QAD Midwest User Group QAD Trade Promotion Management (TPM)

QAD Midwest User Group QAD Trade Promotion Management (TPM) Jean Miller, Product Architect - Research & Development Hank Canitz, Sr. Director Marketing MWUGMarch201 3

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. 2

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 5

QAD Midwest User Group TPM Cycle Sales & Marketing, Supply Chain, Finance Optimize Optimize Monitor Monitor Supply Chain Collaborat Collaborat e e Localize Localize Sales & Marketing, Supply Chain, Finance Execute Execute Finance 6

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QAD Midwest User Group TPM main advantages over TrM Latest .NETui vs. Outdated CHUI-based UI QAD code standards vs. 3rd party code Domain/Entity vs. Division/Region Multi-currency vs. Single currency Core functions vs. Bolt-on Duplication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

QAD Midwest User Group TPM Functionality Trade Promotion Management – March 2013

QAD Midwest User Group QAD Integrated Solution Enterprise Edition Demand Manageme nt Forecasts Groups Profiles Budgets Pricing Sales Orders Deductions Accruals TPM Promotion s Rebates Claims Business Intelligenc e Analysis Reporting 10

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 SystemGenerated. - 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 29

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 41

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 Chargeback (List – Contract Diagram Price) Manufacturer Admin Fee ( ) Invoices at List Price – Std disc Contract Price Definitio n GPO (Buying Group) Indirect Customer Distributor Orders from Manufacturer Indirect Customer Invoices at Contract Price Customers Order from Distributor 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 51

QAD Midwest User Group QUESTIONS? Trade Promotion Management – March 2013 [email protected] 865-925-8147 [email protected] 720-238-7439