1 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 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 3 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Oracle Global Trade Management (GTM) 4 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 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 5 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 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 1 5 3 2 2) Import to US from Mexico • Product Classification • Embargo Check • DRPL Screening • Import License Management • NAFTA 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.) 6 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 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 Global Trade: Business Drivers Why invest in a global trade management system Supply Chain Security • Comply with existing and Global Sourcing • Lower unit costs • Increase profitability • Compete effectively future security programs • Mitigate risk Procurement Customer Demands • Quickly access new markets • Customer satisfaction • Visibility 7 Trade Finance • Control flow of funds • Link in financial activities • Reduce settlement times Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Compliance Transport Financial Settlement 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 8 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Global Compliance Risk 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 Inaccurate Classification & Valuation 9 Fines High Duty & VAT Copyright © 2013, Oracle and/or its affiliates. All rights reserved. High Global Trade Costs Lower Profit Margin Global Compliance Risk Long & Inconsistent Customs Clearance “Complex, Times High Safety Stocks High Inventory Holding Costs Unmet Demand Low Revenue cross-border globalattransactions account for more than $10 Expired Product Product Costs trillion in 2007 and, according to a recentHigh McKinsey report, are expected the Customs Lower to grow to more than 70 trillion by 2025.” Profit Inaccurate Documentation Risky Business (2008), Risk & Insurance & Information Inaccurate Classification & Valuation 10 High Duty & VAT Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Margin Fines 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 11 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Oracle Global Trade Management Unique global trade management platform Control Globally… • Execute Locally… 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 • 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 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 12 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Enterprise-Wide Global Trade Management Multi-domain architecture Top Level Full Visibility Parent Company Business 1 Business 2 … Business n Domains Partitioned Visibility & Functionality Configure Software for Specific Divisions / Lines of Business 13 • • • • Business Logic: User interface, workflow, reports, integrations Security: Segmented data and functional security “Customization” via configuration Expand without having to buy another system Copyright © 2013, Oracle and/or its affiliates. All rights reserved. ERP Integration • ERP agnostic • SAP, Oracle, etc • Multiple sources integrated to single GTM instance • Multiple order types • Sales order XML / Web Services Transactional Data Manual • Purchase order • Service order • Shipments 14 Transactions Received Master Data Engine Calls Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Global Trade Management Oracle Global Trade Management 6.3 Product 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… 15 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 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 16 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Oracle Global Trade Management Existing Functionality through GTM 6.3 GTM 6.1 Initial Trade & Transportation Platform GTM 6.2 EBS Integration, Early Adopter Support GTM 6.3 End-to-End Export, Basic Imports • Master Trade Data Management • Trade Item Master • Trade Party Master • Integrations • E-Business Suite 12.1.3 • Sales Order Management • Item Synchronization • Party Synchronization • License Management • License Lifecycle • License Eligibility Determination • Assignment & Balances • 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 17 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. • Product Classification • Classification Determination & Assignment: Rollup Support • Enhanced Transaction Management • Support for Assemble- and Configure-toOrder Items • Usability Enhancements • Restricted Party Screening • Sanction Screening • 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 Management Product Roadmap Overview Phase 4 Import Process Support & Usability Global 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* * Proposed New Price List Item 18 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Phase 5 Future Product Direction Special Duty Programs & Trade Finance Free Trade Agreements, Fusion • Trade Preference Programs • Bonded Warehouse • Special Economic Zones • Duty Drawback Management • Free Trade Agreements* • Supplier Solicitation • FTA Qualification & Rules of Origin • 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) • Fusion Integrations • Tax, LCM, Sourcing • Supply Chain Security • AEO (EU) • C-TPAT (US) • GTI: Carrier/Broker Scorecards Oracle GTM Customers 19 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. A Few of Our Customers High Technology 20 Industrial Manufacturing Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 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 determination • Increased visibility • Shorter order release times 21 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. license 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 22 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. February 2013 Global Trade @ Seagate Seagate Products, Customers and Markets Internal Storage Branded Products Personal Storage Computing Wireless Storage Cloud Consumer Electronics Home Media Sharing Video Capture SMB Storage 24 Services Seagate Global Presence Springtown, N. Ireland Dublin, Ireland Shakopee, MN Bloomington, MN Fremont, CA Cupertino, CA Scotts Valley, CA Maidenhead, UK Shrewsbury, MA Amsterdam, Netherlands Munchen, Germany Paris, France Beijing, China Wuxi, China Delhi, India Teparuk & Korat, Thailand Oklahoma City, OK Longmont, CO Suwon, South Korea Tokyo, Japan Suzhou, China Shanghai, China Taiwan 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 25 Seagate’s GTM Implementation 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 27 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 28 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. 29 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 30 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 31 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 32 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 33 Q&A 34 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 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. 35 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 36 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 37 Copyright © 2013, Oracle and/or its affiliates. All rights reserved.