Presentation on theme: "QAD Trade Promotion Management (TPM)"— Presentation transcript:
1QAD Trade Promotion Management (TPM) QAD Midwest User GroupQAD Trade Promotion Management (TPM)Jean Miller, Product Architect - Research & DevelopmentHank Canitz, Sr. Director MarketingMWUGMarch2013
2QAD Midwest User GroupSafe Harbor StatementThe 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.
3Agenda Product Background TPM Functionality Product Status QAD Midwest User GroupAgendaProduct BackgroundTPM CycleTPM vs TrMTPM FunctionalityData SetupPromotionsClaimsDeductionsBudgeting/AccrualsAnalysis/ReportingProduct StatusPhase II – Indirect SalesNext Steps
4Product Background Information QAD Midwest User GroupProduct Background InformationTrade Promotion Management – March 2013
5Trade spend averages 20% of gross sales QAD Midwest User GroupTrade spend averages 20% of gross salesWhat do Manufacturers Need?Powerful Promotion PlanningEfficient Deduction ResolutionAutomated Claims ProcessingTight Integration with FinancialsRobust Reporting/Analytical ToolsTrade 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…
6TPM Cycle QAD Midwest User Group Sales & Marketing, Supply Chain, FinanceSupply ChainOptimizeLocalizeExecuteMonitorCollaborateQAD 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 companyImplementing 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 accrualsFinally, 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.
7QAD Midwest User GroupTPM vs TRMTRM is QAD’s solution in the Trade Management space compatible with our SE version and older releasesFirst offered in 1996 as an add-on to QAD version 8.6TRM has been enhanced and modified for the past 15+ yearsNo major rewrites to take advantage of newer technologies or significantly upgrade User InterfaceRelease of our QAD Enterprise Financials edition (EE) in 2008 provided opportunity to invest in a new solutionTPM is the our new product offering
8TPM main advantages over TrM QAD Midwest User GroupTPM main advantages over TrMLatest .NETui vs. Outdated CHUI-based UIQAD code standards vs. 3rd party codeDomain/Entity vs. Division/RegionMulti-currency vs. Single currencyCore functions vs. Bolt-on DuplicationClaim Automation in addition to Manual ClaimsEarned Discounts visible immediately instead of after the fact ReportsOptional Budgets vs. Mandatory BudgetsImmediate Discounts at Line level and Order LevelNOTES: 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.
9TPM Functionality QAD Midwest User Group Trade Promotion Management – March 2013
10QAD Integrated Solution QAD Midwest User GroupQAD Integrated SolutionEnterprise EditionGroupsProfilesBudgetsPricingSales OrdersDeductionsAccrualsBusiness IntelligenceAnalysis ReportingDemand ManagementForecastsTPMPromotionsRebatesClaimsThis 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.
11Data Setup QAD Midwest User Group Trade Promotion Management – March 2013
12Item and Customer Attributes QAD Midwest User GroupItem and Customer AttributesAttributes 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.
13Item and Customer Groups QAD Midwest User GroupItem and Customer GroupsGroups can either be Static or DynamicStatic Group Members may have a Start and End Date defining membership effectivityBrowse selection on ‘standard’ fields and attributes
14Promotions QAD Midwest User Group Trade Promotion Management – March 2013
15Deal Categories Deal Grouping with common functions QAD Midwest User GroupDeal CategoriesDeal Grouping with common functionsImmediate Discount – Discount during Sales Order EntryLine Level / Order LevelDiscount %, Discount Amount, Credit Terms, Freight TermsDeferred Discount – Discount based on sales activity given in the future via payment, credit note, or deductionBonus Goods – Additional goods given for free or discounted based on quantity or amount purchased of same or other goods during Sales Order EntryAllocated Funds – Fixed Monies given on a defined schedule based on criteria other than sales activity
16Promotion Maintenance QAD Midwest User GroupPromotion MaintenanceAny number of Individual Customers and/or Customer Groups can be included on a Promotion
17Promotion Maintenance QAD Midwest User GroupPromotion MaintenanceAny number of Individual Items and/or Item Groups can be included on a Promotion
18Promotion Maintenance QAD Midwest User GroupPromotion MaintenanceMultiple Deal Profiles may be added onto a single Promotion. Each Deal Category type has a different set of details which are then defined.
19Promotion – Immediate Discounts QAD Midwest User GroupPromotion – Immediate DiscountsDiscount 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
20Promotion – Deferred Discounts QAD Midwest User GroupPromotion – Deferred DiscountsPayment 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
21Promotion - Allocated Funds QAD Midwest User GroupPromotion - Allocated FundsSpread Method: First Period, Last Period, Even SpreadPayment Cycle: Current, End of Promotion
22Promotion – Bonus Goods QAD Midwest User GroupPromotion – Bonus Goods
23QAD Midwest User GroupClaimsTrade Promotion Management – March 2013
24Claim Creation Claims created in TPM by three separate processes QAD Midwest User GroupClaim CreationClaims created in TPM by three separate processesApproved Promotional Deductions taken during payment applicationManual claim entry when request is received from customerAutomated Claim Generation for promotions based on setting in Promotional Deal
25Manual 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.
26System Generate Claims QAD Midwest User GroupSystem 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.
27Claim Approval Claims may require approval QAD Midwest User GroupClaim ApprovalClaims may require approvalTPM 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
28Claim Approval QAD Midwest User Group - Separate function to review/approve/reject claims.
29Deductions QAD Midwest User Group Trade Promotion Management – March 2013
30Deduction Categories QAD Midwest User Group Deductions taken within Payment application require an approval process in TPM when the Deduction category is set to ‘Promotion’
31Financials – Deductions QAD Midwest User GroupFinancials – Deductions
32Financials – Deductions QAD Midwest User GroupFinancials – Deductions
33Budgeting/Accruals QAD Midwest User Group Trade Promotion Management – March 2013
34Generate Accruals Maintenance QAD Midwest User GroupGenerate Accruals Maintenance
35Budgeting/Accounting QAD Midwest User GroupBudgeting/AccountingStandard 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
36Analysis & Reporting QAD Midwest User Group Trade Promotion Management – March 2013
37TPM Reporting Strategy QAD Midwest User GroupTPM Reporting StrategyOperational MetricsPromotions, Claims and Deductions by StatusRejected Deductions by Deduction CategoryRejected Claims by Rejection ReasonQAD Reporting FrameworkPromotions by Customer Group By Item GroupTPM AccrualsTPM Generated ClaimsBudget vs. Actual ComparisonsStandard Price List ReportsRole-Based Collections/CentersBrand Manager, Promotion Manager, TPM Analyst
38Promotion Activity Collection QAD Midwest User GroupPromotion Activity CollectionFilters by Promotion, Deal, Deal Category, Buy Dates, Item/Group, Customer/GroupDisplays Deals Matching Filter CriteriaCollection Includes:DeductionsClaimsInvoice LinesEarned Discounts
39TPM 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
40Earned Discount Collection QAD Midwest User GroupEarned Discount Collection
41Product Status QAD Midwest User Group Trade Promotion Management – March 2013
42Product Status/Release Plan QAD Midwest User GroupProduct Status/Release PlanPhase 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.
43Phase 2 – Indirect Business Diagram QAD Midwest User GroupPhase 2 – Indirect Business Diagram$$ Chargeback (List – Contract Price)Distributor Orders from ManufacturerManufacturerDistributorInvoices at List Price – Std discContract Price DefinitionAdmin Fee ($)Invoices at Contract PriceGPO(Buying Group)Indirect CustomerIndirect CustomerCustomers Order from Distributor
44Phase 2 Areas for Development QAD Midwest User GroupPhase 2 Areas for DevelopmentIndirect Customers/Buying GroupsContractsPricingSales TraceChargebackAdmin Fee
45Phase 2 – Indirect Custs/Buying Groups QAD Midwest User GroupPhase 2 – Indirect Custs/Buying GroupsMaintenance of Indirect CustomersSubset of Core Customer dataReference information such as HIN#, DEA#, etc.Maintenance of Buying GroupsMaintenance of Indirect Customers in GroupAutomated Load of Membership changes, Additions/deletionsAudit historyElectronic upload, manual creation
46QAD Midwest User GroupPhase 2 – ContractsMaintenance of Contract pricing detail at Item LevelAssociated DistributorsLink to indirect customersAutomatic maintenance of pricing when group membership changesAdmin Fees linked to Contracts
47QAD Midwest User GroupPhase 2 – PricingPrice Lists written into core pricing tables, maintained on ContractBest PricingContract pricingPriority PricingPreferred Pricing
48Phase 2 – Sales Trace Indirect sales reporting back to MFG QAD Midwest User GroupPhase 2 – Sales TraceIndirect sales reporting back to MFGCross-reference informationElectronic or Manual creationOptional Chargeback Generation
49Phase 2 – Chargeback Distributor Price – Contract Price QAD Midwest User GroupPhase 2 – ChargebackDistributor Price – Contract PriceManual or Electronic loadCross-reference informationAutomatic Calculation and Validation of Chargebacks against contractsDiscrepancy Handling/Reporting
50Phase 2 – Admin Fee Percentage back to Buying Group QAD Midwest User GroupPhase 2 – Admin FeePercentage back to Buying GroupSupporting Documentation in full detailElectronic deliveryPayment typically via Supplier Invoice (EF)
51QAD Midwest User GroupNext StepsInterest? – Meet with your internal TPM team to determine interestInterest Exists – Schedule a demonstration of TPM with your account mgrTake active role as Early Adopter (Upgrade to EE) or passive role and wait for GAEngage QAD in Discovery / VisionEngage QAD in 3 day Upgrade QSCAN
52JPM@qad.com 865-925-8147 HCC@qad.com 720-238-7439 QUESTIONS? QAD Midwest User GroupQUESTIONS?Trade Promotion Management – March 2013