Drive Better Business Results Oracle Channel Revenue Management Earl Eldridge Senior Director, EBS Product Management Archana Vadya Director, Product Management October 01, 2014 Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Program Agenda 1 Channel Revenue Management: An Overview Use Cases What’s New? Future Roadmap Question & Answers 2 3 4 5

Program Agenda 1 Channel Revenue Management: An Overview Use Cases What’s New? Future Roadmap Question & Answers 2 3 4 5

Oracle EBS Channel Management Family Advanced Pricing & Channel Revenue Management A family of products +

Channel Rebate and POS Management Complete Solution for Rebate and POS Simple UIs for Easy Maintenance Accurate Tracking of Accruals & Channel Performance Execute Complex Rebates Calculate GL Posting Settle Channel Rebates Validation Settlement Automate Cleanse Distributor Inv Tracking Running complex pricing programs difficult to maintain and track ? Targets met but profitability below forecast ? Rebate liabilities or assets visibility? Overall spend tracking? Processing and cleansing of indirect sales (POS) labor intensive and subject to error?

Standard Offer Types/aka Pricing Programs Accrual Offers Off Invoice Offers Volume Rebates Promotional Goods Order Value Scan Data Lumpsum Offers Trade Deals Net Accrual Terms Upgrade Rebate Capability Various Rebate Types Support for Direct and Indirect Sales Global and Organization specific Quantity Limits Retroactive Pricing by Tier Adjustment capability for value and dates Autopay Setup Back dates Adjustment Advanced Options with Bucketing s <Product Name> <TOI Functional> - 8

Volume Offers ChRM’s Volume Offer Solution Complex volume pricing programs keeping you up? Using spreadsheets to calculate volume accruals making it difficult to maintain and track volume programs? Constantly changing the programs for customer locations or products additions or deletions? Difficulties tracking and posting your volume rebate liabilities? Accrue Based on Customer’s cumulative purchase volume over a period of time Pricing Adjustments for Customers, Products and Dates Backdating Start and Retroactive Adjustments Pre-Qualification Tiers for high performing Customers

Rebate Tracking – Buy Side & Sell Side Purchases Direct Sale Customer Communicate with Supplier Approve & Settle Calculate Earnings / Rebates Define Pricing Programs Supplier Agreements Run pricing Validate compliance to pricing agreements Purchased Items <Product Name> <TOI Functional> - 10

AR Deduction Settlement End to End Deduction Flow Dispute/deduction handling Rebates Settlement Promotional Payments Complete AR processing Lockbox integration Subsequent Receipt Application Auto-write offs Mass Settlements Mass Update Rule Based Settlement Claims Aging Endeca Extensions Centralized Claims Repository

For Wholesale Distribution Supplier Ship & Debit For Wholesale Distribution Request Special Price Track Accruals Manage Disputes & Payments Request New Price from Supplier Receive Supplier approval/ authorization Record Accruals Generate Accurate Accounting Compile accruals & generate Claims Transmit Claims to Supplier via XML or WebADI Resolve Disputes Issue Debit to Suppliers Claim What Channel revenue management product automating special price requests for wholesale distribution and streamlines the ship & debit claim process Automate all agreements, tracking, accounting journal entries and chargeback’s to vendors manual processes for timely claims processing Benefits Reduced margin leakage. Reduced cost of managing special pricing agreements and greater visibility into claim process Key Message: Wholesale distribution companies have historically operated with limited visibility into the ROI of promotional funds and their associated accrued assets due to complex, labor intensive business processes. Distributors can ill afford to leave margins on the table due to these unprocessed claims. Supplier Ship & Debit automates special price requests to improve margin realization. Implementation Approach: This solution is tightly integrated with EBS Financials. Customers: From a blue chip committee of a dozen high tech distributors (including Arrow Electronics, Canon Americas, IKON, Ingram Micro, New Age Electronics, Tech Depot/Office Depot, Seagate), automation of the distributor ship & debit process was identified as “the” top investment priority! And was the main reason for Arrow Electronics to select EBS!

For Wholesale Distribution Price Protection For Wholesale Distribution What Channel Revenue Management solution enabling orchestration and automation of supplier price changes Timely claims processing through automated integrations to Procurement, Warehouse / Inventory, Costing, General Ledger, Accounts Payable, Accounts Receivable Benefits Reduced margin leakage. Automation of manual spreadsheets, faster realization from price protection claims, complete control & full visibility into the process, increased channel revenues Key Message: Wholesale distribution companies have historically operated with limited visibility into the effect of supplier price changes internally and to end customers/retailers and their associated accrued assets/liabilities due to complex, labor intensive business processes. Distributors can ill afford to leave margins on the table due to these unprocessed claims. Price Protection automates supplier price changes to improve margin realization. Implementation Approach: This solution is tightly integrated with EBS Financials but can be configured to integrate to other financial, warehouse/inventory and Costing systems as it leverages FMW’s BPEL architecture. Customers: From a blue chip committee of a dozen high tech distributors (including Arrow Electronics, Canon Americas, IKON, Ingram Micro, New Age Electronics, Tech Depot/Office Depot, Seagate), automation of the price protection process was identified as a top investment priority (number 2 after Supplier Ship & Debit)! And was a key driver for Arrow Electronics to select EBS!

Channel Revenue Mgmt – Endeca Extension Key Benefits Eliminate revenue leakage Quickly identify and charge back invalid deductions Gain control over trade funds with comprehensive budget visualization Improve payment collection Prioritize high value claims for closure to maximize cash returns Quickly identify past due balance and take action to recover payments Increase profit margins Identify overbooked claims agents and balance workload to clear aged claims Improve operation and process efficiency with smarter analysis and effective collaboration with customers/suppliers

Drive Better Business Results Increased ROI with Streamlined Processes Highly Automated Processes Improve Reporting & Visibility Mitigate Risks

Program Agenda 1 Channel Revenue Management: An Overview Use Cases What’s New? Future Roadmap Question & Answers 2 3 4 5

Channel Revenue Management – Use Case Transportation Solution Claims generation and processing Automated Routing and assignment Automatic generation of related claims Integration EDI / Transportation Partners AR / AP (Settlement) GL Data analysis True event cost / Loss and Damage costs

Channel Revenue Management – Use Case Summary of Process Channel Revenue Management – Use Case Life Sciences Solution Chargeback Flow GPO’s and Membership list maintenance GPO Contract Pricing Retail/Institutional Contracts Data Exchange EDI 844 and 849

Channel Revenue Management – Use Case Royalty Solution Overview Calculating Royalties on/with: Individual products Embedded products Assortment products Handled one time and recurring pre payments Information based on Order Management and external sources

Channel Revenue Management – Use Case Wholesale Distribution Solution Sell Side Rebate Support Buy Side/Vendor Rebate Support Supplier Ship & Debit On hand and pass thru price protection Deduction Management

Channel Revenue Management – Use Case Consumer/Manufacturing Solution Calculating Volume Incentives/Co-Op off of Sales data Standard Pricing Agreements Quotes execution & tracking for CG Deduction Management How to handle discounts and surcharges going to a different GL account

Program Agenda 1 Channel Revenue Management: An Overview Use Cases What’s New? Future Roadmap Question & Answers 2 3 4 5

New Features in 12.2.4 User Interface Improvements New Create and Update Pages (Volume Offers) New Products UI New Market Eligibility Page New Budgets UI New Budgets Checkbook UI New Adjustments Page New Collaboration UI

12.2.4: New HTML User Interface The new user interface allows a quick view and update on key offer’s data to improve productivity Users always have a context of the offer as they move through screens and make changes. This helps minimize errors and improves efficiency Defaulting values is used to minimize user interaction and simplify the create and update offer process Pages built in OA allow for personalization which includes hide / display fields, reorder table columns and width. Users can also leverage native OA functions like forward looking LOV’s and direct entry of data into fields

Create Volume Offer Create User Interface

Create and Update Pages Multiple Tables and Products with Exclusion Support

Create and Update Pages Product Exclusion Details

Market Eligibility New page with simplified UI and party hierarchy, prequalification function

Budget Checkbook User Interface: Search Checkbook - Volume, Offinvoice, Accrual and Trade Deal

Budget Checkbook Group by Order with drill down capability

Products and Exclusion Features Advanced Options and Mass Update

Program Agenda 1 Channel Revenue Management: An Overview Use Cases What’s New? Future Roadmap Question & Answers 2 3 4 5

Oracle Applications: Current Release and Roadmap Continued OA Framework updates Offers create and update OAF UI Offer adjustment OAF UI Channel Rebates & POS Management Volume Offer Enhancements including backdating flows Ongoing Endeca Integrations Enhanced offer and budget checkbook Miscellaneous Offer Enhancements including TCA Hierarchy Support Line Level Advanced Option AR Deductions Settlement Autopay Settlement by OU Continued OA Framework updates Claims, Budgets, Offers Channel Rebates & POS Management Mobile Support for Offer & Approvals Ongoing Endeca Integrations AR Deductions Settlement Deferred Accruals Revenue Recognition Autopay Settlement by OU Mobile Support for Claims & Approvals Oracle Supplier Ship & Debit Manual Approve/Reject for Ship & Debit Batches AME Integration for all ChRM products AR Deductions Settlement Ongoing Endeca Integrations Provisional Accruals and Reconciliation Support Channel Rebates & POS Management Completion of Offers in OA Cascading Offers/Promotions Flow through Offers/Promotions Sellers Workbench with OM Indirect Sales Error Processing Oracle Supplier Ship & Debit Vertical Industry Support Oracle Price Protection Sell side support Release 12.2.4 August 2014 What’s Next 0-12 month planning cycle Future Directions Post 12 month planning cycle Restricted to event use only.

DemoGrounds & Meet the Experts 2 Great Opportunities to Get Up Close & Personal with Oracle Products & Experts Channel Revenue Management @ Demo ID 3759 Moscone West Exhibition Hall Meet the Experts – Oracle E-Business Suite CRM Experts Wednesday, Oct 1, 3:15PM - 4:00PM Moscone West 2000

Program Agenda 1 Channel Revenue Management: An Overview Use Cases What’s New? Future Roadmap Question & Answers 2 3 4 5

Questions and Answers Questions & Answers