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Siebel High Tech and Industrial Manufacturing Guide > Overview of Siebel High Tech and Industrial ManufacturingThis overview chapter includes the following topics:
Oracle's <ProductName> can be used to help component manufacturers sell products in the channel and to end customers, as well as to manage Market Development Funds (MDFs). When <ProductName> is used to sell components to manufacturers, the companies involved in the sale are the:
Component suppliers generally have their own sales force, which sells directly to OEMs and concentrates on strategic accounts. Component suppliers usually use distributors for sales to smaller accounts. When <ProductName> is used to manage MDFs, the companies involved are the:
Overview of Design Registration and WinSelling components to OEMs requires a substantial amount of design work by the OEM, and the sales cycle for the distributor is long and requires significant investments of resources. To protect themselves from competition during this long design period, distributors use <ProductName> to register designs. If the registration is approved, the distributor typically receives financial incentives from the manufacturer, such as special off-book pricing. Distributors without registration do not get those incentives, so it is unlikely that they would invest their resources in this project. If the distributor or salesperson successfully convinces the OEM to use this component in this product, then the distributor or salesperson uses <ProductName> to change the status to design win. The goal is to give the distributor an incentive to spend time with the OEM, designing the supplier's component into the OEM's product. After the distributor owning the registration gets the design win, the manufacturer will typically grant them additional margins through a special pricing authorization (SPA). Competing distributors will not have the same cost base as the distributor owning the registration, so they cannot offer the same price to the OEM. For more information about design registration and win, see Design Registration, Opportunity Management, and Design Win. Overview of Special Pricing AuthorizationIn some cases, a distributor may need to apply for a special price below the usual book price for a component, in order to protect its margin. <ProductName> supports special pricing authorization as follows:
For more information about special pricing authorization, see Special Pricing Authorization. Overview of Market Development Fund ManagementMDF Management allows companies and manufacturers to:
For more information about MDFs, see Market Development Funds Management. |
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