Industrial Manufacturing Heavy Equipment & Machinery Order Capture and Fulfillment Solutions Presenter s Name Presenter s Title

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1 Industrial Manufacturing Heavy Equipment & Machinery Order Capture and Fulfillment Solutions Presenter s Name Presenter s Title

2 Safe Harbor Statement 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 decision. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle. 2

3 Agenda Leadership in Heavy Equipment & Machinery Innovation in Industry Specific Solutions Results Achieved by Oracle Customers 3

4 Oracle s in Heavy Equipment & Machinery Did You Know? 9 of the top 10 Fortune s industrial & farm equipment Manufacturers run Oracle Applications 8 of the top 10 Industry Week s leading machinery manufacturers run Oracle Applications 8 of the top 10 Oil & Gas equipment companies run Oracle Applications 7 of the top 10 construction equipment manufacturers run Oracle Applications 4

5 Challenges We re Hearing. Revenue Growth With the much of the cost-cutting already done, how can I grow top-line revenue to increase profits? 80% of the world's top corporate CEOs declared that their primary objective has shifted from cost-cutting to revenue growth. IBM BCS, The Global CEO Study Eroding Margins How can we implement Lean more effectively to improve margins in a complex product environment? Pure and simple, lean is reducing the time from customer order to manufacturing and delivering products by eliminating non-value added waste in the production stream. The ideal of a lean system is a one-piece flow. A lean manufacturer is continuously improving in the direction of that ideal. James Womack, Lean Thinking 5

6 Challenges We re Hearing. Rapidly Changing Customer Demands How can we build a more responsive supply chain in a rapidly changing market? Market leaders all have supply chains that are more responsive to customer demand. Yossi Sheffi, MIT, in the Economist, June 17, 2006 Aftermarket Growth How can we expand high margin aftermarket support opportunities? Many discrete industrial organizations are finding great value in aftermarket services, including installation, after sale services, spare parts, warranty, and repair. Yet many other organizations fail to recognize the potential benefit this business can bring in revenue growth, profits, customer intimacy, and operational excellence. Jane Barrett, Eric Karofsky AMR Jan

8 Simplify Order Capture and Fulfillment Requirement Oracle Capability The Oracle Difference Improve channel performance through enhanced collaboration Partner Relationship Management with Configurator/Guided Selling Integrated best-ofbreed configurator with a single set of rules for all user interfaces across all channels Manage complex configured products throughout the order cycle Configure to Cash Most complete suite of capabilities to optimize configure to cash flow Optimize delivery of complex products with high transportation cost Transportation Management World-class transportation planning & execution 8

10 Unified Channels Partner Relationship Management Improve Channel Performance Through Enhanced Collaboration Internal Departments Web Channel Direct Channel Recruit Complete and Accurate Information (360) Manage Market Sell Segment & Personalize Settle/ Comp Customer Data Measure Marketing/ Pricing Sales/ Contracts Supply Chain Distribution Telesales Templates & Multi- Channel Channel Tools Productivity Design Wins Channel Process Flexibility Performance Management Channel Manager Dashboard Analytics Finance Order Management Receivables/ Payables 10

11 Coordinate Information Across Channels Seamlessly Share Information with Key Participants Sales Channels Web Sales Field Sales Tele Sales Partners Customer Products Campaigns Prices Configuration Approvals Quotes Orders Your Organization Collaborative team selling Customer and contact intimacy Revenue maximization Effective channel conflict mgmt Your Customers Consistent, higher-quality experience across all channels Self-service access and visibility to new products Your Partners Up-to-date information access Consistently support best practices at all points of contact Collaboration Goals 11

12 Configurator with Single Set of Rules Support for Multiple Sales Channels Sales: Cust Svc Reps Inside Sales Partners: Mfg Reps Contractors Web Customers: Customers Partners Guided Selling Guided Buying Common CRM Campaign to Order Flow Create Campaign Create Lead / Opportunity Generate Forecast Configure & Create Quote Configuration Model Create & Configure Order Check Availability Schedule Plan, Ship and Track Invoice SCM Order to Cash Flow 12

13 Channel Manager Dashboard Provide Insight into Partner Channel Activity Key sales metrics and performance indicators Comparisons to prior year / quarter Links to workflow activities Instant visibility to partner performance - YTD / QTD pipeline - Close rate - Access to transaction detail - Trade funds management 13

14 Ingersoll Rand Increases Cross Sell Revenues by $6.2 Million COMPANY OVERVIEW $9B global diversified manufacturer, based in Hamilton, Bermuda Major brands include Bobcat, Club Car, Hussmann, Dresser-Rand, Thermo King, Schlage, and Kryptonite CHALLENGES / OPPORTUNITIES Manage sales and service through both direct and reseller channels via one integrated solution Share customer information across its 30 operating units and 2,600 reps SOLUTION Oracle s Siebel: Call Center Order Configurator Pricing Partner Relationship Management CUSTOMER PERSPECTIVE Sales reps can now configure a product while on-site with a customer. Our customer order managers can then quickly check the order and push it directly to our manufacturing system. This process saves a great deal of time and has resulted in improved order accuracy. Robert Martens, Director of CRM, Ingersoll Rand RESULTS Increased revenues by $6.2 million in one year from cross-selling Improved sales process by automatically pricing configured orders and generating proposals Improved sales productivity and speed of service 14

16 Configure to Cash Manage Complex Configured Products Throughout Order Cycle Opportunity Definition Automatic Order Creation Populate Installed Base Needs Assessment Match Update Sales and Service Contracts D e s i g n Configuration (Product and Pricing) Available to Promise Schematics and Drawing Generation Automatic Config Item, Bill & Routing Creation Automatic Supply Order Creation Flow Schedule PO Internal Work Req. Order Manufacture & Reserve Customer Initiates Service Request Define Service Rqmt And Dispatch Work Assign Field Tech Repair & Debrief Initiate RMA Receive & Repair Configured Quote Forecast & Plan Pick and Ship = OM & Logistics = Mfg = Maint. & Service 17

17 Configure Complete, Complex Solutions Dynamically Configure Products Plus Services Solution-Based Modeling Enable the dynamic configuration of systems at run-time - Build complex model structures - Add, delete, and individually configure sub-components - Connect sub-components (rules are applied only when connection is made) Simplify maintenance of configuration models - System models built on reusable model components - Component-level plus systemlevel rules ensures that solution will work 17 CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

18 Auto-create Items, BOMs and Routings Pre-Define Items for Frequently Used Configurations BOM Model Common Configuration Model Config A Config B Pre-Configured New Item A Available for Order Pre-Configured New Item B Available for Order Derive new product from existing designs Add commonly requested configurations to standard catalog Forecast and stock common configurations Enter orders for stock configuration, or match based on models and options chosen Updated Sales Catalog 18

19 Integrated Warehouse Operations Enhance Pick Pack and Ship Streamline Pick Process with Automated Task Management - Match skills and equipment to tasks - Dispatch tasks to wireless device - Perform task sequencing to speed pick process Perform Complex Inventory Transactions via LPN Support Accelerate Warehouse Material Flow Through Cross-Docking and Direct Ship Processes Support Compliance Labeling of Shipments with Numerous, Flexible Formats 19

20 Hitachi Reduces Product Time to Market COMPANY OVERVIEW Sales, Manufacturing & Service for construction machinery & transportation Largest manufacturer of hydraulic excavators in the world Founded 1949, HQ: Tokyo, Japan 50 models offered; half-ton to 500+ ton ultra-large lines 13,000+ employees; 84 companies CHALLENGES/OPPORTUNITIES Market trends towards globalization and meeting demands of customers on a worldwide basis Rapidly growing markets with various product needs in emerging areas Requirement for standardization with consistency on sales orders Directions to offer a Total Solution for complete coverage with lower TCO. SOLUTIONS Oracle Configurator Oracle isupplier Portal Oracle Order Management CUSTOMER PERSPECTIVE Using Best Solution Partner as our brand concept (with Oracle EBS), we will undertake an intensive effort to make each employee around the world as much a part of the brand as our products The business environment within which our group operates is undertaking dramatic change. We see this change as an opportunity and are committed to increasing corporate values by investing actively in our future growth with improving results Annual Report, Hitachi Construction RESULTS Improved information availability in the sales process for configurations Reduced product time-to-market Out-of-the-box integration of back and front office provides superior efficiency, reliability and integrity from customer Order into the business process Single model deployed in Order process 20

22 Comprehensive Transportation Mgmt Improve On-time Delivery While Reducing Transportation Costs Carriers / 3PLs Global Customers Collaboration & Event Management Inbound Supply Source Plan Rate Book / Tender Manage Wrhs Pick & Label Pack & Ship Integrated Planning & Execution Track Settle Outbound Demand Destination Continuous Improvement On-Time Performance Customer Satisfaction Carrier Analysis 22

23 Complete Logistics Network Visibility Better Logistics Decisions with Information Manufacturer Planning Level Shipper Consolidator Execution Level Customer Dashboard Level Across the entire supply chain: from raw materials to point-of-sale all roles: suppliers, planners, service providers, customers, management all phases: before (planning), during (execution), after (improvement) 23

24 Transportation Planning & Optimization Maximize Fulfillment Service, Minimize Transportation Costs Algorithms Consolidation for: Multi- Mode, Multi-Leg, Common Leg, Multi Stop, LTL Multi-Tier Networks Continuous Moves + Engines & Rules Service Time Calculation Container Optimization Itineraries & Profiles Resource Capacity Throughput, Rating Optimized Decisions Route Mode Timing Equipment Consolidation Service Provider View via graphical UI to relate carrier selection & route optimization results to actual execution Plan for all in- / out-bound shipments using multiple modes (truck, rail, air, ocean) Combine loads (consolidation) or split loads (deconsolidation) for local deliveries Optimize container loading and fleet utilization via continuous moves 24

25 Automated Rating and Routing Determine Optimal Carrier and Route Selection Rules Modes LTL / TL Parcel Ocean Rail Criteria Weight Volume Geographic Regions Carrier Mode Service Level (e.g. Next Day) Freight Terms Order / Shipment Definition Rates / Modes Database Selection Results Easily compare shipment rates and capture accessorial charges Establish carrier selection rules at customer site, customer, shipper organization, and shipper enterprise levels Analyze your freight cost versus charge and provide margin analysis 25

26 Real-time Visibility and Analytics Better Decisions with Realtime Information Graphical display of routing/status Leg specific shipment and order information Track costs/carrier performance View actual versus forecast 26

27 Automated Payments and Settlements Improve Cash Flow and Accounting Accuracy Carriers Invoices via web or integration Match & Pay Auto-Pay Match, validate, and pay invoices; flag exceptions Pay based on actual shipment activity and contract rates Allocate costs to orders & order lines for billing Apply appropriate GL codes based on order characteristics Calculate profit margin for each shipment VAT & NFRC* Bills via web or integration Shippers / Customers Intra-company cost transparency AR & AP Vouchers Allocated costs Payments Financial System Payments Support Settlements & Payments Based on Plans Generated in TM or Other System *Value-Added Tax and Non-Freight Related Charges 27

28 Case New Holland Reduces Transportation Expenses COMPANY OVERVIEW World Leader in agricultural & construction eqpt. Supports 11,000 dealers in 160 countries Industry: Agriculture and Construction Manufacturer NYSE listed CNH, majority owned subsidiary of Fiat S.p.A. Employees: 25,335 Revenues: US $13 Billion CHALLENGES/OPPORTUNITIES Lack of shipment control (inbound and outbound) Legacy transportation systems in Europe Cost reduction opportunities Need for more shipment visibility on global basis SOLUTIONS Oracle s Transportation Mgmt CUSTOMER PERSPECTIVE CNH embraced an aggressive plan to insource its North American logistics operation and gain control of its global inbound transportation within a year. With the partnership of Oracle and the implementation of their OTM tool, this plan was successfully executed. Kathy Acker, IT Director, Strategic Planning/Logistics and Supply Chain, Hitachi RESULTS Reduced Freight Costs, Inbound and outbound transaction costs Lower supporting headcount Payment based on actual shipped weight Supplier communications cross-flows Shipment data (weight, supplier, carrier selection) Dealer destination charges Increased Control of Carrier KPIs: Service level, cost, quality 28

29 Simplify Order Capture and Fulfillment Summary Improve Channel Performance Simplify Collaboration with Partners Gain visibility of Lead/Quote activity across all Channels Guided Selling to simplify configuration of Complex products Manage Complex Configured Products Best in-class Configurator for Complex Configured Product with single set of rules Provide complete integration with Operations, Service and Finance Optimize Delivery of Complex Products Coordinate multi-mode logistics across to reduce costs and improve on-time delivery Provide complete Logistics Network Visibility of in-bound and out-bound requirements 29

30 The Only Complete Heavy Equipment & Machinery Solution Platform Processes Proven Customer Results People Partners 30

31 31 Heavy Equipment & Machinery Footprint

32 Market-Leading Middleware Platform Best-Selling 32,000+ Customers Deployed 70% of World s s 50 Largest Firms $1B+ Business Highest Rated Only vendor in Gartner and Forrester leader quadrants for all Middleware components. Most Comprehensive Source: Forrester Research ranking of Application Platform Servers, April 2005 SOA Vendor of Choice 32

33 Oracle s People Advantage 220,000 database customers 1700 application ISVs 30,000 applications customers 275,000 customers benefiting from shared innovation 30,000 middleware customers 29,000 developers, support engineers and consultants 1300 participants in early customer adoption programs 5000 middleware ISVs 950 customers participating in Customer Advisory Boards 9000 database ISVs 35 Fusion strategy council members 425 user groups 500 Industry & Product strategy council members 33

35 Heavy Equipment & Machinery Customer Results gained $6.2M in incremental sales 1st year, improved sales productivity through automated pricing and proposal generation with Siebel CRM realized total productivity and growth benefits of $3.4Mil and reduced order processing time by 83% with Oracle E-Business Suite Order Management purchase order release efficiency improved over 700% and 800,000 items were loaded in a unified corporate catalog with Oracle E-Business Suite Procurement increased service productivity; drove 50% of service requests to Web Consolidated more than 40 after-hours call centers into 1 with Siebel Service increased Production of Plant by 33%, reduced pull sequences by 20% and reduced inventory by 23% with Oracle Flow Manufacturing reduced inventory cost by $26M, reduced costs and increased order accuracy with Oracle Ebusiness Suite 35

36 What Customers Are Saying. In our business, projects are large and extremely complicated, so high quality project management is essential to earn our customers' trust. We focused on finding a solution that provides the best business management capabilities and performance... that was the main reason we chose Oracle Projects. -- Mal-Ho Song, VP, Process Innovation Division As a result of Oracle E-Business Suite implementation, many processes have been streamlined. There is increased visibility, in real-time, into important business parameters. This, in turn, is contributing significantly in cost reduction S.S.Godbole, General Manager, Projects We have totally eliminated the complexity of integration from the process of expanding our IT infrastructure thanks to the built-in integration of Oracle s E- Business Suite. -- Chen Jun, IT Director 36

37 The Oracle Difference Only Oracle. Allows you to optimize channel performance with complete Partner collaboration and execution capabilities Offers the most complete Configure-to-Order capabilities to meet the complex requirements of Heavy Equipment Configurator uses a single set of rules to manage the complex configurable product across all channels Provides integrated world-class Transportation Management and execution functionality to reduce transportation costs 37