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Comprehensive Trade Management - Oracleopnpublic/... · and transforms the role of the sales force . ... analysis Trade Promotion Management-Account management-Execution of ... ORACLE

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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 decision. The

development, release, and timing of any features

or functionality described for Oracle’s products

remains at the sole discretion of Oracle.

Safe Harbor Statement

Rob Hand, Director, Consumer Goods Industry Strategy

Comprehensive Trade Management

Oracle Trade ManagementDefinition

• Oracle Trade Management is …

• An end-to-end cross-functional process that optimizes the profitability of trade relations, drives account and category performance and transforms the role of the sales force

Oracle Trade ManagementCapabilities

• Oracle Trade Management allows you to …• Integrate marketing and brand management, sales account management and field sales management into a single end-to-end trade management process

• Transform the role of the sales force, from order taking to business management

• Use predictive promotion planning and optimization to create the"best possible" trade promotions

• Proactively manage the execution of trade promotions, using real-time alerts based on key performance metrics

• Measure promotion performance in near real-time

• Support the end-to-end retail execution process

• Leverage a repository of downstream retail data to optimize account and category performance

• Provide accurate and current sales volume plans into the Sales &Operations Planning process

Oracle Trade ManagementSolution Components

SalesCustomers Products PromotionsMarketing Finance Demand

Brand and Marketing Resource

Management

- Brand management

- Integration to marketing campaigns

- Market/ account segmentation

- Consumer/ shopper insights

Advanced Trade

Planning

- One consensus plan across all functions

- Promotion simulation and optimization

- Lift decomposition

- Account profitability development

- Post-event analysis

Trade Promotion

Management

- Account management

- Execution of trade promotions

- Claims and deductions management

- Integration to program and business rules and compliance

Retail Coverage

Planning & Execution

- Annual coverage and cycle planning

- Objectives planning process

- Route management

- Visit scheduling process

- Store execution process

Demand Signal

Management

- Capture of near-real time sales and inventory data

- Capture of third party data

- Category management insights

- Retailer and supplier performance scorecard

Financial Management

- Integration to claims and deductions processing

- Interface with financial planning and analysis

- Linkage to order entry and invoicing

Supply Chain Management

- Demand management

- Advanced forecasting and demand modeling

- Sales and operations planning

- Demand and supply balancing

- Visibility to supply constraints

Analytics and Business

Intelligence

End-to-End Comprehensive Trade Management Solution

- Integrated source of data across all functional areas

- Interactive user-positioned dashboards

- Detailed reports with top to bottom drill down capability

- Intelligent insights and decision support

Comprehensive Trade ManagementProcess Elements and Flow

Annual Planning Annual Planning

Execution Execution

Planning -Store

Planning -HQ

Financial Planning

Planning Round One Planning Round Two

RE Coverage Planning

Fund, Demand & Ops Plan

Validate & Update

Plan

Executive Approval

RE Cycle Planning

Retail Execution Promotion Execution

Top Down Sales Planning

New Product Introduction

Audit & Settlement Analysis

Account Planning

Bottom Up Planning

On-site Call & Merchandising

Settlement –

Claims

Settlement –

Deductions

Executive

Plan Mgmt

Execute Trade Plan

Manage Trade Plan

Brand & Category

Mgmt

Final Updates

Comprehensive Trade ManagementFeatures and Benefits

• A financial planning foundation that identifies the immediate

impact, reconciliation and response to trade channel activities.

• Real time, precise and trustworthy data that fuels brand and

category plans and enables appropriate reaction to change.

• High-level account plans that identify future promotions.

• Predictive promotion simulation that estimates profitability for

both trading partners.

• Coordination of advertising campaigns with account

promotions, leveraging marketing materials.

• Visibility to constraints such as product requirements, shipping

windows and potential reserve needs.

• Collaborative power to become a key partner with the trade

channel’s most successful retailers and distributors.

Oracle Trade ManagementSolution Components

•New from Oracle!

• EBS TM-Siebel TPM PIP

• Advanced Trade Planning

• Demand Signal Repository (DSR)

SalesCustomers Products PromotionsMarketing Finance Demand

Brand and Marketing Resource

Management

Advanced Trade

Planning

Trade Promotion

Management

Retail Coverage

Planning & Execution

Demand Signal

Management

Financial Management

Supply Chain Management

Analytics and Business

Intelligence

End-to-End Comprehensive Trade Management Solution

EBS-TM-Siebel TPM

Integration PIP

Siebel Trade Promotions & Deductions PIP

Promotional Planning & Spending

• Maintain single source of customer and product info

• Avoid unwarranted discounting & ensure accurate invoicing

Claim and Deductions Management

• Efficiently process promotional payments

• Minimize the cost and time required to clear claims & deductions

Reduce Implementation Costs

• Lower total cost of ownership

• Built on open standards

Sales Orders

& ClaimsAccrual

Engine

General

Ledger

� Apply Proper Accounting for Any Country

� Minimize Financial Risks with Upfront Accruals

• 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

• 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

TPM & Deductions PIP General Ledger PostingsAccurately Account for Sales / Expense and Liability

Business Flow

Create Promotions

Review PromotionsPerformance

Issue OI Payments

Benefits• Achieve higher Promotional Returns-On-Investments• Increase retail profit margins• Maximize sales revenues

• Achieve higher Promotional Returns-On-Investments• Increase retail profit margins• Maximize sales revenues

Generate Liability Accruals

TPM & Deductions PIPTrade Promotion ManagementEnd-to-End Process

Siebel Oracle Siebel

Create Pricing

Qualifiers

Oracle Oracle

Business Flow

CreateClaim/DED

AssignOwner Research

Approve& Settle

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

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

AdjustFinancials

TPM & Deductions PIPClaim and Deduction ManagementEnd-to-End Process

• Siebel• Oracle • Siebel • Siebel • Oracle

Objects Exchanged between Systems

Siebel CG 8.x

with

Trade Promotion

Management

Oracle EBS 11.x

with

Trade

Management

Products

Customers

Promotions

Accruals

Deductions

Payments

Claims

AdvancedTrade Planning

Advanced Trade PlanningSiebel TPM – Demantra PTP/PO PIP

• Baseline Forecast and Promotional Lift Coefficients

• Automatically generated

• Driven from POS, syndicated, or shipment data

• At the Account / Item / Time Period level

• Continually updated

• Lift Decomposition

• Cannibalization

• Pre & Post Effects / Pantry Loading

• Brand Switching

• Account Switching

• Advanced Account Planning with Scenario Planning

• “What If” Analysis

• Total Volume Forecast (Baseline & Incremental)

• Manufacturer / Retailer Profitability

• Promotion Optimization

• System recommended promotional strategy based on specified goalsand constraints

• Supports Sales & Operations Planning

• Brand forecasts for marketing

• Account/volume plans for sales

• SKU/Ship-To detail for operations

Differentiators

Trade Promotion Process Flow

Trade

Promotion

Planning &

Optimization

Volume &

Fund

Planning

Promotion

Execution

Post

Promotion

Evaluation

PLAN EXECUTE EVALUATE

Trade Promotion Process Flow

Trade Promotion

Planning &

Optimization

Volume & Fund

Planning

Promotion

Execution

Post Promotion

Evaluation

PLAN EXECUTE EVALUATE

• Currently supported in SiebelNoNoYes• Develop trade budgets

• Define funding rules

Fund Planning

• Supported in Siebel with SVP

module

• Functionality available in

Demantra but integration to

Siebel not included in

productized integration (would

need to be custom configured).

NoConfigurableYes• Top-down / bottom-up planning of

base and incremental volume

• Establish sales targets and

quotas

Volume Planning

CommentsIn

Scope

DemantraSiebelFunctionsBusiness

Process

Trade Promotion Process Flow

Trade Promotion

Planning &

Optimization

Volume & Fund

Planning

Promotion

Execution

Post Promotion

Evaluation

PLAN EXECUTE EVALUATE

• Currently supported in SiebelNoNoYes• Route promotion plans for

approval

Promotion

Approvals

• Currently supported in Demantra YesYesNo• Decompose projected volume to

identify cannibalization, pantry

loading, brand switching, and

halo effect

Lift

Decomposition

• Currently supported in Demantra YesYesNo• Determine optimal promotional

activity based on defined

objectives and constraints

Promotion

Optimization

• Based on customer preference

• Simulation in Siebel uses

baseline volume forecast and lift

coefficients generated by

Demantra

Yes Yes Yes • Apply Lift Coefficients to predict

Incremental Volume

Promotion

Simulation

• Based on customer preference Yes Yes Yes• Define all planned promotional

activity by Customer / Account

and Product Group

Account

Promotion

Planning

CommentsIn

Scope

DemantraSiebelFunctionsBusiness

Process

Trade Promotion Process Flow

Trade Promotion

Planning &

Optimization

Volume & Fund

Planning

Promotion

Execution

Post Promotion

Evaluation

PLAN EXECUTE EVALUATE

• Currently supported in SiebelNoNoYes• Pay for promotional activity

through off-invoice deals,

deduction processing, or payment

requests

Settlements

• Based on customer preferenceYesYesYes• Track activity and make

adjustments as needed

Maintain

Promotion Plans

• Currently supported in SiebelNoNoYes• Define promotional details

including funding

Establish Deals

CommentsIn

Scope

DemantraSiebelFunctionsBusiness

Process

Trade Promotion Process Flow

Trade Promotion

Planning &

Optimization

Volume & Fund

Planning

Promotion

Execution

Post Promotion

Evaluation

PLAN EXECUTE EVALUATE

• Currently supported in DemantraYesYesNo• Decompose actual volume to

identify cannibalization, pantry

loading, brand switching, and

halo effect

Lift

Decomposition

• Based on customer preferenceYesYesYes• Compare planned promotional

activity to actual promotional

activity

Plan vs. Actual

Comparison

CommentsIn

Scope

DemantraSiebelFunctionsBusiness

Process

Integration Points

Demantra PTP/PO

Demantra PTP/PO

Siebel TPM

Siebel TPM

Promotional Tactics Master List (one-time setup)

Sales Activity

Promotions (initial historical load & on-going updates)

Promotions (current & planned - synchronized)

Baseline Volume Forecast (future planning periods)

Product Planning Hierarchy

Time Period Definitions (one-time setup)

Customer Account Planning Hierarchy

Pricing and Cost (future planning periods)

Plan Master List

Promotional Lift Coefficients

Demand Signal

Repository (DSR)

Oracle Demand Signal Repository Overview

• More timely data to better sense, shape and respond to demand• Consistent data more easily leveraged across teams and applications• Reduced manual effort and cost

• POS sales

• Price

• Store inventory

• Promotional plans

• Store replan. rules

• Store forecasts

Retail Store Data DEMAND SIGNAL REPOSITORY

• Data sources centrally cleansed, harmonized and aggregated

• Pre-built dashboards and reports

• Powerful BI capabilities

• “Sense & Respond” event management

CA

PT

UR

E

MA

NA

GE

AN

AL

YZ

E

RE

SP

ON

D

INT

EG

RA

TE

DEMANTRA DEMAND MANAGEMENT

DEMANTRA SALES & OPERATIONS PLN

ORACLE SUPPLY & DISTRIBUTION PLN

ORACLE PRODUCT LIFECYCLE MGT

Pre-Built Integration

Retail DC/

Distributor Data

• DC shipments

• DC inventory

• DC replan. rules

Other

External Data

• Retail loyalty

• IRI/AC Nielsen

• 3rd party demographic

• Causal (weather,etc.)

• RFID/EPC

• IMS, NDC, EDI (867,

852), Scripts, Pedigree

• Unstructured text

DEMANTRA PTP & TPO

SALES & OPERATIONS PLANNING

SUPPLY & DISTRIBUTION PLANNING

PRODUCT LIFECYCLE MANAGEMENT

TRADE PROMOTION PLANNING & OPT

SOA-Based Integration

Non-Oracle Applications

Oracle Trade ManagementIntegration Opportunities

Brand & Marketing Resource

Mgmt

Integration to Supply

Chain Mgmt

Demand Signal Mgmt

Trade Promotion

Management

Advanced Trade Planning

Financial Mgmt

Retail

Coverage

Planning &

Execution

Manufacturing

Master Pricing Syndicated

Data Suppliers

Retail POS Links

ERP

Warehouse Management

Transportation

Logistics

Demand & Forecast Plan

A/P & A/R

OBIEE

Retailer Deal Forms

3rd Party Analysis Tools

Thank You!

Rob [email protected]