Oracle Trade Management Channel Management Information Driven Selling

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Oracle Trade Management (Channel Management) Information Driven Selling Tisha Bocian Senior Solution Consultant

Oracle Trade Management (Channel Management) Information Driven Selling Tisha Bocian Senior Solution Consultant

Agenda Ÿ High Level Business Flow Ÿ Trade Management Functionality – – Trade Planning

Agenda Ÿ High Level Business Flow Ÿ Trade Management Functionality – – Trade Planning Budgets Claims Indirect Sales Planning Ÿ Revenue Recognition Solution Ÿ Key Takeaways

A Complex Process Develop Marketing Plan Create Budget for Campaigns Market Manager Develop Trade

A Complex Process Develop Marketing Plan Create Budget for Campaigns Market Manager Develop Trade Mktg Plan General Ledger Buy One Get One Free Promo Account Manager Create Trade Promotions Demand Planning Advise AR to Post Close Credit Claim Approval Process Settle Claim Offer, Free Goods, Discounts Applied PRICING via Telesales EDI or Field Sales Allocate Trade Budget to Sales Hierarchy Create and Execute Brand Campaign Product Forecast Fund Administrator Define Budget Eligibility Rules Orders Processed Order Management Trade Deal: 5% Off-Invoice 5% Accrual Rebate/ Lump Sum $10 k Accrued Process Claim Investigate Claim Lines: $10, 000 $1, 500 Verify Performance Associate to Earnings Back-End OM Process Financials Issue Checks Book Create Credit Memo/ or On-Account Credit Update G/L 5% Accrual Posted to Checkbook and G/L Customer Claims $10, 000 Lump Sum and 5% Accrual Customer Remits Payment Short Pays Invoice $11, 500 Deduction is Created in AR Ship Invoice View Checkbook Update Budget View Orders View Discounts Posted to Checkbook

Trade Management: Trade Management Definition A business process by which manufacturing companies manage their

Trade Management: Trade Management Definition A business process by which manufacturing companies manage their trade promotions, budgets, claims and deductions, and indirect sales Needs / Issues Industries: CPG, Consumer Goods, High Tech, Food & Beverages, Healthcare, Household Goods Solution Trade Planning – Plan, Execute, Analyze Budgeting – Plan, Monitor, Accurate Accounting Claims – Identify, Collect and Manage Claims Indirect Sales – Sales Dashboards, POS Benefits Automate sales processes. Plan & execute trade promotions w/ measurable ROI. Gain visibility into trade fund usage, liabilities, and expenses. Automate claim & deduction settlement process. Manage indirect sales data.

Trade Management: Trade Planning Definition Account Manager Dashboard provides all the essential customer, product

Trade Management: Trade Planning Definition Account Manager Dashboard provides all the essential customer, product and sales information for planning, executing and monitoring sales activity. Needs / Issues Sales targets need to be allocated and tracked. Target promotions need to be forecast based on historical sales. Sales people need to target their customers with specific promotions. Solution Top down bottom up sales target allocation enables the sales force to be able to set fair sales targets more quickly. Alert thresholds are rules that companies can set to alert sales people of bad sales performance. Reports which continuously track the sales by account and product. Companies have a hard time tracking what they’re getting for promotional Understand increase promotional ROI. spend. Benefits Plan & execute trade promotions w/ measurable ROI. Increase sales force efficiency, so they can sell more. Sales people can make better decisions on their sales strategies and promotions.

Trade Management: Budgets Definition To support budget planning the application allows fixed or fully

Trade Management: Budgets Definition To support budget planning the application allows fixed or fully accrued budgets to be created and tracked at the GL level Needs / Issues Solution Companies need to control their sales Automated top down and bottom up budgeting and marketing budgets Budgets can be quickly allocated to the entire sales Marketing pushes budgets out to sales territories where they can lose hierarchy visibility Integration to Oracle Financials to provide financial Sabanes-Oxly demands better control over trade promotions accounting of funds Robust fund engines calculate and track the promotional expenses or accruals Benefits Gain visibility into trade fund usage, liabilities, and expenses. Better planning for better control on budget usage and target trade spending

Trade Management: Claims Definition Provides a central repository for all claims, whether they are

Trade Management: Claims Definition Provides a central repository for all claims, whether they are due to promotions, shipping, pricing errors or other reasons. Provides tools to support claims research. Needs / Issues Many companies write off large $ Manual effort needed to research claims and settle Auto creation of deductions and overpayments through lockbox Settle multiple claims at once Solution Lockbox integration Subsequent receipt application Flexible rules for routing claims Reason code mapping Threshold limits for write offs Mass settlement Discoverer reports for researching Pay over earnings Claims aging view Benefits Shorten Claim Cycles Reduce costs of researching and the settlement claims Automate processes

Trade Management: Indirect Sales Planning Definition Indirect sales support for accrual type offers, chargeback

Trade Management: Indirect Sales Planning Definition Indirect sales support for accrual type offers, chargeback or ship & debit promotions and special pricing requests including POS data. Needs / Issues Capturing indirect sales from distributors/resellers is manual. Difficult to track inventory at distributor or reseller site POS data often needs to be cleansed and validated manually. Solution Support third party accruals, chargeback or ship & debit and special pricing requests. Import POS data with integration to TCA for data checking and cleansing. Automate payments based on submitted POS data. Consumer electronics and Semiconductor companies have huge pains here Benefits Reduce manual steps when receiving, analyzing and paying on indirect sales data. Provide accurate data by checking completeness, mapping data and reducing duplications. Process payments automatically.

Revenue Flow Disti Order Ships Invoice Generates Defer Revenue Automate Reclass (FIFO Basis) Recognize

Revenue Flow Disti Order Ships Invoice Generates Defer Revenue Automate Reclass (FIFO Basis) Recognize Revenue Rev. Adj. API Update “Inventory In” New “Ending Inventory” Call AR API Update “Inventory Out” New “Ending Inventory” Receive POS Data

Recognize Revenue Upon Sell-Thru By Utilizing Revenue Adjustment API Utilize to Trigger Reclass from

Recognize Revenue Upon Sell-Thru By Utilizing Revenue Adjustment API Utilize to Trigger Reclass from Deferred to Realized via Revenue Adjustment API

Reporting Solution to Match Deferred Revenue with Deferred COGS Report is Generated to Support

Reporting Solution to Match Deferred Revenue with Deferred COGS Report is Generated to Support a Journal Entry to Reclass Deferred COGS Note: R 12 will provide a more automated solution.

Key Take Aways Ÿ Trade Management is a broad product offering Ÿ Capture and

Key Take Aways Ÿ Trade Management is a broad product offering Ÿ Capture and monitor promotions such as special pricing requests, ship & debits, rebates and price protection Ÿ Workflow-driven approval policies Ÿ Capture and cleanse POS data Ÿ Capture Distributor inventory levels Ÿ Link liability via accrual into GL to ensure safe, conservative accounting Ÿ Automated claim & deduction management system Ÿ Utilize POS as a trigger for revenue recognition