Oracle Trade Management Presenter: Pankaj Tiwari , Manager Enterprise Applications A Kumar Acharya,

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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
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Agenda

• Introduction
• History of Marvell
• Marvells Journey
• Milestones
• Problem Statement
• Objectives
• Implementation
• Lessons Learnt
• Q A

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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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Marvells Journey

• AUG 2001 Galileo Go-live on Oracle Apps 11.0.3
• DEC 2001 Upgrade Oracle Apps 11i (11.5.4)
• JAN 2002 Convert Oracle Apps to Multi-Org and
  Fiscal Calendar
• MAY 2002 Migrate North America to OM/FI to
  Oracle Apps 11i
• OCT 2002 Go-live OSFM
• OCT 2002 Implement Rosettanet PIP 3D8 with 10
  Sub Contractors
• AUG 2003 Install Oracle 10G iAS for Rosettanet
• DEC 2003 Upgrade Oracle Apps to 11.5.9
• JAN 2004 Migrate SysKonnect GmbH from BAAN to
  Oracle Apps 11i
• FEB 2004 Migrate RADLAN IL to Oracle Apps 11i
  (New Company)
• APR 2004 Install UTF8 to accommodate multi-byte
  characters
• SEP 2004 Implement Basic HRMS
• DEC 2004 Implement WEB based Employee Expense
  System for North America
• JAN 2005 Implement Compensation Work Bench
• JUL 2005 Implement Phase 1 ASCP (Wafer Buy Plan)
• AUG 2005 Upgrade Oracle Apps to 11.5.10
• JAN 2006 Integrate Q-Logic Acquisition
• FEB 2006 Integrate UTStarcom Acquisition
• APR 2006 Integrate National Semiconductor
  Acquisition

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Milestones
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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
General Ledger
Account Receivable
Enter Disti Order
Shipping to Disti
End
Start
Offers
POS Claim Data
Claim Creation
Claim Approval
CR Memo Create
Upload POS and Claim
Verify and Process POS
Inventory Update
COGS Revenue
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High Level Design Extension design
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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 ptiwari_at_marvell.com
• Name A Kumar Acharya
• E-Mail aacharya_at_marvell.com
• Name Eswar Vadya
• E-Mail evadya_at_vibrantinfotech.com