oracle trade management presenter: pankaj tiwari, manager enterprise applications a kumar acharya,...
TRANSCRIPT
Oracle Trade Management
Presenter: Pankaj Tiwari , Manager Enterprise Applications A Kumar Acharya, Business System Analyst
Eswar Vadya, Business Architect (Vibrant Infotech)Norcal OAUG - Jan 17,2008
Marvell Confidential
Agenda
• Introduction– History of Marvell
– Marvell’s Journey
• Milestones• Problem Statement• Objectives• Implementation• Lessons Learnt • Q & A
Marvell Confidential
History of Marvell
• Founded 1995• Fabless semiconductor• Global operations
– Israel– Europe (Germany, Italy, Switzerland)– Asia Pacific (Singapore, India, Japan & China)– USA
• Annual Revenue ($MM)– FY 2002 288.8– FY 2003 505.3– FY 2004 819.8– FY 2005 1,224.6 – FY 2006 1,670.3– FY 2007 2,095.2
• 5000+ employees across US, Europe and Asia
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Marvell’s Journey
AUG 2001 Galileo Go-live on Oracle Apps 11.0.3DEC 2001 Upgrade Oracle Apps 11i (11.5.4)JAN 2002 Convert Oracle Apps to Multi-Org and Fiscal CalendarMAY 2002 Migrate North America to OM/FI to Oracle Apps 11iOCT 2002 Go-live OSFMOCT 2002 Implement Rosettanet PIP 3D8 with 10 Sub ContractorsAUG 2003 Install Oracle 10G iAS for RosettanetDEC 2003 Upgrade Oracle Apps to 11.5.9JAN 2004 Migrate SysKonnect GmbH from BAAN to Oracle Apps 11iFEB 2004 Migrate RADLAN IL to Oracle Apps 11i (New Company)APR 2004 Install UTF8 to accommodate multi-byte charactersSEP 2004 Implement Basic HRMSDEC 2004 Implement WEB based Employee Expense System for North AmericaJAN 2005 Implement Compensation Work BenchJUL 2005 Implement Phase 1 ASCP (Wafer Buy Plan)AUG 2005 Upgrade Oracle Apps to 11.5.10JAN 2006 Integrate Q-Logic AcquisitionFEB 2006 Integrate UTStarcom AcquisitionAPR 2006 Integrate National Semiconductor AcquisitionMAY 2006 Integrate Avago AcquisitionMAY 2006 Implement Marvell Penang Ltd (New Company)OCT 2006 Implement Marvell Switzerland Ltd (New Company)NOV 2006 Integrate Intel AcquisitionNOV 2006 Implement Marvell DSPC IL (New Company in Israel)FEB 2008 Implement Trade Management for Avenet and Nu Horizon
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Milestones
Task # Mile Stones Major Tasks Planned Start
Date Remarks
1Requirement
Analysis Process Flow Mapping Feb-15-2007 Identified gaps
2 System Readiness Apply patches July-15-2007
Applied multiple patches. Oracle should come up with RUP
3 Configuration Setups and Identification Oct-10-2007
Build 4 extensions and discoverer reports, modified account generator and enabled various business events
4 Data Conversion Ending Inventory Oct-20-2007
Identified cut off date and populated inventory
5 Functional Testing Process Flow Testing Dec-13-2007
6 B2B Configuration POS and Inventory data load Jan-15-2007
Started receiving 867 and 846 from Nu Horizon
7User Acceptance
Testing Feb-2-2008
Personalization of user interface and WebADI. Identified few key issues
8 Go Live Feb-18-2008
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Problem Statement
• Marvell acquired more than 25 distributors through acquisition
• Contracts based on individual distributors
• Pricing and Discounting are manual and maintained by marketing on Excel
• Distributor Revenue and COGS are tracked on Excel and transfer to oracle in GL
• Knowledge to recognize revenue limited to individual person and maintained in Excel sheets for Distributors
• Custom software for Financial Planning to do analysis on distributor revenue and inventory
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Objective of Trade Management
Marvell wanted to ensure that the following key objectives were met by implementing Oracle Trade Management.
• Implement Oracle Trade Management is to eliminate manual process in Claim, Inventory tracking and POS data reconciliation.
• Weekly tracking of distributor revenue ,claims and cogs
• Use EDI/Rosetta net to exchange information with distributors
• Automate the reconciliation process to reduce the burden on Revenue group.
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Continued…
• Ensure that the automated reconciliation process generates adequate audit trail to meet the SOX compliance requirements
• Ensure that the solution implemented is both scalable and low maintenance
• Use oracle standard APIs and Business events to build extensions and discoverer reports for reporting needs.
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Implementation Team
MIS Team• 1 Manager • 1Sr Business System Analyst• 1 Consultant • 2 Programmer Analyst
User • Senior Sponsor (VP of Finance)• Senior Management from various functional areas• 4 Key Users
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Approach
Implement Oracle Trade Management as solution for Distributor revenue reconciliation process. This implementation was broken down into different phases
• Phase1 – Feb 08• POS Processing
• Claim Process
• Indirect Inventory Tracking
• Distributor Part Number Mapping
• Offers
• Phase2• Partner Management
• Advance Pricing
• Special Pricing Request
• Quoting
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GAP Analysis
• Split of revenue into Deferred Revenue and reserve• COGS Processing
– Deferred COGS
– COGS Recognition
• Link between Item cross reference and Distributor Cross reference
• Calculate the average sales price• Standard Reports• User interface
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Processes – Ship and Debit
• Distributor Shipment– Orders will be booked in OM with Order type Distributor– Revenue will be split into two. Distributor price list will hit deferred
revenue account. Difference between Booking Price and Distributor price will hit reserve account.
– Revenue and COGS will hit Deferred revenue and Deferred COGS at the time of Shipment
• Price List and Item Cross reference– Oracle distributor price list will be loaded in oracle as Offers– Revenue users will do quarterly distributor price update– Item cross reference between Marvell part no and Distributor Part no
will be maintained in Trade Management – POS data can be loaded using ADI( Application Desktop Integration) or
via B2B
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Processes – Ship and Debit
• AR Process– Claim will be created based on the claim amount provided by distributors– Revenue amount will be created by Selling price provided by distributors– Claims will split in two portion– Difference between Marvell Booking Price and Distributor Price will hit deferred
revenue account– Difference between Distributor Price and BCN Price will hit reserve account– Distributor provided purchase price will be recognized as revenue ( GL Journal
Entry)
• Costing Process– Based on POS data , Deferred cogs will be transferred to COGS ( GL Journal
Entry)– For Quarterly cost update , Discoverer report will calculate the cost
adjustments. Users will do manual journal entry in GL for cost adjustment.
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POS and Claim Processes
Enter Disti Order
Offers
Shipping to Disti
General Ledger
ClaimCreation
POS & ClaimData
Claim Approval
Verify and Process POS
Inventory Update
CR MemoCreate
COGS & Revenue
End
Upload POS and Claim
AccountReceivable Start
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High Level Design Extension design
POS Data Process Flow Trade Management and Disti Inventory High Level
Fina
nce
and
Plan
ning
Dep
t
Fina
nce
and
Plan
ning
Dep
tQ
uarte
rly
Upd
ate
Qua
rterly
U
pdat
eR
even
ue D
ept
Rev
enue
Dep
tM
IS
MIS
Er
ror
Tran
sact
ion
Han
dlin
g
Erro
r Tr
ansa
ctio
n H
andl
ing
Dis
ti/B2
BD
isti/
B2B
Fetch new data from B2B Change the Status Code
(2)
B2B Validate EDIFormat
Disti Sends Data in Pre-specified file
definition
Read CSV/XML Format
Process Weekly Data to Staging
Table with Status Code (1).
Validate and Process Weekly Disti information.
Pass Validation
Stored in Staging Table
Complete the Transaction with Status Code (4)
(3) Trade Management
Extension to create Claims
A Fail
A
POS Staging Table (B2B Schema)
(2) Run Extension to Recognize Revenue and
COGS
Pass
E-mail/Send Error message to Data
Owner
(1) Run Trade Management
Extension Program
C
B
BError Reporting to
Data Owners
CAutomatic
Revenue Creation
(4)Create Quarterly Price
List in Trade Management
Disti Inventory Update
Automatic creation of COGS
C
(5)Manual Journal Entry for Cost
Adjustment
Disti Inventory and POS Inventory
update differnce
Manual update of
Claims
Transfer and Post to Oracle GL
Custom Disti Inventory System
Oracle Trade Management
Oracle GL Module
End
End
End
Cr Memo in AR for Approved Claims
End
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Offers Upload
• Upload Quarterly Distributor Price List• Used oracle standard API to upload offers
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Point Of Sale (POS)
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Continued…
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Revenue and Cost
• Automate adjustment journal creation for Revenue and Cost• Used oracle standard interface to create journals
• Used oracle standard account Generator workflow modification
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Continued…
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Discoverer Reports
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Claim Process
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Claim Split
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Claim Details
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Continued …
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Inventory Tracking
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Continued…
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Results
Marvell derived the following key benefits
• Weekly Deferred Revenue and Disti Inventory Tracking• Centralized POS and Claim Process• Common Discounting rule and exception process • Auto journal for Revenue adjustment and COGS adjustment• Centralized reporting for Revenue, Marketing and costing
team• Auditing is much easier after establishing the process
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Lessons Learnt
• Planning is a key to success.
• Identify the Key Users for detail information and make sure they are engaged from start to finish
• A phased implementation approach.
• Open to Extensions and report customization.
• Open to Patches and Oracle TARs;
• Good and effective communication between process changes
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Q & A
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Contact Details
Name : Pankaj Tiwari
E-Mail : [email protected]
Name : A Kumar Acharya
E-Mail : [email protected]
Name : Eswar Vadya
E-Mail : [email protected]