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

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