Why EBS for Wholesale Distribution Information Age Applications 1

Why EBS for Wholesale Distribution Information Age Applications 1

Non-Disclosure Agreement Any reference to customer information, metrics or successes is strictly under NDA. This information may not be used in any reports or used as a basis for customer contact. 2

Agenda Industry Trends Oracle’s Commitment to the Industry Oracle’s Solutions for the Industry Product Capabilities for Wholesale Customer Success Stories 3

Agenda Industry Trends Oracle’s Commitment to the Industry Oracle’s Solutions for the Industry Product Capabilities for Wholesale Customer Success Stories 4

The Wholesale Distribution Industry is Strong and Its Prospects Are Favorable 75% products are sold through distributors Wholesale distribution accounts for one out of 20 jobs in the USA The industry is growing at a annualized rate of 5.6% -- significantly faster than the economy Revenue Growth – CAGR 5.6% Strong Industry Forecast Annual Revenue ( Trillion) 4 Profits up 3 Industry growth 2 IT spending up 1 0 2000 2001 2002 2003 2004 Distribution is a major untapped market Sources: Facing the Forces of Change; NAW, DREF 5

The Industry’s Key Focus is on Profitable Growth The implications of this strategy is a strong focusing on growth enablement strategies and operational excellence Drivers Revenue Growth Acquisition enablement: Rapid integration of acquired companies Growth without a corresponding increase in overheads Organic Growth Superior customer service Value added services New product lines Additional product lines Improve Operating Margins Effective pricing policies Enhanced revenue growth through better customer information and tracking Proactive customer management through business intelligence: ability to target and service customers based on profitability Improved procurement and sourcing effectiveness Operational Efficiency Supply Chain Excellence: Improved forecasting, shorter lead times Increased supply chain velocity; lower inventories Better order management and order execution Optimized distribution network; reduced costs Improved supply chain planning Increased back office productivity 6

However, The Industry Continues to Face Key Challenges In Meeting Its Goals Revenue Growth Increased Need to Provide Value-Added Services Non-standard Processes Pricing not Customized to Product and Customer Operating Margins Poor Customer Information Ad-hoc Pricing Policies Inability to Evaluate Customer and Product Profitability Operational Efficiency SKU Proliferation Poor Forecasting High Inventories Low Back Office Productivity Low procurement and sourcing effectiveness 7

Agenda Oracle’s Commitment to the Industry Oracle’s Solutions for the Industry Product Capabilities for Wholesale Customer Success Stories 8

Texas A&M Collaboration Engagement with Dr. Barry Lawrence launched in March 2004: Distribution process maps and business needs in the focused study areas Process-Focused distribution KPI framework System requirements to support focus area best practices Prioritized recommendation for Oracle Distribution Solution functionality enhancements 9

Texas A&M Joint Research Topics Inventory Stratification Demand Management Distribution Purchasing Warehouse Management Transportation Management Network Optimization Rebates and Claimbacks Management Pricing Management Distribution Performance Management (KPI’s) 10

EBS Distribution Customers Thai Stainless Steel Virginia

Agenda Oracle’s Commitment to the Industry Oracle’s Solutions for the Industry Product Capabilities for Wholesale Customer Success Stories 12

Oracle Wholesale Distribution Industry Solutions Meet ever-shifting demand using consensus forecasts Plan and Procure for Best Value Optimize Storage and Streamline Movement of Goods Attract and Retain Target Customers Maximize Product and Customer Profitability and global visibility into product availability Negotiate for volume pricing and apply compliant, transaction automation to reduce total product cost Share real-time info online to speed partner interactions Minimize manual processing via RFID & handling devices, directed picking / put-aways, and cross-docking Optimize inbound and outbound logistics to reduce costs Drive consistent, accurate interactions across all touch points based on one global view of customer information Improve sales rep effectiveness with productivity tools Analyze profitability with accurate revenue & cost allocation Enable multi-level drilldowns into financial data to identify improvement opportunities Project future sales to assess lifetime customer value

Footprint: Wholesale/Distribution Oracle Enablers Plan and Procure for Best Value Supply Chain Planning Collaborative Planning Inventory Optimization Demand Planning Advanced SC Planning Global Order Promising Constraint Based Optimization Sourcing & Procurement Sourcing Procurement Contracts iProcurement Services Procurement Purchasing iSupplier Portal Advanced Pricing Sourcing Optimization Optimize Storage and Movement of Goods Logistics & Inventory Mgmt Inventory Management Mobile SC Applications Warehouse Management Transportation Optimization Transportation Execution Transportation Planning Product Information Management Product Information Mgt. Hub Product Data Synchronization for GDSN and UCCnet Maintenance Management Enterprise Asset Management Attract and Retain Target Customers Maximize Product and Customer Profitability Order Management Advanced Pricing Configurator iStore Order Management Sales Contracts Customer Data Management Customer Data Hub Customer Data Librarian Marketing & Sales Marketing, TeleSales, Field Sales, Sales Contracts Trade Management Quoting Service Service Contracts iSupport TeleService Field Service Depot Repair Corporate Performance Management Balance Scorecard E-Business Intelligence Enterprise Planning and Budget Financials & Sales Analyzers Activity Based Management Product Lifecycle Management Financial Advanced Collections Financial Consolidation Hub Enterprise Infrastructure: Projects, Customer Data Management Performance Management: E-Business Intelligence, Balanced Scorecard, Enterprise Planning & Budgeting Corporate Governance: Internal Controls Manager, Financials, Tutor, iLearning IT Infrastructure: Database Server, Applications Server, Systems Management, Development Tools, Collaboration Suite Services: Consulting, IT Outsourcing, Education, Support 14

Wholesale/Distribution - A History of Commitment Evolution of Oracle Applications in Wholesale / Distribution Base Differentiators New in 11i.9 New in 11i.10 Multi-channel order capture Real-time order promising and High volume order processing Up-sell / cross-sell Non-catalog item ordering Cost / margin at order and line Delivery consolidation by locator Easy quote creation and ? visibility Back to back ordering Integrated spend and supplier intelligence Inbound logistics Outbound logistics Advanced inventory mgmt Built-in RF / mobile technology Distribution planning Collaborative demand and supply planning Integrated service channels with multiple delivery options Auto-entitlement verifications and / or LPN Cluster picking and WIP picking UPC and smart barcode support Single mobile UI for all receiving transactions Additional material handling equipment integration Transportation execution Automated shipping processes Sales and operations planning VMI and consigned inventory One-click renegotiation of blanket agreements conversion to order Formula-based pricing & tiered discounts (Advanced Pricing) Scarce inventory allocation Procurement contracts International drop shipments Configurable picking and streamlined shipping UI’s RFID-based transactions UCC 128 and UCC 14 support Packing workbench Over picking and bulk picking Inbound transport logistics Freight payment and audit Transportation planning LPN and lot / serial receiving 15

Oracle’s Wholesale Distribution Capabilities EBS Additional Strengths Road Map for 12.0 Order Management / Pricing Price Book Trade Management Promotion Rebates / Invoicing Logistics / Supply Chain Execution Inventory and WMS Standard Pack Execution Support Planned X-Dock Labor Management Expanded RFID/MHE Support Transportation Multi-Delivery Consolidation High volume flows in shipping/pricing Multi-channel Order Capture & Fulfillment Advanced Pricing Flexibility Product Lifecycle Management Strong Trade Management Daily Business Intelligence Customer Data Hub Advanced Supply Chain Planning Fully Integrated Logistics Planning & Execution Sales and Procurement Contracts Configuration Integration Depot Repair / Service Workflow ? 16

Agenda Oracle’s Commitment to the Industry Oracle’s Solutions for the Industry Product Capabilities for Wholesale Customer Success Stories 17

Oracle E-Business Suite Tailored for Wholesale / Distribution Intelligence Planning & Procurement Logistics & Inventory Management Marketing, Sales, Service Product & Customer Analysis Technology Common data model enables a single source of truth Comprehensive suite of applications designed to work together Robust set of integration services based on open standards Modular deployment by business flow Single global instance implementations 18

Intelligence Intelligence Oracle Wholesale / Distribution Solutions Planning Planning & & Procurement Procurement Logistics Logistics & & Inventory Inventory Management Management Marketing, Marketing, Sales, Sales, Service Service Product Product & & Customer Customer Analysis Analysis Technology Technology Enable you to: Plan and Procure for Best Value Optimize Storage and Streamline Movement of Goods Attract and Retain Target Customers Maximize Product and Customer Profitability 19

Collaborative Sales & Operations Planning Rapidly Adapt to Changing Business Conditions DC Collaborate and plan with trading partners Shipments Synchronize operational plans across the value chain Your Company Marketing Sales Planning Finance DC . Promotions Orders Production Budgets Planning Engine Inventory Consensu s Forecast Web-based Interface Suppliers Orders Schedules Specifications Requirements etc. Customers Create one plan that includes multiple DCs Model complex constraints that respect operational capabilities Rapidly rerun or reprioritize plans 20

SNO Relevance to Wholesale Distribution Typically used by companies with more complex distribution networks Visualization, rapid simulation and detailed cost modeling of the entire network Network Design – Determine location, size and type of facilities – Examine cost trade-offs: storage vs. spoilage vs. transportation inventory holding Simulate expansion – New customers, contracts, product lines or markets – Simulate competitor costs 21

Global Order Promising Provide Accurate Availability & Supply Commitments View global availability Global Order Promising - All facilities, material, resources, and suppliers Allocate supply and capacity - By channel, customer, or product - Priority and stealing rules Manage commitments to key customers Material Availability Distribution Capacity Transportation Capacity Supplier Capacity - Re-schedule and re-sequence your backlog Drive Optimal Fulfillment Decisions Based on Demand and Supply 22

Advanced Supplier Management Promote Collaborative Supply Processes Examples Min-Max & Pull-Based Replenishment Vendor Managed Inventory Consignment Inventory Enabling Capabilities Automatically create replenishment signals (e.g., POs) based on Min-Max levels and consumption. POs can be pre-approved and ready to be transacted. Provide suppliers convenient visibility to distributor-owned inventory and automated replenishment. Maintain supplier-owned inventory, transfer ownership upon consumption, and trigger supplier invoicing. Drop Shipments Enable suppliers to fulfill your customer orders by shipping directly to your customers. Synchronize PO with sales order and book transactions across multiple business entities. Online Communications Enable suppliers to update profile, submit quotes / bids, view transaction details and inventory levels, respond to PO changes and notices, and provide ASNs 23

Customer Successes US distributor of parts for power systems – – – 600,000 order lines per year Global customer service centers taking orders 24/7 High volume of quotes Implemented full Oracle Applications suite across the enterprise – – Live on Order Management, Advanced Pricing, Financials, Purchasing, Planning, Electronic Messaging Minimal customizations "Oracle gives us a better tool to determine where we stand and to find the hot spots we really need to focus on to improve our margins in the future." -- Judy Warfield, Information Management Manager, GE Energy 24

Intelligence Intelligence Oracle Wholesale / Distribution Solutions Planning Planning & & Procurement Procurement Logistics Logistics & & Inventory Inventory Management Management Marketing, Marketing, Sales, Sales, Service Service Product Product & & Customer Customer Analysis Analysis Technology Technology Enable you to: Plan and Procure for Best Value Optimize Storage and Streamline Movement of Goods Attract and Retain Target Customers Maximize Product and Customer Profitability 25

Oracle Transportation Management 26

Oracle Transportation Management 100% Web-Based Highly Configurable Global Business Support Transportation Management Continuous Planning Consolidate Loads / Moves Select Modes & Carriers On-Time Performance Orders Product Location Item Master Order Mgmt Planned Shipment Confirmed Shipment Warehouse & Inv Mgmt Track & Book / Tende Trace r Event Management Customer Satisfaction Audit / Settle Carrier Analysis Tender Offer Tender Response Ship Status Invoice Planned Shipment Order Status ASN Order / Release Information Payment Vouchers Invoice Check and Match Financials Service Providers Trading Partners Internal Systems *Currently re-implementing analytic capabilities using Oracle technology 27

Oracle Transportation Management Best-In-Class Shipment Lifecycle Coverage Procurement Collaboration & Optimization Service Provider & Asset Management Logistics Order Management Shipment Planning & Optimization Forwarding & Brokerage Operations Shipment Execution Freight Payment, Billing, Claims Global Logistics Visibility Supply Chain Event Management Operational Reporting & Document Generation Performance & Financial Analysis* *Currently re-implementing analytic capabilities using Oracle technology 28

Highly Scalable and Flexible Manage All Your Transportation Needs in One System Control Globally All inbound POs and outbound customer deliveries Transfers between facilities, in different countries - Distribution centers – mfg - Intermediary nodes Visibility into in-transit & at-rest inv. throughout network Execute Locally Using multiple languages and currencies - English, Spanish, German, French, Chinese (simplified) - Support for all currencies, including in-system conversions - Screen customization by region / country, user groups Accommodate region-specific rules and regulations Manage Centrally All operational information in one location - Increase leverage for procurement - Apply best practices across regions - Evaluate processes holistically - Perform network analysis Cleanse data to achieve single source of truth IT infrastructure to reduce support and maintenance costs 29

1.9B footwear retailer with nearly 1,300 stores in North America - Brand names include Famous Footwear, Naturalizer, Life Stride, Buster Brown, Dr. Scholls, Carlos, Barbie, Red Goose and various children's brands (e.g., Mary-KateandAshley, Spider Man) - 62% of revenue from retail outlets, 38% from wholesale distribution - Imports 75 million pairs of shoes each year from Brazil, Italy, China, Hong Kong, Taiwan, Indonesia, and Mexico Live on Oracle Transportation Management (G-Log GC3) - Improved visibility to inbound shipments from China, Brazil, and Italy - Provides self-service tools for buyers to expedite / divert in-transit inventory - Enables ocean contract compliance with on-line global visibility to distance to destination (DTD) ocean carriers’ transportation rates Improved visibility to in-transit shipments by up to 2 weeks Re-routes shipments to alternate ports to avoid delays 30

Oracle Warehouse Management 31

Warehousing Functionality Spectrum Product / Order Complexity High Low Highly Automated Facilities Automate physical inventory handling s ie t i l bi a p Ca Warehouse Management Implement a true “execution system” using system directed tasks and task management RF / Barcode Only Improve accuracy and reduce latency of existing transactions Manual Inventory Record transactions and track balances Small Transaction Velocity / Volume Large 32

RFID-Initiated Shipping & Receiving Process Transactions with No Manual Intervention (1) Load of pallets and / or cartons with RFID tags on each RFID Middleware (Oracle AS) (3) Interface to readers, clean and filter data, then pass IDs to application RFID Event Processor (4) Access objects associated with the ID's (e.g. LPN's on ASN) then raise correct Business Event (5) Access associated source document (e.g. the PO’s ASN) Application APIs (6) Process the Business Event, (e.g. Receipt of pallet or carton) (8) Putaway, rescan or divert material Response & Exception Handling (7) Confirm success or failure (e.g. trigger green light or sound buzzer) (2) Drive load through RFID Reader in Receiving Dock 33

Warehouse Business Intelligence: Timely, Accurate, Relevant Flexible Time Periods Flexible Comparisons Daily updates on key performance indicators Real-Time Results Performance Measures Reports Graphs Links Actionable information on savings and incremental revenue opportunities At a glance: - Inventory quantity and turns - Inventory accuracy - Pick-to-ship cycle time - Warehouse labor costs 34

Handleman Company Leading distributor of prerecorded music to mass merchants in the US, UK, Canada, Brazil and Argentina - 2,300 employees including 1,000 field sales reps worldwide - 4,000 stores on 3 continents; 11% of all music sold in the US - 48 years of music distribution experience Live on 11i Warehouse Management - Chose Oracle WMS because of integration to existing 11i apps - Process 2 million picks per month with highly automated equipment - All customizations accomplished through standard Oracle APIs Increased warehouse throughput (receive to ship) by 8% Decreased billing time by 15% 35

Intelligence Intelligence Oracle Wholesale / Distribution Solutions Planning Planning & & Procurement Procurement Logistics Logistics & & Inventory Inventory Management Management Marketing, Marketing, Sales, Sales, Service Service Product Product & & Customer Customer Analysis Analysis Technology Technology Enable you to: Plan and Procure for Best Value Optimize Storage and Streamline Movement of Goods Attract and Retain Target Customers Maximize Product and Customer Profitability 36

Customer Order Management Is Embedded in CRM Marketing Increase Campaign Response Rate Decrease Lead Generation Cost Decrease Customer Acquisition Cost Increase Marketing Sourced Revenue Improve Targeted Prospecting Accelerate Lead Maturation Increase Revenue per Sales Rep Shorten Sales Cycle Increase Average Order Size Increase Close Rate Increase Conversion Rate Increase Revenue per Customer Increase Customer Retention Increase Customer Service Productivity Reduce Customer Service Costs Decrease Service Response Times Decrease Call Waiting Times Decrease Request Solution Time Sales Service 37

Foundation: Common Customer Model Capture All Information in a Single Location Customers, Suppliers, Products, Contact Information Ship-To’s (e.g., Project Sites) Contract Terms Pending Quotes / Orders Shipment Status Sales Channel Usage Order & Issue History Interaction History Payment / Credit History Leverage analytics and predictive modeling to target customers more effectively Route customers to the right personnel for speedy interactions - Enable customers to seamlessly progress from sales to order to delivery Increase speed and efficiency of each interaction 38

Multi-Channel Demand Management Enable Real-Time Order Validation Demand Web Store Call Center Sales / Quotes Service Customer Systems Legacy Systems Order Mgmt System Supply Finished Goods Inventory (in Warehouse) Internal Move (at another DC) Suppliers (Drop Ship or Replenish Order) Embedded collaboration points throughout order management flow to enable demand and supply analysis Seamless communication with suppliers, customers, and carriers / partners Optimized flows to ensure order accuracy and on-time deliveries Eliminate “dropped call” effect; customer only has to provide information once

Order Management and Fulfillment Improve Customer Service and On-Time Delivery Support Multiple Ordering Methods Make Informed Pricing Decisions Automatically import and process high-volume orders Easily guide customer through ordering process Manage Out of Stock and Special Requests Automatically apply contracted Order Mgmt System pricing, terms, and conditions Evaluate cost and margin by order / order line Fulfill Based on Customer Needs & Order Priorities Peg POs to Sales Orders Allocate scarce inventory Synchronize drop ship order Execute high volume and automatically allocate on receipt with customer sales order according to customer and order priorities order-to-ship flow

Improve Customer Interactions Present a Single Face Across Multiple Touch Points 24x7 Internet Enable customers to view the latest transactions & targeted content/brochures Ensure accuracy of customer information Research & log issues, request assistance Customer Consistent Information Price Service Level Entitlements Product Data Call Center Automatically route, queue, and distribute calls for tailored help Enable “one and done” service capability Build and re-use customer knowledge base Direct Access accurate customer and account information from desk top or remotely View alerts and notices Configure and price orders in real-time

Multiple Service Delivery Options Meet Customer Needs and Expand Opportunities SelfService Enable Customer to Resolve Issues Via Web Agent Assisted Resolve Customer Issues Via Phone Field Service Dispatch In-House Field Technician to Resolve Issues Depot Repair Manage Returns and Repairs Outsource Dispatch Contract Service Technician to Resolve Issues

Atari is a leading publisher and distributor of video games for all consoles, as well as PC and Apple computers - Over 1000 Catalog titles Ships to over 22,000 retail outlets, including Target and Wal-Mart Uses Oracle for consignment, drop shipments, real time sales reporting Live on Financials, Order Management, Demand Planning, Sales Analyzer - Key Benefits » Improved visibility of sales cycle for better sales forecasting » Enhanced inventory forecasting and management » Processed 10% more sales volume upon launch » Easily adapted to changing business demands "Oracle plays a key role in Atari's success. These applications are our cornerstone, the repository for the information that drives the company and its performance." -Glenn Magala, Vice President of Management Information Systems, Atari, Inc. 43

Intelligence Intelligence Oracle Wholesale / Distribution Solutions Planning Planning & & Procurement Procurement Logistics Logistics & & Inventory Inventory Management Management Marketing, Marketing, Sales, Sales, Service Service Product Product & & Customer Customer Analysis Analysis Technology Technology Enable you to: Plan and Procure for Best Value Optimize Storage and Streamline Movement of Goods Attract and Retain Target Customers Maximize Product and Customer Profitability 44

Maximize Product & Customer Profitability Assess Current Profitability Allocate Costs and Revenues Segment and Analyze Profitability Identify Improvement Opportunities Model Future Profitability “What If” Scenarios - Example: Cost Management Analysis - Example: Revenue Management Analysis Plan and Execute Collaborate with Customers and Suppliers Perform Sales and Operational Planning Assemble and Execute Logistical & Transportation Tasks

Accurate Cost and Revenue Allocation Enable Product and Service Profitability Analysis Direct Costs Products Materials Map Services Customers Activities Map Revenues from GL Materials Allocate via ABC* Channels Activities Indirect Costs Calculate Profitability, Revenue, and Cost by - Product - Channel - Service - Location - Customer - Time Period Model Cost Structure for Use in Profitability Forecasts * ABC Activity Based Costing

Segmentation and Drill Downs Identify and Analyze Improvement Opportunities Segment Products, Customers, Channels, and Locations By profitability By revenue By cost Drill Down to Multiple Levels of Detail Location Region Country Customer City Company Account

Future Profitability Model Evaluate “What-If” Scenarios Project Future Sales - Use standard techniques (e.g. Holt-Winters) - Manually input projections Determine Resource Requirements & Costs with Activity Based Budgeting Calculate Lifetime Value of Customers

Example: Cost Mgmt Analysis Define Actionable Goals to Drive Cost Strategy Improve Efficiency Cost control Outsourcing Logistics and transportation mgmt Business process re-engineering Identify high cost activities Find internal best practices Compare activity costs to int / ext benchmarks Identify target activities Set target costs Improve Effectiveness Service level re-balancing Error prevention vs. correction Core vs. support activities Channel entry / exit / re-design Baseline current activity / cost allocation Check activity alignment with corporate strategy Evaluate “what-if” scenarios Set target allocations Cost targets assigned to specific activities clarify accountability for driving improvements

Example: Revenue Mgmt Analysis Define Actionable Goals to Drive Revenue Strategy Identify Highly Profitable Segments Identify Unprofitable Segments Evaluate “What-If” Scenarios Pricing Product / service mix Bundling Customer migration & mgmt Product entry / exit Channel entry / exit / re-design Merger integration Decide Best Course of Action Set Targets & Goals Communicate Target Info to Marketing Determine how changes in product, pricing, and channel strategies can impact revenues

Integrated Throughout Entire Offering Operational Intelligence and Corporate Governance

Deliver Daily Operational Intelligence Real-Time Access to Complete Business Information How are supplier deliveries impacting my on-time How can I best adjust to seasonal delivery capability? demand fluctuations? Which carrier can accommodate last-minute shipment changes? Which SKUs have the highest or lowest inventory What was the average resolution – Manage By – – turn? time for agent-assisted issues? Objective: Set institutional targets Fact: Provide performance-based metrics Exception: Continuously evaluate performance

Operational Intelligence: Timely, Accurate, Relevant Flexible Time Periods Flexible Comparisons Daily updates on key performance indicators Real-Time Results Performance Measures Reports Links Actionable info on cost savings and incremental revenue opportunities Role-based views: Graphs - Marketing Sales Order Mgmt Planning Procurement Inventory Mgmt Transportation Mgmt Service

Corporate Governance A heightened business focus on accuracy in reporting to investors brought on by recent fraudulent practices of several major corporations Sarbanes Oxley Act (SOX) Senior mgmt personal liability for financial result accuracy EU Anti-Fraud Directive (Mar 2004) Collective Board liability for financial result accuracy Senior mgmt and outside auditor Senior mgmt and outside auditor attestation to the effectiveness of internal controls attestation to the effectiveness of internal controls Accelerated SEC filing deadlines For all U.S. companies and companies issuing securities in the U.S. Select Corporate Governance Code For all E.U. companies and companies issuing securities in Europe Oracle Helps Drive Compliance through Visibility, Control, and Efficiency

Corporate Governance: Visibility, Control, Efficiency Control Visibility Identify issues early Enable real-time Integrate and centralize information access & performance mgmt Consolidate global financials Unify corporate reporting Centrally Manage Policies and Procedures Provide Single Source of the Truth Consolidate and reconcile business operations Document processes and support compliance View, test and certify internal controls Manage corporate communications Efficiency information rapidly Automate business processes and broaden use of self-service Simplify IT infrastructure Leverage best practices from different groups / regions Your Company Orders Invoices Customers & Suppliers Payments Requisitions Automate Processes and Extend to Customers & Suppliers

Agenda Oracle’s Commitment to the Industry Oracle’s Solutions for the Industry Product Capabilities for Wholesale Customer Success Stories 56

419M worldwide leader in high-performance open storage networking solutions – 1020 employees across the U.S., Europe and Asia – Replaced Siebel and SAP with Oracle Live on 11i – single global data center – Sales, Incentive Comp, Order Mgmt, Configurator, Discrete Mfg, Warehouse Mgmt, TeleService, iSupport, Depot Repair, Svc Contracts, Procurement Financials, Human Resources (inc self-svc), Payroll On-time shipments increased from 79% to more than 97% Reduced total inventory 75% Reduced service operations cost structure by 50% “McDATA's challenge of growing international business operations can only be met with a flexible open system like Oracle E-Business Suite. Buying disparate "best-of-breed" applications requires costly and time-consuming integration services. Oracle offers a seamless, fully integrated, modular business solution.” – Don Wenninger, CIO

Global Distributor of insulated food and beverage containers, soft coolers, and lunch kits Live on 11i - Warehouse Management, Order Management, Financials, E-Business Suite On Demand - Saved 665K in one-time and 180K in annually recurring IT costs - On track to save 6.2M through efficiency gains for 222% ROI - Shortened monthly close from 6 days to 2 days “With more demanding on-time requirements, inventory accuracy is essential. With Oracle Warehouse Management we know exactly what product we have, and where, at any point in time and the accuracy level is so high that our auditors no longer require us to take a physical inventory." -- Mike Yeager, Director of Logistics Reduced inventory by 300K, expects to cut an additional 600K Raised warehouse labor productivity by 15%, expects to reach 29% 58

Leader in test devices, semiconductors, and chemical analysis tools – 7.18B revenue in FY04; customers in 120 countries; 29K employees Live on Oracle for global 24/7 operation – Quoting, Adv Pricing, Order Mgmt, iStore, Adv Supply Chain Planning, Purchasing, iSupplier Portal, Mobile Supply Chain Applications, Financials, Warehouse – Enterprise-wide implementation of Oracle Applications planned for: - 4 distribution Centers - 6 customer service centers - 37 manufacturing sites - 3 financial centers – 15K named users globally, 5K concurrent users, 100K concurrent requests daily – Entire semiconductor business on Oracle ERP - Runs optimized ASCP for 75K items & 6M resource requirements - Runs worldwide order mgmt and manufacturing operations using real-time synchronization to OSFM and constrained Global ATP - Manages over 1,000 shipments daily using Mobile SC Apps - First semiconductor company to use EDI-driven Oracle Release Mgmt for VMI - Met over 4,500 business requirements without any customizations

Oracle Wholesale / Distribution Solution Plan and Procure for Best Value Optimize Storage and Streamline Movement of Goods Attract and Retain Target Customers Maximize Product and Customer Profitability

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