Vision Packaged . Delivered A Seamless Distributors integration using Trade Management Presenter: Nitin Tarkar NorCal OAUG Training Day January 21, 2009 Vision Packaged . Delivered www.idhasoft.com Copyright © 2009 Idhasoft Inc. All Rights Reserved.

Structure of the Presentation Introduction of Idhasoft What are the Disti Order Processing Problems How Oracle Trade Management Can Help? Implementation Details Implementation Constraints Benefits Service Value Chain

Supply Chain Solutions Global Operations $200M Services Company 1000+ Employees 200+ Oracle Consultants ERP Solutions Supply Chain Solutions Technology Solutions Staffing Locations Toronto Boston San Francisco Los Angeles New York New Jersey Atlanta India Delhi Hyderabad Mumbai Bangalore Chennai 3 3

Oracle ebusiness Suite Oracle Fusion Middleware x ORACLE Business Service Value Chain Oracle Licensing Oracle ebusiness Suite Oracle Fusion Middleware DW and Oracle OBIEE Managed Support Largest practice at Idhasoft - $60M in annual revenues One-Stop Shop Licensing Service ERP Implementation SOA & Middleware Technologies BI and Data Warehouse Professional Services Infrastructure & 24/7 DBA Services Managed Services & India Development Center R12 Implementation at Cortina Cortina-Systems (fabless Semi) R12 New Implementation (6 months; went live 1/1/08) Financials, Purchasing, iProcurement and Order Management, Manufacturing including OSFM Supply-Chain (ASCP & GOP) Trade Management (POS & Revenue Recognition) BI (OBIEE for Order Fulfillment, Financials) – Went live on 9/15 Supplier Integration using Oracle SOA (B2B with Rosettanet) - Under progress 4

Can I Get a Better Report? Why Do we Need a Change How do I Simplify my Job? Can I Get a Better Report? I Need More Time

Bottom Line Disti sales processing was a big problem! Current Business Situation Cortina has about 20+ Distributors around the Globe Receives high volume of data in different formats from different channels requiring time and resources to sort, cleanse and convert the data. POS was maintained in excel which was time consuming and inaccurate Claims were settled manually with poor visibility and tracking Revenue recognition was done manually and difficult to process on timely basis Users had no visibility to Distributor’s inventory Bottom Line Disti sales processing was a big problem!

Will Oracle Trade Management Help Me? How Oracle Trade Management Can Help? Will Oracle Trade Management Help Me?

Indirect Sales Disti Process Flow Automate Reclass (FIFO Basis) Call AR API Recognize COGS Rev.Adj. API Revenue Automate Reclass (FIFO Basis) Defer COGS Disti Order Ships Revenue Invoice Generates Update “Inventory In” New “Ending Inventory” Receive POS Data Update “Inventory Out” New “Ending Inventory” Order Management Trade Management Receivables

Distributor Price Agreement (DPA)

Standard Product Order from Distributor

Disti’s Order Ordered Item: WJLXT971ALE.A4-857346 Quantity: 2000 Order #: 1000461 Shipped on: 13-Apr-2008 by Distributor: AVNET LOGISTICS U.S.L.P.

Revenue is Deferred Upon Shipment Disti’s Invoice Revenue is Deferred Upon Shipment

Submit Debit Claim & POS Data

Import & Cleanse POS Data Identify Applicable Discount Oracle Trade Management Inventory Real time accurate Gain Visibility into Channel Inventory Claim Settlement Create check / credit Manage claim/deductions Track Claims aging POS Inbuilt POS validation Capture POS validated data Upload data coming in various format Text, Web ADI Sale Distribution Channel Manufacturer Import & Cleanse POS Data XML, EDI E-Mail, Other Indirect Sales (POS) Data Identify Applicable Discount Validate compliance to pricing agreements Outputs Indirect Sales Data Table Indirect Accruals

Disti: AVNET LOGISTICS U.S.L.P Upload Batch POS Batch 450 for Disti: AVNET LOGISTICS U.S.L.P refers to DPA CS08010040

Debit Claim & POS Batch Upload POS/Ship Debit

Chargeback Batch Data Batch information

Distributor Inventory Tracking

Claims Claim goes through approval process and is settled by Credit Memo/Check

Settle Claim by On-Account Credit Memo

Revenue Recognition Report Listing of Revenue by POS batch, Invoice #

Revenue is recognized based on the POS Revenue Recognition Based on POS Revenue is recognized based on the POS

Implementation Constraints It was first R12 implementation of Trade management, and worked closely with Oracle development team T.M. and A.R. are not out-of-the box integrated to Recognize Revenue based on POS T.M. enforced to maintain Budget and Offer Distributor Price Agreement maintained by 3rd party application Distributors inventory tracking maintained at high level by T.M. Uploading POS/Ship Debit coming from different sources New End Customers comes from POS data    

Life after Trade Management How Do I Use the System?

Benefits Approval process for DPA, Claims, Deduction Upload Point of Sale (POS) coming in various format Text, Web ADI Built-in POS validation Real time, accurate, detail Distributor Inventory Tracking Settling claim by Credit/Debit Memo,Check Automatic Revenue Recognition follows the GAAP principles Track Claims aging

Thank You! Questions? Nitin.Tarkar@idhasoft.com A Seamless Distributors Integration Using Trade Management Thank You! Questions? Nitin.Tarkar@idhasoft.com