oracle gtm usage in europe

Oracle GTM Usage in Europe

Asli YimeniciogluPrincipal Product Strategy Manager

April 2013


Agenda

Oracle Global Trade Management– Overview– Current Features– Roadmap

Some of Our Customers


Oracle Global Trade Management (GTM)


What is Global Trade Management?

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

Processes involved to move Goods, Information, and Money across Geographical & Fiscal borders and between Parties


Typical Global Trade Transactions

1) Import to US from China• Product Classification• Embargo Check• DRPL Screening • Import License Management• Printing of Import Documents

2) Import to US from Mexico• Product Classification• Embargo Check• DRPL Screening • Import License Management• NAFTA

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

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.)

3) Export from US to EU• Product Classification• Embargo Check/ DRPL Screening • Export License Management• Printing of Export Documents• Electronic Communication (AES)

1

2

34

5


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

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

Supply Chain Security• Comply with existing and

future security programs• Mitigate risk

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

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

TransportProcurement Financial SettlementCompliance

Global Trade: Business DriversWhy invest in a global trade management system


“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

In many key areas, most companies have no automated capability

Global Trade Remains Manual Process


Global Compliance Risk

Lower Profit

Margin

Long & Inconsistent Customs Clearance Times

High Safety Stocks High Inventory Holding Costs

Unmet Demand Low Revenue

Expired Product at the Customs High Product Costs

Inaccurate Documentation & Information

Fines

Inaccurate Classification & Valuation

High Duty & VAT High Global Trade Costs


Global Compliance Risk

Lower Profit

Margin

Long & Inconsistent Customs Clearance Times

High Safety Stocks High Inventory Holding Costs

Unmet Demand Low Revenue

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


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 ManagementUnique global trade management platform

Execute Locally…• 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

Control Globally… • Classify, screen, monitor, & file for all orders / shipments- All divisions- All product flows (inbound, outbound, internal)- All modes of transportation

• Visibility across the global network

Manage Centrally… • 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


Enterprise-Wide Global Trade ManagementMulti-domain architecture

• Business Logic: User interface, workflow, reports, integrations• Security: Segmented data and functional security• “Customization” via configuration• Expand without having to buy another system

Business 2

Business n

Business 1

Top LevelFull Visibility

DomainsPartitionedVisibility &

Functionality

ParentCompany

ConfigureSoftware

for SpecificDivisions / Lines of

Business

…


ERP Integration

Global Trade Management

Transactions ReceivedMaster

Data

XML / Web Services

Manual

Transactional Data

• ERP agnostic• SAP, Oracle, etc

• Multiple sources integrated to single GTM instance

• Multiple order types• Sales order

• Purchase order

• Service order

• ShipmentsEngine Calls


Oracle Global Trade Management 6.3Product Features by Module

Oracle Global Trade Management

• Global Trade Content• Upload & Maintenance

• Master Trade Data• Items, Parties, & Registrations• Item Templates

• Product Classification• Duty & Tax Visibility• OGA, ADD, CVD Visibility

• Restricted Party Screening

• Sanction Screening

• Document Management

• System Infrastructure• Transaction Processing, Workflow, Messaging, Business Monitor, Security, User Management, Advanced Layout, Work Queues…

Oracle Trade Compliance

•Trade Control Management• License Determination• License Exceptions• OGA, ADD, CVD Screening• Document/Template Determination• Corporate Policy Enforcement• Other Trade Controls

• License Management• License Repository• License Assignment• License Lifecycle

Oracle Customs Management

• Customs Determination• Electronic Filings & Documents• Configurable Global Solution

• Customs Preparation• Virtual Shipment Consolidation• Unit of Measure Conversion• Currency Conversion• Basic Valuation Calculations

• Customs Connectivity• Electronic Filings and Documents• Freight Forwarder & Broker Collaboration Platform

• AES Filing Support• Direct Connection to AES

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

https://support.oracle.com/epmos/main/downloadattachmentprocessor?attachid=1533374.1:631&clickstream=no

https://support.oracle.com/epmos/main/downloadattachmentprocessor?attachid=1533374.1:631&clickstream=no


GTM 6.1 Initial Trade & Transportation Platform

• Master Trade Data Management• Trade Item Master• Trade Party Master

• Product Classification• Global classification repository

• Trade Compliance• Restricted Party Screening• Anti-boycott & Sanction Screening• Control Determination: Licenses, Exceptions, & Other Controls

• Document Management• Document Determination• Generation & Distribution

GTM 6.2EBS Integration, Early Adopter Support

• Integrations• E-Business Suite 12.1.3• Sales Order Management• Item Synchronization• Party Synchronization

• Product Classification• Classification Determination & Assignment: Rollup Support

• Enhanced Transaction Management• Support for Assemble- and Configure-to-Order Items

• Usability Enhancements• Restricted Party Screening• Sanction Screening

GTM 6.3End-to-End Export, Basic Imports

• License Management• License Lifecycle• License Eligibility Determination• Assignment & Balances

• Customs Management• Tariff Visibility & Sourcing Support• Customs Filing• AES Support (US Exports)

• Broker Collaboration• Customs Documents

• Document Management• Document Lifecycle

• Usability Enhancements• Item Template for Classification• Restricted Party Screening Workbench

Oracle Global Trade ManagementExisting Functionality through GTM 6.3


Phase 4Import Process Support & UsabilityGlobal Trade Analytics

• Trade Content Expansion • Import/Export Regulations

• Import Process & Usability• Product Classification Workbench• Single-level Bill of Materials• Enhanced Classification Research

• Customs Management• Partial PO Consolidation• Expanded Filing Partnerships (US/EU)• Import Entry Workbench

• Document Management• Canned Document templates• Document consolidation/grouping

• Global Trade Intelligence*

Phase 5Special Duty Programs & Trade Finance

•Trade Preference Programs• Bonded Warehouse• Special Economic Zones• Duty Drawback Management

• Trade Finance*• Letters of Credit/Open Accounts• Wire Transfer process• Invoice Matching/Reconcilation

• Landed Cost Planning• Sourcing workbench• ALC vs. ELC reconciliation

• Document Management• Integration to UCM (Recordkeeping)

Future Product DirectionFree Trade Agreements, Fusion

• Free Trade Agreements*• Supplier Solicitation • FTA Qualification & Rules of Origin

• Fusion Integrations• Tax, LCM, Sourcing

• Supply Chain Security• AEO (EU)• C-TPAT (US)

• GTI: Carrier/Broker Scorecards

Oracle Global Trade ManagementProduct Roadmap Overview

* Proposed New Price List Item


Oracle GTM Customers


A Few of Our CustomersAerospace & DefenseHigh Technology Industrial Manufacturing 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

Global Trade @ SeagateFebruary 2013

24

Cloud

Seagate Products, Customers and MarketsInternal Storage Branded Products

Computing

Consumer Electronics

Personal Storage

SMB Storage

Wireless Storage

Home Media Sharing

Services

Video Capture

25

Seagate Global Presence

Oklahoma City, OK Teparuk & Korat, Thailand

Paris, France

Longmont, CO

Dublin, Ireland

Wuxi, ChinaMaidenhead, UK

Munchen, Germany

Shanghai, China

Tokyo, JapanBeijing, China

Delhi, IndiaShrewsbury, MA

Suzhou, China

Taiwan

Amsterdam, Netherlands Shakopee, MNBloomington, MN

Fremont, CA

Science Park, Singapore

Johor & Penang, Malaysia

Woodlands, Singapore

Sydney, Australia

Ang Mo Kio, Singapore

HQs, Admin and/or SalesDesign

Customer SupportDrive & Component Mfg

Springtown, N. Ireland

Scotts Valley, CA

Suwon, South Korea

Cupertino, CA

Seagate’s GTM Implementation

27

• 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

Background

28

• 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

29

• 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.

Item Classification (continued)

30

• 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

Contact Screening

31

• 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

Export Compliance Rule Screening

32

• 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

Import Compliance Rule Screening

33

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

Business Monitor and Reports


Q&A


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.

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