Integrating%20Oracle%20Quoting%20with%20Trade%20Management%20and%20Pricing%20Holli%20Lien%20

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Integrating Oracle Quoting with Trade Management
and PricingHolli Lien FinisarJoanne
Nettleblad OAC Services, Inc.
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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

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Finisar

• Digital Fiber optics for Enterprise, Access,
  Metro Networks
• Founded in 1988
• Headquartered in Sunnyvale, CA
• 4,000 employees worldwide
• FY06 Revenue 364 Million

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Global Sales Channel
Finisar Facilities
Distributors
Reps
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Sales Channel
Finisar Mfg
Finisar RSMs Mfg Reps
Distributors
Contract Mfgs
End Customers
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Business Drivers

• Acquisition of Infineon business
• Inherited two large Distributors
• Continue increasing Finisars current
  distribution business
• Shifted some distributors from a POP model to a
  POS model in Apr05
• Allows for better sales/inventory incentives

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Business Drivers

• Limited business rules and processes in place
• No quoting system
• Every 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

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Finisars Quoting Process before Oracle
Quoting
Maintains Customer Price Lists
Email
Email

Phone
Phone
Distributor
3rd Party Reps
RSM

Debit Memo
Email
Excel Consolidation
Pulls Information from spreadsheets to book
orders

POS


Marketing
Process POS validate approved SDs from
consolidated quoting spreadsheets

Maintains Standard Price List
Customer Service
Create Credit Memos
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Oracle Process Architecture
Trade Management
Partner Page
Approvals
Special Price Request
Trade Mgt (Process batch claim)
Create Offer
Distributor
Quoting
Approvals
Quoting
Manually Update Price Lists
Internal RSM
Partner Page
3rd Party Reps.
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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)

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Customized Process Architecture
Trade Mgt Process POS / Claims
Approvals Ship/Debit
Custom Inter.
Offer
Special Price Request
Approvals Direct Cust.

• Quoting
• Disti End Customers
• Direct End Customers

Internal RSM
Custom Inter.
Partner Page
Pricing Update/Create Customer Price Lists
3rd Party Reps.
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Oracle Quoting and Customer Price Lists
PRICING
List Price Approval from Price Lists
Create Quote
CUSTOMINTERFACE
Quote Type Status is the Trigger
Create/Update Price List
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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

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Price Lists linked to Customers
DATABASE
PRICE LISTS
CUSTOMERS
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Price Lists linked to Customers
DATABASE
PRICE LISTS
CUSTOMERS

• 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

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Price Lists linked to Customers
DATABASE
PRICE LISTS
CUSTOMERS

• All Customers are linked to the Standard Price
  List

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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

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Entering Quote Will I be able to quote?
Assume these are the only parts on the Standard
Price List.
Scenario 1 Im trying to enter a quote for
customer ZZ for FO55LF-ZZ. Today is 11-Dec-2006.
NO
FO55LF-ZZ is on the ZZ price list, however there
is no price in effect as of 11-DEC-2006.
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Entering Quote Will I be able to quote?
Assume these are the only parts on the Standard
Price List.
Scenario 2 Im trying to enter a quote for
customer ZZ for FO44LF-ZZ. Today is
17-Jan-2007.
NO
FO44LF-ZZ is a customer-specific part and is not
currently on the ZZ price list. Because its a
customer-specific part, FO44LF-ZZ would not be
on the standard price list either.
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Entering Quote Will I be able to quote?
Assume these are the only parts on the Standard
Price List.
Scenario 3 Im trying to enter A quote for
customer ZZ for FO22LF. Today is 17-Jan-2007.
YES
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
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Custom Interface for Price Lists

• How does the Custom Interface know when to Update
  or Create a Customer-Specific Price List?

Pricing
Oracle Quoting
Sales Rep Enters Quote
Update Price List
Create Price List
Custom Interface
Customer have Account?
Cust-Specific Price List?
Select Customer
Customer- Specific Price List
YES
YES

• Using Customers Name

Approved Quote
Change Status on Quote to Order Received
NO
NO
Approval Process
No Price List Quote Only
Standard Price List
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Business Rules for Pricing Interface

• Update Existing Customer-Specific Price List
• Quote has to be entered with the correct customer
  and price list
• Price 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

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Setting up Custom Interface (Pricing API)

• Standard Pricing API used
• Pricing API logic built around the price list
  line start/end dates
• Descriptive Flexfields utilized in Quoting for
  Pricing Effective Start and End Dates
• Concurrent process runs every 30 minutes
• Assumptions
• 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

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Logic for Pricing API
Price List Start Date
Price List End Date

• Existing Price List Line has start and end dates
  
• New Price List Line has start and end dates

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Logic for Pricing API
Price List Start Date
Price List No End Date

• Existing Price List Line has a start date but no
  end date
• New Price List Line has start and end dates

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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
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Logic for Pricing API
Price List Start Date
Price List End Date

• Existing Price List Line has a start date and
  end date
• New Price List Line has a start date but no end
  date

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Custom Interface Updating Price List

• How it works

Once the Quote is Approved and the status is
changed to Order Received
BEFORE
AFTER
Quote 111 Customer ZZ Type of Quote
BLANKET Part F033LF Target Price 37 Pricing
Eff Start Date 17-Jan-2007 Pricing Eff End Date
Custom Interface will (1) End date existing
line using the date before the new prices start
date
(2) Create a new line with the new price and
start/end dates.
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Oracle Quoting Screen Shot for Pricing
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Oracle Quoting and Ship Debits
PRICING
List Price Approvals from Price Lists
Create Quote
CUSTOMINTERFACE
Generate SD for Disti
Quote Type Status is the Trigger
Offer
Validate against Disti Price List
Special Price Request
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Distributor Price List

• Distributor Price List
• Can only have standard part numbers
• One price for specified period

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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

Same Rule as Entering Quote for Direct Customer
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Custom Interface for Ship Debits

• How does the Custom Interface know when to Create
  a Ship Debit?

Create
Oracle Quoting
Trade Management
Sales Rep Enters Quote
Approved Quote
Will Create Ship Debit
Approval Process
Custom Interface

• Create Offer
• Special Price Request

Change Status on Quote to Ship Debit Approved
Is the Part a std part?
Is the Target Cost lt the Disti Price?
Is the Distributor specified?
YES
YES
YES
NO
NO
NO
Will Not Create Ship Debit
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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

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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 minutes
• Ship Debit expiration date is 6 months from
  creation date
• Ship Debit number and quote name used in SPR
  and Offer creation
• Ship Debit Number returned and stored in Quote
• Email sent upon Ship Debit assignment

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Oracle Quoting Screen Shot for SDs
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Finisar Integrated Process

• One User Front-end
• One Business Process (Quoting)
• Effecting Two Applications
• Pricing
• Trade Management

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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

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Questions?
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Presenter Contact Information
Holli Lien [phone] holli.lien_at_finisar.com
Joanne Nettleblad [phone] joanne.nettleblad
_at_oacsi.com