Managing The Indirect Sales Channel

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Managing The Indirect Sales Channel
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The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into
any contract. It is not a commitment to deliver
any material, code, or functionality, and should
not be relied upon in making purchasing
decisions.The development, release, and timing
of any features or functionality described for
EBSs products remains at the sole discretion of
EBS.
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Agenda
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• Introductions
• Challenges
• Oracles Trade Management Solution
• Key Product Capabilities
• Roadmap
• Questions

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Channel Management Challenges
Sales to Customer, Resellers , Distributors,
Retailers
Some Distributors are also Customers
Need to track Complex Rebates and Volume
Incentives
Regulatory Compliances
Account for my Rebates
Customers buy from multiple sources
Need to track Buy Side and Sell Side Activity
POS Communication via EDI and files
Need to Process Claims and Deductions
Need to know Revenue and Liabilities
Need to Cleanse and validate POS Data
Sales Data comes from Direct and Indirect Sales
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A Need for ChangeLeading Business Trends

• Increasing manufacturer-channel collaboration
• Customer investments based on total cost to serve
• End-to-end solution across Finance, Supply Chain
  CRM
• Strong internal controls to comply with
  regulations
• Single, integrated view of customers products

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The Oracle EBS Channel Solution

• Oracle Marketing
• Oracle Sales
• Quoting
• iStore
• Trade Management
• Budgets Management
• Pricing
• Rebate Management
• POS Management
• Claims and Settlement
• Order Management
• Pricing
• Inventory
• Financials
• Customer Data Hub

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Oracle Trade Management Channel Solution
Footprint

• Budgets/Funds
• Offers/Pricing
• POS Management
• Deductions Settlement
• Integration with Financials

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Budget PlanningSet Foundation for Tracking
Spending
Business Flow
Benefits

• Centralized view of trade budgets
• Controlled trade spending

• Support for all budget processes
• Shorter time to distribute funds

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Complete Set of Budgeting CapabilitiesImprove
Administration Flexibility and Effectiveness

• Support Key Budget Types
• Fixed
• Fully accrued
• Manage Budgets at Multiple Levels
• Territory
• Buying groups
• Customers
• Configure Alerts for Potential Overspend and
  Underspend
• Automate Allocation to Sales Hierarchy
• Enable Top-Down Bottom-Up Budgeting

• Sites
• Product family
• Products

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Oracle Trade Management Provide Visibility to
Budgets
Program Checkbook
Rollup View
Fund Balances

• Total
• Planned
• Committed
• Utilized
• Earned
• Paid

Hierarchy Tree
Customer Checkbook
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Example Budget Hierarchy ViewTrack Total
Spending and Accrual Levels
All balances, withdrill-downs to details
N levels ofbudget hierarchy
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Oracle Trade Management Channel Solution
Footprint

• Budgets/Funds
• Offers/Pricing
• POS Management
• Deductions Settlement
• Integration with Financials

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Comprehensive Program TypesProvide Multiple
Pricing Options to Users
Complete Integration to Pricing Order Management
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Comprehensive Volume PricingComplex Discount
Programs

• Define Pricing Agreements
• Specify discount eligibility by customer,
  product, market, date
• Define discount tiers by quantity,dollar amount
• Define discount amount by percent,dollar amount
• Create combined volume offers
• Simplify Administration
• Create all volume offers for customers from a
  single screen
• Assign a volume offer for a product to one, many,
  or all customers
• Support direct and indirect sales

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Promotional PlanningPlan and Analyze Before
Execution
Business Flow
Benefits

• Avoid unwarranted discounting
• Promote to the right customers with the right
  products
• Ensure effective use of budget

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Account Manager Dashboard PlanningEnable
Account-Level Planning
Set sales target
Find past offers to baseline new offers
View promotiongaps overlaps
View all planned and current promo activities
Forecast revenues and expected ROI
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ROI ProjectionCalculate Expected Net Impact of
Promotional Spend

• Integrate with3rd party demand forecast systems
  to calculate baseline sales and lift
• Automatically retrieve cost of goods fromERP
  system
• Calculate ROI based on sales forecast

Promotional ROI
Impact of Discount
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Account Manager DashboardEvaluate Account and
Product-Level Performance
Sales vs. quotas across multiple timeframes
Sales trend andyear-to-year comparison
Action alerts triggered bysales target thresholds
Performanceby account
Performanceby product
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Comprehensive AdjustmentsTotal Flexibility
Adjust promotion rate for pastsales orders based
on customerpurchase volume
RetroactiveAdjustments ManualAdjustments Automat
icAdjustments FundReconciliation FundTransfers
Make ad hoc changes,e.g., for a missed activity
Adjust promotion rate,e.g., for scan-through
performance
Identify underspent funds andreturn them to
available budget
Identify underspent funds andtransfer them to
other promotions
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Complete Funds Tracking ProcessProvide
Visibility into Expense and Liabilities
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Workflow Driven Approval ProcessProvide a Strong
Internal Control System
Workflow Engine
Trigger

• Budget creation
• Budget allocation
• Promotion fund request
• Promotion adjustments
• Claim settlement

Outcome

• Automated approvals
• Complete audit trail

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Oracle Trade Management Channel Solution
Footprint

• Budgets/Funds
• Offers/Pricing
• POS Management
• Deductions Settlement
• Integration with Financials

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Oracle Channel Management Indirect Sales Accrual
and Sell - Through
Indirect Sale
Sale
DistributionChannel
Manufacturer
End Customer
Import CleansePOS Data
Indirect Sales(POS) Data
XML, EDI E-Mail, Other

• Run pricing simulations
• Validate compliance to pricing agreements
• Validate against special pricing requests

IdentifyApplicablePromotions
Claims
ProgramPayments
Outputs
IndirectSalesData Table
Indirect JE/Accruals
Provide Incentive to Both Distribution Channel
and End Customer
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Channel Inventory TrackingVisibility into
Channel Inventory
Track inventory throughput
View channel inventory by account
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Oracle Trade Management Channel Solution
Footprint

• Budgets/Funds
• Offers/Pricing
• POS Management
• Deductions Settlement
• Integration with Financials

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Oracle Trade Management Claims and Deduction
Process
Business Flow
AssignOwner
Approve Settle
AdjustFinancials
CreateClaim/DED
Research
Benefits

• Minimize the cost and time required to clear
  claims deductions
• Identify and collect invalid claims
• Proactively prevent deductions
• Efficiently process promotional payments

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Research and Administration ToolsEfficiently
Investigate Deductions
Track Claims Aging
Manage Task

• Configurable aging buckets

• Team access

• Task assignment

Look Up Information
Assign Owner
Categorize Issue
FindDuplicates
SplitClaim

• Flexible assignment(by territory, other)

• By claimtype
• By claimreason

• Multi-level split

• Search by customer reference number

• Ad hocreporting
• Promotionalaccrualssearch

Document Investigation
Maintain Audit Trails

• Notes and attachments

• Change history

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Automated SettlementReduce Resolution Cycle
Automatically create Credit, Check,
RMA,Write-Off, Chargeback, Debit, On Account
Cash, Contra Charge for claims below set
threshold amount
AutoResolution
Issue periodic payments based on
customerpreferences to proactively minimize
deductions
Auto Pay
Resolve multiple claims at once by
offsettingdeductions and overpayments
MassSettlement
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Oracle Trade Management Channel Solution
Footprint

• Budgets/Funds
• Offers/Pricing
• POS Management
• Deductions Settlement
• Integrations with Financials, OM and Pricing

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Integration with ReceivablesStreamlined
Deduction Process

• Claim number
• Reference

• Reason

Applycash with discrepancies
Create andassign claims
Researchand approve
Receive cashfrom customer
Createand applytransactions
Adjust AccountsReceivable
Settle Claims
Close claims with transaction numbers
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General Ledger PostingsAccuracy and Compliance
Sales Orders Claims
Accrual Engine
GeneralLedger

• Direct Sales
• Indirect sales (POS)
• Chargebacks
• Net sales calculations
• Scan data offers
• Lump sum offers
• Retroactive adjustments
• Other adjustments

• Post accruals and claims to GL with option to
  post off-invoice promotions
• Account for promotion as a reduction in revenue
  or as an expense

Apply Proper Accounting Rules Minimize Financial
Risks with Upfront Accruals
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Workflow Driven Approval ProcessProvide a Strong
Internal Control System
Workflow Engine
Trigger

• Budget creation
• Budget allocation
• Promotion fund request
• Promotion adjustments
• Claim settlement

Outcome

• Automated approvals
• Complete audit trail

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Oracle Channel Management Suite Roadmap
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Oracle Trade Management

• Product Growth
• Enhanced Trade Profiles
• Optional Supplier Ship Debit
• Distributor Price Protection Spawned from TM
• Product Evolution and Split
• Accounts Receivable Deductions and Claims
• Advanced Rebates POS Management
• POS Inventory Enhancements
• POS Based Revenue Recognition

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Supplier Ship Debit
Manage Disputes Payments
Request Special Price
Track Accruals
Vendor Claim/ Bill Back

• Compile accruals generate Claims
• Transmit Claims to Supplier via XML or WebADI

• Request New Price from Supplier
• Receive Supplier approval/ authorization

• Record Accruals
• Generate Accurate Accounting

• Resolve Disputes
• Issue Debit/Invoice to Suppliers

Oracle Supplier Ship and Debit enables
Distributors across Industries to more quickly
and intelligently respond to market conditions by
automating special price requests to Suppliers.
The solution is geared towards reducing the cost
of managing special pricing agreements and to
provide greater visibility into the claiming
process
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Price Protection
Integration Points

• Procurement
• Warehouse / Inventory
• Costing
• General Ledger
• Accounts Payable
• Accounts Receivable

Oracle Price Protection is integrated out of the
box with Oracle EBS
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Channel Management Meeting Challenges with Trade
Management
CHALLENGES
CAPABILITIES
VALUE

• Budget and Quota allocation
• Account Manager Dashboard for sales analysis
• Promotional Lift calculation based on Third Party
  data.
• Backdated adjustments and retroactive pricing
  capability
• Indirect Sales data tracking and third party
  accruals
• Integration flows for partner fund management and
  Special Pricing
• Mass settlement and Auto Pay capability
• Automated Claim creation and settlement processes

• Increasingly complex business processes
• Effective allocation of funds to promotional
  activities
• Increased focus on forecasting and performance
  tracking capability
• Complex Accrual Processes and Adjustment
  requirements
• Channel and Indirect Sales data visibility and
  tracking
• Increased cost of Claims and Dispute investigation

• Increased sales efficiency and effectiveness
• Streamlined Fund and Quota Management process
• Ability to manage complex pricing programs
• Monitor promotion performance and control
  promotional exposure
• Effective liability tracking based on direct and
  indirect sales data
• Visibility into channel inventory
• Minimize claim investigation and processing costs

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The Oracle EBS Channel Solution

• Oracle Marketing
• Oracle Sales
• Quoting
• iStore
• Trade Management
• Budgets Management
• Pricing
• Rebate Management
• POS Management
• Claims and Settlement
• Order Management
• Pricing
• Inventory
• Financials
• Customer Data Hub

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QA