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

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


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


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


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


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


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.


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.


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


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


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


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


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.


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


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


Offers Upload

• Upload Quarterly Distributor Price List• Used oracle standard API to upload offers


Point Of Sale (POS)


Continued…


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


Continued…


Discoverer Reports


Claim Process


Claim Split


Claim Details


Continued …


Inventory Tracking


Continued…


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


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


Q & A


Contact Details

Name : Pankaj Tiwari

E-Mail : [email protected]

Name : A Kumar Acharya


Name : Eswar Vadya


mailto:[email protected]



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