Integrating Global Trade Management

into Your Order Management System

David Morgenstern
Kewill
Order Management Integrated Global Trade Management:

Provides compliance screening prior to order acceptance, and proper

trade documentation (including international carrier manifesting) for
shipment, driven directly through an Oracle interface.
What does Global Trade Management require?

• At time of order receipt

– Screen individuals
– Confirm Trade status of country of destination
– Check embargo status of goods
– Retain status of checks to support Trade Audit requirements

• At time of distribution (if time lapse between order and shipment)

– Re-screen all above elements
– Complete appropriate documentation set for country (inc. customs,
census, regulatory agency filings
– Manifest shipment appropriately
 Why would you need a system to do this?

• Denied Persons List BIS, Commerce Dept.

• Entity List BIS, Commerce Dept

• EAR General Orders BIS, Commerce Dept.

• Unverified List (BIS Red Flag) BIS, Commerce Dept.

• Debarred Parties List DDTC, State Dept.

• Other Weapons Proliferation Sanctions Bureau of Political-Military Affairs,

State Dept.

• Specially Designated Nationals

• Terrorists, Narcotic Traffickers and the other Blocked Persons OFAC,

Treasury Dept

• Foreign Terrorist Organizations State Department

• Convicted Factories Customs, Homeland Security Department

• Foreign Entities violating Textile Transshipment and Country of Origin

Customs, Homeland

• Primary Money Laundering Concern Institutions List Treasury

Department

• Australian Department of Foreign Affairs and Trade (DFAT)

• Monetary Authority of Singapore (Anti-Terrorism Measures

• United Nations Security Council Al-Qaida/Taliban Sanctions (UN)

• OSFI Consolidated List (Individuals & Entities) Canada

• OSFI Cumulative Warning List Office of the Superintendent of Financial

Institutions Canada
•
• Combating Terrorism List Council of the European Union EU/UK
 Process improvements could be a significant driver…

Order
Be
Management for
e-
Legal 3 to 5
Ho
Order urs
Management , Min
imu
Shipping
m
Accounting

Int’l Carrier

Accounting

Shipping
Often, days or weeks to complete process
…as cycle time improvements can be dramatic.

After –
3-5 Minute Turnaround

Order
Shipping
Management
Most build systems to provide Audit support…
As the risk of not addressing the problem is
increasing…

• Budgeted Enforcement Expenditures are

increasing –
– Agency revenues have risen $7 for every $1
spent on enforcement

• AES will enable faster identification of non-

compliant organizations

• Domestic as well as International Names

must be checked

• Fines and Penalties (Administrative and Criminal)

– Up to 10 Years in Prison
– $250,000 per person
– $500,000 per organization
– $11,000 per administrative violation
How Can Your Oracle Deployment Support Global Trade
Management?

• Oracle standard workflow

• ITM can be configured within a day
• For DPS, no programming necessary
• Centralize all screening activities around Oracle
• Makes use of export compliance process and
functionality already built into Oracle
• Audit trial maintained in Oracle Export Compliance
Workbench
Components of the Solution

Oracle ITM Adaptor

International Screening

International Documentation

Multi-Carrier Parcel Shipping

Oracle ITM Adaptor

• Oracle provided tool to interconnect Oracle

eBusiness Suite to Trade Compliance Solutions

• Automates and Streamlines Regulatory

Compliance and Logistics Processes

• Leverages Existing data (eliminates duplicate

data entry)

• Packaged as part of the 11i eBusiness Suite

International Screening

Denied Party, Country, and Goods Screening

Can happen multiple times in order process:
Receipt of Order
Shipment of Goods
High Integration Need into/out of Oracle11i:
Order Management (consignee name and country for screening)
Distribution system (final screen checks before shipment)

Currency is critical to demonstrable/auditable Compliance

 Future Plans
International for Enhancement
Documentation

Documentation sets vary by Country

High information requirements for document completion
Identification of goods
Tariff Applicable
Requisite License information

High Integration need into/out of Oracle 11i

Order Entry (country of distribution)
Distribution (Alignment of documentation sets JIT with shipment)

Creation/Integration of documents at point of shipment

accelerates revenue recognition
Global Parcel Shipping

Must Incorporate Worldwide Business Rules

Customer directed
Time-in-Transit
Carrier Specific
Ground vs. Air

High integration need into/out of Oracle 11i:

Order Management (customer carrier/service selection)
Inventory (Item Deductions)
Customer Service (Shipment Tracking)
Accounting (Revenue Recognition)

Coordination of executables (documentation and labels) and

internal data (status and tracking) comprise integration elements
How To Integrate GTM Into Order Management

• Use Oracle’s own GTM Out of the Box

functionality, the International Trade
Management Adaptor (11.5.10 and up)

• If below 11.5.10, use XML messaging or other

solution
Overview of Oracle GTM
Technical Details

• ITM comes with pre-configured export

compliance workflow
• You can create an order type or modify an
existing order type to use workflow
• ITM Posts an XML message HTTP or HTTPS
ITM Workflow
ITM Messaging

• Oracle ITM Adaptor sends XML messages

according to “trigger points” in the workflow

• Oracle XML Gateway receives and parses

response from partner system, and takes
appropriate “action” if there are compliance
issues
ITM Messaging
Security

• All XML messages are sent via HTTPS

• You can indicate that all posts will go through

and come from a proxy server
Phasing of ITM

• Oracle is taking a phased approach to

providing Export/Import compliance
functionality

• We are currently in Phase 1

Phased Rollout
Non-ITM integrations

• Customers who might not use ITM:

– Below 11.5.10
– Customers whose needs cannot be met by the ITM
workflow

• These customers can still integrate with an

export compliance system

• Oracle would be “tweaked” so as to output an

XML file at desired trigger points
ITM Export Compliance Screen Shot
Order Management Screen (integrated ITM)
Order Management (with screening notification)
Benefits of an Oracle Integrated Global Trade
Management System
• Reduced Cost
• Minimize resources required to meet compliance needs

• Improved Cycle Time

• Processing time for compliance can be reduced by 50% or more

• Extend Scalability
• In-line deployment can scale to meet needs without adding resources

• Audit Support
• Clear, consistent articulation of standards utilized to meet compliance obligations
across the enterprise
Integrating Global Trade Management
into Your Order Management System

David Morgenstern
Kewill