Managing The Indirect Sales Channel

2. Managing The Indirect Sales Channel

3. The following is intended to outline our 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, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for EBS’s products remains at the sole discretion of EBS.

4. Agenda <Insert Picture Here> • Introductions • Challenges • Oracle’s Trade Management Solution • Key Product Capabilities • Roadmap • Questions

5. Channel Management Challenges Sales to Customer, Resellers , Distributors, Retailers Some Distributors are also Customers Need to track Complex Rebates and Volume Incentives Regulatory Compliances Account for my Rebates Customers buy from multiple sources Need to track Buy Side and Sell Side Activity POS Communication via EDI and files Need to Process Claims and Deductions Need to know Revenue and Liabilities Need to Cleanse and validate POS Data Sales Data comes from Direct and Indirect Sales

6. A Need for ChangeLeading Business Trends • Increasing manufacturer-channel collaboration • Customer investments based on total cost to serve • End-to-end solution across Finance, Supply Chain & CRM • Strong internal controls to comply with regulations • Single, integrated view of customers & products

7. Develop Market Contracts Sell Projects HR Order Customers, Suppliers, Products,… Finance Plan Maintain Procure Service Make Fulfill The Oracle EBS Channel Solution • Oracle Marketing • Oracle Sales • Quoting • iStore • Trade Management • Budgets Management • Pricing • Rebate Management • POS Management • Claims and Settlement • Order Management • Pricing • Inventory • Financials • Customer Data Hub

8. Oracle Trade Management Channel Solution Footprint • Budgets/Funds • Offers/Pricing • POS Management • Deductions & Settlement • Integration with Financials

9. Create Budgets Define Eligibility Define Thresholds Allocate Budget PlanningSet Foundation for Tracking Spending Business Flow Benefits • Centralized view of trade budgets • Controlled trade spending • Support for all budget processes • Shorter time to distribute funds

10. Complete Set of Budgeting CapabilitiesImprove Administration Flexibility and Effectiveness • Support Key Budget Types • Fixed • Fully accrued • Manage Budgets at Multiple Levels • Territory • Buying groups • Customers • Configure Alerts for Potential Overspend and Underspend • Automate Allocation to Sales Hierarchy • Enable Top-Down Bottom-Up Budgeting • Sites • Product family • Products

11. Global Budget Americas EMEA Asia PAC Others U.S. Canada Latin Am. Oracle Trade Management Provide Visibility to Budgets Program Checkbook Rollup View Fund Balances • Total • Planned • Committed • Utilized • Earned • Paid Customer Checkbook Hierarchy Tree

12. Example: Budget Hierarchy ViewTrack Total Spending and Accrual Levels All balances, withdrill-downs to details N levels ofbudget hierarchy

13. Oracle Trade Management Channel Solution Footprint • Budgets/Funds • Offers/Pricing • POS Management • Deductions & Settlement • Integration with Financials

14. Order Value OffInvoice PromoGoods Volume Pricing OfferTypes Terms Upgrade Lump Sum Scan Data Net Sales Accrual Comprehensive Program TypesProvide Multiple Pricing Options to Users Complete Integration to Pricing & Order Management

15. Product 3 Product 2 Customer B Customer C % Discount Customer C Product 1 Customer D % Discount Customer A Customer A Customer B Purchase Volume Customer B % Discount Customer C Purchase Volume Purchase Volume Comprehensive Volume PricingComplex Discount Programs • Define Pricing Agreements • Specify discount eligibility by customer, product, market, date • Define discount tiers by quantity,dollar amount • Define discount amount by percent,dollar amount • Create combined volume offers • Simplify Administration • Create all volume offers for customers from a single screen • Assign a volume offer for a product to one, many, or all customers • Support direct and indirect sales

16. CalculateROI Define Pricing Buckets CreateOffers ValidateEligibility Forecast Promotional PlanningPlan and Analyze Before Execution Business Flow Benefits • Avoid unwarranted discounting • Promote to the right customers with the right products • Ensure effective use of budget

17. Account Manager Dashboard: PlanningEnable Account-Level Planning Set sales target Find past offers to baseline new offers View promotiongaps & overlaps View all planned and current promo activities Forecast revenues and expected ROI

18. ROI ProjectionCalculate Expected Net Impact of Promotional Spend • Integrate with3rd party demand forecast systems to calculate baseline sales and lift • Automatically retrieve cost of goods fromERP system • Calculate ROI based on sales forecast Impact of Discount Promotional ROI

19. Account Manager DashboardEvaluate Account and Product-Level Performance Sales vs. quotas across multiple timeframes Sales trend andyear-to-year comparison Action alerts triggered bysales target thresholds Performanceby account Performanceby product

20. Comprehensive AdjustmentsTotal Flexibility Adjust promotion rate for pastsales orders based on customerpurchase volume RetroactiveAdjustments ManualAdjustments AutomaticAdjustments FundReconciliation FundTransfers Make ad hoc changes,e.g., for a missed activity Adjust promotion rate,e.g., for scan-through performance Identify underspent funds andreturn them to available budget Identify underspent funds andtransfer them to other promotions

21. Monitor Fund Usage • View Committed vs. Utilized vs. Paid Funds Accrual Engine Sales Orders Complete Funds Tracking ProcessProvide Visibility into Expense and Liabilities

22. Workflow Driven Approval ProcessProvide a Strong Internal Control System Workflow Engine Trigger • Budget creation • Budget allocation • Promotion fund request • Promotion adjustments • Claim settlement Outcome • Automated approvals • Complete audit trail

23. Oracle Trade Management Channel Solution Footprint • Budgets/Funds • Offers/Pricing • POS Management • Deductions & Settlement • Integration with Financials

24. Oracle Channel Management Indirect Sales Accrual and Sell - Through Indirect Sale Sale DistributionChannel Manufacturer End Customer Import &CleansePOS Data XML, EDI E-Mail, Other Indirect Sales(POS) Data • Run pricing simulations • Validate compliance to pricing agreements • Validate against special pricing requests IdentifyApplicablePromotions Claims ProgramPayments Outputs IndirectSalesData Table Indirect JE/Accruals Provide Incentive to Both Distribution Channel and End Customer

25. Channel Inventory TrackingVisibility into Channel Inventory Track inventory throughput View channel inventory by account

26. Oracle Trade Management Channel Solution Footprint • Budgets/Funds • Offers/Pricing • POS Management • Deductions & Settlement • Integration with Financials

27. Oracle Trade Management Claims and Deduction Process Business Flow AssignOwner Approve& Settle AdjustFinancials CreateClaim/DED Research Benefits • Minimize the cost and time required to clear claims & deductions • Identify and collect invalid claims • Proactively prevent deductions • Efficiently process promotional payments

28. Research and Administration ToolsEfficiently Investigate Deductions Track Claims Aging Manage Task • Configurable aging buckets • Team access • Task assignment Assign Owner Categorize Issue Look Up Information FindDuplicates SplitClaim • Flexible assignment(by territory, other) • By claimtype • By claimreason • Ad hocreporting • Promotionalaccrualssearch • Search by customer reference number • Multi-level split Document Investigation Maintain Audit Trails • Notes and attachments • Change history

29. Automated SettlementReduce Resolution Cycle Automatically create Credit, Check, RMA,Write-Off, Chargeback, Debit, On Account Cash, Contra Charge for claims below set threshold amount AutoResolution Issue periodic payments based on customerpreferences to proactively minimize deductions Auto Pay Resolve multiple claims at once by offsettingdeductions and overpayments MassSettlement

30. Oracle Trade Management Channel Solution Footprint • Budgets/Funds • Offers/Pricing • POS Management • Deductions & Settlement • Integrations with Financials, OM and Pricing

31. Integration with ReceivablesStreamlined Deduction Process • Claim number • Reference • Reason Applycash with discrepancies Receive cashfrom customer Create andassign claims Researchand approve Createand applytransactions Adjust AccountsReceivable Settle Claims Close claims with transaction numbers

32. General Ledger PostingsAccuracy and Compliance Sales Orders & Claims Accrual Engine GeneralLedger • Direct Sales • Indirect sales (POS) • Chargebacks • Net sales calculations • Scan data offers • Lump sum offers • Retroactive adjustments • Other adjustments • Post accruals and claims to GL with option to post off-invoice promotions • Account for promotion as a reduction in revenue or as an expense Apply Proper Accounting Rules Minimize Financial Risks with Upfront Accruals

33. Workflow Driven Approval ProcessProvide a Strong Internal Control System Workflow Engine Trigger • Budget creation • Budget allocation • Promotion fund request • Promotion adjustments • Claim settlement Outcome • Automated approvals • Complete audit trail

34. <Insert Picture Here> Oracle Channel Management Suite Roadmap

35. Oracle Trade Management • Product Growth • Enhanced Trade Profiles • Optional Supplier Ship & Debit • Distributor Price Protection –Spawned from TM • Product Evolution and Split • Accounts Receivable Deductions and Claims • Advanced Rebates & POS Management • POS Inventory Enhancements • POS Based Revenue Recognition

36. Supplier Ship & Debit Manage Disputes& Payments Request Special Price Track Accruals Vendor Claim/ Bill Back • Compile accruals & generate Claims • Transmit Claims to Supplier via XML or WebADI • Request New Price from Supplier • Receive Supplier approval/ authorization • Record Accruals • Generate Accurate Accounting • Resolve Disputes • Issue Debit/Invoice to Suppliers Oracle Supplier Ship and Debit enables Distributors across Industries to more quickly and intelligently respond to market conditions by automating special price requests to Suppliers. The solution is geared towards reducing the cost of managing special pricing agreements and to provide greater visibility into the claiming process

37. Price Protection Integration Points • Procurement • Warehouse / Inventory • Costing • General Ledger • Accounts Payable • Accounts Receivable Oracle Price Protection is integrated out of the box with Oracle EBS

38. Channel ManagementMeeting Challenges with Trade Management CHALLENGES CAPABILITIES VALUE • Budget and Quota allocation • Account Manager Dashboard for sales analysis • Promotional Lift calculation based on Third Party data. • Backdated adjustments and retroactive pricing capability • Indirect Sales data tracking and third party accruals • Integration flows for partner fund management and Special Pricing • Mass settlement and Auto Pay capability • Automated Claim creation and settlement processes • Increased sales efficiency and effectiveness • Streamlined Fund and Quota Management process • Ability to manage complex pricing programs • Monitor promotion performance and control promotional exposure • Effective liability tracking based on direct and indirect sales data • Visibility into channel inventory • Minimize claim investigation and processing costs • Increasingly complex business processes • Effective allocation of funds to promotional activities • Increased focus on forecasting and performance tracking capability • Complex Accrual Processes and Adjustment requirements • Channel and Indirect Sales data visibility and tracking • Increased cost of Claims and Dispute investigation

39. Develop Market Contracts Sell Projects HR Order Customers, Suppliers, Products,… Finance Plan Maintain Procure Service Make Fulfill The Oracle EBS Channel Solution • Oracle Marketing • Oracle Sales • Quoting • iStore • Trade Management • Budgets Management • Pricing • Rebate Management • POS Management • Claims and Settlement • Order Management • Pricing • Inventory • Financials • Customer Data Hub

40. <Insert Picture Here> Q&A