January 17, 2007 F I N I S A R C O R P O R A T I O N

Integrating Oracle Quoting with Trade Management and Pricing

Holli Lien – FinisarJoanne Nettleblad – OAC Services, Inc.

Integrating Oracle Quoting with Trade Management and Pricing

Holli Lien – FinisarJoanne Nettleblad – OAC Services, Inc.

2FINISAR CONFIDENTIAL

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 MfgFinisar Mfg Finisar RSMs Finisar RSMs Mfg RepsMfg Reps

DistributorsDistributors Contract MfgsContract Mfgs End CustomersEnd Customers

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Business Drivers

Acquisition of Infineon business Inherited two large Distributors

Continue increasing Finisar’s current distribution business

Shifted some distributors from a POP model to a POS model in Apr’05 Allows for better sales/inventory incentives

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Business Drivers

Limited business rules and processes in place

No quoting systemEvery 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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Finisar’s Quoting Process before Oracle

Distributor

Quoting

Email

Phone3rd Party Reps

Email

PhoneRSM

Maintains Customer Price Lists

Customer Service

Pulls Information from spreadsheets to

book orders

Email

Marketing

Maintains StandardPrice List

Excel Consolidation

Deb

it M

emo

Process POS &

validate approved S&Ds

from consolidated

quoting spreadsheets

POS

Create

Credit Memos

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3rd Party Reps.

Internal RSM

Distributor

Quoting

Special Price Request

Partner Page

Create Offer Trade Mgt (Process batch & claim)

Manually Update Price Lists

Partner Page

Approvals

Approvals

Trade Management

Quoting

Oracle Process & Architecture

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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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Internal RSMQuoting• Disti End Customers• Direct End Customers

Offer

Trade Mgt Process POS / Claims

Approvals

Ship/Debit Special Price Request

Approvals Direct Cust.Custom Inter.

PricingUpdate/Create

Customer Price Lists

Customized Process & Architecture

3rd Party Reps.

Partner Page

Custom Inter.

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Oracle Quoting and Customer Price Lists

PRICING

Create QuoteList Price &

Approvalfrom Price Lists

CU

ST

OM

INT

ER

FA

CE

Create/Update Price ListQuote Type & Status

is the Trigger

FNSR CUSTOMER XX

FNSR CUSTOMER AA

FNSR CUSTOMER BB

FNSR CUSTOMER YY

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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

CUST ACCT# 111

CUST A

CUST ACCT# 222

CUST B

CUST ACCT# 333

CUST C

CUST ACCT# 777

CUST X

CUST ACCT# 888

CUST Y

CUST ACCT# 999

CUST Z

CUST ACCT# 444

CUST H

CUST ACCT# 555

CUST M

CUST ACCT# 666

CUST R

PRICE LISTS CUSTOMERS

FNSR CUSTOMER AA

FNSR CUSTOMER BB

CUST J

CUST K

CUST O

FNSR CUSTOMER XX

FNSR CUSTOMER YY

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Price Lists linked to Customers

DATABASE

CUST ACCT# 111

CUST A

CUST ACCT# 222

CUST B

CUST ACCT# 333

CUST C

CUST ACCT# 777

CUST X

CUST ACCT# 888

CUST Y

CUST ACCT# 999

CUST Z

CUST ACCT# 444

CUST H

CUST ACCT# 555

CUST M

CUST ACCT# 666

CUST R

PRICE LISTS CUSTOMERS

FNSR CUSTOMER AA

FNSR CUSTOMER BB

CUST J

CUST K

CUST O

FNSR CUSTOMER XX

FNSR CUSTOMER YY

• 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

CUST ACCT# 111

CUST A

CUST ACCT# 222

CUST B

CUST ACCT# 333

CUST C

CUST ACCT# 777

CUST X

CUST ACCT# 888

CUST Y

CUST ACCT# 999

CUST Z

CUST ACCT# 444

CUST H

CUST ACCT# 555

CUST M

CUST ACCT# 666

CUST R

PRICE LISTS CUSTOMERS

FNSR CUSTOMER AA

FNSR CUSTOMER BB

CUST J

CUST K

CUST O

FNSR CUSTOMER XX

FNSR CUSTOMER YY

• 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?

Scenario 1: I’m trying to enter a quote for customer ZZ for

FO55LF-ZZ. Today is 11-Dec-2006.

Assume these are the only parts on the Standard Price List.

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?

Scenario 2: I’m trying to enter a quote for customer ZZ for

FO44LF-ZZ. Today is 17-Jan-2007.

Assume these are the only parts on the Standard Price List.

FO44LF-ZZ is a customer-specific part# and is not currently on the ZZ price list. Because

it’s 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?

Scenario 3: I’m trying to enterA quote for customer ZZ for

FO22LF. Today is17-Jan-2007.

Assume these are the only parts on the Standard Price List.

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?

Sales RepEnters Quote

SelectCustomer

Customer have

Account#?

StandardPrice List

Customer-Specific

Price ListCust-Specific

Price List?

YES YES

NO NO ApprovedQuote

Ap

pro

val Pro

cess No Price List;Quote Only

Custo

m I

nter

face

Oracle Quoting

Update Price List

CreatePrice List

Pricing

Change Status on Q

uote

to “Order R

eceived”

• Using Customer’s Name

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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

listPrice 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 usedPricing API logic built around the price list line start/end datesDescriptive Flexfields utilized in Quoting for Pricing Effective Start and End DatesConcurrent process runs every 30 minutesAssumptions: 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

1

2

3

4

5

6

7

8

9

1011

1213

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

Existing Price List Line has a start date but no end date

New Price List Line has start and end dates

Price List Start Date Price List No End Date

1

2

3

4

5

6

7

8

9

10

11

12

13

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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

1

2

3

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Logic for Pricing API

Existing Price List Line has a start date and end date

New Price List Line has a start date but no end date

Price List Start Date Price List End Date

1

2

3

4

5

6

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Custom Interface Updating Price List

How it works:

Quote# 111Customer: ZZType of Quote: BLANKETPart# F033LFTarget Price: $37Pricing Eff Start Date: 17-Jan-2007Pricing Eff End Date:

BEFORE AFTER

Once the Quote is Approved and the status is changed to Order Received

Custom Interface will…

(1) End date existing line using the date before the new price’s 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

FO55LF12345 1.0 EA 1000 $45 $37 $37000 Details

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Oracle Quoting and Ship & Debits

PRICING

Create QuoteList Price & Approvals

from Price Lists

CU

ST

OM

INT

ER

FA

CE

Generate S&D# for Disti

FNSR CUSTOMER XX

FNSR CUSTOMER YY

TRADE MANAGEMENT

Quote Type & Status is the TriggerOffer

Special Price Request

Validate againstDisti Price List

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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

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Custom Interface for Ship & Debits

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

Sales RepEnters Quote

Is the Part# a std

part?

Is theTarget Cost < the Disti

Price?

YES YES

NO NO

ApprovedQuote

Ap

pro

val P

rocess

Will NotCreate

Ship & Debit

Custom Interface

Is theDistributorspecified?

YES

NO

CreateWill Create

Ship & Debit

Oracle Quoting Trade Management

• Create Offer• Special Price RequestChange Status on Quote

to “Ship & Debit Approved”

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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 minutesShip & Debit expiration date is 6 months from creation dateShip & Debit number and quote name used in SPR and Offer creationShip & Debit Number returned and stored in QuoteEmail sent upon Ship & Debit assignment

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Oracle Quoting Screen Shot for S&Ds

FO55LF12345 1.0 EA 1000 $45 $37 $37000 Details

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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?Questions?

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Presenter Contact Information

Holli Lien

(408) 400-1103

holli.lien@finisar.com

Joanne Nettleblad

(408) 781-0328

joanne.nettleblad@oacsi.com