QAD Midwest User Group
QAD Trade Promotion Management (TPM)
Jean Miller, Product Architect - Research & Development
Hank Canitz, Sr. Director Marketing
MWUGMarch2013
QAD Midwest User Group
Safe Harbor Statement
The following is intended to outline QAD’s 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, functional capabilities, and
should not be relied upon in making purchasing
decisions. The development, release, and timing
of any features or functional capabilities
described for QAD’s products remains at the sole
discretion of QAD.
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QAD Midwest User Group
Agenda
• Product Background
- TPM Cycle
- TPM vs TrM
• TPM Functionality
-
Data Setup
Promotions
Claims
Deductions
Budgeting/Accruals
Analysis/Reporting
• Product Status
• Phase II – Indirect Sales
• Next Steps
QAD Midwest User Group
Product Background Information
Trade Promotion Management – March 2013
QAD Midwest User Group
Trade spend averages 20% of gross sales
What do Manufacturers Need?
 Powerful Promotion Planning
 Efficient Deduction Resolution
 Automated Claims Processing
 Tight Integration with Financials
 Robust Reporting/Analytical Tools
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QAD Midwest User Group
TPM Cycle
Sales &
Marketing,
Supply Chain,
Finance
Optimize
Monitor
Supply Chain
Collaborate
Localize
Sales &
Marketing,
Supply Chain,
Finance
Execute
Finance
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QAD Midwest User Group
TPM vs TRM
• TRM is QAD’s solution in the Trade Management
space compatible with our SE version and older
releases
- First offered in 1996 as an add-on to QAD version 8.6
• TRM has been enhanced and modified for the
past 15+ years
- No major rewrites to take advantage of newer
technologies or significantly upgrade User Interface
• Release of our QAD Enterprise Financials edition
(EE) in 2008 provided opportunity to invest in a
new solution
• TPM is the our new product offering
QAD Midwest User Group
TPM main advantages over TrM
Latest .NETui vs. Outdated CHUI-based UI
rd
QAD code standards vs. 3 party code
Domain/Entity vs. Division/Region
Multi-currency vs. Single currency
Core functions vs. Bolt-on Duplication
Claim Automation in addition to Manual Claims
Earned Discounts visible immediately instead of after
the fact Reports
• Optional Budgets vs. Mandatory Budgets
• Immediate Discounts at Line level and Order Level
•
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QAD Midwest User Group
TPM Functionality
Trade Promotion Management – March 2013
QAD Midwest User Group
QAD Integrated Solution
Enterprise Edition
Demand
Management
Forecasts
Groups
Profiles
Budgets
Pricing
Sales Orders
Deductions
Accruals
TPM
Promotions
Rebates
Claims
Business
Intelligence
Analysis
Reporting
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QAD Midwest User Group
Data Setup
Trade Promotion Management – March 2013
QAD Midwest User Group
Item and Customer Attributes
Attributes allow users to define additional qualifiers
which further differentiate and categorize both
Items and Customers. Attributes can then be used
to filter on reports, browses and when defining
Customer and Item Groups.
QAD Midwest User Group
Item and Customer Groups
Groups can either be Static or Dynamic
Browse selection on ‘standard’
fields and attributes
Static Group Members may
have a Start and End Date
defining membership effectivity
QAD Midwest User Group
Promotions
Trade Promotion Management – March 2013
QAD Midwest User Group
Deal Categories
Deal Grouping with common functions
• Immediate Discount – Discount during Sales Order Entry
• Line Level / Order Level
• Discount %, Discount Amount, Credit Terms, Freight Terms
• Deferred Discount – Discount based on sales activity
given in the future via payment, credit note, or
deduction
• Bonus Goods – Additional goods given for free or
discounted based on quantity or amount purchased
of same or other goods during Sales Order Entry
• Allocated Funds – Fixed Monies given on a defined
schedule based on criteria other than sales activity
QAD Midwest User Group
Promotion Maintenance
Any number of Individual Customers and/or Customer
Groups can be included on a Promotion
QAD Midwest User Group
Promotion Maintenance
Any number of Individual Items and/or Item Groups
can be included on a Promotion
QAD Midwest User Group
Promotion Maintenance
Multiple Deal Profiles may be added onto a single
Promotion. Each Deal Category type has a different
set of details which are then defined.
QAD Midwest User Group
Promotion – Immediate Discounts
Discount Level: Line or Order
Quantity Type: Amount, Quantity
Amount Type: Discount %, Credit Terms, Freight Terms
Combination Type: Combinable or Exclusive
Volume Type: Based on total order value
Apply To: Individual Lines or Trailer
QAD Midwest User Group
Promotion – Deferred Discounts
Payment Cycle: End of Promotion or Current
System Generate Claim: May claims be generated or does
customer have to submit claim
Accumulation Period: Promotion, Month, Qtr, Year
Payment Method: Credit Note or Supplier Invoice (Check)
Claim Over Limit: Whether to issue hard error if claim exceeds
Deal Limit
QAD Midwest User Group
Promotion - Allocated Funds
Spread Method: First Period, Last Period, Even Spread
Payment Cycle: Current, End of Promotion
QAD Midwest User Group
Promotion – Bonus Goods
QAD Midwest User Group
Claims
Trade Promotion Management – March 2013
QAD Midwest User Group
Claim Creation
• Claims created in TPM by three separate
processes
- Approved Promotional Deductions taken during
payment application
- Manual claim entry when request is received
from customer
- Automated Claim Generation for promotions
based on setting in Promotional Deal
QAD Midwest User Group
Manual Claim Entry
Claims must be ‘Approved’ to
create Financial Documents
- Browse displays Earned Discounts to-date for this Customer by Promotion/Deal.
- If prior claims have been made against a Promotion/Deal, the Claims Taken
and/or Pending Claims columns will include those amounts and the Open
Balance will be adjusted accordingly.
QAD Midwest User Group
System Generate Claims
- Deals may be defined so that claims can be System-Generated.
- Generate Claims function may be run wide open, or for subsets
of criteria.
- Status of System Claims determined by TPM Control value.
- Claims may be de-selected/re-selected before final Save.
QAD Midwest User Group
Claim Approval
• Claims may require approval
- TPM Control setting
• Approval will result in a Customer Credit
Note or Supplier Invoice
• When financial documents are posted, the
daybooks from the TPM Control are used
and the postings are made to the accounts
previously determined in Earned Discount
calculation
QAD Midwest User Group
Claim Approval
- Separate function to review/approve/reject claims.
QAD Midwest User Group
Deductions
Trade Promotion Management – March 2013
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QAD Midwest User Group
Deduction Categories
Deductions taken within Payment
application require an approval
process in TPM when the Deduction
category is set to ‘Promotion’
QAD Midwest User Group
Financials – Deductions
QAD Midwest User Group
Financials – Deductions
QAD Midwest User Group
Budgeting/Accruals
Trade Promotion Management – March 2013
QAD Midwest User Group
Generate Accruals Maintenance
QAD Midwest User Group
Budgeting/Accounting
Standard EE Budgeting Functionality
can be used to establish Trade Spend
Budgets. If full budgeting capability
is not required, promotions can be
linked to specific Budget Topics to do
simple Budget to Actual comparisons
QAD Midwest User Group
Analysis & Reporting
Trade Promotion Management – March 2013
QAD Midwest User Group
TPM Reporting Strategy
• Operational Metrics
- Promotions, Claims and Deductions by Status
- Rejected Deductions by Deduction Category
- Rejected Claims by Rejection Reason
• QAD Reporting Framework
-
Promotions by Customer Group By Item Group
TPM Accruals
TPM Generated Claims
Budget vs. Actual Comparisons
Standard Price List Reports
• Role-Based Collections/Centers
- Brand Manager, Promotion Manager, TPM Analyst
QAD Midwest User Group
Promotion Activity Collection
• Filters by Promotion, Deal, Deal Category,
Buy Dates, Item/Group, Customer/Group
• Displays Deals Matching Filter Criteria
• Collection Includes:
-
Deductions
Claims
Invoice Lines
Earned Discounts
QAD Midwest User Group
TPM Sub-Ledger
Sub-Ledger Collection allows a quick view into all Discounts
given for a particular Promotion/Deal. All GL and SAF
information is included for both Sales and Discount amounts
QAD Midwest User Group
Earned Discount Collection
QAD Midwest User Group
Product Status
Trade Promotion Management – March 2013
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QAD Midwest User Group
Product Status/Release Plan
• Phase One (Direct Sales) available for Early
Adopters now.
• Phase Two (Indirect Sales) development
underway.
• Working with multiple early adopters and
identifying other potential customers.
• Possibility of having TPM available on QAD
Demo Center for evaluation by interested
parties.
QAD Midwest User Group
Phase 2 – Indirect Business Diagram
$$ Chargeback (List – Contract Price)
Distributor Orders
from Manufacturer
Manufacturer
Admin
Fee ($)
Invoices at List
Price – Std disc
Contract
Price
Definition
GPO
(Buying Group)
Indirect
Customer
Distributor
Indirect
Customer
Invoices at
Contract Price
Customers Order
from Distributor
QAD Midwest User Group
Phase 2 Areas for Development
• Indirect Customers/Buying Groups
• Contracts
• Pricing
• Sales Trace
• Chargeback
• Admin Fee
QAD Midwest User Group
Phase 2 – Indirect Custs/Buying Groups
• Maintenance of Indirect Customers
- Subset of Core Customer data
- Reference information such as HIN#, DEA#, etc.
• Maintenance of Buying Groups
- Maintenance of Indirect Customers in Group
- Automated Load of Membership changes,
Additions/deletions
- Audit history
- Electronic upload, manual creation
QAD Midwest User Group
Phase 2 – Contracts
• Maintenance of Contract pricing detail at
Item Level
• Associated Distributors
• Link to indirect customers
• Automatic maintenance of pricing when
group membership changes
• Admin Fees linked to Contracts
QAD Midwest User Group
Phase 2 – Pricing
• Price Lists written into core pricing tables,
maintained on Contract
• Best Pricing
• Contract pricing
• Priority Pricing
• Preferred Pricing
QAD Midwest User Group
Phase 2 – Sales Trace
• Indirect sales reporting back to MFG
• Cross-reference information
• Electronic or Manual creation
• Optional Chargeback Generation
QAD Midwest User Group
Phase 2 – Chargeback
• Distributor Price – Contract Price
• Manual or Electronic load
• Cross-reference information
• Automatic Calculation and Validation of
Chargebacks against contracts
• Discrepancy Handling/Reporting
QAD Midwest User Group
Phase 2 – Admin Fee
• Percentage back to Buying Group
• Supporting Documentation in full detail
• Electronic delivery
• Payment typically via Supplier Invoice (EF)
QAD Midwest User Group
Next Steps
• Interest? – Meet with your internal TPM team
to determine interest
• Interest Exists – Schedule a demonstration of
TPM with your account mgr
• Take active role as Early Adopter (Upgrade to
EE) or passive role and wait for GA
• Engage QAD in Discovery / Vision
• Engage QAD in 3 day Upgrade QSCAN
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QAD Midwest User Group
QUESTIONS?
Trade Promotion Management – March 2013
JPM@qad.com 865-925-8147
HCC@qad.com 720-238-7439