ORACLE DATA SHEET

ORACLE TRANSPORTATION
MANAGEMENT
KEY CAPABILITIES

• Collaborate with trading

Oracle Transportation Management allows you to gain control of
partners your transportation and logistics operations while minimizing costs
• Plan and execute domestic
and international
and eliminating inefficient and redundant procedures. A single, Web-
transportation movements architected application for all your transportation needs, Oracle
• Source transportation
services with bid collaboration Transportation Management combines broad logistics capabilities
and optimization
with deep transportation-management functionality. Whether your
• Provide item-level global
supply chain visibility to needs are for a single-mode business or geography or for a complex
inventory in motion and at rest
• Centralize supply chain
multi-mode, multi-business global network, Oracle Transportation
performance measurement Management is the solution you have been searching for.
and monitoring information
• Establish and manage
appointments into and out of
Global, Local, Central
network facilities
One version of the truth. That’s what makes Oracle Transportation Management
• Rate, match, auto-pay, and
bill freight charges and different from competing products.
services
Transportation management is a unique process in the supply chain because it occurs
• Create and manage claims
• Manage international shipping and reoccurs throughout the lifecycle of product development and delivery. This
operations as a forwarder unique characteristic creates a special opportunity and increasingly necessary
or broker
function in the operational efficiency of a global supply chain. Using a multi-
• Configure orders and
shipments in the most efficient
enterprise structure that is both configurable to local nuances and practices and
manner to maximize asset standardized for global information normalization, Oracle Transportation
utilization
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

KEY BENEFITS • RFQ management and rate maintenance
• Reduce transportation • Multiple-round combinatorial bid optimization for contracted rates and capacity
costs
constraints
• Increase asset utilization
• Increase supply chain • Automatic data retrieval from the active logistics database to build the bid
reliability
package
• Improvement in carrier
relations • Seamless loading of the awarded bids back into the execution environment
• Increase in customer
service levels
• Flexible global fulfillment Oracle Transportation Business Process Automation
options • Highly configurable workflow and automation tools
• Lower Total Cost of
Ownership • Canned reports
• Improve process
• Automation of regular tasks such as load building and freight tendering
efficiency
• Drive continuous
• Identification of changes in operational assumptions, including shipment arrival
improvement
times, inventory availability, late orders, and other information, that could
RELATED PRODUCTS cause delivery or service-level problems
AND SERVICES: • Ability to dynamically re-plan alternatives to drive effective resolution
• Oracle E-Business Suite
• Support for trading partner and service provider collaboration when desired
• Oracle Supply Chain
applications
• Oracle Purchasing
• Oracle Order
Management
• Oracle Warehouse
Management

Copyright 2006 Oracle. All Rights Reserved.

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