Information Driven Selling Oracle Trade Management (Channel Management) Tisha Bocian Senior Solution Consultant.
Post on 31-Dec-2015
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Information Driven Selling
Oracle Trade Management (Channel Management)
Tisha BocianSenior Solution Consultant
Agenda
High Level Business Flow Trade Management Functionality
– Trade Planning– Budgets– Claims– Indirect Sales Planning
Revenue Recognition Solution Key Takeaways
VerifyPerformance
InvestigateClaim
Associate toEarnings
ProcessClaim
SettleClaim
ApprovalProcess
CloseClaim
DevelopMarketing
PlanMarket
Manager
Back-End OM Process
Book
Ship
Invoice
Financials
Issue ChecksCreate Credit Memo/
or On-Account Credit
Update G/L
CreateBudget for Campaigns
Create and Execute Brand
Campaign
Allocate Trade Budget to Sales
Hierarchy
Define Budget Eligibility
Rules
Create Trade Promotions
AccountManager
Develop Trade Mktg
PlanFund
Administrator
Rebate/Lump Sum
$10k Accrued
Trade Deal:5% Off-Invoice
5% Accrual
Buy OneGet One Free
Promo
OrderManagement
Offer,Free Goods,Discounts
Applied
5% AccrualPosted to
Checkbook and G/L
View Checkbook
ViewOrders
UpdateBudget
View Discounts
CClaim Lines:laim Lines:$10,000$10,000$1,500$1,500
Advise ARAdvise ARto Postto PostCreditCredit
DiscountsDiscountsPosted toPosted to
CheckbookCheckbook
Customer Remits Payment
Short Pays Invoice $11,500
Deduction is Created in AR
Customer Claims $10,000 Lump Sum and 5%
Accrual
Demand Planning
ProductForecast
General Ledger
PRICING
OrdersProcessed
viaTelesales
EDI orField Sales
A Complex Process
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
SolutionTrade Planning – Plan, Execute, Analyze
Budgeting – Plan, Monitor, Accurate Accounting
Claims – Identify, Collect and Manage Claims
Indirect Sales – Sales Dashboards, POS
BenefitsAutomate 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 PlanningDefinition
Account Manager Dashboard provides all the essential customer, product and sales information for planning, executing and monitoring sales activity.
Needs / IssuesSales 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.
Companies have a hard time tracking what they’re getting for promotional spend.
SolutionTop 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.
Understand and increase promotional ROI.
BenefitsPlan & 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 accrued budgets to be created and tracked at the GL level
Needs / Issues
Companies need to control their sales and marketing budgets
Marketing pushes budgets out to sales territories where they can lose visibility
Sabanes-Oxly demands better accounting of funds
Solution
Automated top down and bottom up budgeting
Budgets can be quickly allocated to the entire sales hierarchy
Integration to Oracle Financials to provide financial control over trade promotions
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 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 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.
Consumer electronics and Semiconductor companies have huge pains here
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.
BenefitsReduce 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
Receive POS
Data
Update
“Inventory Out”
New “Ending
Inventory”
Update
“Inventory In”
Disti Order
ShipsInvoice
Generates
Defer
Revenue
Update
“Inventory In”
New “Ending
Inventory”
Call AR API
Rev.Adj. API
Recognize
Revenue
Automate Reclass
(FIFO Basis)
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
Note: R12 will provide a more automated solution.
Report is Generated to Support a Journal Entry to Reclass Deferred COGS
Key Take Aways
Trade Management is a broad product offering Capture and monitor promotions such as special
pricing requests, ship & debits, rebates and price protection
Workflow-driven approval policies Capture and cleanse POS data Capture Distributor inventory levels Link liability via accrual into GL to ensure safe,
conservative accounting Automated claim & deduction management system Utilize POS as a trigger for revenue recognition
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