january 17, 2007f i n i s a r c o r p o r a t i o n integrating oracle quoting with trade management...
TRANSCRIPT
January 17, 2007 F I N I S A R C O R P O R A T I O N
Integrating Oracle Quoting with Trade Management and Pricing
Holli Lien – FinisarJoanne Nettleblad – OAC Services, Inc.
Integrating Oracle Quoting with Trade Management and Pricing
Holli Lien – FinisarJoanne Nettleblad – OAC Services, Inc.
2FINISAR CONFIDENTIAL
Agenda
Introduction to Finisar & Business Drivers
Process & Architecture
Quoting & Customer-Specific Price Lists
Quoting & Distribution Ship & Debits
Overview of One Process for both Applications
Lessons Learned
3FINISAR CONFIDENTIAL
Finisar
Digital Fiber optics for Enterprise, Access, & Metro Networks
Founded in 1988
Headquartered in Sunnyvale, CA
4,000+ employees worldwide
FY06 Revenue ~$364 Million
4FINISAR CONFIDENTIAL
Global Sales Channel
Finisar Facilities
Distributors
Reps
5FINISAR CONFIDENTIAL
Sales Channel
Finisar MfgFinisar Mfg Finisar RSMs Finisar RSMs Mfg RepsMfg Reps
DistributorsDistributors Contract MfgsContract Mfgs End CustomersEnd Customers
6FINISAR CONFIDENTIAL
Business Drivers
Acquisition of Infineon business Inherited two large Distributors
Continue increasing Finisar’s current distribution business
Shifted some distributors from a POP model to a POS model in Apr’05 Allows for better sales/inventory incentives
7FINISAR CONFIDENTIAL
Business Drivers
Limited business rules and processes in place
No quoting systemEvery region had their own unique manual process
No formal approval process SOX compliance concerns
Pricing done on email, spreadsheets, or verbally no controls, tracking or visibility
8FINISAR CONFIDENTIAL
Finisar’s Quoting Process before Oracle
Distributor
Quoting
Phone3rd Party Reps
PhoneRSM
Maintains Customer Price Lists
Customer Service
Pulls Information from spreadsheets to
book orders
Marketing
Maintains StandardPrice List
Excel Consolidation
Deb
it M
emo
Process POS &
validate approved S&Ds
from consolidated
quoting spreadsheets
POS
Create
Credit Memos
9FINISAR CONFIDENTIAL
3rd Party Reps.
Internal RSM
Distributor
Quoting
Special Price Request
Partner Page
Create Offer Trade Mgt (Process batch & claim)
Manually Update Price Lists
Partner Page
Approvals
Approvals
Trade Management
Quoting
Oracle Process & Architecture
10FINISAR CONFIDENTIAL
Business Requirements
One user interface and business process for either Ship & Debit authorizations or direct customer quotes
One approval process and application to support for quoting process
Manual price list creation and maintenance must be minimal
Direct customer quotes will result in pricing for a specific time period (multiple purchase orders)
11FINISAR CONFIDENTIAL
Internal RSMQuoting• Disti End Customers• Direct End Customers
Offer
Trade Mgt Process POS / Claims
Approvals
Ship/Debit Special Price Request
Approvals Direct Cust.Custom Inter.
PricingUpdate/Create
Customer Price Lists
Customized Process & Architecture
3rd Party Reps.
Partner Page
Custom Inter.
12FINISAR CONFIDENTIAL
Oracle Quoting and Customer Price Lists
PRICING
Create QuoteList Price &
Approvalfrom Price Lists
CU
ST
OM
INT
ER
FA
CE
Create/Update Price ListQuote Type & Status
is the Trigger
FNSR CUSTOMER XX
FNSR CUSTOMER AA
FNSR CUSTOMER BB
FNSR CUSTOMER YY
13FINISAR CONFIDENTIAL
Standard & Customer Price Lists
On a Customer-Specific Price List: • Can have both standard and customer-specific part numbers• One price for specified period• Has the Standard Price List as secondary
14FINISAR CONFIDENTIAL
Price Lists linked to Customers
DATABASE
CUST ACCT# 111
CUST A
CUST ACCT# 222
CUST B
CUST ACCT# 333
CUST C
CUST ACCT# 777
CUST X
CUST ACCT# 888
CUST Y
CUST ACCT# 999
CUST Z
CUST ACCT# 444
CUST H
CUST ACCT# 555
CUST M
CUST ACCT# 666
CUST R
PRICE LISTS CUSTOMERS
FNSR CUSTOMER AA
FNSR CUSTOMER BB
CUST J
CUST K
CUST O
FNSR CUSTOMER XX
FNSR CUSTOMER YY
15FINISAR CONFIDENTIAL
Price Lists linked to Customers
DATABASE
CUST ACCT# 111
CUST A
CUST ACCT# 222
CUST B
CUST ACCT# 333
CUST C
CUST ACCT# 777
CUST X
CUST ACCT# 888
CUST Y
CUST ACCT# 999
CUST Z
CUST ACCT# 444
CUST H
CUST ACCT# 555
CUST M
CUST ACCT# 666
CUST R
PRICE LISTS CUSTOMERS
FNSR CUSTOMER AA
FNSR CUSTOMER BB
CUST J
CUST K
CUST O
FNSR CUSTOMER XX
FNSR CUSTOMER YY
• Only customers with Account Numbers can have their own price list
• Not all customers have an Account Number (ie. Disti end customers)
• Not all customers with Account Numbers will have a price list
16FINISAR CONFIDENTIAL
Price Lists linked to Customers
DATABASE
CUST ACCT# 111
CUST A
CUST ACCT# 222
CUST B
CUST ACCT# 333
CUST C
CUST ACCT# 777
CUST X
CUST ACCT# 888
CUST Y
CUST ACCT# 999
CUST Z
CUST ACCT# 444
CUST H
CUST ACCT# 555
CUST M
CUST ACCT# 666
CUST R
PRICE LISTS CUSTOMERS
FNSR CUSTOMER AA
FNSR CUSTOMER BB
CUST J
CUST K
CUST O
FNSR CUSTOMER XX
FNSR CUSTOMER YY
• All Customers are linked to the Standard Price List
17FINISAR CONFIDENTIAL
Business Rules for Entering Quote
Part Number MUST: Be on either the Standard price list or the Customer-Specific
price list Have a current price on a price list
the price is valid (or not expired) the day that you enter your quote
18FINISAR CONFIDENTIAL
Entering Quote: Will I be able to quote?
Scenario 1: I’m trying to enter a quote for customer ZZ for
FO55LF-ZZ. Today is 11-Dec-2006.
Assume these are the only parts on the Standard Price List.
FO55LF-ZZ is on the ZZ price list, however there is no price in effect as of 11-DEC-2006.
19FINISAR CONFIDENTIAL
Entering Quote: Will I be able to quote?
Scenario 2: I’m trying to enter a quote for customer ZZ for
FO44LF-ZZ. Today is 17-Jan-2007.
Assume these are the only parts on the Standard Price List.
FO44LF-ZZ is a customer-specific part# and is not currently on the ZZ price list. Because
it’s a customer-specific part#, FO44LF-ZZ would not be on the standard price list either.
20FINISAR CONFIDENTIAL
Entering Quote: Will I be able to quote?
Scenario 3: I’m trying to enterA quote for customer ZZ for
FO22LF. Today is17-Jan-2007.
Assume these are the only parts on the Standard Price List.
The Std Price List is linked to a customer-specific price list as the secondary. So even though FO22LF is specifically not on the ZZ price list, FO22LF is still a standard part on
the standard price list
21FINISAR CONFIDENTIAL
Custom Interface for Price Lists
How does the Custom Interface know when to Update or Create a Customer-Specific Price List?
Sales RepEnters Quote
SelectCustomer
Customer have
Account#?
StandardPrice List
Customer-Specific
Price ListCust-Specific
Price List?
YES YES
NO NO ApprovedQuote
Ap
pro
val Pro
cess No Price List;Quote Only
Custo
m I
nter
face
Oracle Quoting
Update Price List
CreatePrice List
Pricing
Change Status on Q
uote
to “Order R
eceived”
• Using Customer’s Name
22FINISAR CONFIDENTIAL
Business Rules for Pricing Interface
Update Existing Customer-Specific Price List: Quote has to be entered with the correct customer and price
listPrice list will default based on the customer & acct#
Quote has to be in Order Received status
Create New Customer-Specific Price List: Customer on the quote has to have an account# Customer-specific price list name will be created using the
Customer Name Quote has to be in Order Received status
23FINISAR CONFIDENTIAL
Setting up Custom Interface (Pricing API)
Standard Pricing API usedPricing API logic built around the price list line start/end datesDescriptive Flexfields utilized in Quoting for Pricing Effective Start and End DatesConcurrent process runs every 30 minutesAssumptions: No logic built in to look at price – new quote price overrides
existing (even if same) Null end date treated as infinite date (aka. 12/31/2099) in
logic Null start date on quote will use system date for price list line
start date
24FINISAR CONFIDENTIAL
Logic for Pricing API
Price List Start Date Price List End Date
1
2
3
4
5
6
7
8
9
1011
1213
Existing Price List Line has start and end dates
New Price List Line has start and end dates
25FINISAR CONFIDENTIAL
Logic for Pricing API
Existing Price List Line has a start date but no end date
New Price List Line has start and end dates
Price List Start Date Price List No End Date
1
2
3
4
5
6
7
8
9
10
11
12
13
26FINISAR CONFIDENTIAL
Logic for Pricing API
Existing Price List Line has a start date but no end date
New Price List Line has a start date but no end date
Price List Start Date Price List No End Date
1
2
3
27FINISAR CONFIDENTIAL
Logic for Pricing API
Existing Price List Line has a start date and end date
New Price List Line has a start date but no end date
Price List Start Date Price List End Date
1
2
3
4
5
6
28FINISAR CONFIDENTIAL
Custom Interface Updating Price List
How it works:
Quote# 111Customer: ZZType of Quote: BLANKETPart# F033LFTarget Price: $37Pricing Eff Start Date: 17-Jan-2007Pricing Eff End Date:
BEFORE AFTER
Once the Quote is Approved and the status is changed to Order Received
Custom Interface will…
(1) End date existing line using the date before the new price’s start date
(2) Create a new line with the new price and start/end dates.
29FINISAR CONFIDENTIAL
Oracle Quoting Screen Shot for Pricing
FO55LF12345 1.0 EA 1000 $45 $37 $37000 Details
30FINISAR CONFIDENTIAL
Oracle Quoting and Ship & Debits
PRICING
Create QuoteList Price & Approvals
from Price Lists
CU
ST
OM
INT
ER
FA
CE
Generate S&D# for Disti
FNSR CUSTOMER XX
FNSR CUSTOMER YY
TRADE MANAGEMENT
Quote Type & Status is the TriggerOffer
Special Price Request
Validate againstDisti Price List
31FINISAR CONFIDENTIAL
Distributor Price List
Distributor Price List: • Can only have standard part numbers• One price for specified period
32FINISAR CONFIDENTIAL
Business Rules for Entering Quote
Part Number MUST: be on either the Standard price list or the Customer-Specific
price list has to have a current price on a price list
the price is valid (or not expired) the day that you enter your quote
33FINISAR CONFIDENTIAL
Custom Interface for Ship & Debits
How does the Custom Interface know when to Create a Ship & Debit?
Sales RepEnters Quote
Is the Part# a std
part?
Is theTarget Cost < the Disti
Price?
YES YES
NO NO
ApprovedQuote
Ap
pro
val P
rocess
Will NotCreate
Ship & Debit
Custom Interface
Is theDistributorspecified?
YES
NO
CreateWill Create
Ship & Debit
Oracle Quoting Trade Management
• Create Offer• Special Price RequestChange Status on Quote
to “Ship & Debit Approved”
34FINISAR CONFIDENTIAL
Business Rules for OTM Interface
Quote must be in Ship & Debit Approved Status
Sales Channel must be a POS Distributor Mapped to Distributor Customer Acct#
Requested pricing is lower than Disti book price
Part# must be on Distributor Price List Standard parts only, not customer-specific parts
35FINISAR CONFIDENTIAL
Setting up Custom Interface (OTM API)
Leverage public Trade Management Offer API Direct table load for Special Price Request (SPR) creation No public API at the time we implemented
Scheduled concurrent background process runs every 5 minutesShip & Debit expiration date is 6 months from creation dateShip & Debit number and quote name used in SPR and Offer creationShip & Debit Number returned and stored in QuoteEmail sent upon Ship & Debit assignment
36FINISAR CONFIDENTIAL
Oracle Quoting Screen Shot for S&Ds
FO55LF12345 1.0 EA 1000 $45 $37 $37000 Details
37FINISAR CONFIDENTIAL
Finisar Integrated Process
One User Front-end
One Business Process (Quoting)
Effecting Two Applications Pricing Trade Management
38FINISAR CONFIDENTIAL
Lessons Learned
Keep it Simple
Design the business processes up front
Know your user community
Test, validate, test
Know your Oracle Support and Development team
Continuous improvement / enhancements
39FINISAR CONFIDENTIAL
Questions?Questions?
40FINISAR CONFIDENTIAL
Presenter Contact Information
Holli Lien
(408) 400-1103
Joanne Nettleblad
(408) 781-0328