland Dublin, Ireland Amsterdam, Netherlands Munchen, Germany Suwon, South Korea Maidenhead, UK Shakopee, MN Wuxi, China Bloomington, MN Delhi, India Paris, France Beijing, China Tokyo, Japan Shrewsbury, MA Fremont, CA Cupertino, CA Suzhou, China Scotts Valley, CA Shanghai, China Oklahoma City, OK Teparuk & Korat, Thailand Taiwan Longmont, CO Johor & Penang, Malaysia Ang Mo Kio, Singapore Science Park, Singapore Woodlands, Singapore Sydney, Australia HQs, Admin and/or Sales Design Customer Support Drive & Component Mfg
Background • Seagate joined Oracle Global Trade Management Strategy Council in 2007 • Purchased GTM in 2010 • Implemented GTM in 2011 • Implementation partners Oracle Consulting and Wipro • Go-live January 2012
Item Classification • Maintain multi-country classifications • ECCN, HTS, License Flag • Allows for country-specific rule development • Assignment at item record – Preferred • Assigned classifications are used for current and future orders. • Time saving from just assigning classifications once for multiple transactions
Item Classification (continued) • Assignment at transaction line • Miscellaneous part numbers to handle unexpected items • “Parent” classification • Classifications are copied from related items to minimize time spend classifying same items • Bulk Loader • Custom process to upload spreadsheet of classified items. Allows for mass classifications for time saving.
Contact Screening • Screened when contact is created or updated, and when used on a transaction • Sanction Country • Red Flag List • Restricted Party List – Contact Name • Restricted Party List – Contact Address • Seagate’s own Restricted List for black listed customers • Stand Alone Restricted Party Screening • Provides adhoc screening outside of GTM • Bulk Loader • Custom process to upload spreadsheet of blacklist names and addresses
Export Compliance Rule Screening • Automated assignment of license or license exception (NLR & ENC) • Based on ECCN, Regions (based on “reasons for control”), Other conditions • Implemented for United States (used globally) • Implemented for Singapore as Jan 2013 (SG export only) • Working on Malaysia, European Union, Korea, Hong Kong, Thailand
Import Compliance Rule Screening • Automated holds for import review • Based on HTS, ECCN, Item Description, Remark (“Used”) • Implemented for China, Malaysia, Singapore, Thailand, United States • Allows Seagate to move from manual holds via email to a process managed by GTM • Reduction in process breakdown and cost from fines/delay
Business Monitor and Reports Process Improvement • Allows world wide team to work off of a single dashboard with instant visibility to management • Business Monitor • Contacts that require review • Escalation review • Transactions on hold • Item updated • Expired item classification • Reports • 13 custom reports for auditing, review, reference vs manual SQL queries from previous system
The preceding 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.