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QAD Trade Promotion Management (TPM)

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Presentation on theme: "QAD Trade Promotion Management (TPM)"— Presentation transcript:

1 QAD Trade Promotion Management (TPM)
QAD Midwest User Group QAD Trade Promotion Management (TPM) Jean Miller, Product Architect - Research & Development Hank Canitz, Sr. Director Marketing MWUGMarch2013

2 QAD Midwest User Group Safe Harbor Statement 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.

3 Agenda Product Background TPM Functionality Product Status
QAD Midwest User Group Agenda 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

4 Product Background Information
QAD Midwest User Group Product Background Information Trade Promotion Management – March 2013

5 Trade spend averages 20% of gross sales
QAD Midwest User Group Trade spend averages 20% of gross sales What do Manufacturers Need? Powerful Promotion Planning Efficient Deduction Resolution Automated Claims Processing Tight Integration with Financials Robust Reporting/Analytical Tools Trade spend and promotions can cost as much as 20% of gross sales. Often customers tell us that they find it difficult to tell what value they are getting from the money they spent or whether one promotion was more effective than another. In our new TPM solution we believe it is important to focus on enabling key functionality in the areas listed on this slide, namely…

6 TPM Cycle QAD Midwest User Group Sales & Marketing, Supply Chain,
Finance Supply Chain Optimize Localize Execute Monitor Collaborate QAD views TPM as a collaborative process where your company is constantly revising and refining your trade policies and promotions based on the results of your previous efforts. Evaluation of past efforts feeds into planning for new promotions and trade policies. Plans can cover customer, product, and money topics such as: • How much money to spend on trade promotions • Which products to spend money on • Which customers to direct promotions toward • Which deals to use, and • How to divide trade spend moneys across parts of the company Implementing the Trade Spend Plan involves documenting, approving & establishing budgets, promotions, and other discounts, such as agreements. Administering the Trade Spend Plan includes activities like: • Processing sales orders and claims • Monitoring promotions and rebates, and • Tracking spending and accruals Finally, through analysis and reports that gather, organize, and present information, the success of the trade spend plan is evaluated. This evaluation is fed back into the next trade spend plan development cycle and the whole process starts over again.

7 QAD Midwest User Group TPM vs TRM 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

8 TPM main advantages over TrM
QAD Midwest User Group TPM main advantages over 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 NOTES: Divisions are the fundamental business structure in Trade Management. A general definition is that a division represents a natural or logical grouping of business activity within a company. This structure is used only in TRM and there must be at least one division set up. Master files including customers, items, customer groups, product groups defined at Divisional level. If a customer or product is not assigned to a division it cannot be seen or used in TrM. Also major transactions in TrM such as promotions, rebates, and budgets.

9 TPM Functionality QAD Midwest User Group
Trade Promotion Management – March 2013

10 QAD Integrated Solution
QAD Midwest User Group QAD Integrated Solution Enterprise Edition Groups Profiles Budgets Pricing Sales Orders Deductions Accruals Business Intelligence Analysis Reporting Demand Management Forecasts TPM Promotions Rebates Claims This picture provides a high-level schematic where key TPM functionality lies within QAD Enterprise Applications. As you can see much of the functionality that sits within our Trade Management (TrM) solution has been moved into core. The new Trade Promotions Management solution will focus on just the key areas of promotions, rebates, and claims. Reporting and analysis will be supported by QAD BI and forecasting and promotional planning supported by QAD Demand Management.

11 Data Setup QAD Midwest User Group
Trade Promotion Management – March 2013

12 Item and Customer Attributes
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.

13 Item and Customer 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

14 Promotions QAD Midwest User Group
Trade Promotion Management – March 2013

15 Deal Categories Deal Grouping with common functions
QAD Midwest User Group Deal Categories Deal Grouping with common functions 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

16 Promotion Maintenance
QAD Midwest User Group Promotion Maintenance Any number of Individual Customers and/or Customer Groups can be included on a Promotion

17 Promotion Maintenance
QAD Midwest User Group Promotion Maintenance Any number of Individual Items and/or Item Groups can be included on a Promotion

18 Promotion Maintenance
QAD Midwest User Group Promotion Maintenance Multiple Deal Profiles may be added onto a single Promotion. Each Deal Category type has a different set of details which are then defined.

19 Promotion – Immediate Discounts
QAD Midwest User Group Promotion – Immediate Discounts Discount Level: Line or Order Quantity Type: Amount, Quantity Amount Type: Discount %, Credit Terms, Freight Terms Combination Type: Combinable or Exclusive Volume Type: Based on total order value Apply To: Individual Lines or Trailer

20 Promotion – Deferred Discounts
QAD Midwest User Group Promotion – Deferred Discounts Payment Cycle: End of Promotion or Current System Generate Claim: May claims be generated or does customer have to submit claim Accumulation Period: Promotion, Month, Qtr, Year Payment Method: Credit Note or Supplier Invoice (Check) Claim Over Limit: Whether to issue hard error if claim exceeds Deal Limit

21 Promotion - Allocated Funds
QAD Midwest User Group Promotion - Allocated Funds Spread Method: First Period, Last Period, Even Spread Payment Cycle: Current, End of Promotion

22 Promotion – Bonus Goods
QAD Midwest User Group Promotion – Bonus Goods

23 QAD Midwest User Group Claims Trade Promotion Management – March 2013

24 Claim Creation Claims created in TPM by three separate processes
QAD Midwest User Group Claim Creation 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

25 Manual Claim Entry QAD Midwest User Group
Claims must be ‘Approved’ to create Financial Documents - 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.

26 System Generate Claims
QAD Midwest User Group 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.

27 Claim Approval Claims may require approval
QAD Midwest User Group Claim Approval Claims may require approval TPM Control setting Approval will result in a Customer Credit Note or Supplier Invoice When 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

28 Claim Approval QAD Midwest User Group
- Separate function to review/approve/reject claims.

29 Deductions QAD Midwest User Group
Trade Promotion Management – March 2013

30 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’

31 Financials – Deductions
QAD Midwest User Group Financials – Deductions

32 Financials – Deductions
QAD Midwest User Group Financials – Deductions

33 Budgeting/Accruals QAD Midwest User Group
Trade Promotion Management – March 2013

34 Generate Accruals Maintenance
QAD Midwest User Group Generate Accruals Maintenance

35 Budgeting/Accounting
QAD Midwest User Group Budgeting/Accounting 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

36 Analysis & Reporting QAD Midwest User Group
Trade Promotion Management – March 2013

37 TPM Reporting Strategy
QAD Midwest User Group TPM Reporting Strategy 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

38 Promotion Activity Collection
QAD Midwest User Group Promotion Activity Collection 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

39 TPM Sub-Ledger QAD Midwest User Group
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

40 Earned Discount Collection
QAD Midwest User Group Earned Discount Collection

41 Product Status QAD Midwest User Group
Trade Promotion Management – March 2013

42 Product Status/Release Plan
QAD Midwest User Group Product Status/Release Plan 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.

43 Phase 2 – Indirect Business Diagram
QAD Midwest User Group Phase 2 – Indirect Business Diagram $$ Chargeback (List – Contract Price) Distributor Orders from Manufacturer Manufacturer Distributor Invoices at List Price – Std disc Contract Price Definition Admin Fee ($) Invoices at Contract Price GPO (Buying Group) Indirect Customer Indirect Customer Customers Order from Distributor

44 Phase 2 Areas for Development
QAD Midwest User Group Phase 2 Areas for Development Indirect Customers/Buying Groups Contracts Pricing Sales Trace Chargeback Admin Fee

45 Phase 2 – Indirect Custs/Buying Groups
QAD Midwest User Group Phase 2 – Indirect Custs/Buying Groups 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

46 QAD Midwest User Group Phase 2 – Contracts 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

47 QAD Midwest User Group Phase 2 – Pricing Price Lists written into core pricing tables, maintained on Contract Best Pricing Contract pricing Priority Pricing Preferred Pricing

48 Phase 2 – Sales Trace Indirect sales reporting back to MFG
QAD Midwest User Group Phase 2 – Sales Trace Indirect sales reporting back to MFG Cross-reference information Electronic or Manual creation Optional Chargeback Generation

49 Phase 2 – Chargeback Distributor Price – Contract Price
QAD Midwest User Group Phase 2 – Chargeback Distributor Price – Contract Price Manual or Electronic load Cross-reference information Automatic Calculation and Validation of Chargebacks against contracts Discrepancy Handling/Reporting

50 Phase 2 – Admin Fee Percentage back to Buying Group
QAD Midwest User Group Phase 2 – Admin Fee Percentage back to Buying Group Supporting Documentation in full detail Electronic delivery Payment typically via Supplier Invoice (EF)

51 QAD Midwest User Group Next Steps 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

52 JPM@qad.com 865-925-8147 HCC@qad.com 720-238-7439 QUESTIONS?
QAD Midwest User Group QUESTIONS? Trade Promotion Management – March 2013


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