DISTRIBUTORSHIP AGREEMENT FY18 Omron Addendum A Channel Partner Requirements For OCR Partners

2018-02-12

: Microscan Fy18 Omron Addendum A Channel Partner Requirements For Ocr Partners FY18 Omron Addendum A Channel Partner Requirements for OCR Partners 2018-partner-agreement PartnerNews PartnerSite 69742 RecycleBin

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ADDENDUM A.
(from Omron Distributor Agreement)
Omron Microscan (OCR)
CHANNEL DISTRIBUTION PARTNER
Authorizations, Requirements, Expectations and Incentives
OCR Tier Summary: An OCR channel partner is expected to be engaged at most every level of business and in all
authorized markets. There is a strong AE/OSR engagement, minimal line card conflict in the machine vision (MV),
bar code (ID) and verification product category (LVS), with consistent business planning activities that are
meaningful and productive. NOTE: (For FY18 (April 1, 2018 to March 31, 2019), the following addendum will serve
as a starting point during the transition and evolution of Omron’s and Microscan’s Advanced Sensing Technologies.
At this time, only products previously offered by Microscan Systems are included in the OCR addendum.)
Two levels (Elite and Select) are offered in the Microscan partner program. Each level has specific discount
(multiplier) levels listed in the table below. Qualification for each level will be monitored and adjusted yearly by
Omron Sales and Channel team based on channel partner meeting the expectations defined in this addendum.
A brief summary of the two levels and starting expectations are:
• ELITE
The core OCR lines (MV, ID and LVS) will be technically supported throughout the various stages
of the sales process including design, proof of concept, BOM development, install and post-sales
support including trouble shooting.
Demo equipment requirements as defined in this addendum will be acquired and maintained
locally.
Continued training of local personnel and customers to maintain certifications.
Will not carry defined competitive lines that directly compete with the current product offering
in MV, ID and LVS which are defined in Section 1B . For FY18, a grace period will be granted to
legacy Microscan Channel partners to take the needed actions for compliance.
• SELECT
Choice of MV or ID product authorization with the option to include LVS product.
▪ An LVS only option is also available
For the chosen technology, channel partner is expected to technically support throughout the
various stages of the sales process including design, proof of concept, BOM development, install
and post-sales support including trouble shooting.
Demo equipment requirements as defined in this addendum are expected to be achieved and
available for the defined Area of Primary Responsibility (APR)
Omron will be the #1 supplier in the specific technology chosen. For FY18, if not currently #1, a
path to attain #1 status will need to be mutually established by local Sales and Channel
leadership.
POS: Mandatory for all Distributor partners and to be sent to Budde Marketing by the 5th of every month in
accordance with Exhibit C of Omron Distribution agreement. oeipos@buddemarketing.com.
OCR Distribution Agreement Addendum – Rev 12-29-2017
2
Discount Schedule (NOTE: The table below is an approximation of what will be made available March 1,, 2018.
It is provided as a reference to better explain the proposed differences in the various Levels)
Partner Level
Multipliers, not Discounts per Product Line
Summary Requirements
MV (Includes all
MV H/W & S/W)
LVS** (Off Line &
Optional In-Line)
Accessories
Elite Partner
BEST (.54)
BEST (.65)
BEST (.75)
Required demo gear for level****
Highest OMRON commitment / $$$
Highly trained product specialist(s)/AE(s)
Training on all lines; MV/ID lab
Select Partner
Select-MV
(.61)
(.85) ***
(.80)
Required demo gear for level ****
Lower annual target $$
Trained product specialist/AE
Training on product lines of focus
Select-ID
(.66)
(.85)***
(.80)
Select-LVS
(.85)
(.65)
(.80)
*The ID line includes access to MicroHAWK smart cameras with AutoVISION s/w at the same discount levels as other ID products
**Base LVS line includes all LVS 95xx Off Line Verifiers. Optional LVS 75xx In-Line Verification systems available under special authorization
***Select-MV and Select-ID partners have access to LVS line at a transactional discount but can be fully authorized if trained and get demo gear
**** Min initial investment depends on options selected and MV/ID lab equipment already available
***** Minus (-X%) for Select partners indicates higher pricing (by X%) compared to an Elite partner’s pricing
1. Local Engagement
A. Business Planning
Note: The above will be integrated as part of requirements for current Omron Tier 1 and Tier 2 channel
partners.
Planning
Expectations for Elite & Select OCR Partners
Channel
Omron
Duration
In-Person
Frequency
Participants
Who
(Est)
Or Phone
Annual Bus Plan.
(All Levels)
•Joint planning at beginning of Omron FY
•Sales Mgr
•RSM
2 Hours
In-Person
•Written plans by Market, Key/Targets & Product Categories
•Senior Mgr(s)
•ASSM
@ Channel Partner
•Key personnel identified (AE & OSRs)
•Principals*
•CDM*
•Key/Target Accounts Shared & AM Territory Maps
•Define Distributor APR, Individual Market Designations
Business
Engagement
ELITE
Quarterly
SELECT
2-3 times per
fiscal year
•Monthly Review (see below details)
•Sales Mgr
•ASSM
2 Hours
In-Person
•Marketing Update
•Senior Mgr(s)
•CDM*
@ Channel Partner
•Lead Generation
•Principals*
*OSRs*
•RSM*
•Training and other mutual activities*
•AMs*
•Co-Op incentive status
•Staffing compliance review (Self-Sufficiency section)
•Use of Omron Tools Review / Analysis
•Written recovery plan if sales < LY 3 consecutive months
•Measure monthly progress toward goals
•Sales Mgr
•ASSM
30 min
•Review POP vs POS Trend
•OSRs*
•RSMs*
•Sales Funnel Review with Actionable Items (both parties)
•Consistent follow-through of actionable items
•Funnel info updated by sales teams prior to meeting
*As appropriate.
ASSM- Advanced Sensing Sales Manager.
Sales & Funnel
Reviews
ELITE- Monthly
SELECT-bi Monthly
Conference call or
in person
OCR Distribution Agreement Addendum – Rev 12-29-2017
3
B. Linecard / Brand Loyalty Commitment
• OMRON is expected to be the partner’s #1 supplier for the product lines selected (i.e. machine vision,
autoID or verification).
• ELITE: OCR partners are expected to not carry, or have a plan on how to ultimately not carry,
directly competitive machine vision, industrial barcode reading, and barcode verification
products (i.e. Cognex, Keyence, Datalogic, Sick).
SELECT: Omron will be the #1 supplier in the specific technology chosen. For FY18, if not
currently #1, a path to attain #1 status will need to be mutually established by local Sales and
Channel leadership.
2. Self Sufficiency
A. Application Engineers (AE) Requirements
Definitions:
• Standard AE: Technical Resource (Product Champion, Product Specialist) without direct account
responsibility that provides training, pre- and post-sales efforts in support of all OCR products sold
through the distribution partner. Must fulfill all training requirements of “Trained Staff”.
• Dedicated AE: Same as above with a commitment of >50% of their efforts supporting machine vision and
bar code reading applications with a compensation incentive tied directly to Omron strategic growth.
Elite partners need to have a minimum of one Dedicated AE who is appropriately trained on the Core OCR product
lines.
Compliance of proper staffing will be monitored on a quarterly basis. The local Omron Sales Manager will have
final authority on compliance with AE staffing requirements.
Requirement Notes:
• AE staffing requirement is for EACH regional market the distributor is authorized to sell Omron OCR.
• Limitations on the max size of market that an AE supports (geography & revenues) will be set by Omron
RSM.
• In the event of AE termination, a grace period of 120 days is granted to hire a replacement & fulfill
training
• When in question, Omron reserves the right to determine appropriate designation of what qualifies as a
Standard or Dedicated AE and the proper regional market size.
B. Outside Sales Rep (OSR) Engagement
OCR 3yr
Revenue
Average
# of
OSRs
OCR Channel Partner Expectations
Baseline
1
Elite:
• The # required OSR(s) activity is primarily centered around, or involves OMRON OCR solutions
(>50% of sales activity)
• Active communication and joint efforts with local OMRON AM and OCR Specialist are
established including monthly funnel reviews and activity planning
Select:
• The # required OSR(s) activity is met with minor exceptions and engagement with OMRON is
sufficient (>25% of sales activity)
• Joint efforts exist with local OMRON AM and OCR Specialist including quarterly reviews
>$ 500K
2
> $1.5 M
3
OCR Distribution Agreement Addendum – Rev 12-29-2017
4
NOTE: Engagement is a collective assessment by Omron and Channel personnel about Distributor’s OSRs
focus and commitment to the Omron OCR product line.
C. OCR Trained Staff
The expectations below are designed to cover the minimum OCR specific Training Requirements in a given
year. This is expected to change on an annual basis. Additional basic level courses and / or courses for new
products and technology may be added as needed throughout the year.
OCR Channel Partner Training Requirements
(The #s below represent mandatory annual quantities)
Required if LVS 75xx line is selected
Minimum OCR
Webinar
Participation
Elite/Select
OCR E-
Learning
(Options
provided at
business
planning)
Elite/Select
OCR Boot
camps
(On site at
partner)
OCR Boot
Camps
(At OMRON HQ
or POC
locations)
LVS 75xx
Hands-On
Training
(at OMRON HQ
or other regional
location TBD)
LVS 75xx
Installation
training
(at OMRON HQ
or other regional
location TBD)
Outside
Sales
2 / 1
2 / 1
Elite: 1/year
mandatory and
for all new
authorizations
Select: On
request basis
and for all new
authorizations
Available for
new hires with
approval
Hands-on
training must be
completed by at
least one sales
and one
technical
resources to
receive
authorization
Must have a technical
resource trained and
certified for LVS-75xx
installation and
support. OCR
installation personnel
will supervise first
installation.
Inside Sales
2 / 1
2 / 1
Standard AE
2 / 1
2 / 1
Dedicated
AE (Elite)
2 / -
2 / -
NOTE: The number of training opportunities available exceed the minimum requirements listed above. Training options to be
identified and expectations set during the Annual Business Planning Session and reviewed during Quarterly reviews.
D. Availability of Demo Equipment
Based on the products sold per location, OCR partners will need to minimally possess the following
maintained and up to date demonstration equipment.
Elite
Select (Requirements apply to selected lines of focus)
AutoID
MicroHAWK ID demo kit with at least one each of ID-
40, ID-30, ID-20 configurations.
At least one QX-8x0 demo unit OR MS-3 demo unit
At least one HS-360X OR HS-41X handheld
MicroHAWK ID demo kit with one each of
ID-40, ID-30 and ID-20 configurations
One QX-8x0 demo unit OR MS-3 demo unit
One HS-360X OR HS-41X handheld
Machine Vision
Dual boot licenses for all MicroHAWK ID demo units
At least one HAWK MV 4000 smart camera OR a GigE
camera and Visionscape software demo kit
Dual boot licenses for all MicroHAWK ID demo units
One HAWK MV 4000 smart camera OR a GigE camera
and Visionscape software demo kit
Verification
At least one LVS 9510 or LVS 9585 handheld
One LVS 75xx if authorized for and trained on
optional LVS 7510 in-line verification line
One LVS 9510 or LVS 9585 handheld
One LVS 75xx if authorized for and trained on optional
LVS 7510 in-line verification line
Accessories
Full MV/ID application evaluation lab required
including a good collection of NERLITE MV lights and
lenses.
Appropriate list of accessories for selected product lines
of focus
Min initial
Investment
~$15,000 depending on options selected and
machine vision lab equipment already available
~$5,000 per line depending on lines and options
selected
~$6,000 additional if OPTIONAL LVS-7510 in-line verification/Print Inspection line is selected
List of recommended demo gear bundles and corresponding part numbers is provided in Appendix B.
OCR Distribution Agreement Addendum – Rev 12-29-2017
5
E. Use of Omron Tools
▪ Use of EDI and Portal for POs on 90% of transactions
▪ For order entry and price & availability requests
▪ Proper use of Technical Support Group (TSG)
▪ Metrics to be added throughout FY18
▪ Use of MyDashboard and Onset for obtaining product and pricing information.
▪ Metrics to be developed throughout FY18
3. OCR Channel Partner Additional Programs
A. Special Price Requests
▪ Available for defined Key and Target accounts
▪ Dependent on level of detail provided and local market conditions.
▪ Beginning April 1, 2018, all business transactions will be conducted per standard Omron Customer Care
and via the Omron portal.
B. Marketing
▪ Support of local efforts to create awareness of OCR capabilities with partner’s end customers.
o Must perform outbound commercial marketing activities.
▪ Top priority for leads generated in local market
o Must report information on the status and quality of qualified leads provided on a quarterly
basis.
▪ Omron Website listings
o OMRON Microscan products on partner’s website(s) and/or manufacturer line cards.
▪ OCR focused customer facing event(s) per year with support of Omron
o ELITE – two
o SELECT- one
C. Stock Rotations
▪ Stocking requirements and stock rotation options to be established during fiscal 2018. Currently,
Microscan product will NOT be available for stock a rotation, which is consistent with the previous
Microscan program.
OCR Distribution Agreement Addendum – Rev 12-29-2017
6
4. Incentive Programs
OMRON offers several incentives for maintaining Partner Level requirements, which include a Co-op program.
Our goal is to provide incentives in multiple business areas of our mutual engagement to increase the value
our channel partners realize in being an authorized Omron distributor. Below is an update of the
incentives being offered for maintaining the ELITE or SELECT Partner Level requirements for FY18.
A. Co-op Growth Target Attainment
Local promotion is vital for mutual growth. To help fund initiatives to grow Omron’s business, Co-op funds will
be offered to ELITE & SELECT OCR channel partners. We believe the availability of these funds will create
additional visibility within your organization for the value of working with Omron and reinvestment in the
relationship.
To ensure a fair and accurate program for FY18, the % of funds will be calculated on actual shipments
throughout the year. Standard program practice is to pay based on Year over Year growth.
Program key components:
• A step function % of OCR purchases based on the chart below.
Microscan purchases from April 1, 2017 to March 31, 2018
From To % Max Payout Level
1$ 250,000$ 0.50% 1,250$ Elite / Select
251,000$ 500,000$ 0.75% 3,750$ Elite / Select
501,000$ 750,000$ 1.00% 7,500$ Elite / Select
751,000$ 1,000,000$ 1.25% 12,500$ Elite Only
• Changes in the % will revert to dollar one (Payout example shown below).
Example Co-
op Payouts
Cumlative
Purchases
Co-op % Co-op Earned
Net Co-op
paid in the
Quarter
Q1 $125,500 0.50% 628$ 628$
Q2 $230,000 0.50% 1,150$ 523$
Q3 $410,800 0.75% 3,081$ 1,931$
Q4 Finish $610,600 1.00% 6,106$ 3,025$
• Payouts for both levels will be made available on a quarterly basis in FY18.
o For current Omron distributors, earnings will be added to their overall co-op ledger and are not
restricted solely to OAT initiatives.
o All Co-op funds will be issued as a credit to the Distributor’s account.
• Time Frame
o Funds earned through Q3 need to be spent by March 31, 2019
o Funds earned in Q4 need to be spent by June 30, 2019
OCR Distribution Agreement Addendum – Rev 12-29-2017
7
General Guidelines for Co-op Funds:
• Omron desires to have a flexible Co-op program that our channel partners value. Earnings can be
used to purchase Omron Demo Equipment, fund customer trainings, develop marketing campaigns,
create joint branded merchandise, and similar business development activities. In addition, with
approval from the Omron VP of Sales, jointly funded personnel will be considered as an option for use
of funds.
• Based on feedback from partners and sales leaders, below are areas we have added additional
structure and clarification. For FY18, activities not covered below will be reimbursed from 50% to
100% depending on the type activity and the total amount of funds to be used. Final decision for any
discrepancies will be made by the Omron Director of Channel.
OCR Demo Equipment (exact discounts may be subject to change before final draft)
o (Note: Co-op funds may NOT be used to purchase Omron Product for immediate resale, but
may be used to purchase product for permanent displays.
OCR Level Equipment
Accessories
used for
Demo
purposes.
Nerlite and
Handhelds
Barcode
Verification
Kits (with
Vision
HAWK)
LVS-95XX
Barcode
Verifiers
HAWK MV-
4000
Cameras
HAWK MV
4000
Accessories
ELITE 25% 15% 10% 20% 20% 20% 15%
SELECT* 25% 10% 10% 20% 20% 20% 10%
* Resctricted to specific technology authorized for (MV, ID or LVS).
Example: Select Partner demo purchase:
Part# Desc List Price
Select Level
Multiplier
Demo
Discount
Demo
Multiplier
Demo Cost
SLN-000036 ID/MV-30 $3,168 0.61 25% 0.4575 $1,449.36
Exceptions to Equipment Demo Discount
Discount from Standard Multiplier for Demo Purposes
o NOTE: Prior to reimbursement, the distributor must first purchase the parts via the Omron
Portal. Once the invoice is received, send it with the Approval Form to the email address
specified in the Approval form.
Joint branded marketing promotions and apparel
• Omron guidelines must be followed when displaying the Omron logo
• Design must be submitted for compliance before being approved.
• Promotions reimbursed up to 100% depending on number of other vendors promoted.
• Apparel reimbursed up to 50% assuming Omron is only vendor promoted.
• For items purchased from the Omron Promotions Store- store.omron247.com , the
maximum percent to be reimbursed is 50% .
OCR Distribution Agreement Addendum – Rev 12-29-2017
8
PROCESS OVERVIEW
1. A Co-op Approval form is to be completed emailed to the local Omron Channel Development
Manager (CDM) prior to the occurrence of the activity or purchase for approval. Sixty (60)
days advanced notice of any events or purchase is preferred.
2. When the expense has been incurred, proof of the expenditure and the approval form are
to be sent to the email on the approval form
3. A request for credit will be issued within 5 business days barring any issues with proper
documentation.
.
B. Marketing Support
i. Preferential positioning in Distributor Locator on Omron’s Website.
ii. Discretionary leads from initiatives from Omron’s Sales Development Group (SDG)
iii. Preferential consideration in Omron’s continual Direct to Distribution conversions.
iv. First consideration for Joint Marketing programs offered throughout the year.
OCR Distribution Agreement Addendum – Rev 12-29-2017
9
Acknowledgement of Omron Channel Partner OCR Platinum requirements with intent to comply.
OCR Product Line
Elite
All OCR core product
lines required for AVP
partners (MV, AID, and
LVS off-line)
Select
One of the three OCR
core product lines must
be selected by SVP
partners as PRIMARY
Machine Vision
Required
YES
Optional
YES/NO __________
Auto ID
Required
YES
Optional
YES/NO __________
LVS 95xx Off Line Verification
Required
YES
Optional
YES/NO __________
LVS 75xx In-Line Verification
Optional
YES/NO ___________
Optional
YES/NO ___________
*Partner level designation is determined by OEI and is re-evaluated annually.
***For Select partners, partner has to select at least one OCR core product line (MV, AutoID or LVS Verification).
***Elite and Select authorized for the basic LVS off-line verification (LVS 95xx) product line, may request
authorization to add the optional in-line verification (LVS 75xx) product line. Additional training and demo gear
requirements apply to the LVS 7510 in-line verification.
DISTRIBUTOR:
By: ______________________________________
Name:
Title:
DATE:
SUPPLIER:
OMRON ELECTRONICS LLC
2895 Greenspoint Pkwy, Ste 100
Hoffman Estates, IL 60169
By: _______________________________________
Name: Mark Binder
Title: Director of Channel Relations
DATE:
OCR Distribution Agreement Addendum – Rev 12-29-2017
10
Appendix A
Business Plan Template
Target completion date: June 2, 2018 or 60 days after execution of Addendum.
OCR Distribution Agreement Addendum – Rev 12-29-2017
11
Appendix B
Recommended Demo Equipment Bundles
Product Line
Part Number
Description
AutoID
Industrial laser
scanner &
accessories
FIS-0830-1004G
QX-830, Industrial Barcode Reader, Raster Line, Low Density, Serial+Ethernet
97-000012-01
Power Supply, 100-240VAC, +24VDC, M12 12-Pin Socket
61-000163-03
QX Cordset, Host, Ethernet, M12 8-Pin Plug (Screw-On)-to-RJ45, 3 m.
AutoID
DPM handheld.
Select one
HS-360X (TBD)
New Generation industrially hardened handheld DPM reader – Wired (USB)
HS-360X (TBD)
New Generation industrially hardened handheld DPM reader – Wireless
(Bluetooth)
FIS-HS41X-0001G
HS-41X Handheld DPM Reader USB 6 ft. Straight Cable
FIS-HS51X-0002G
HS-51X Wireless Handheld Reader with Battery Bluetooth Charging Base USB Cable
AutoID
MicroHAWK
Demo kit
98-9000039-03
MicroHAWK demo kit.
Contains mounting blocks, power supplies, cables, test cards, Demo Kit Setup
Guide, and demo kit carrying case. MicroHAWK units below sold separately.
7211-1102-0000
MICROHAWK,ID-20,WVGA,SD,102MM,RED
AutoID
Select these if
signing up for
AutoID ONLY
7312-2000-1005
ID/MV-30, SXGA, HD, Autofocus, Red LEDs, X-Mode
7412-2000-1005
ID/MV-40, SXGA, HD, Autofocus, Red LEDs, X-Mode
AutoID/MV
Select these if
signing up for
both ID & MV
SLN-0000036
ID/MV-30, SXGA, HD, Autofocus, White LEDs, Full ID/MV License Set, Cable/Mount,
Dual Boot
SLN-0000037
ID/MV-40, SXGA, HD, Autofocus, White LEDs, Full ID/MV License Set,
Cable/PS/Mount, Dual Boot
Machine Vision
HAWK 4000
demo kit
8113-1160-0104
HAWK MV-4000-20 Kit, AV+VS+VERIF/OCV, 16MM STANDARD LENS, IP COVER,
UNIVERSAL MOUNT. 2MP.
Machine Vision
GigE cameras &
Visionscape S/W
option
98-000222-01
VS GigE Camera, 5 MP Mono, CMGC50, 2592x1944 Pixels, CMOS
98-000138-01
VS GigE Camera Power Supply, 24V, U.S./Euro/UK
GMV-VGL0-1DD1
VS GigE License Key with Intellifind & DIVs
98-000258-01
Lens 16 mm F/1.4-16, Front Thread 27 mm P 0.5 mm, 2/3 in. C-Mount
98-000140-01
Single Port GigE Network Interface Card PCIe
Machine Vision
Sample NERLITE
lighting options
NER-011660211G
Smart Series MAX Wide, 100 mm, White, M12 Connector
98-000228-01
Smart Series Pharmalite, 60°, Dark Field, White, M12 Connector
NER-011660610G
Smart Series DOAL, 75 mm, White, M12 Connector
NER-011660910G
Smart Series Ring, 70 mm, White, M12 Connector
NER-011659510G
NERLITE 100x100 mm, White, Backlight, 24V Continuous, 150 mm, Cable M12
NER-011600041
NERLITE DF-150-1, White, Diffuse, Dark Field, 24V Continuous, Open-End Cable
97-000006-01
DSP100, 24VDC, 4.2A DIN Mount Power Supply (NERLITE power supply)
Verification
(Off Line)
Select one
9585-DPM
LVS-9585 Handheld 1D 2D & DPM Barcode Verification
9510-5-4.5
LVS-9510 off-line tabletop Verifier 4.5 FOV
Verification (In-
Line) Optional –
Required if
authorized
7510P-5-ZT610-
300DPI*
LVS-7510-5-ZT610-300DPI, INTEGRATED W/Zebra ZT610 300 DPI PRINTER

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