qad trade promotion management (tpm) jean miller, product architect - research & development...
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QAD Trade Promotion Management (TPM)
Jean Miller, Product Architect - Research & DevelopmentHank Canitz, Sr. Director Marketing
QAD Midwest User Group
MWUGMarch2013
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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
QAD Midwest User Group
• 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
QAD Midwest User Group
Trade Promotion Management – March 2013
Product Background Information
QAD Midwest User Group
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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
QAD Midwest User Group
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TPM Cycle
QAD Midwest User Group
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
QAD Midwest User Group
• Latest .NETui vs. Outdated CHUI-based UI• QAD code standards vs. 3rd party code• Domain/Entity vs. Division/Region• Multi-currency vs. Single currency• Core functions vs. Bolt-on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
Trade Promotion Management – March 2013
TPM Functionality
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QAD Integrated Solution
QAD Midwest User Group
Enterprise Edition
GroupsProfilesBudgetsPricing
Sales OrdersDeductions
AccrualsBusiness
Intelligence
Analysis Reporting
Demand Manageme
nt
ForecastsTPM
Promotions
RebatesClaims
Trade Promotion Management – March 2013
Data Setup
QAD Midwest User Group
QAD Midwest User Group
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.
QAD Midwest User Group
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
Trade Promotion Management – March 2013
Promotions
QAD Midwest User Group
• 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
QAD Midwest User Group
Promotion MaintenanceQAD Midwest User Group
Any number of Individual Customers and/or Customer Groups can be included on a Promotion
Promotion MaintenanceQAD Midwest User Group
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 MaintenanceQAD Midwest User Group
QAD Midwest User Group
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
Trade Promotion Management – March 2013
Claims
QAD Midwest User Group
• 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
QAD Midwest User Group
Manual Claim Entry
QAD Midwest User Group
- 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
QAD Midwest User Group
- 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
QAD Midwest User Group
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
QAD Midwest User Group
- Separate function to review/approve/reject claims.
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Trade Promotion Management – March 2013
Deductions
QAD Midwest User Group
Deduction Categories
QAD Midwest User Group
Deductions taken within Payment application require an approval process in TPM when the Deduction category is set to ‘Promotion’
Financials – Deductions
QAD Midwest User Group
Financials – Deductions
QAD Midwest User Group
Trade Promotion Management – March 2013
Budgeting/Accruals
QAD Midwest User Group
QAD Midwest User Group
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
QAD Midwest User Group
Trade Promotion Management – March 2013
Analysis & Reporting
QAD Midwest User Group
• 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
QAD Midwest User Group
• 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
QAD Midwest User Group
QAD Midwest User Group
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
QAD Midwest User Group
Earned Discount Collection
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Trade Promotion Management – March 2013
Product Status
QAD Midwest User Group
• 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
QAD Midwest User Group
Phase 2 – Indirect Business Diagram
QAD Midwest User Group
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
QAD Midwest User Group
• 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
QAD Midwest User Group
• 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
QAD Midwest User Group
• Price Lists written into core pricing tables, maintained on Contract
• Best Pricing
• Contract pricing
• Priority Pricing
• Preferred Pricing
Phase 2 – Pricing
QAD Midwest User Group
• Indirect sales reporting back to MFG
• Cross-reference information
• Electronic or Manual creation
• Optional Chargeback Generation
Phase 2 – Sales Trace
QAD Midwest User Group
• 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
QAD Midwest User Group
• Percentage back to Buying Group
• Supporting Documentation in full detail
• Electronic delivery
• Payment typically via Supplier Invoice (EF)
Phase 2 – Admin Fee
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• 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
QAD Midwest User Group
[email protected] [email protected] 720-238-7439
Trade Promotion Management – March 2013
QUESTIONS?
QAD Midwest User Group