Agenda

1

3 How Oracle Supply Chain Brings Value

2 Current Trends & Challenges

5 Q&A

4 Where are we headed?

1 Supply Chain & AI Foundation Overview

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The Platform for Modern Retail

Retail Home

Oracle Cloud Infrastructure / Next-Gen Architecture STORAGENETWORKING COMPUTE CONTAINER ORCHESTRATIONCONTAINERS

Retail Reference

Model

Business Process Flows

Glossary

Technical Models

Retail AI Foundation

Forecasting Engine

Affinity Analysis

Profile Science

Customer Decision Trees

Demand Transference

Innovation Workbench

Attribute Extraction

Advanced Clustering

Customer Segmentation

Retail Cloud Services

Merchandising

Inventory Operations

Brand Compliance

Planning

Store Operations

Order Broker

Analytics

Order Management

Supply ChainCustomer Engagement

Retail Extensibility

Low-code App Development

REST Data Services

Cloud Extensions

Retail Data Store AUTONOMOUS DATA WAREHOUSE DATA MANAGEMENT RETAIL SCHEMA EXTENSIONSPACKAGED RETAIL SCHEMAS

BUSINESS KPI’S ADMINISTRATIVE MONITORING NOTIFICATIONSSERVICE PORTAL

Copyright © 2022, Oracle and/or its affiliates

Copyright © 2022, Oracle and/or its affiliates3

Oracle Retail Analytics & Planning

Affinity Analysis

Profile Science

Customer Decision

Trees

Demand Transference

Innovation Workbench

Attribute Extraction &

Binning

Advanced Clustering

Customer Segmentation

Merchandise Financial Planning

Assortment Planning

Assortment & Space

Optimization

Promotion & Markdown

Optimization

Offer Optimization

Inventory Optimization

Retail Insights

Demand Forecasting

Forecasting Engine

16.6% 2021 Return rate vs. 10.6% in 2020

60% Average turnover in retail

+8.3% Increase in Annual Inflation Rate

+ 65 index point Increase in truckload spending

Copyright © 2022, Oracle and/or its affiliates5

What’s New RDF v22 – Enhanced Forecasting

Returns Forecasting

Clustering

AI Foundation

16.6% 2021 Return rate vs. 10.6% in 2020

Model Training Period Forecast Horizon

Trends & Seasonality

Slow Seller- Intermittent Demand Demand

Machine Learning & Time Series Forecasting

Forecast HorizonModel Training Period

Prepare Reference

Data

Estimate Demand

Parameters

Forecast & Evaluate

Model Performance

Select Best Fit Model

Refit over entire history

& Generate Forecast

Automated Analytical Engine

ü Trends & Seasonality ü Out of Stocks ü Events ü Promotions ü Outliers

Trends & Seasonality ü Out of Stocks

Events Promotions

ü Outliers

RDF Algorithm Evolution

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RDF Algorithms v13 v16 v19 v21

Regression Trees ● Decision Trees ● Random Forrest ● Neural Networks (Returns) ● Gradient Boosting (Returns) ● ML Cluster Generation for Forecast Model Training ● ● Ridge Regression ● ● Forecast Ensemble (Blended Forecast) ● ● TensorFlow Extensibility ● ● Lost Sales ● ● ● ● Simple Exponential Smoothing ● ● ● ● Holt Exponential Smoothing ● ● ● ● Additive Winters: Triple Exponential Smoothing ● ● ● ● Multiplicative Winters: Triple Exponential Smoothing ● ● ● ● Croston’s Intermittent Demand ● ● ● ● Simulation Based Parameter Optimization ● ● ● ● Average ● ● ● ● Bayesian ● ● ● Stepwise Regression ● ● ● Seasonal Regression ● ●

● New Introduction

● Significant Enhancement

● Same from Previous Version

On Prem

On Prem

RDF Capability Evolution

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Capability v13 v16 v19 v21

Workflow

Exception Based Workflow ● ● Responsive Scorecards & Dashboards ● ● What-if Analysis ● ● ● New Item Automation ● ● Jet UI Client (Look and Feel) ● ● ●

Forecast Calculation

Escalation & Pooling ● ● Anomaly Detection & Correction ● ● Model Transparency ● ● Demand Transference ● ● Extensibility ● ● Flexible Source Level Groupings ● ● ● Markdowns ● ● Price Elasticity ● ● ● Promotion Effects ● ● ● ● Promotion ● ● ● ● Price Discounts ● ● ● ●

● New Introduction

● Significant Enhancement

● Same from Previous Version

On Prem

On Prem

16.6% 2021 Return rate vs. 10.6% in 2020

60% Average turnover in retail

+8.3% Increase in Annual Inflation Rate

+ 65 index point Increase in truckload spending

Copyright © 2022, Oracle and/or its affiliates10

What’s New RDF & Inventory Optimization– Automation & Smarter Merchandising

SLC/LLC Simplification

Rules Library

Science Setup

Merch video

60% Average turnover in retail

16.6% 2021 Return rate vs. 10.6% in 2020

60% Average turnover in retail

+8.3% Increase in Annual Inflation Rate

+ 65 index point Increase in truckload spending

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Demand Transference Science Drive Product Substitutions & Assortment Rationalization

Item 1 Item 2 Item 3 Item 4

Unique Demand Substitutable Demand

Item 1 Item 2 Item 3 Item 4

Unique Demand Substitutable Demand

Transferred Demand

62% Current accuracy for department with frequent assortment changes

80% Accuracy with next generation RDF paired with Demand Transference science

Learn customer preference

Adapt to assortment and availability

Exploit AI to manage speed and scale

+8.3% Increase in Annual Inflation Rate

16.6% 2021 Return rate vs. 10.6% in 2020

60% Average turnover in retail

+8.3% Increase in Annual Inflation Rate

+ 65 index point Increase in truckload spending

Copyright © 2022, Oracle and/or its affiliates 14

Inventory Optimization Optimize Purchase Orders & Re-balance Trapped Inventory

Review

Analyze

Adjust

+ 65 index point Increase in truckload spending

The Value of One Transforming Inventory Precision

$ 1

.0

$ 1

.3

Net Revenue $ Power of One Net Revenue $s

$1.020

$1.010

$1.000

$1 Billion retailer, AUR $36, 30% markdown revenue

-1 +1

$ B

ill io

ns

Customers typically see anywhere from

2 – 4 day improvement

Ø Robust Analytical & Machine Learning Techniques Ø Optimization Ø Automation Ø Scalability Ø Integration

+ $2,500,000 One time benefit for 1 day reduction in inventory *unconstrained