RMS: Product, Pricing & Promotion, Inventory
This presentation provides an overview of product, pricing & promotion, and inventory, delivered to the Specialized team August 2022.
Safe harbor statement
The following is intended to outline our 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, or functionality, and should not be relied upon in making purchasing decisions.
The development, release, timing, and pricing of any features or functionality described for Oracle’s products may change and remains at the sole discretion of Oracle Corporation.
Confidential – © 2020 Oracle Restricted
Oracle Confidential – Restricted3
Agenda
1
2
3
Introductions
Customer Data
Point Of Sale
4 Reporting / Analytics
5 Employees
6 Payments
7 Product, Pricing & Promotions, Inventory
8 Wrap Up
[Date]Copyright © 2022, Oracle and/or its affiliates | Confidential: Internal/Restricted/Highly Restricted4
Global Customer Sampling
Merchandising
4
EMEA & JAPACAMERICAS
[Date]Copyright © 2022, Oracle and/or its affiliates | Confidential: Internal/Restricted/Highly Restricted5
• Our Item Data Model allows Specialized to pursue any vertical • Bikes, Apparel, Parts, Shoes, Supplements/Snacks, Periodicals, Accessories – all supported
• Omnichannel Customer Journey ‘plumbing’ is pre-built • Inventory, Customer, Transaction Set, Liability Accounting – all supported • Buy Online, Ship to Home, Ship from Vendor, Pickup in Store, Fulfill from Store and more
• Integration designed with Oracle Financials in mind • Standard APIs to third party solutions such as WMS • Out of the box integration to other Oracle Retail solutions – POS, Planning, Forecasting,
Assortment, etc.
• Retail Reference Library documents the business processes a modern retailer needs – available to any Oracle customer
• A modern, integrated platform built on an AI foundation that eliminates data silos
What makes Oracle Retail Merchandising Foundation Cloud Service different?
[Date]Copyright © 2022, Oracle and/or its affiliates | Confidential: Internal/Restricted/Highly Restricted6
Retail Home BUSINESS KPI’S ADMINISTRATIVE MONITORING NOTIFICATIONSSERVICE PORTAL
Oracle Cloud Infrastructure / Next-Gen Architecture STORAGENETWORKING COMPUTE CONTAINER ORCHESTRATIONCONTAINERS
Retail AI Foundation
Forecasting
Engine
Affinity
Analysis
Profile
Science
Customer
Decision Trees
Demand
Transference
Innovation
Workbench
Attribute
Extraction
Advanced
Clustering
Customer
Segmentation
Retail Cloud Services
Merchandising
Inventory
Operations Brand
Compliance Planning
Store
Operations
Order
Broker
Analytics
Order
Management
Supply Chain Customer
Engagement Retail
Extensibility
Low-code App
Development
REST Data
Services
Cloud
Extensions
Retail Data Store AUTONOMOUS DATA WAREHOUSE DATA MANAGEMENT RETAIL SCHEMA EXTENSIONSPACKAGED RETAIL SCHEMAS
Retail Reference
Model
Business
Process Flows
Glossary
Technical
Models
The Platform for Modern Retail
PROCESS &
CLEANSE SALES
ALLOCATE
STOCK
MATCH & RESOLVE
INVOICES
SUPPLIER
MANAGEMENT
MANAGE ITEMS &
PURCHASE ORDERS
EXECUTE
PRICING
TRACK & VALUE
INVENTORY
POST, PAYMENT &
GENERAL LEDGER
Digital & Social Stores DC & Logistics Partners
Copyright © 2021 | Confidential | Oracle and/or its affiliates 7
ASSSORTMENT &
ITEM PLANNING
MERCHANDISE
PLANNING INSIGHT &
ANALYTICS
DEMAND
FORECASTING
OPTIMIZATION &
SCIENCE
Overview Of End To End Merchandising FlowSERIES
Suppliers originate in
Financials; once approved
sent to Merchandising to
order product
Item, Orders & Deals are created.
Deals auto-applied to orders and
are sent to the supplier for
fulfillment
Merchandise is received at the
warehouse, store or even
customer. Inventory & Stock
Ledger are updated to reflect
receipt and staged for the GL
Matched/resolved
invoices are paid in AP;
totals/liabilities & inv
movement posted to GL
All transactions at selling
location are automatically
audited, liabilities and totals
are staged for the GL
Invoices are received and
automatically matched (or
resolved) against the PO and
receipt details
End To End Merchandising Flow: Procurement
PROCESS &
CLEANSE SALES
RECEIVE &
ALLOCATE STOCK
MATCH & RESOLVE
INVOICES
SUPPLIER
MANAGEMENT
MANAGE ITEMS &
PURCHASE ORDERS
EXECUTE
PRICING
TRACK & VALUE
INVENTORY
POST, PAYMENT &
GENERAL LEDGER
Define or induct regular pricing,
promotional mechanics and
markdowns. Link to vendor
funding. Pass Price to
downstream solution, Web or in
store
All transactions at SKU/location
are captured in real-time with
Inventory & Stock Ledger
updated to reflect movement
and staged for the GL
Copyright © 2022, Oracle and/or its affiliates | Confidential
Supporting The Complex Item Model For RetailSERIES
User Defined Attributes • Brand • Material • Fabric • Water resistance • Pattern • Ornamentation • Heel Height • Collection
Substitute Item • Plan • Sales • Forecast • Replenishment • Inventory
Images / Documents • Many file types • Includes .doc, .xls • Specification Packages
Management Inventory Flow • Season • Flows • By Differentiator
Global Sourcing • Multiple Suppliers • Improve Negotiation • Single Style Management • Costing by Supplier/ • Location, Country
Specific Item Behavior • Sellable? • Orderable? • Physical presence? • Catchweight?
Packs • Single SKU • Multi style • Multi color • Multi size
SKU and Style Management • Style (Item) • Style/Color (SKU) • Style/Color/Size (UPC) • Etc.
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3 Level Item Structure Using DifferentiatorsSERIES
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Each Item Can Have: • Multiple Vendors • Multiple Countries of Origin • Multiple UPC’s • Costing at the granular level • Track sales & inventory at desired level
One-level item
Wrist GPS
UPC
Three-level item
UPC 1 UPC 2
Private Label Top
Black / S
Black / M
Black / L
Etc.
SKU SKU SKU SKU
Style
Two-level item
Polarized Sunglasses
Black White Grey Etc.
UPC UPC UPC UPC
Style
Differentiators: • Size, Color, Width, etc.
Sourced from multiple factories • Unique UPC by source
Eliminating the need to set up items manually
EDI
Assortment Planning
Template Upload
Supplier Portal & Related
Extensions Item Induction • New item
• New flavor/scent/etc of existing item
• New prepack
• Cost change
• Mass update
Merchandising Item Master
Supplier and Hierarchy, defaults
Manual
PIM
Data Steward
Dashboard
Item Creation: Item Induction and the Data Steward DashboardSERIES
http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiTu8uruITOAhXHPBoKHW1-ACsQjRwIBw&url=http://www.clipartpanda.com/categories/mac-computer-clip-art&bvm=bv.127521224,d.d2s&psig=AFQjCNH4wkpeshsktivVWJhgorBeQv4WFA&ust=1469186478723915
Purchase Order: Cost StructureSERIES
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Supplier Item Base Cost
- Deals = Net PO Cost + ELC Expenses = Net Landed
Cost
+ Cost of Inventory
Movements
• Unit cost price • Cost zone structure • Future cost changes • EDI cost changes
• Order volume • Order type • Logistics rebate
• PO receipt cost • Invoice cost
• Record and track additional costs of article procurement
• Freight charges • Insurance • Duty • Handling fees
• WAC • Used for COGS • True margin
indication
• Receipt cost price • Average cost price
• Intra-company Tsf • Inter-company Tsf • Transfer Up-charges
Item Supplier Location Cost
$1.50
Bracket Price Reduction
- $0.10
Article PO Cost
= $1.00
Freight Charge & Duties
+ $0.232
Article Landed Cost
= $1.232
- Brackets & Allowances
• Negotiated discounts
• Annual deals • Promotional deals • PO specific deals • Off-Invoice discounts • (Bill-back discounts) • (Rebates)
Off Invoice Discount
- $0.40
Adjusted Cost Price
= Location Cost Price
• WAC
Logistics Handling Fee
+ $0.20
Location Cost Price
$1.432
Actual Landed Cost
• Freight Charges • Obligations
Purchase Orders: Consignment & Scan-based TradingSERIES
Copyright © 2021 | Confidential | Oracle and/or its affiliates 14
Key Capabilities
• Payment automatically generated without manual user intervention
• Option to track inventory (units only)
• Item or item/ location level designation
• Test pilot an item, then roll out
• Manage cost by set $ amount or % off retail
• Details included on invoices so it’s clear to your supplier
• Invoicing upon sales, based on retailer and/or supplier desired frequency
Automated Replenishment Process within Merchandising
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Users interact only to review and approve when required
Replenishment Results (ROQ)
Initial Setup & Maintenance
Inventory Store
constraints
Warehouse Constraints
Parameters
Plan, Forecast, Sales History
Replenishment Engine
Purchase Order
Transfer
X-Dock Order
Buyer Worksheet (manual)
Results
Purchase Orders : Automated ReplenishmentSERIES
Purchase Orders : Automated ReplenishmentSERIES
Copyright © 2021 | Confidential | Oracle and/or its affiliates 16
3 Methods are stock-based Constant Min/Max Floating Point
6 Methods are demand-based Time Supply Time Supply/Seasonal Time Supply—Issues Dynamic Dynamic/Seasonal Dynamic—Issues
1 Method gives control to store personnel Store Orders
10 Replenishment Methods: Non-forecasted Forecasted
Constant
Min/Max
Floating Point
Time supply
Time supply seasonal
Dynamic
Dynamic Seasonal
Time supply issues
Dynamic issues
Store Order Replenishment
Copyright © 2021 | Confidential | Oracle and/or its affiliates 17
Suppliers originate in
Financials; once approved
sent to Merchandising to
order product
Item, Orders & Deals are created.
Deals auto-applied to orders and
are sent to the supplier for
fulfillment
Merchandise is received at the
warehouse, store or even
customer. Inventory & Stock
Ledger are updated to reflect
receipt and staged for the GL
Matched/resolved
invoices are paid in AP;
totals/liabilities & inv
movement posted to GL
All transactions at selling
location are automatically
audited, liabilities and totals
are staged for the GL
Invoices are received and
automatically matched (or
resolved) against the PO and
receipt details
End To End Merchandising Flow: Price Change and Promotions
PROCESS &
CLEANSE SALES
RECEIVE &
ALLOCATE STOCK
MATCH & RESOLVE
INVOICES
SUPPLIER
MANAGEMENT
MANAGE ITEMS &
PURCHASE ORDERS
EXECUTE
PRICING
TRACK & VALUE
INVENTORY
POST, PAYMENT &
GENERAL LEDGER
Define or induct regular pricing,
promotional mechanics and
markdowns. Link to vendor
funding. Pass Price to
downstream solution, Web or in
store
All transactions at SKU/location
are captured in real-time with
Inventory & Stock Ledger
updated to reflect movement
and staged for the GL
Price Management: Price Zones
[Date]Copyright © 2022, Oracle and/or its affiliates | Confidential: Internal/Restricted/Highly Restricted18
Define zones for regular, clearance, and/or promotional pricing
• Zones can be used for any price event type
Break out of the zone structure for location level exceptions
Warehouses can also be attached to the zones
Corporate Pricing Channel Pricing
Brand/Entity Pricing Location Pricing
Price Management : Regular Price
Copyright © 2021 | Confidential | Oracle and/or its affiliates 19
Price Change
• Used to change the regular selling price of an item and a location
• Defined as an item/location/effective date combination • Item can be item parent (e.g. style), parent/diff (e.g.
style/color), or transaction item (SKU)
• Location can be price zone or individual selling location (physical or digital) or warehouse
• Effective date is the date the price change goes into effect at the selling location or warehouse
Price Change Group
• Collection of price changes grouped together for purposes of management
Price Change Group
Regular Price Change
Regular Price Change
Regular Price Change
Price Management : Clearance Price
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Used to discount the price of an item/location for purposes of clearing it out of inventory
• Most items will go through multiple markdowns before inventory is completely exhausted
• Markdowns are calculated from the regular price of the item
Defined as an item/location/effective date combination
• Item can be item parent (e.g. style), parent/diff (e.g. style/color), or transaction item (SKU)
• Location can be price zone or individual selling location (physical or digital) or warehouse
• Effective date is the date the markdown goes into effect at the selling location
Clearance Group
First Markdown
Second Markdown
Final Markdown
Clearance Sales can be excluded from Forecast and Replenishment
Price Management : Promotions
Copyright © 2021 | Confidential | Oracle and/or its affiliates 21
Promotion
Promotion Offer 1
Promotion Offer 2
Promotion Offer 3
Used to create a temporary price reduction on items at the selling location (physical or digital)
Promotions are a collection of related offers
Promotions can reference a common campaign
Offers are the discounts offered to customer for a set of items/locations
• Can be defined for one or more days – or even just for a set amount of time within a day
• Conditions
• The items, quantities, and amounts that must be purchased in order to receive a discount
• Rewards
• The details of the discount and how it is applied
Promotional Sales can be excluded from Forecast and Replenishment
Price Management : Promotion Capabilities
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Promotional Offers can be applied by purchase of specific Item(s) or based on threshold reached within transaction. Stacking of promotions may be allowed or specifically prevented as desired.
Item-Specific Promotions
Simple Discounts
Get Y for Discount
Buy/Get
But X, Get Discount
Spend X, Get Discount
Buy X, Get Y for Discount
Spend X, Get Y for Discount
Buy X of Single Item for Discount
Buy X and Y, Get Discount
Buy X and Y get Z for Discount
Gift with Purchase
Buy X, Get Gift with Purchase
Spend X, Get Gift with Purchase
Transaction Promotions
Simple Discount
Get Discount
Buy/Get
Buy X, Get Discount
Spend X, Get Discount
Here we can manage pending and approved regular and clearance price changes
Note again these could have been inducted or manually created
Copyright © 2021 | Confidential | Oracle and/or its affiliates 23
Pricing Dashboard
Copyright © 2021 | Confidential | Oracle and/or its affiliates 24
Suppliers originate in
Financials; once approved
sent to Merchandising to
order product
Item, Orders & Deals are created.
Deals auto-applied to orders and
are sent to the supplier for
fulfillment
Merchandise is received at the
warehouse, store or even
customer. Inventory & Stock
Ledger are updated to reflect
receipt and staged for the GL
Matched/resolved
invoices are paid in AP;
totals/liabilities & inv
movement posted to GL
All transactions at selling
location are automatically
audited, liabilities and totals
are staged for the GL
Invoices are received and
automatically matched (or
resolved) against the PO and
receipt details
End To End Merchandising Flow: Tracking Perpetual InventorySERIES
PROCESS &
CLEANSE SALES
RECEIVE &
ALLOCATE STOCK
MATCH & RESOLVE
INVOICES
SUPPLIER
MANAGEMENT
MANAGE ITEMS &
PURCHASE ORDERS
EXECUTE
PRICING
TRACK & VALUE
INVENTORY
POST, PAYMENT &
GENERAL LEDGER
Define or induct regular pricing,
promotional mechanics and
markdowns. Link to vendor
funding. Pass Price to
downstream solution, Web or in
store
All transactions at SKU/location
are captured in real-time with
Inventory & Stock Ledger
updated to reflect movement
and staged for the GL
Inventory Management: Tracking Perpetual InventorySERIES
All inventory transactions update central inventory such as:
• Sales and Returns • Customer Orders • PO Receiving and
Adjustments • Inventory Adjustments • Transfers • Return to Vendors • Stock counts
Fulfilment
Transfers
P O
R e
c e
ip t
R T
V
S a
le
R e
tu rn
F u
lf il
m e
n t
Copyright © 2021 | Confidential | Oracle and/or its affiliates 25
X
Location
Product
On Hand In Transit Inbound
Allocation Transfer Expected
Transfer Reserved
UnavailableOn Order
Perpetual Inventory Buckets
RTV Cust
Order Reserved
Cust Order
Backorder
Virtual Warehouses
• Stockholding location
• Enables inventory segregation and tracking by virtual warehouse
• Allows a promotional cost on a special purchase to be isolated or inventory to be sequestered
• Associated to a particular distribution (fulfillment) channel
• Location for ordering and transfer distribution
Oracle Confidential27
Virtual WarehousesPhysical Warehouse
SERIES
Inventory Management: Dedicated Inventory by ChannelSERIES
Inventory Management: Supporting Complex Omni-Channel RetailSERIES
Customer arrives at the store
and associate completes the
order process
CUSTOMER PICKS UP
Store picks the order and sends
notification to the customer
order is ready to pickup
STORE PICKS ORDER
Customer places an order on
their device and chooses to
pick up at a store
CUSTOMER PLACES ORDER
ROUTED TO STORE
Inventory, sales &
liability are updated to
reflect the completed
customer order
FINANCIALS & INVENTORY
Order is routed to
the store and
associate is notified
of new order
Inventory updated to reflect the
reservation of the inventory &
financial liability is created
INVENTORY UPDATED
Item, pricing, attributes
defined and sent to online and
store systems
FOUNDATION
Copyright © 2021 | Confidential | Oracle and/or its affiliates 28
Financial Integration Data Flows
July 2022Copyright © 2022, Oracle and/or its affiliates | Confidential29
Supported Integration Flows • Foundation Data
• Suppliers Sites and Addresses • COA validation • Currency and Exchange Rates • Payment Terms • Freight Terms
• Sales • Sales Audit Totals to GL
• Stock Ledger Valuation • Stock Ledger to GL
• Procure to Pay • Invoice Matching to AP • Invoice Matching to GL
UCM
Oracle Retail Cloud Financials
Bulk
General Ledger
Payables
Retail
Merchandising
System
Retail Stock
Ledger
Retail Invoice
Matching
Retail Sales
Audit
Manual
Messaging
Service
Lifecycle Data
Management
Inventory
Valudation
Revenue
Recognition
Merchandising
Procure to Pay
G/L Chart of Accounts
Inventory & Sales Data
Daily Sales, Cash & Deposits
Aged receipts never invoiced
Manually Paid Invoices
Matched & Pre Pay Invoices
Credit Notes
Debit/Credit Memos
Supplier, Sites, Addresses
Rebates
Freight Terms
Currency Exchange Rates
Payment Terms
External
Service
Retail to Cloud Financial Integration Overview
Suppliers originate in
Financials; once approved
sent to Merchandising to
order product
Item, Orders & Deals are created.
Deals auto-applied to orders and
are sent to the supplier for
fulfillment
Merchandise is received at the
warehouse, store or even
customer. Inventory & Stock
Ledger are updated to reflect
receipt and staged for the GL
Matched/resolved
invoices are paid in AP;
totals/liabilities & inv
movement posted to GL
All transactions at selling
location are automatically
audited, liabilities and totals
are staged for the GL
Invoices are received and
automatically matched (or
resolved) against the PO and
receipt details
End To End Merchandising Flow: Invoice Matching
PROCESS &
CLEANSE SALES
RECEIVE &
ALLOCATE STOCK
MATCH & RESOLVE
INVOICES
SUPPLIER
MANAGEMENT
MANAGE ITEMS &
PURCHASE ORDERS
EXECUTE
PRICING
TRACK & VALUE
INVENTORY
POST, PAYMENT &
GENERAL LEDGER
Define or induct regular pricing,
promotional mechanics and
markdowns. Link to vendor
funding. Pass Price to
downstream solution, Web or in
store
All transactions at SKU/location
are captured in real-time with
Inventory & Stock Ledger
updated to reflect movement
and staged for the GL
Copyright © 2022, Oracle and/or its affiliates | Confidential
Automated 3-way match between PO/Receipt/Invoice based on retailer-specified thresholds
31 Copyright © 2021, Oracle and/or its affiliates | Confidential: Restricted
Entry
• EDI import
• Evaluated Receipts
• Direct Store
Delivery
• Vendor managed
Inventory
• Consignment
• Deals
• Manual group entry
Payables/Posting
• Best term calculation
• Open interface to
Financials
Matching
• Automatic 3-way matching
• Summary level and detail
level if necessary
• Configurable Supplier
tolerances
• Manual online match
Resolution
• Line discrepancy
separated
• Routing capability
• Reason code driven action
• Cost and/or quantity
adjustment
• Automated matching increases efficiency and accuracy
• Manage by exception to handle large volume of invoices
• Flexible tolerance and workflow to incorporate business rules
Document Entry
Automated Matching
Resolution Posting
Match, Post & Pay : Invoice Matching Capabilities
Javier, an AP Analyst, has a dashboard that identifies, in priority order, the invoices that have failed to match that are his to review
Copyright © 2021 | Confidential | Oracle and/or its affiliates 32
Javier Accounts Payable
Analyst
Invoice Match Dashboard
Core Concepts & FoundationSERIES
Copyright © 2021 | Confidential | Oracle and/or its affiliates 33
Technical blueprint for the business process and
applications
Alignment of terminology and KPIs
Comprehensive collection of established business processes
Tying it all together
The 800+ detailed processes outlined in the Retail Reference Library maximizes the value of your investment
Thank You
39 Copyright © 2022, Oracle and/or its affiliates | Confidential: Internal/Restricted/Highly Restricted [Date]
Oracle Confidential – Restricted40
Agenda
1
2
3
Introductions
Customer Data
Point Of Sale
4 Reporting / Analytics
5 Employees
6 Payments
7 Product, Pricing & Promotions
8 Wrap Up