Oracle Global Trade Management An efficient integrated and
Oracle Global Trade Management An efficient, integrated and comprehensive Global Trade Compliance Solution for Emerson Overview for ITCG August 12, 2015
Oracle Global Trade Management Project Overview Emerson is performing a pilot implementation to lay the foundation of Oracle Global Trade Management (GTM) software to: Ø Support logistics operations Ø Implement Item Classification and Restricted Party Screening functions Ø To enable future adoption of advanced Trade Management functions Oracle Global Trade Management is a Module within Oracle Transportation Management that Corporate Logistics Uses to Operate the Supply Chain Optimization Program 2
GTM Support of Ocean Program • Single source for HTS Classification and Country of Origin data required for ISF (10+2) filing requirements • Global Item Master – Unique identifier for all parts across all business units Ø Created from integrated sales/purchase orders or via bulk uploads • Automated Restricted Party and Embargoed Country Screening for all Parties to Transportation Orders Implementation of GTM for the Ocean Program is being Funded and Supported by Corporate Logistics 3
Pilot Scope l Create Trade Items automatically in GTM based on OTM Order Transactions l Create Parties and Locations automatically in GTM based on OTM Order Transactions l Capability to Upload and Maintain Business Unit Item Masters and Item Classifications l Segregate Trade Data and Compliance Rules based on business units and/or their ERP l Support latest Restricted Party List and Classification Codes from Customs Info (Descartes) l Incorporate Emerson Grey List as part of Restricted Party Screening l Screen Customers, Suppliers and other parties on integrated transactions, thru GTM User Interface or via a Batch Screening Process l Flag Items Requiring Classification and Notify Users l Provide Workbench to review Restricted Party Screening Results l Publish Item Classification information to Brokers (Up to 2 formats) Pilot Business Units Are Emerson Tool Company (ETC) And Therm-O-Disc (TOD) 4
Capabilities Not in Pilot Scope • • Document Determination and Generation License Determination Integration with ERP Systems AES Filing and Customs Filings Screening in Multiple Languages Oracle Global Trade Intelligence for BI Reporting Placing Holds on Transactions or Shipments Additional Capabilities Will Require Prioritization, Sponsorship and Funding 5
Project Resources 6
Project Timeline ETC and TOD are participating in the pilot phase of the project. 7
Supply Chain Optimization System Supply Chain Optimization (SCO) System OTM Emerson ERP Systems (~50) Purchase Orders Sales Orders (existing connection) Emerson Transaction Hub (ETH) Global Transportation Planning and Execution for Ground, Air and Ocean Contract Rate Management and Inquiry Performance and Financial Reporting Carriers Existing New GTM Business Unit Managed Compliance Data and Screening Rules Product Classification Trade Transaction Compliance Rule Screening Trade Data Management Restricted Party Screening Workbenches and Monitors Restricted Party Lists Classification Rules and Data Classification Data (CSV or XML format) No Additional IT Requirements For The Business Units 8 Customs Info Brokers
Trade Management Processes Trade Master Data Trade Items Product Classification Lookup Trade Transaction Trade Location Restricted Party Screening Embargo Screening Product Classification Lookup Trade Data Content Process Legend: Automated Process Compliance Group Activity Review Restricted Party List Matches Restricted Party Screening Product Classification Assignment Product Classification Validation Monitors, Workbenches and Adhoc Screening 9 Review items with invalid or no classification Restricted Party Screening & Sanction/Embargo Territory Adhoc Screening
Trade Data Content • Includes: HTS Classifications, ECCN Classifications, Restricted Party List • GTM is Integrated to Customs Info to provide Product Classifications and Restricted Party Lists including MK Data content • Trade Data Content will be updated Daily from Customs Info • Emerson Grey List will be maintained by ITCG in GTM to support screening 10
Business Unit Data and User Setup • Active items will be converted into the BU GTM Database • GTM user access will be restricted to their current compliance role and responsibilities • Three levels of access for business unit users: Ø Compliance Management – Manage compliance rules, review screening matches and assign classifications Ø Compliance Staff – Review screening matches and assign classifications Ø Compliance Screening – Adhoc Screening • Level of access to be approved by business unit compliance officer 11
GTM Pilot Implementation Screening Phases • Master Data and Transaction Screening: • Comprehensive master file party and location screening will be done monthly • Screen all purchase orders and sales orders from the ERP systems Ø Restricted Party – Ship From and Ship To involved parties Ø Sanction/Embargo - Ship From and Ship To Ø Conduct Product Classification Lookup • Screen all SCO order releases at the time of shipment creation Ø Restricted Party - Ship From and Ship To involved parties Ø Sanction/Embargo - Ship From and Ship To involved parties Ø Conduct Product Classification Lookup • Updated Transaction Screening: Ø Purchase Orders, Sales Orders and SCO Order Releases will be screened upon the following changes: Ø Ship From, Ship To, Items and Quantity 12
Trade Item Management • Multiple Item Classification codes can be assigned to an item Ø HTS Ø ECCN Ø Schedule B • Customs description will be stored against the item • Country of Origin (COO) will be stored against the item • Item Classifications are constantly monitored for validity Ø Invalid classification codes are identified via the classification status 13
Trade Item Engineering Description Customs Description 14
Trade Party and Location Management • GTM has the ability to screen all parties against a published Restricted Party List • Restricted Party data is updated on a frequent basis in order to provide constant due diligence • Automatic Restricted Party Screening significantly reduces risk when dealing with new and current suppliers and customers • Screening occurs: Ø Automatically when new parties are created in GTM Ø Automatically on a monthly basis for all existing parties in GTM Ø On Demand for Adhoc Screening of Single Parties 15
Restricted Party Potential Matches Company Name and Country are used from the Trade Transaction to screen for Restricted Party Matched against the Emerson Grey List The Minimum Standard For The Match Factors To Be Defined By Corporate ITCG 16
Trade Transaction Management • Product Classification Lookup Ø Ensure the required classification is captured on the transaction • Restricted Party Screening Ø Screen all parties and locations on a transaction upon creation • Sanction/Embargo Screening Ø Identify transaction which involve a party from an embargoed country 17
GTM Transaction Workbench The GTM Transaction Workbench Will Be The Primary Tool For Reviewing And Clearing Transaction Matches 18
Adhoc Process in GTM • Restricted Party Screening Ø Allows the user to screen suppliers and customers prior to conducting business • Sanction/Embargo Territory Screening Ø Allows the use to screening a particular country to determine if it is a Sanctioned or Embargo country Ø Screening can be done prior to creating a purchase order and/or sales order 19
Adhoc Restricted Party Screening 20
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Roles and Responsibilities Matrix - Draft Corporate Logistics ü Implement and support GTM software and platform including integration with Emerson Transaction Hub (ETH) and Trade Data Content Source ITCG ü Maintain the Emerson Grey List ü Provide minimum restricted party screening standards ü Phase in each Business Unit onto the GTM platform ü Provide ongoing one-on-one training for the compliance superuser ü Enhance the GTM software capabilities as part of the overall SCO solution ü Implement compliance business processes based on GTM functionality ü Develop initial GTM training material ü Participate on steering committee to prioritize and sponsor new capabilities ü User Management 22 Business Unit Compliance ü Provide item master with all necessary compliance information ü Provide a list of users and roles (to be approved by the compliance officer) ü Conduct day-to-day compliance activities using GTM such as product classifications and review of restricted party matches ü New users will need to complete training on business processes and system functions
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