Important Terms

Unconstrained Sales In: Unconstrained sales in represent the total demand for products from distributors.

Constrained Sales In: Constrained sales in refer to the actual sales made to distributors, taking into account Supply constraints, such as production capacity, available stock, and product shelf-life, which reduces the number of goods available for sale compared to the unconstrained demand.

Sales Out with Distributor Reimbursement: This term refers to a process where the company offers discounts to its secondary customers (end buyers who purchase goods from distributors). Initially, the distributors cover the cost of these discounts when selling to secondary customers. The company, however, reimburses these costs to the distributors later. In the SIMCEL context, this means trade terms are based on the sales out (transactions from distributors to secondary customers) but are applied to sales in (transactions from the company to distributors), ensuring the financial impact of discounts is managed appropriately.

Achievement Rate: The achievement rate is a metric used when dealing with aggregated customer data. It adjusts the target achievement expectations to account for the aggregation of customers, ensuring a more accurate and realistic target setting. This rate is applied in trade term events.

Trade Expense: Trade expense refers to the funds a company allocates to boost or support the demand for its products or services. This includes costs related to promotions, providing margins to distributors, and other marketing or sales activities aimed at increasing product reach and sales.

Volume Rebate Incentive: A volume rebate incentive is a financial reward offered to buyers based on the volume of goods they purchase within a specified timeframe. This incentive encourages larger orders, rewarding customers for buying in bulk and fostering stronger sales relationships.

Purpose

This feature ensures accurate calculation of net sales value in SIMCEL by accounting for various trade terms and discount policies such as:

Distributor Margin

Seasonal Discounts

Bundle Discounts

Volume Rebate Incentives

Value Rebate Incentives

These elements are used to provide a modeling of the trade expenses and consequently calculate the Net Sales Value.

Create a trade term event

Click on the "Manage" button in the “Event” section to access the “Event Management” page

Create a new event, then choose “Trade Terms” in the “Event Type” drop-down list

When you click “Add Another Segment Affected by the Event”, a config page will pop up. You need to select:

Trade term policy:

Flat Discount: This allows to discount a fixed percentage or value from the original price. For example, you can offer a 10% discount on all products during a specific period.

Target Rebate Incentive: This incentivizes larger orders by offering discounts based on the quantity purchased. For example, a distributor might receive a 5% discount for buying 10,000,000 VND over a period.

Bundle Discount: This allows to offer a discount in the form of buy 1 get one free or buy an amount X get Y % discount on a selection off products. For example, you might offer a 15% discount if 3 box of a specific brand are both.

Demand Impact: This is a similar type of impact than the demand adjustment event. It defines the anticipated change in demand resulting from the trade terms. It can represent an increase when the promotion is done to increase the sales or a decrease if we can expect some cannibalization effects.

Impacted Sales:

Sales In: The effect of the trade term is applied directly to 'Sales In', meaning the initial transaction between the company and its first-line buyers, like distributors.

Sales Out with Distributor Reimbursement: This option takes into account trade terms based on the “Sales Out” transaction (transactions from distributors to secondary customers) but applies them back to both “Sales Out” and “Sales In”. It ensures that the company reimburses distributors for the discounts they pass on, maintaining margin integrity.

Sales Out: Is exclusively used for the Demand Impact. This means that regardless of the trade term, the impact on demand is applied to Sales Out data.

Example

Flat Discount:

Below is a Flat Discount Event (using Sales Out with Distributor Reimbursement) that reduces the price of all products of Brand X by 10%. The campaign will run from November to December 2024. It is anticipated with and 75% achievement rate.

Target Rebate Incentive:

Create a Target Rebate Incentive event (using Sales Out with Distributor Reimbursement) for Sub-channel Pharmacy where purchasing 100,000,000 VND worth of Brand X over November to December 2024 will qualify for a 10% discount on Brand Y products. It is anticipated with and 75% achievement rate.

Bundle Discount:

Create a Bundle Discount Event (apply to Sales In) for CUS02 where purchasing 10 units of Product A qualifies for receiving 5 units of Product B at 100% off. This promotion will be available from November to December 2024. It is anticipated with and 75% achievement rate.

Demand Impact:

For the bundle discount event above, you expect the demand for Product A will increase 10%. In SIMCEL, you create 2 blocks of impacted segments:

The first block is defined exactly the same as Bundle Discount example.

The second block defines the impacted demand in volume. Please refer to the below screenshot

Trade Term Policies Impact Explanation

Flat Discount Event

Section	Requirement	Note
Apply Flat Discount to `Sales In` using a `% decrease`	Sales In Trade Expenses = Sales In GSV * %Discount * Achievement Rate %	This event impact is applied per product. Example: • Setting - 10% decrease for Distributor 1, Brand A. • 10% decrease will be applied to every single product that belong to Brand A and sold to Distributor 1
Apply Flat Discount to `Sales In` using a `Value decrease`	Sales In Trade Expenses = Value decrease * #products in Sales In order * Achievement Rate %	This event impact is applied per product. Example: • Setting - 10,000 VND decrease for Distributor 1, Brand A. • 10,000 VND will be substracted from the GSV of every single unit that belong to Brand A and sold to Distributor 1. • If Distributor 1 order 100 Product A1 → Sales In Trade Expenses = 100*10,000 = 1,000,000 VND
Apply Flat Discount to `Sales Out with Distributor reimbursement` using a `% decrease`	Sales In Trade Expenses = Sales Out GSV * %Discount * Achievement Rate %	This event impact is applied per product. Example: • Setting - 10% decrease for Channel 1, Brand A. • 10% decrease will be applied to every single product that belong to Brand A and sold to Channel 1 and then allocated to the distributors that serve that brand and channel
Apply Flat Discount to `Sales Out with Distributor reimbursement` using a `value decrease`	Sales In Trade Expenses = Value decrease * #products in Sales Out order * Achievement Rate %	This event impact is applied per product. Example: • Setting - 10,000 VND decrease for Channel 1, Brand A. • 10,000 VND will be substracted from the Sales In GSV of every single products that belong to Brand A and sold to Channel 1. • If Channel 1 order 100 Product A1: ◦ Sales In Trade Expenses = 100*10,000 = 1,000,000 VND. ◦ This value will then be allocated to the distributors serving that brand and channel

Volume Rebate Incentive Event

Section	Requirement	Note
Apply Volume Rebate Incentive to `Sales In` using a `value target` and the rebate as `% discount` on given `product segment`	If Distributor in selected segment match the condition Sales In Trade Expenses = Sales In GSV of volume impact products * %Discount * Achievement Rate %	This event impact is applied per distributor. Example: For Distributor 1, if the condition is buy 100,000,000 VND of Brand A, and impact is get 10% discount on Brand B. If Distributor 1 order 250,000,000 VND of Product A1 and Product A2 that belong to brand A and 1,000 product B1 and 50 product B2, Distributor 1 will receive 10% discount on the GSV of 1,000 B1 and 50 B2.
Apply Volume Rebate Incentive to `Sales In` using a `value target` and the rebate as `value decrease` on given `product segment`	If Distributor in selected segment match the condition Sales In Trade Expenses = Value Decrease * Achievement Rate %	This event impact is applied per distributor. Example: For Distributor 1, if the condition is buy 100,000,000 VND of Brand A, and impact is get 10,000,000 VND discount on Brand B. If Distributor 1 order 250,000,000 VND of Product A1 and Product A2 that belong to brand A and 1,000 product B1 and 50 product B2, Distributor 1 will receive 10,000,000 VND discount on the GSV of 1,000 B1 and 50 B2.
Apply Volume Rebate Incentive to `Sales Out with Distributor reimbursement` using a `value target` and the rebate as `% discount` on given `product segment`	If Customers in selected segment match the condition Sales In Trade Expenses = Sales Out GSV of impact products * %Discount * Achievement Rate %	This event impact is applied per SIMCEL CustomerRef. Example: For Channel 1, if the condition is buy 10,000,000 VND of Brand A, and impact is get 10% discount on Brand B. If a customer that belong to Channel 1 order 22,000,000 VND of Product A1 and A2 that belong to brand A and 5,000,000 VND of product B1 and B2 that belong to Brand B, that customer will be discounted 500,000 VND and that Trade Expense will be substracted from the distributors that serve that customer.
Apply Volume Rebate Incentive to `Sales Out with Distributor reimbursement` using a `value target` and the rebate as `value decrease` on given `product segment`	If Customers in selected segment match the condition Sales In Trade Expenses = Value Decrease * Achievement Rate %	This event impact is applied per SIMCEL CustomerRef. Example: For Channel 1, if the condition is buy 10,000,000 VND of Brand A, and impact is get 1,000,000 VND discount on Brand B. If a customer that belong to Channel 1 order 22,000,000 VND of Product A1 and A2 that belong to brand A and 5,000,000 VND of product B1 and B2 that belong to Brand B, that customer will be discounted 1,000,000 VND and that Trade Expense will be substracted from the distributors that serve that customer.

Bundle Discount Event

Section	Requirement	Note
Apply Bundle Discount to `Sales In` using a `volume condition` and the impact by setting `% discount` on a `volume of products`	If Distributor in selected segment match the condition Sales In Trade Expenses = Sales In GSV of volume impact products * %Discount * #times condition is met * Achievement Rate %	This event impact is applied per distributor. Example 1: For Distributor 1, if the condition is buy 10 products A, and impact is get 100% off 5 products B. If distributor order 102 Product A and 100 product B, 50 products B will be discounted at 100%. Example 2: For Distributor 1, if the condition is buy 10 products A and 5 products B, and impact is get 10% off 10 products A and 5 products B. If distributor order 102 Product A and 100 product B, 100 Products A and 50 Products B will be discounted at 10%.
Apply Bundle Discount to `Sales Out with Distributor reimbursement` using a `volume condition` and the impact by setting `% discount` on a `volume of products`	If Customers in selected segment match the condition Sales In Trade Expenses = Sales Out GSV of impact products * %Discount * #times condition is met * Achievement Rate %	This event impact is applied per SIMCEL CustomerRef. Example 1: For Channel 1, if the condition is buy 10 products A, and impact is get 100% off 5 products B. If a customer that belong to Channel 1 order 102 Product A and 100 product B, 50 products B will be discounted at 100% and that Trade Expense will be substracted from the distributors that serve that customer. Example 2: E.g., For Channel 1, if the condition is buy 10 products A and 5 products B, and impact is get 10% off 10 products A and 5 products B. If a customer that belongs to Channel 1 order 102 Product A and 100 product B, 100 Products A and 50 Products B will be discounted at 10% and that Trade Expense will be substracted from the distributors that serve that customer.