QAD Trade Promotion Management (TPM) Jean Miller, Product Architect - Research & Development Hank Canitz, Sr. Director Marketing QAD Midwest User Group

QAD Trade Promotion Management (TPM)

Jean Miller, Product Architect - Research & DevelopmentHank Canitz, Sr. Director Marketing

QAD Midwest User Group

MWUGMarch2013

2

The following is intended to outline QAD’s 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, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.

Safe Harbor Statement


• Product Background- TPM Cycle- TPM vs TrM

• TPM Functionality- Data Setup- Promotions- Claims- Deductions- Budgeting/Accruals- Analysis/Reporting

• Product Status• Phase II – Indirect Sales• Next Steps

Agenda


Trade Promotion Management – March 2013

Product Background Information


5

What do Manufacturers Need?

Powerful Promotion Planning Efficient Deduction Resolution Automated Claims Processing Tight Integration with Financials Robust Reporting/Analytical Tools

Trade spend averages 20% of gross sales


6

TPM Cycle


Sales & Marketing,

Supply Chain,Finance

Supply Chain

Finance

Sales & Marketing,Supply Chain,Finance

Optimize

Localize

Execute

MonitorCollaborat

e

• TRM is QAD’s solution in the Trade Management space compatible with our SE version and older releases- First offered in 1996 as an add-on to QAD version 8.6

• TRM has been enhanced and modified for the past 15+ years- No major rewrites to take advantage of newer

technologies or significantly upgrade User Interface

• Release of our QAD Enterprise Financials edition (EE) in 2008 provided opportunity to invest in a new solution

• TPM is the our new product offering

TPM vs TRM


• Latest .NETui vs. Outdated CHUI-based UI• QAD code standards vs. 3rd party code• Domain/Entity vs. Division/Region• Multi-currency vs. Single currency• Core functions vs. Bolt-on Duplication• Claim Automation in addition to Manual Claims• Earned Discounts visible immediately instead of

after the fact Reports• Optional Budgets vs. Mandatory Budgets• Immediate Discounts at Line level and Order Level

TPM main advantages over TrMQAD Midwest User Group


TPM Functionality


10

QAD Integrated Solution


Enterprise Edition

GroupsProfilesBudgetsPricing

Sales OrdersDeductions

AccrualsBusiness

Intelligence

Analysis Reporting

Demand Manageme

nt

ForecastsTPM

Promotions

RebatesClaims


Data Setup



Item and Customer Attributes

Attributes allow users to define additional qualifiers which further differentiate and categorize both Items and Customers. Attributes can then be used to filter on reports, browses and when defining Customer and Item Groups.


Item and Customer Groups

Groups can either be Static or Dynamic

Static Group Members may have a Start and End Date defining membership effectivity

Browse selection on ‘standard’ fields and attributes


Promotions


• Immediate Discount – Discount during Sales Order Entry• Line Level / Order Level• Discount %, Discount Amount, Credit Terms, Freight Terms

• Deferred Discount – Discount based on sales activity given in the future via payment, credit note, or deduction

• Bonus Goods – Additional goods given for free or discounted based on quantity or amount purchased of same or other goods during Sales Order Entry

• Allocated Funds – Fixed Monies given on a defined schedule based on criteria other than sales activity

Deal CategoriesDeal Grouping with common functions


Promotion MaintenanceQAD Midwest User Group

Any number of Individual Customers and/or Customer Groups can be included on a Promotion


Any number of Individual Items and/or Item Groups can be included on a Promotion

Multiple Deal Profiles may be added onto a single Promotion. Each Deal Category type has a different set of details which are then defined.



Promotion – Immediate Discounts

Discount Level: Line or OrderQuantity Type: Amount, QuantityAmount Type: Discount %, Credit Terms, Freight TermsCombination Type: Combinable or ExclusiveVolume Type: Based on total order valueApply To: Individual Lines or Trailer

Promotion – Deferred DiscountsQAD Midwest User Group

Payment Cycle: End of Promotion or CurrentSystem Generate Claim: May claims be generated or does customer have to submit claimAccumulation Period: Promotion, Month, Qtr, YearPayment Method: Credit Note or Supplier Invoice (Check)Claim Over Limit: Whether to issue hard error if claim exceeds Deal Limit

Promotion - Allocated FundsQAD Midwest User Group

Spread Method: First Period, Last Period, Even SpreadPayment Cycle: Current, End of Promotion

Promotion – Bonus GoodsQAD Midwest User Group


Claims


• Claims created in TPM by three separate processes- Approved Promotional Deductions taken during

payment application- Manual claim entry when request is received

from customer- Automated Claim Generation for promotions

based on setting in Promotional Deal

Claim Creation


Manual Claim Entry


- Browse displays Earned Discounts to-date for this Customer by Promotion/Deal. - If prior claims have been made against a Promotion/Deal, the Claims Taken and/or Pending Claims columns will include those amounts and the Open Balance will be adjusted accordingly.

Claims must be ‘Approved’ to create Financial Documents

System Generate Claims


- Deals may be defined so that claims can be System-Generated. - Generate Claims function may be run wide open, or for subsets of criteria.- Status of System Claims determined by TPM Control value. - Claims may be de-selected/re-selected before final Save.

Claim Approval


Claims may require approval

- TPM Control settingApproval will result in a Customer Credit Note or Supplier InvoiceWhen financial documents are posted, the daybooks from the TPM Control are used and the postings are made to the accounts previously determined in Earned Discount calculation

Claim Approval


- Separate function to review/approve/reject claims.

29


Deductions


Deduction Categories


Deductions taken within Payment application require an approval process in TPM when the Deduction category is set to ‘Promotion’

Financials – Deductions


Financials – Deductions



Budgeting/Accruals



Generate Accruals Maintenance

Standard EE Budgeting Functionality can be used to establish Trade Spend Budgets. If full budgeting capability is not required, promotions can be linked to specific Budget Topics to do simple Budget to Actual comparisons

Budgeting/Accounting



Analysis & Reporting


• Operational Metrics- Promotions, Claims and Deductions by Status- Rejected Deductions by Deduction Category- Rejected Claims by Rejection Reason

• QAD Reporting Framework- Promotions by Customer Group By Item Group- TPM Accruals- TPM Generated Claims- Budget vs. Actual Comparisons- Standard Price List Reports

• Role-Based Collections/Centers- Brand Manager, Promotion Manager, TPM Analyst

TPM Reporting Strategy


• Filters by Promotion, Deal, Deal Category, Buy Dates, Item/Group, Customer/Group

• Displays Deals Matching Filter Criteria• Collection Includes:

- Deductions- Claims- Invoice Lines- Earned Discounts

Promotion Activity Collection



TPM Sub-Ledger

Sub-Ledger Collection allows a quick view into all Discounts given for a particular Promotion/Deal. All GL and SAF information is included for both Sales and Discount amounts


Earned Discount Collection

41


Product Status


• Phase One (Direct Sales) available for Early Adopters now.

• Phase Two (Indirect Sales) development underway.

• Working with multiple early adopters and identifying other potential customers.

• Possibility of having TPM available on QAD Demo Center for evaluation by interested parties.

Product Status/Release Plan


Phase 2 – Indirect Business Diagram


Manufacturer

GPO(Buying Group)

Indirect Customer

DistributorInvoices at List Price – Std disc

Invoices at Contract

Price

Customers Order from Distributor

Admin Fee ($)

$$ Chargeback (List – Contract Price)

Contract Price

Definition

Indirect Customer

Distributor Orders from Manufacturer

• Indirect Customers/Buying Groups

• Contracts

• Pricing

• Sales Trace

• Chargeback

• Admin Fee

Phase 2 Areas for Development


• Maintenance of Indirect Customers- Subset of Core Customer data

- Reference information such as HIN#, DEA#, etc.

• Maintenance of Buying Groups- Maintenance of Indirect Customers in Group

- Automated Load of Membership changes, Additions/deletions

- Audit history

- Electronic upload, manual creation

Phase 2 – Indirect Custs/Buying Groups


• Maintenance of Contract pricing detail at Item Level

• Associated Distributors

• Link to indirect customers

• Automatic maintenance of pricing when group membership changes

• Admin Fees linked to Contracts

Phase 2 – Contracts


• Price Lists written into core pricing tables, maintained on Contract

• Best Pricing

• Contract pricing

• Priority Pricing

• Preferred Pricing

Phase 2 – Pricing


• Indirect sales reporting back to MFG

• Cross-reference information

• Electronic or Manual creation

• Optional Chargeback Generation

Phase 2 – Sales Trace


• Distributor Price – Contract Price

• Manual or Electronic load

• Cross-reference information

• Automatic Calculation and Validation of Chargebacks against contracts

• Discrepancy Handling/Reporting

Phase 2 – Chargeback


• Percentage back to Buying Group

• Supporting Documentation in full detail

• Electronic delivery

• Payment typically via Supplier Invoice (EF)

Phase 2 – Admin Fee


51

• Interest? – Meet with your internal TPM team to determine interest

• Interest Exists – Schedule a demonstration of TPM with your account mgr

• Take active role as Early Adopter (Upgrade to EE) or passive role and wait for GA

• Engage QAD in Discovery / Vision• Engage QAD in 3 day Upgrade QSCAN

Next Steps


[email protected] [email protected] 720-238-7439


QUESTIONS?


mailto:[email protected]

mailto:[email protected]