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    Oracle - EBS 12 - Landed Cost Management

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    Jose Lara
    The document provides an overview of Oracle's Landed Cost Management product. It discusses how international trade promises new opportunities but also introduces complexities around profitability, visibility, and compliance. The product helps companies maximize profits, increase competitiveness, improve supply chain visibility and financial reporting confidence, and enhance compliance. It manages the end-to-end process of estimating costs during receipt and calculating actual costs during invoicing to keep accounting and inventory accurate.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Oracle - EBS 12 - Landed Cost Management

    Uploaded by

    Jose Lara
    62 views24 pages
    The document provides an overview of Oracle's Landed Cost Management product. It discusses how international trade promises new opportunities but also introduces complexities around profitability, visibility, and compliance. The product helps companies maximize profits, increase competitiveness, improve supply chain visibility and financial reporting confidence, and enhance compliance. It manages the end-to-end process of estimating costs during receipt and calculating actual costs during invoicing to keep accounting and inventory accurate.

    Original Description:

    Oracle - EBS R12_Landed Cost Management

    Original Title

    Oracle - EBS 12_Landed Cost Management

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    The document provides an overview of Oracle's Landed Cost Management product. It discusses how international trade promises new opportunities but also introduces complexities around profitability, visibility, and compliance. The product helps companies maximize profits, increase competitiveness, improve supply chain visibility and financial reporting confidence, and enhance compliance. It manages the end-to-end process of estimating costs during receipt and calculating actual costs during invoicing to keep accounting and inventory accurate.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    62 views24 pages

    Oracle - EBS 12 - Landed Cost Management

    Uploaded by

    Jose Lara
    The document provides an overview of Oracle's Landed Cost Management product. It discusses how international trade promises new opportunities but also introduces complexities around profitability, visibility, and compliance. The product helps companies maximize profits, increase competitiveness, improve supply chain visibility and financial reporting confidence, and enhance compliance. It manages the end-to-end process of estimating costs during receipt and calculating actual costs during invoicing to keep accounting and inventory accurate.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 24

    <Insert Picture Here>

    Landed Cost Management


    Safe Harbour 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.
    Agenda

    • Oracle Landed Cost Management Orientation


    • Product Overview
    • Functional Overview
    • Market
    • Summary & Next Steps
    What is Landed Cost Management?
    Business Context

    • International Trade Promises:


    • New revenue opportunities
    • Reduced production costs

    • International Trade Realities:


    • Profitability. Is my product truly profitable? Are my expenses attributed to the
    product that incurred them? Are my products priced appropriately? Have I
    budgeted correctly for a particular product group?
    • Financial Visibility. What is my outstanding exposure including all of the
    extended supply chain costs? Are my financial reports accurate?
    • Competitiveness. Is the company sourcing strategically? Do I understand all the
    costs associated with sourcing from a particular country? Can I negotiate better
    contracts with suppliers and/or customers?
    • Compliance. How am I meeting strict regulations pertaining to item cost in
    countries such as Brazil and India?
    What is Landed Cost Management?
    Inbound Shipment

    China Factory Shipment to HK HK Port Vessel Carrier US Port Kansas City Customer

    $100 $2 $4 $20 $5 $2 $2

    =$133
    Benefits of Landed Cost Management
    Operational Lifecycle

    Plan & Budget Market & Sell

    • Optimized fulfillment • Better contract


    networks negotiations
    • Better pricing models Enables Organizations: • Additional
    • More accurate revenue
    product profitability •Maximize Profits opportunities
    reporting
    •Increase Competitiveness
    •Improve Financial Visibility into
    Supply Chain
    •Enhance Financial Reporting
    Confidence and Compliance
    Sourcing Payment
    Acquisition
    • More accurate • Linked invoices with
    total cost supply chain event
    comparisons • Authenticated cost
    • Better contract declarations
    negotiations
    • More accurate record of
    outstanding liabilities
    • Regulation compliance
    Oracle LCM Roadmap
    Phase1 – R12.1 Phase2 Future

    E-BUSINESS SUITE

    • Charge Management • Extend Integration • Outbound


    • Landed Cost Engine •PO Estimation
    Shipments
    • Adjustment • Strategic
    •Cost Methods
    Management Sourcing
    • Integration with EBS •OPM Costing
    • Analytics
    Receiving, Costing, • Enhanced OTM
    and Payables Integration
    • Analytics

    Theme LCM for EBS LCM standalone

    • Inbound Calculation & • First Global Trade Management


    Automation Application
    • Based on Brazil • Componentised
    Planned
    Localization • Future with GTM Suite (OTM
    • Core Product - EBS Platform)
    <Insert Picture Here>

    Landed Cost Management


    Functional Overview
    Landed Cost Management
    New 12.1 Product

    Receipt – Estimated Landed Cost


    Capture & Calculate Update Budget &
    Create Prorate Estimated Inventory Plan with
    PO Trade Landed Cost Valuation & Visibility to
    Charges & Receive Accounting Extended
    Good Costs

    Invoice – Actual Landed Cost


    Receive Calculate Update Generate
    Trade Actual Inventory Accurate
    Document Landed Valuation & Financial
    (Invoice) Cost Accounting Reports with
    Confidence
    Landed Cost Management At-a-Glance

    PO

    Mfg. Plant

    LCM
    Supplier Receiving
    Product

    Invoice Estimated Costing


    Shipment
    Freight Carrier
    Invoice
    Actual LC Accounting
    Calculation
    Invoice
    Insurance
    Provider Document
    Payables
    Repository
    Duty Fees

    Tax Authority
    Receipts - Estimated Landed Cost

    Buyer Supplier/ Carrier Trade Compliance Clerk Receiving Clerk

    Enter/Edit shipments
    and Charges
    User Actions

    Create PO
    Receive
    Goods

    Initiate Landed Cost


    calculation

    Load Estimated Calculate Estimated


    charges Landed Cost
    LCM
    Automated Actions

    Estimated / Actual
    Landed Cost

    Accrue Receipts at
    Costing

    Landed cost

    Item Cost update at


    Landed Cost
    Invoice - Actual Landed Cost

    Supplier/ Carrier Trade Compliance Clerk Payables Clerk Receiving Clerk


    Carrier
    Enter Invoices
    Invoice
    $ Make
    User Actions

    Payment

    Initiate Adjustment
    Item Process Validate
    Invoice Return Goods
    Invoice

    Calculate Actual
    Landed Cost Create Item
    LCM

    Freight
    Invoices
    Est. / Actual
    Landed Cost
    RCV

    Create Debit Note


    Automated Actions

    CST

    Cost/ Accrual
    Adjustment

    Invoice/ Debit
    Note
    Accrual
    Payables

    reversal
    /Accounting
    Import with Inv Price

    Invoice Open
    Interface
    Landed Cost Management (LCM)
    Components

    Product Cost • Real time accrual visibility


    Dashboard • Cost Component
    Distribution

    Landed
    Costing

    • Charge
    Landed Cost • Estimated Cost Charge Application
    Calculation • Actual Cost Management Repository

    Integration Layer

    E-BUSINESS SUITE

    Procurement Receiving/WMS/Inventory Costing Accounts Payable


    Value Proposition
    • Maximise Profits – monitor product performance
    • Increase Competitiveness – strategic sourcing
    • Increase Visibility – known costs reduces exposure
    • Ensure Compliance – understand taxes & recovery

    Product Plan &


    Sourcing Acquisition Payment Sell
    Budget

    • Optimised fulfillment • More accurate • More accurate record of • Linked invoices with
    networks
    • Better contract
    total cost outstanding liabilities supply chain event negotiations
    • Better pricing models comparisons • Better product profitability • Authenticated cost
    • More profitable • Additional
    • Better contract reporting declarations revenue
    products negotiations • Adherence to regulations opportunities
    Landed Cost Management
    Customers Using Brazilian Localization
    <Insert Picture Here>

    Landed Cost Management


    Market
    Landed Cost Management Solutions
    Types of Functionality

    • GTM Landed Cost Calculators


    • Estimates Total Landed Cost Based on To, From, and Item
    Attributes
    • Blackbox – No integration
    • ERP Acquisition Costing
    • Calculate Estimated Landed Cost in Purchasing and/or Receiving
    • Manual Entries or Simple Rules
    • No Actual Calculations
    • Oracle Landed Cost Management
    • Automatic Update of Variances between Actual and Estimates
    • Advanced Pricing
    • Flexible Application of Charges
    • Roadmap
    Landed Cost Management Market
    Incomplete Solutions

    Acquisition Costing GTM Calculators


    • Packaging: • Packaging:
    • Portion of Procurement • Separate Service or Part of
    application (can be a Inbound Processing
    separate module) application
    • Functionality: • Functionality:
    • Basic compared to • Calculator independent
    Oracle LCM: Calculate of transactions: Enter To,
    ELC in PO or Receiving. From, Item, etc. and ELC is
    User can update estimates calculated.
    manually with changes.
    • Vendors: • Vendors:
    • SAP, PeopleSoft, JDE, • SAP GTS, TradeBeam,
    Solomon, Great Plains, Management Dynamics,
    SysPro DHL
    Competition
    No Real Competitors
    • EBS Customer Solutions Today
    • Customers typically customize and/or integrate existing assets to try to capture landed costs
    • Extend EBS
    • Extend TMS Freight Rating Engines
    • Calculate Using Excel and Manually Update

    • LCM enables Oracle to better differentiate and compete in new ERP/SCM deals
    Differentiators

    • Differentiators from Other Integrated Landed Cost


    Solutions
    • Advanced Pricing
    • Rules engine used for automatically determining applicable
    charges to apply to a shipment/line.
    • Flexible Application of Charges:
    • Apply to shipment line, a group of lines within a shipment, or
    an entire shipment
    • Application based on weight, volume, quantity (UOM) or the
    value of the items being traded
    • Automatic Update of Variances between Actual and
    Estimates
    <Insert Picture Here>

    Landed Cost Management


    Pricing & Target Market
    Current vs. Proposed Price List

    Landed Cost Management 300 $M Cost of Goods Sold


    Option: Advanced Pricing 100 $M Cost of Goods Sold

    • Under Logistics as standalone line item like Inventory Management


    Target Market
    Today:
    • Large and midsize companies that source 25% or more of their
    goods from overseas
    • Organizations in the Retail, CPG, Distribution, High Tech, and
    Industrial Manufacturing Industries
    • Companies or divisions of companies where regulatory
    requirements make it mandatory to track product specific landed
    costs e.g. Brazil, Romania, India.
    • Position with R12.1 Procurement, Inventory & Mfg Prospects
    (easy upsell) – Help to drive upgrades

    Later:
    • Position with OTM and GTM (Global Trade Management)
    • Target Process Manufacturing

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