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

Agenda
Introduction
History of Marvell
Marvells Journey

Milestones
Problem Statement
Objectives
Implementation
Lessons Learnt
Q&A

Marvell

History of Marvell

Founded 1995
Fabless semiconductor
Global operations

Annual Revenue ($MM)

Marvell

Israel
Europe (Germany, Italy, Switzerland)
Asia Pacific (Singapore, India, Japan & China)
USA
FY 2002
FY 2003
FY 2004
FY 2005
FY 2006
FY 2007

288.8
505.3
819.8
1,224.6
1,670.3
2,095.2

5000+ employees across US, Europe and Asia

Marvells Journey
AUG 2001
DEC 2001
JAN 2002
MAY 2002
OCT 2002
OCT 2002
AUG 2003
DEC 2003
JAN 2004
FEB 2004
APR 2004
SEP 2004
DEC 2004
JAN 2005
JUL 2005
AUG 2005
JAN 2006
FEB 2006
APR 2006
MAY 2006
MAY 2006
OCT 2006
NOV 2006
NOV 2006
FEB 2008

Marvell

Galileo Go-live on Oracle Apps 11.0.3

Upgrade Oracle Apps 11i (11.5.4)
Convert Oracle Apps to Multi-Org and Fiscal Calendar
Migrate North America to OM/FI to Oracle Apps 11i
Go-live OSFM
Implement Rosettanet PIP 3D8 with 10 Sub Contractors
Install Oracle 10G iAS for Rosettanet
Upgrade Oracle Apps to 11.5.9
Migrate SysKonnect GmbH from BAAN to Oracle Apps 11i
Migrate RADLAN IL to Oracle Apps 11i (New Company)
Install UTF8 to accommodate multi-byte characters
Implement Basic HRMS
Implement WEB based Employee Expense System for North America
Implement Compensation Work Bench
Implement Phase 1 ASCP (Wafer Buy Plan)
Upgrade Oracle Apps to 11.5.10
Integrate Q-Logic Acquisition
Integrate UTStarcom Acquisition
Integrate National Semiconductor Acquisition
Integrate Avago Acquisition
Implement Marvell Penang Ltd (New Company)
Implement Marvell Switzerland Ltd (New Company)
Integrate Intel Acquisition
Implement Marvell DSPC IL (New Company in Israel)
Implement Trade Management for Avenet and Nu Horizon

Milestones
Task #

Mile Stones

Major Tasks

Planned Start
Date

Remarks

Requirement
Analysis

Process Flow Mapping

Feb-15-2007

Identified gaps

July-15-2007

Applied multiple
patches. Oracle should
come up with RUP

Oct-10-2007

Build 4 extensions and

discoverer reports,
modified account
generator and enabled
various business
events
Identified cut off date
and populated
inventory

System Readiness

Configuration

Apply patches

Setups and Identification

Data Conversion

Ending Inventory

Oct-20-2007

Functional Testing

Process Flow Testing

Dec-13-2007

B2B Configuration

POS and Inventory data load

Jan-15-2007

Started receiving 867

and 846 from Nu
Horizon
Personalization of user
interface and WebADI.
Identified few key
issues

User Acceptance
Testing

Feb-2-2008

Go Live

Feb-18-2008

Marvell

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

Marvell

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.

Marvell

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.

Marvell

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

Marvell

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

Marvell

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

Marvell

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

Marvell

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

Marvell

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

Start

Enter
DistiOrder

Shippingto
Disti

Account
Receivable

General
Ledger

Offers

POS
&Claim
Data

Claim
Creation

Claim
Approval

Verifyand
Process
POS

Inventory
Update

CRMemo
Create

UploadPOS
andClaim

Marvell

COGS
&
Revenue

End

High Level Design Extension design

Marvell

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

Marvell

Point Of Sale (POS)

Marvell

Continued

Marvell

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

Marvell

Continued

Marvell

Discoverer Reports

Marvell

Claim Process

Marvell

Claim Split

Marvell

Claim Details

Marvell

Continued

Marvell

Inventory Tracking

Marvell

Continued

Marvell

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

Marvell

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

Marvell

Q&A

Marvell

Contact Details
Name : Pankaj Tiwari
E-Mail : ptiwari@marvell.com
Name : A Kumar Acharya
E-Mail : aacharya@marvell.com
Name : Eswar Vadya
E-Mail : evadya@vibrantinfotech.com

Marvell